The end of legal limbo: Gamblers in Germany wish for online casinos with a German license despite restrictions
Approval of planned regulation could see the online casino market in Germany grow to 3.3 Bn Euros by 2024.
Berlin, August 03, 2020. More and more gambling is taking place online. The closure of land-based gambling businesses due to coronavirus is just one of many growth factors. The trend towards online gambling will be stimulated further by the licensing of casino sites in Germany.
These are the results of the report ‘Gambling Market in Germany 2020’, conducted by the advisory and research group Goldmedia (www.goldmedia.com) and published with the support from industry platform CasinoOnline.de (www.casinoonline.de). The report presents the recent market developments of the lottery, betting, casino and slot machine sectors up to the year 2019, as well as a market forecast until 2024. The main emphasis within the study is put on online casinos.
New ‘Interstate Treaty on Gambling’ takes online casinos out of the grey area
Online casino operators in Germany who are licensed in another EU country are currently stuck in a legal grey area. As a consequence, player protection can’t always be guaranteed, and the country is losing out on considerable amounts of potential taxes. In March 2020, the German states have therefore agreed to open the market under strict rules for player protection. At the basis of this lies the new Interstate Treaty on Gambling (GlüNeuRegStV), that is currently authorised by the European Commission.
Player protection measures approved by users
Even though the New Interstate Treaty on Gambling envisages stricter player protection measures, than currently are legally requested for online casinos already on the market, the majority of online casino users are happy to embrace further player protection measures: An empiric study of around 400 online casino players has shown that between 56% and 81% approve of the envisaged player protection measures, which include a monthly deposit limit, a fixed maximum stake and technology for early detection of players at risk.
Players would prefer an online casino with a German licence
User surveys, as well as a market simulation, have shown the level of preference of operators licensed in Germany to German players. If given the choice, the vast majority of players (62%) would choose an operator licensed in Germany, despite the regulatory restrictions described in the Interstate Treaty on Gambling. More than a third (38%) would keep playing on websites of operators licensed in another EU country. The decisive factors for those players are, among others, that there are no deposit limits or maximum stakes per game.
Online casinos with a German licence will generate 1.9 Bn Euros by 2024
The forecast of the liberalised market has been made based on expert assessments and on the preferences listed by players. If the new Interstate Treaty on Gambling comes into force as planned in 2021, the gross gambling revenues from operators licensed in Germany could reach 1.9 Bn Euros. The gross gambling revenues from operators licensed in an EU country would therefore be halved to 1.2 Bn Euros during the same time period.
Source: Gambling Market in Germany 2020 report
The report ‘Gambling Market in Germany 2020’ has been conducted by Goldmedia and published with the support of industry platform CasinoOnline.de. It gives an insight into the lottery, betting, casino and slot machine markets in Germany since 2015. Apart from analysing the current market situation and the impacts of the coronavirus pandemic in 2020 on that market, a market forecast up to the year 2024 has been made.
For that purpose numerous interviews with industry experts and insiders from big online gambling operators who are active on the German market have been conducted. Another focus has been put on the legalisation of online casinos scheduled for 2021. User surveys conducted in February 2020 have given an insight into people’s approval of the player protection measures envisaged by the Interstate Treaty on Gambling. This has helped to make a realistic forecast about the gambling market after the legalisation of online casinos. The study therefore includes both the regulated (white) and unregulated (grey) gambling market in Germany.
Gross Gambling Revenue (GGR): the amount retained by gambling operators after the payment of winnings but before the deduction of operation costs.
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Full study including infographics: https://www.casinoonline.de/studie-gluecksspielmarkt-deutschland-2020/
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Goldmedia is an advisory and research group focussed on media, entertainment and telecommunication. The corporate group has been supporting national and international clients with all queries about digital transformation since 1998. Goldmedia offers a broad range of services in general consulting, research and political consulting. Offices are in Berlin, Düsseldorf and London. More information on: https://www.Goldmedia.com
CasinoOnline.de has great expertise and long-term experience within the gambling sector, and is one of the biggest information platforms about online gambling in the German-speaking world. A main focus lies on expert reviews on online casinos, game providers and slot games, as well as on guides for classic casino games. Readers can also find plenty of information on the security aspects and different commonly used deposit and withdrawal methods at online casinos. The site also provides informative news on the global gambling industry, including the land-based gambling business. Contact person for further queries and information, Marcus Dörr: firstname.lastname@example.org