Oddset Sportwetten, a German online and retail sports betting operator, has become a part of the Deutscher Sportwettenverband (DSWV), the German sports betting association. The former party joined the association with immediate effect on December 1 and will work with like-minded companies to promote legal and responsible gambling across the country.

As a member of the DSWV, Oddset will be responsible for protecting players and joining the war on illegal marketing – two very hot topics in Germany at the moment. For reference, the country continues to have serious problems with black market operators and is working hard to channel players toward the legal alternative.

By joining the association, Oddset will become a part of a family that includes companies such as Bet365, Betway, bwin and Tipico, among others. The DSWV is firmly committed to protecting the sector and ensuring its integrity while promoting legal betting across the country.

The DSWV was founded in 2014 to represent the sports betting industry and mediate between the betting sector, the government and the public.

Germany Struggles with the Black Market

Germany continues to struggle with unlicensed operators which continue to occupy a large market share. According to a recent study, a whopping 50% of the gambling in Germany occurs on unlicensed sites.

Commissioned by the German iGaming association (DOCV) and the DSWV, and conducted conducted by economist Gunther Schnabl from the University of Leipzig, the survey raised concerns about the efficacy of Germany’s online gambling regulations.

In addition, a recent Gambling Atlas report revealed that 7.7% of German adults experience gambling-related problems that cause them social and financial stress. In addition, the report showed that 3.3 million Germans are at risk of gambling addiction.

In the meantime, the gambling powerhouse Entain just commented on the results of the former study, critiquing the inefficiency of Germany’s iGaming regulations.

The post Germany’s DSWV Welcomes Oddset as Its Latest Member appeared first on Keno Wizard.

The German association of sports betting providers, Deutsche Sportwettenverband (DSWV), released a new statement, criticizing media reports that misinterpreted results from a 2021 Gambling Survey. In particular, the DSWV was critical of the representation of the number of people, identified as problem gamblers. The announcement comes after multiple media outlets released reports related to the gambling probe, claiming that the number of people affected by problem gambling in Germany grew from 400,000 to 1.4 million with the entry of Germany’s Interstate Gambling Treaty in 2021. The DSWV rejected those claims, stating that such a conclusion is not possible.

Mathias Dahms, DSWV’s president, explained that the association welcomes discussions that are based on accurate facts and data, regarding gambling behavior in the country. However, he explained that comparisons and derivations can be made only when the used data can be verified. “The evaluation of the State Treaty planned for the end of 2026 must take into account the experience of all stakeholders,” explains Dahms.

“The DSWV welcomes a data- and fact-based discussion on gaming behavior in Germany. However, the derivations must be conclusive and based on verified facts.“

Mathias Dahms, president of the DSWV

The 2021 Gambling Study Marked a Starting Point

Citing data from prevalence studies from the Federal Center for Health Education (BZgA), the DSWV explained that the “number of people with problem gambling behavior to be stable or slightly declining.” The association confirmed that in 2021, the methodology for collecting this data was changed and the Gambling Survey at the time, marked the first measurement by the Institute for Interdisciplinary Addiction and Drug Research (ISD).

“The 2021 Survey attempts to provide a starting point for recording the effects of the new legal regulations – in a sense, a zero measurement at the time the State Gambling Treaty 2021 comes into force. Therefore, reliable conclusions about the effects of the Interstate Treaty are not possible on the basis of this survey,“

explains the DSWV

Researchers at the time confirmed that this “methodology reboot” makes the newly collected data compatible with previous figures only to a limited extent. This, in other words, means that a like-for-like comparison between the aforementioned study with studies from previous years isn’t possible and if such assumptions were made by different media outlets, they would be misleading.

The DSWV acknowledged that the 2021 survey was rather a starting point. Finally, the association said that reliable conclusions on the effect of the 2021 Interstate Treaty on Gambling based on this survey in comparison to older surveys cannot be made.

The post Germany: DSWV Flags Incorrect Assumptions about Problem Gambling appeared first on Keno Wizard.

The German Sports Betting Association (DSWV) published a press release on its website, criticizing the market figures, sources and methodology used by the German Head Office for Addiction (DHS) in its article, Yearbook Addiction 2023.

Incorrect Market Size Calculation

The DSWV states that the DHS uses incorrect figures as per the sports betting market size in Germany in 2021, putting up total sales at €18.3 billion ($19.9 million), translating to an increase of 409.6% year-over-year, while the market totaled €9.4 billion ($10.2 billion) in wagers, or an increase of 21%.

The DSWV was provoked to inform the public that Yearbook Addiction 2023 was based on incorrect figures after informing the DHS about the correct method of calculation did not change the figures the DHS used to calculate the 2021 market size in the revised version of its article.

