Germany seeks increased regulations to bolster controlled marketplaces
The upcoming Gaming in Germany Conference, scheduled for November 11, 2025, will see a host of discussions surrounding the country's gambling industry. At the heart of these discussions are the proposed changes to Germany's gambling laws, which aim to strengthen the market's resilience to offshore incursions and tackle the black market[1].
These changes, part of the broader review of the 2021 State Gambling Treaty, seek to tighten regulations and increase player protection[1]. A key aspect of these reforms is the increased focus on IP blocking and international collaboration.
However, there is a significant disagreement between the regulator (GGL) and stakeholders regarding the exact figures for channelization—the share of betting volume moving from the black market to the legal, regulated market. Stakeholders contend that channelization numbers, which are critical to assessing the effectiveness of regulation, are subject to controversy and debate, particularly around the market share of offshore operators versus those licensed in Germany[1].
This dispute impacts regulatory approaches to IP blocking, which is intended to restrict access to unlicensed gambling operators from abroad. The GGL, however, has dismissed claims about the rate of channelization, arguing that the methodology used to come up with the number was flawed[1].
Matej Novota, Head of Casino Research, has stated that effective IP blocking in Germany will not improve channelization due to consumers preferring offshore casinos over the licensed market[1].
Under the proposed changes, the regulator would be able to issue IP blocks to restrict offshore operators' access to German IPs. This could potentially boost the regulator's powers and make regulated operators more attractive. The GGL could potentially be more effective in raising red flags over operators that target the local market without permission through closer cooperation with international regulators[1].
The proposed changes also allow the GGL to collaborate with international regulators to assess the eligibility of brands or operators based on their overseas counterparts' experience. Closer cooperation with international regulators could help the GGL in licensing new companies more efficiently[1].
However, the use of IP blocks has been heavily criticized as it could potentially impact legitimate businesses. The regulator's ability to issue IP blocks would need to be used sparingly, and the regulator would need to collaborate with intermediary services, such as an ISP, to enforce a blocking measure[1].
Despite these concerns, the changes are set to be passed by December 31, 2026. The Conference of Interior Ministers is where these changes are being discussed[1]. The upcoming Gaming in Germany Conference will undoubtedly provide a platform for stakeholders to air their views and engage in a constructive dialogue about the proposed changes and the best regulatory path forward for Germany's online gambling market.
[1] Source: Independent industry research and conference materials.
- The discussions surrounding the gambling industry at the Gaming in Germany Conference will likely delve into the impact of the proposed changes to Germany's gambling laws on offshore casinos, as Matej Novota, Head of Casino Research, suggests that effective IP blocking will not improve channelization due to consumers preferring offshore casinos over the licensed market.
- The proposed changes to Germany's gambling laws aim to strengthen the market's resilience to offshore incursions, with the regulator (GGL) planning to issue IP blocks to restrict access to unlicensed gambling operators from abroad. However, the use of IP blocks has been heavily criticized as it could potentially impact legitimate businesses.
