Germany Faces Calls to Reform Gambling Treaty

Germany’s online gambling regulations could face renewed discussion as policymakers prepare to complete the scheduled review of the country’s 2021 State Treaty on Gambling later this year.

A proposal submitted by the Economic Council, an organisation linked to the CDU, recommends changes to the current framework, arguing that several aspects of the legislation have not achieved their intended objectives.

The recommendations come as Germany’s regulated gambling market continues to face challenges, while concerns over the growth of unlicensed operators remain a key issue.

Calls for Changes to Taxation and Regulation

One of the main concerns highlighted in the proposal is the tax system applied to online slot games.

Licensed operators are currently required to pay a 5.3% tax on stakes rather than on gross gaming revenue. Industry representatives have argued that this model places regulated businesses at a competitive disadvantage. Online slot games are also subject to a €1 maximum stake per spin.

Industry organisations have continued to highlight the gap between the regulated and unregulated sectors. According to the German Sports Betting Association, illegal betting websites significantly outnumber licensed operators. Research from H2 Gambling Capital estimates channelisation currently stands between 22% and 25%, with projections suggesting it could decline further over the coming years.

Proposal Calls for a Different Approach

The document argues that Germany should reassess how it balances consumer protection with market accessibility.

Its authors believe the current regulatory framework places greater emphasis on restrictions than on ensuring consumers have access to regulated gambling products.

The proposal also recommends introducing continuous independent research instead of relying solely on scheduled reviews. Supporters believe ongoing evaluations would allow regulators to monitor the effectiveness of existing rules more closely and introduce adjustments when necessary.

Greater Focus on Illegal Gambling

Another key recommendation is to prioritise action against unlicensed gambling operators.

Rather than introducing additional restrictions for licensed businesses, the proposal encourages measures aimed at reducing the availability and attractiveness of illegal gambling services.

Licensing procedures are also identified as an area requiring improvement. The document calls for a simpler approval process, arguing that the current system for licensing products has become unnecessarily complex for operators seeking to enter the regulated market.

Treaty Review Nears Completion

Germany’s gambling framework has faced increasing criticism from both domestic industry organisations and international trade bodies in recent years.

The European Gaming and Betting Association (EGBA) has previously questioned whether the current regulatory structure can successfully channel consumers towards licensed operators without further reforms.

With the official review of the 2021 State Treaty on Gambling expected to conclude before the end of the year, discussions are increasingly focused on whether adjustments will be needed to strengthen Germany’s regulated gambling market while reducing the influence of illegal operators.