Prof. Dr. Gerhard Meyer from the Health & Society Department of the Institute for Public Health and Nursing Research at the University of Bremen used gross gaming revenue (GGR) of €1.3 billion ($1.4 billion), as well as a payout rate of 93%, using the incorrect sales figures and comparisons drawn from questionable sources, fussballwetten.com, sportwettentest.net and wettProvider.de.

Elaborating on its claims about the dubious nature of the websites used by the DHS, the DSWV points to the anonymity behind these websites and the incomplete nature of the data they provide.

Furthermore, fussballwetten.com advertises gambling, which is illegal in Germany, and ranks only illegal operators in its top ten betting providers list. The website even suggests that a Curaçao license is enough for legally accepting bets in Germany, working against the legal market.

As for the payout percentage, the DSWV claims that data used by the DHS that was derived by sportwettentest.net and wettProvider.de is incomplete as payouts generally vary based on numerous factors, including the level of competition, taxes, provider’s cost structure and willingness to take risks, and the behavior of players on the market.

Online vs Retail, Combined vs Single Bets

To prove its point, the betting association points to the difference between the payout rates online and in retail, with the latter usually being well below those in betting shops, as well as the different payouts based on the type of dominating bets for each bookmaker since customers placing combined wagers tend to lose more than those wagering on a single event.

Adding the high tax burden of 5.3% on each bet in Germany, the association concludes that the payout rate of 93% used by the DHS in the calculations is not realistic, and expresses its concerns that the University of Bremen reverts to using data from such unreliable sources for its scientific work.

As a staunch defender of the legal market, the DSWV demands again that the DHS and Prof. Dr. Meyer correct their article and calculate the market size according to data published by the Federal Ministry of Finance based on the 5.3% tax on stakes and where 95% of the payments come from regulated providers.

The post DSWV Criticizes the German Head Office for Addiction appeared first on Keno Wizard.

Germany continues to be plagued by illegal gambling operators, resulting in lower revenues from the licensed gaming verticals. This is a serious problem that the European country has been struggling for a while with.

According to the German Sports Betting Association (Deutsche Sportwettenverband/DSWV), legal sports betting declined in 2022 in spite of the FIFA World Cup which bolstered operators’ revenues in other markets. On the contrary, German companies saw revenues plummet, causing serious concerns for the future of legal gambling in the country.

German sportsbooks earned $8.7 billion (converted from Euro, current rates) in 2022, which represents a 13% year-on-year decline from the $10 billion it earned the prior year. State revenues from sports betting tax also declined correspondingly to around $460 million.

Tight Regulations Are to Blame, the DSWV Says

The DSWV attributed the suboptimal results to Germany being knocked out of the World Cup in the early stages and the repressive market regulations. In its efforts to protect customers from gambling harm, Germany has created a rule set that makes it hard for operators to remain sustainable.

In addition, the regulations have channeled some players toward the black market. According to the DSWV, the regulations are not helping people save money. Instead, people are gambling the same amounts elsewhere. This is confirmed by recent studies that show a steep 65% rise in illegal gambling activity.

Another problem is that the legal German market is not known for its diverse products. While it offers quite a few sports betting sites, most of them offer a limited types of markets. In addition, customers do not have much choice when it comes to slots, poker and online casino games either.

Mathias Dahms, president of the DSWV, said:

For most customers, whether a provider has a permit from Germany is secondary. They are looking for the most comprehensive offer, the best odds, uncomplicated payment processes and interesting bonuses. That’s where the legal offers have a hard time.

Mathias Dahms, president, DSWV

Ads Aren’t So Bad, the Union Argues

Another thing that prevents the legal market from being successful is Germany’s strict restrictions on gambling advertisements. Gambling ads are one of the hot topics of the global regulated gambling industry, as many regions are seeking to protect non-gamblers from being bombarded with gambling content.

However, restricting ads has an adverse effect when it comes to existing gamblers, who have no qualms about picking an illegal operator, despite the related risks.

The DSWV noted that many people falsely assume that more ads equal more gamblers. However, certain markets such as the UK and Denmark have proven this notion to be wrong.

Luka Andric, CEO of the DSWV, also commented on the matter. He said that advertising is useful for telling people which sites are legal and provide player protections. Andric highlighted the importance of advertising in a responsible way and preventing self-excluded people from receiving ads.

The DSWV hopes that Germany will be able to strike a balance between protecting its customers and preventing the black market from reigning supreme.

The post Germany’s Strict Gambling Regulations Have an Adverse Effect, DSWV Says appeared first on Keno Wizard.