The German gambling regulator Gemeinsame Glücksspielbehörde der Länder (GGL) is contemplating an overhaul of the online slots approval process following the rejection of nearly 48% of applications reviewed last year for 2023.
In response to numerous applications failing to meet required criteria, GGL issued a list of minimum standards for online slots to game studios and providers last year, resulting in significant delays. Of the 5,703 applications submitted, only 2,509 were reviewed and 1,313 approved.
GGL highlighted that many game studios supplying operators were slow to comply with legislation despite direct communication efforts.
GGL CEO Ronald Benter said: “We are constantly seeking ways to streamline administrative processes. Involving game manufacturers and development studios directly in the application process for individual games could significantly speed up approvals.”
German law mandates that operators submit every game for GGL review, differing from jurisdictions with a B2B licensing regime.
In addition to monitoring the 142 legal providers on its whitelist, GGL approved 39 applications for organizing and mediating cross-border gambling in 2023.
“Most previously illegal gambling providers are now under GGL supervision and must adhere to strict requirements. Non-compliance will lead to regulatory consequences, including license revocation,” Benter added.
The GGL reported a 2% increase in Germany’s regulated gambling market GGR in 2023, reaching €13.7 billion, with around €3 billion (22%) from the online segment.
Operators under GGL’s jurisdiction generated approximately €3.5 billion in GGR in 2023, accounting for 26% of the entire gaming market. Sports betting, the largest segment under GGL, generated €1.8 billion, up €0.4 billion from the previous year. Licensed virtual slot machine and online poker operators generated €0.4 billion in 2023, or 3% of the regulated market.
GGL estimates that the illegal online gaming market generated between €400 million and €600 million in GGR in 2023. The regulator identified 205 operators with 761 German-language websites, down from 843 websites by 207 unregulated entities in 2022.
GGL estimated that the black market accounted for 3-4% of total German GGR. However, focusing only on the online GGR of €3 billion, the black market share increases to 13-20%. A survey by Leipzig University economist Günter Schnabl suggests the black market might be larger, with only 50.7% of gambling in Germany directed to legal offers.
In 2023, GGL processed 438 cases involving suspected illegal gambling or advertising. It reviewed 1,864 websites, initiated prohibition procedures in 133 cases, and terminated services for 63 illegal providers or advertisers. Additionally, 104 criminal applications were submitted to the prosecutor’s office.
Don’t forget to subscribe to our Telegram channel!
