German regulator Gemeinsame Glücksspielbehörde der Länder (GGL) is disputing claims that illegal online operators have taken a chunk out of Germany’s legal market, causing revenues to drop 13% in a World Cup year.

GGL board member Benjamin Schwanke told Compliance + More in a statement that: “We cannot identify any crowding out of legal offers by illegal offers."

From today's Compliance + More newsletter:

The regulator said its own market analysis proved the channeling rate is “well over 95%”, with less than 5% of bets from Germany going to black market operators.

Lobbyists at the German Sports Betting Association (DSWV) reported gaming stakes falling to €8.2bn last year from the post-Covid recovery of €9.4bn in 2021.

“These findings do not correspond to our own,” said Schwanke.

Germany’s weak showing in the World Cup, the tournament itself being held in a controversial location and the critical attitude of players to Qatar’s human rights positions will all have had an impact on punter behavior, the regulator said.

The DSWV’s calls for a rollback on ad bans and other restrictions was expected, but “the numbers speak a different language”, Schwanke said.

“The regulation has no economic impact.”

“The level of sales at legal betting providers in 2022 will be at the level of previous years,” Schwanke said. “2021 is to be assessed as a special effect. The new rules are made to protect players. That should also be in the interest of betting providers.”
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