According to German sports betting association Deutsche Sportwettenverband (DSWV), the explosive growth of the black market in Germany requires "an urgent solution". According to the organisation, sports betting stakes fell 13% year-on-year, from €9.2 billion to €8.4 billion, despite the year being dominated by the World Cup. Government revenue from sports betting tax fell by 7.9%, from 470 million euros in 2021 to 433 million euros in 2022. The DSWV explains this trend by the growth of illegal offers, which in turn is a consequence of the legal framework. Most players "are looking for the widest offer, the best listings, easy payment methods and attractive bonuses. And legal offers are having difficulty gaining acceptance in Germany," said the DSWV. Gambling thus becomes an "iceberg market" defined by a shadow sector. Part of the total market is below the water table and thus remains under the radar. This observation should inspire the Belgian government, which has been battling private gambling companies for months.

Increase in illegal gambling offerings

Last February, the DSWV conducted a comprehensive market survey. This showed a 65% increase in active illegal gambling offerings. Of the 1,500 unlicensed sites the agency checked, German consumers were able to visit 840 of them and open 723 accounts. In comparison, there are only 46 licensed providers in Germany, 31 of which offer sports betting. The DSWV argues that these legal entities have very little leeway - due to overly strict regulations in Germany - and therefore often find it difficult to compete with sites that are aggressively developing on the black market.

Virtual Wild West

With limits on the weekly stake per player, compulsory registration of players with authorities (the EPIS control system) and a ban on gambling and sports betting advertising from the end of this year, Justice Minister Vincent Van Quickenborne (Open VLD) is deploying his legislative arsenal with the argument of channelling players. This forgets that illegal operators, invisible actors, are not licensed. They therefore do not have to comply with Belgian legislation (no access to minors, no bonuses, etc.) and do not pay taxes.

It must be said that these decisions are counterproductive in channelling addiction, as illegal offerings are exploding on the web. But any measure restricting the activities of the private gaming and gambling sector, without the minister listening to it, threatens a flight of players to illegal sites, with all the perverse consequences....

 "Dogmatism reigns in an area that requires facts, figures and an open dialogue with operators. The black market is exploding and our politicians are looking the other way. I'll let you guess who will be the victim of this evolution.... yes, that's right: the player!" recalls Tom Stammeleer, Retail Operations Director at Ladbrokes Belgium (Entain group).

Author: Alessandra d'Angelo - Editor in Chief