Forschungsstelle Glücksspiel is the Gambling Research Center of the University of Hohenheim in Stuttgart that just recently released details involving their recommendations for an update to the gambling laws of the country. Earlier this year, residents of Germany took part in a survey, revealing they felt the gambling laws were outdated. The recommendations are a possible first start for the country to update their industry.
The new recommendations would include new taxes placed on unlicensed operators as well as online casino game legalization. Despite being on board for online casino gaming, the group recommends that the industry launches with strict rules and regulations that must be followed closely. A new regulatory body to oversee the industry is also recommended.
According to the GRC, the land-based casinos in Germany created gross gaming revenues of just over $671 million in 2017. Of that amount, just over $353 million was paid in taxes. While this is a large amount, the illegal online gambling market is reportedly far larger. The GRC reports that $1.94 billion was generated from illegal online gambling that same year. However, only $369 million was paid in taxes.
Online gambling operators offering services illegally in the country are taking advantage of the Criminal Code regarding gambling. In the country, land-based gambling operations are illegal if they do not have a license. However, online gambling operators without gambling licensing do not fall into that category.
According to the GRC, there is a need for legalization and regulation in order to create a preferable market for consumers. And while the GRC seems to be on board with online casino gaming, they are not with online poker. They would completely ban the game, calling it one that is easily susceptible to fraud and manipulation. They will also be creating a permanent ban on any type of advertising involving casinos.
It seems both of these points may be issues if any type of legislation and/or regulations begin to move forward in the country regarding changes to the gambling laws.