The Cynicism of Regulation at the Gaming in Germany Conference
On Tuesday, the Gaming in Germany conference took place in Berlin, an event that, as the name suggests, dealt with the future of gambling in Germany. What was of course not to be missed at such an event was a lecture by Ronald Benter, Chairman of the Joint Gambling Authority of the States (GGL). The GGL, as the regulatory body that has taken the helm in regulating online gambling since 2021, took the moment to talk about the "challenging" task of gambling supervision.
Now, one might expect that, in such an appearance, the representative of the gambling authority would be a little reverent about the subject, i.e. regulation. After all, we are dealing with a highly complex market that affects not only countless providers, but also millions of players. But what we then heard was less a sober discussion of the problems, but rather a presentation of a success story that has at least brought the idea of a "regulated market" into focus in recent years.
A Success Story of Regulation
Benter praised the transformation brought about by the 2021 State Treaty on Gambling (GlüStV). But what does "success" really mean here? There is now a legal market for online gambling. But the black market continues to flourish. Licenses and supervision alone do not create fair competition. So what happens to the providers who operate outside the system?
Benter also spoke of "equal competitive conditions" and a "fair market". But how is this competition really enforced? How transparent is the market if illegal providers continue to flourish? Trying to channel the market is one thing - implementing it is quite another.
Another topic that Benter addressed was player protection. This also sounds good. But what happens if illegal providers continue to target players? The black market is large and many players may not even know how dangerous this area is. The GGL wants to create a safe market, but how is it really secured?
It almost sounds like lip service: "We want to guarantee player protection." But what effect does this have in practice? How do you really protect players from the dangers of online gambling when the offers still exist in the shadows of the market?
Evaluation of the GlüStV under scrutiny
The GGL plans to evaluate the State Treaty on Gambling in the coming years. The aim is to check whether the system is sustainable. But what does "sustainable" mean in this context? Will the regulation really last in the long term? Or is it just another bureaucratic procedure that does not bring any real solutions?
This evaluation could indeed provide clarity. Or it could just confirm that the existing system will continue without major changes. The market is developing quickly, but whether regulation can keep up remains questionable.
Benter also spoke about the black market and channeling. The GGL estimates that 10% of the market is illegal. However, the industry is reporting significantly higher figures. A channeling study is intended to provide clarity on this. The study is intended to scientifically examine the proportion of licensed and illegal gaming.
But how independent will this study be? Will it actually produce objective results? The GGL commissioned the study itself. This raises doubts as to whether it will really come to an honest conclusion. After all, the authority wants to justify its own actions.
The cynical view of regulation
In summary, the impression remains that the regulation of online gambling in Germany is not a success story. It remains a long-term struggle with many unresolved problems. The regulation still has to overcome many hurdles to be truly sustainable.
The GGL repeatedly emphasizes dialogue with the industry. But as long as the market is dominated by illegal providers, success remains questionable. Even if the GGL sees itself as a reliable partner, the question remains: can this regulation really be enforced fairly and effectively? Only time will tell whether the system is viable or not.
