Entain Plc, a prominent player in the global gaming industry, endorsed the findings of a study commissioned by the German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV), highlighting the significant presence of black-market operators in Germany. The operator noted that current regulations disincentivized consumers from engaging with regulated gambling companies, contributing to substantial regional losses.
Unlicensed Operators Hurt the Regulated Market
According to the University of Leipzig report, only about 50.7% of players were channeled towards licensed online gambling spaces, while approximately 28.9% of traffic headed to unlicensed EU providers and 19.9% to unlicensed offshore providers. The study estimated that the unregulated online gambling market generates three-quarters of the revenue, resulting in significant tax revenue losses.
Germany’s regulatory deficiencies have also been detrimental to operators, as the aftermath of the State Treaty on Gambling in Germany included a visible shift of players towards illegal providers due to access barriers imposed by the current regulations. The operator has since experienced a significant decline in recorded sales and has been a vocal advocate for more effective enforcement efforts.
When looking at individual gaming behavior, it becomes clear that players are obviously switching to illegal providers and continuing to play there.
Grainne Hurst, Entain Group Director of Corporate Affairs
Entain operates Bwin, one of Gernamy’s top three online sportsbooks, and maintains an impressive presence among many European jurisdictions. While the Old Continent is infamous for its diverse regulatory environment, the company noted that current German regulations were among the most restrictive, significantly limiting competitiveness with grey market entities.
Entain Offered to Collaborate with Lawmakers
During an interview with GamesundBusiness.de, Entain Group Director of Corporate Affairs Grainne Hurst stressed the necessity for regulatory amendments to enhance player protection and make legal gaming offers more appealing. She reiterated that proper implementation of regulations could effectively redirect players towards legal platforms and reduce the appeal of unlicensed operators.
Entain also criticized German regulator Glücksspiel (GGL) for its lacking methodology, which only recorded a 2-4% share of illegal gambling activity. The operator expressed willingness to engage in discussions with the GGL to help foster improved player protections in Germany and encourage a fair, sustainable, and player-focused market.
Entain is making great efforts in Germany to ensure that implementation is now consistently geared towards the best possible player protection with appropriate channeling.
Grainne Hurst, Entain Group Director of Corporate Affairs
While Entain’s stance against illegal operators in Germany is commendable, the company remains primarily motivated by the impact of such activities on its bottom line. Increased competitiveness with unlicensed entities would significantly bolster its regional presence and signify a milestone achievement. A victory in Germany should also alleviate the company’s ongoing troubles and improve investor confidence.