Marking Three Years with a Bold Stride: GGL's 2023 Activity Report
Regulator in Germany Discusses Current Industry Status
Celebrating its third anniversary, the Gemeinsame Glücksspielbehörde der Länder (GGL), or the Common Gambling Regulatory Authority of the States, presented its 2023 activity report during a recent press conference. In the limelight was CEO Ronald Benter, who showcased an array of accomplishments throughout the year.
One of the substantial triumphs was the successful integration of numerous once illicit gambling enterprises into the legal sector, all under the watchful gaze of the GGL.
A Steadfast Crusade Against Illicit Channels
The GGL's unwavering commitment to fostering fair competition seen as a beacon in the industry, with consistent enforcement efforts kicking off 438 suspected illegal gambling or related advertising cases in 2023. A grand total of 1,864 websites was scrutinized, leading to prohibition proceedings in 133 cases. Among said cases, 63 providers ceased illegal operations or advertising, with 104 criminal charges filed against the remaining perpetrators and sent to public prosecutors.
Benter emphasized the severity of non-compliance in the legal sector, as failure to adhere to stringent regulations invariably resulted in penalties, such as license revocations, particularly for those previously brave enough to skirt the law. The emergence of payment blocking as an effective enforcement weapon can attest to this, as most illegal providers found themselves deprived of reputable payment service providers by the year's end. Although technical hurdles delayed the implementation of IP blocking, the regulator is determined to leverage the technique when circumstances allow it.
Bonafide efforts are yielding results, but the battle against the clandestine gambling underworld remains an ongoing saga.
The German Gaming Market's Dynamic Evolution
The German gaming market made a 2% leap in gross gaming revenue (GGR) in 2023, reaching a staggering €13.7 billion ($14.7 billion). Providers affiliated with the GGL accounted for about €3.5 billion ($3.76 billion) of this total, representing about a quarter share of the entire gaming market. The GGL estimated the unauthorized gambling market's GGR to range between €400-600 million, leading to the launch of a study addressing the market channelization process in 2023.
A Steady Pace Toward Balance
Ahead of significant events like the European Championship, the GGL heightened surveillance of sports betting advertising, ensuring the operators remained in strict conformity with regulations. In conjunction with the federal states, the authority designated €1.4 million ($1.5 million) for the backing of three studies in 2023 concerning player protection, advertising, and market channeling.
In light of emerging administrative hurdles, Benter proposed expediting the approval process for virtual slot machines, encouraging the direct involvement of game manufacturers and developer studios. He exhorted all stakeholders to join the evaluation process, insisting that balanced and effective regulation is contingent upon industry-wide collaboration.
We are steadfast to streamline processes. Incorporating the direct input of game manufacturers and developer studios in the application process might speed things up.
While the GGL encounters ongoing challenges, the authority has demonstrated remarkable progress in 2023, setting the stage for continued victories. Its 2023 activity report highlights significant advancements in regulating Germany's gambling market, encompassing efficient enforcement actions, growth in legal gambling revenues, and continuous vigilance to ensure gamblers experience an enjoyable, secure gaming environment.
Insights:
The GGL faces various challenges in regulating the illicit gambling sector:
- Legal and Regulatory Limits:
- The current legal framework constraints, particularly IP blocking measures, remain weak. The updated German Telemedia Act and the EU Digital Services Act need to be accounted for.
- Clarifying ambiguous terms such as "economic capacity" is vital for promoting legal certainty and consumer protection.
- Black Market Obstinacy:
- Despite rigorous enforcement, persistent illegal gambling operators continue to dodge licensing requirements and flout player protection rules.
- It is crucial to ensure that the legal market remains competitive enough to pull players from the black market.
- Cross-border Enforcement Complexity:
- International illegal gambling operators capitalize on inconsistencies in regulations and loopholes between countries.
- The GGL faces challenges in harmonizing regulations across the European Union and advocates for unified European laws and strong action against advertising platforms.
- Sports betting operators in the German market were held accountable by the GGL, with 438 suspected illegal gambling or related advertising cases initiated and 1,864 websites scrutinized.
- The GGL emphasized the importance of adherence to regulations in the sports betting sector, with penalties including license revocations for non-compliant operators.
