Germany's gambling regulator, the Glücksspielbehörde (GGL), has issued a stern warning to consumers, clarifying that "social betting platforms" are not permitted under German law. This alert comes as a direct response to a rise in media reports concerning "entertainment-type bets" being placed on the outcome of the Ukraine war.
The core of the issue lies with what are known as "event contracts," which are offered by prediction-based platforms such as Polymarket. The GGL has been forced to remind consumers that these wagers, which cover news and entertainment markets, are not compatible with the country's legal framework, specifically the Fourth Interstate Gambling Market (GlüNeuRStv) and the Gambling State Treaty 2021 (GlüStV 2021). The regulator has placed all event contracts not related to sports under the "illegal betting" category.
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The GGL explained that such formats are not eligible for approval because they are "particularly susceptible to manipulation, as they are often based on unclear, subjective or controllable events." By contrast, the German legislature has only authorized bets on "defined sporting events with verifiable results and clear rules."
This regulatory clampdown highlights a stark contrast between Germany and the United States. While the GGL views these contracts as illegal, in the U.S., they are regulated as derivatives by the Commodity Futures Trading Commission (CFTC). Polymarket is actively re-entering the American market through a strategic acquisition of a CFTC-licensed exchange, which will allow it to list its contracts as tradable derivatives.
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However, across the Atlantic, the GGL warns that those who participate in or facilitate such illegal bets will be in breach of the law, which is punishable. The authority’s move underscores its ongoing battle against the illegal black market, which it sees as the biggest threat to the regulated gambling sector. By issuing quarterly reports with data from licensed operators, the GGL hopes to gain a clearer picture of player trends and take preemptive action to combat these unlicensed activities.
