DSWV: German sports betting black market “rampant”
Trade body highlights operators offering services without licence as it asks authorities to ramp up channelisation efforts
The German Sports Betting Association (DSWV) has warned against the “rampant” black market developing in the country and has implored politicians to strive towards channelisation.
Speaking at the body’s annual press conference, senior figures at the DSWV confirmed the black market was courting German customers without the required licences.
In February 2022, the DSWV analysed 507 online gambling sites, with 405 of these sites allowing customers from Germany to open a player account.
A further 297 sites were available in Germany and at least 240 offer sports betting.
Luka Andric, DSWV GM, said: “Only 36 providers have a nationwide licence to host these games on the web.
“For every legal provider, there are multiple providers without permission. In the meantime, there are also numerous other websites that evade any control, regulation and taxation.
“There is a risk that a substantial part of the bets placed by German customers will migrate to illegal black market providers,” he added.
Following the survey, DSWV president Mathias Dahms called on authorities to heighten efforts to improve channelisation, with a target of improving the rate before this year’s FIFA World Cup in November.
Dahms said: “By the start of the World Cup at the latest, the gambling supervisory authorities should have ensured that sports betting providers are not allowed to operate in this country or advertise their products without a German permit.
“If this succeeds, an estimated €40m to €50m in additional sports betting tax could be collected during the tournament. We would think it would be good if the countries let this sum benefit popular sport.
“If the channelling of the players to legal offers does not work better in the future, there is a risk of a permanent migration of the players to the black market in addition to the loss of tax revenue,” he added.
Elsewhere, the DSWV confirmed that sports betting had stabilised after the severe impact of Covid-19, with stakes and betting taxes roughly around the same level as 2019.
The DSWV said around €9.4bn had been staked on sports betting, with €470m paid in tax in 2021.