Germany’s legal sports betting market—the largest in Europe by GDP—is facing an existential threat from its own regulatory framework, according to a new warning issued by the German Sports Betting Association (DSWV).
At the center of the problem is the State Treaty on Gambling (GlüStV 2021), designed to bring structure and safety to the sector. Instead, the DSWV argues it has created an overly restrictive environment that drives customers to the black market, where better odds, more diverse live betting options, and fewer limitations dominate.
With Germany accounting for a significant portion of the EU’s regulated gambling revenue, the situation is raising alarms far beyond its borders. Operators across Europe are watching closely, concerned that Germany’s regulatory bottleneck may undermine the broader push for harmonized and responsible iGaming across the EU.
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The DSWV’s proposed solutions include:
- Loosening restrictions on legal operators to compete effectively.
- Creating a dedicated prosecution office to target illegal gambling.
- Holding advertising platforms accountable for promoting black-market services.
- Pushing for EU-wide enforcement coordination to stop cross-border illegal operations.
For European stakeholders, the message is clear: without pragmatic reform, even highly regulated markets can become gateways to unlicensed alternatives, undermining tax revenue, consumer protection, and public trust.
