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The German Vending Machine Industry Association (DAW) has called on the government to rethink its restrictions on slot machines and gaming halls, as police crime statistics show a spike in illegal gambling cases in the country.
Germany’s police crime statistics report (PKS 2024), published last month, revealed 6,247 recorded cases of illegal gambling, an increase of 18.3 percent compared with the previous year, a trend that has been replicated since 2017.
“The numbers speak for themselves,” Georg Stecker, the spokesperson for DAW’s board, said in a statement on Friday (April 4).
“If there isn't a sufficient and up-to-date legal offering, people will turn to the illegal market. Policymakers must not ignore this reality. In addition to consistent enforcement, what is needed above all is a demand-driven, legal gaming offering that meets the needs of consumers to dry up the black market,” Stecker said.
DAW blames the increase in illegal gambling on restrictions on legal gambling offerings and the closure of gambling halls, which it says do not deter gambling.
The association also warns of a lack of consumer protection for black-market players, a lack of tax revenue for the state and a lack of oversight to prevent criminal activity.
The organisation wants a government “rethink in regulation”.
“The German slot machine industry is calling for the regulation of legal gambling to be aligned with the needs of consumers and the goal of a functioning, safe market. The PKS figures clearly show: If you don't want to leave room for the black market, you must enable an attractive legal offering,” DAW said.
Slot machine gaming in gaming halls, bars and restaurants is subject to a wide range of licensing conditions and product restrictions under the Interstate Treaty on Gambling and the federal Trade Regulation Act. These include minimum distance requirements between gaming hall premises, and limits to stakes, payouts and winnings, according to Vixio GamblingCompliance’s Germany Country Report.
Online Gambling Market Facing Similar Dilemma
During a panel discussion on measures to combat illegal gambling hosted by DAW last month, Ronald Benter, CEO of the Joint Gambling Authority of the Federal States (GGL), called for more action against illegal operators and extra powers to tackle illegal gambling.
Benter said a new standard for IP blocking against advertisers should be introduced “as quickly as possible” and reiterated support for a “rapid amendment” to Section 284 of the German Criminal Code to cover illegal providers that are based abroad.
“This would create the legal basis for the state of Saxony-Anhalt to establish a specialised public prosecutor's office in Halle. This would be an important additional tool for effectively combating illegal providers,” the GGL said in a press release on March 13.
The GGL has previously claimed that the online black market accounts for less than 10 percent of German online gambling revenue, while the German Sports Betting Association (DSWV) has estimated the black market to be 50 percent.
What Happens Next?
Although action at a federal level to address restrictions and growing black market concerns is moving slower than many industry stakeholders want, the matter may be addressed.
Over the next two years, the Interstate Treaty on Gambling will be evaluated, and three studies on player protection, gambling advertising and channelisation of players to the legal market will guide future policy.
