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Two Key Aspects Pressing Gambling Revenues in Germany

10 February 2021, 17:42
Votes: 1

The gambling market in Germany significantly suffered in 2020. The major reasons were the coronavirus-caused crisis that dropped the betting sector, as well as the migration of online casino players to unregulated sites. It forced the business officials to call for support and legislative changes in the nearest future to save the market. Login Casino follows the latest legislative news in gambling and explains what law changes to expect in Germany.

Two Key Aspects Pressing Gambling Revenues in Germany

The Deutsche Sportwettenverband - DSWV (German Sports Betting Association) reported about the need to make changes in the local gambling legislation. In the latest report, the organization's president, Mathias Dahms, highlighted two significant factors that negatively hit the entertaining market.

The betting sector struggled in 2020

The first one is quite predictive and relates to the adverse influence of the COVID-19 and lockdowns. Thus, the disease-caused actions dropped the betting market by 16% in the Year-over-Year (YoY) comparison. If to exclude the first two months that were not affected by the pandemic, the downfall is even bigger – 20%. It led to the decline of the total sales from €9.3B in 2019 to €7.8B in 2020, while the taxes slumped by €75M (from 464M to 389M).

New legislation affected casino gaming

Denying the claim that the gambling sector benefited in 2020 due to cuts in betting, Mathias Dahms was way more concerned with the digital casino sector. Thus, the implementation of the niche's transitional conditions led to a 54% customer migration from licensed operators to unregulated ones. The decrease of players that prefer official virtual slot machine games means the drop in the amount of taxation the treasure receives.

Dahms has also admitted that the state ministers have to act fast to return the balance to the system. Thus, October's law changes have ended with 21 approved operators for the German market, while 40 companies are still waiting for the license approval. The DSWV's president called to align the market participants' conditions and exclude the market skewness.

Read moreWhat is the potential of esports betting during the lockdown measures?

Read moreThe specifics of opening an online casino in Germany


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