The gambling industry is a major player in all countries where it is legal as it is an area of entertainment that many people enjoy partaking in.
Indeed, during the lockdowns, many who were facing hardships resorted to playing at some real money casinos to relax and take an escape from the uncertain times much of the world found itself in. Many love to play at casinos or bet on their favourite sports team, but in Germany, the industry is facing an uncertain future because of regulation. This will come as an upset to those mentioned who enjoy playing online.
In April, the Darmstadt Administrative Court ceased awarding licenses to local operators. As a gambling license is critical for companies to be able to legally offer their services, this understandably came as a blow to the German hambling industry. The situation is emphasised by looking at the figures the decision has wrought. The Hessian Court revealed that over 30 local operators had applied for their gambling licenses, all of which were of course not granted. Crucially, this means that more than 99% of online sports betting activities could not move to the legal gambling market.
DSWV is an association that believes that sports gambling in Germany should have competitive and modern regulation, which is of course now not the case. It claims that businesses, as well as the public, miss out on sporting leagues such as the Bundesliga, which must decline advertising opportunities from a range of gambling sites, consequently earning less revenue. Compare this to other leagues such as the Premier League in the UK, and it is easy to see why the German leagues are falling short in comparison. The Premier League can advertise betting companies and experience increased revenue, which makes them more competitive in the football scene.
There is a further mental effect that stopping the handing out of licenses has had. Some operators see the decision as more than an inconvenience ? it is discouraging. These are companies that had invested time, effort, and even money in preparing their applications to gain a license, all of which were wasted when they found out they could not get one at all. This also affects their potential revenue, which could be much higher with a license.
The black markets that exist in Germany have long been a concern to certain authorities in the country. Recently, to combat this, German regulatory authorities have put forward strict regulations and measures on these black markets. These include things like a minimum stake limit of ?1, live streaming bans on sports betting websites, and delays when switching to other websites. This has of course provoked critical responses across much of the public and the operators themselves, claiming that they do not focus on bettor protection and will lead to a less competitive experience.
The decision the German government has made has caused local operators to face an uncertain future if they cannot get licenses. But as players and operators have been advocating for gambling regulation for some time now, it remains to be seen whether their wish will be fulfilled.
