DSWV: new federal regulator must “intervene now” to stop black market

| By Marese O'Hagan
German sports betting trade association Deutscher Sportwettenverband (DSWV) has spoken out in support of Germany's new federal gaming regulator, die Glücksspielbehörde (GGL), but adds that the new body will face “major challenges”.
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The GGL came to be through Germany’s Fourth State Treaty on Gambling, which took force in June 2021.

The body took charge of enforcement issues in the country last week, replacing the Saxony-Anhalt State Administration Office, which dealt with illegal cross-state operations across the country.

It will take full control of gambling in Germany from 1 January 2023.

Mathias Dahms, president of the DSWV, said he hopes the GGL can overcome the challenges faced by the black market.

“The GGL is now facing major challenges and we hope that they will also overcome them,” said Dahms. “The unregulated black market has been able to take on gigantic proportions practically unhindered in recent years. GGL must therefore intervene now and create a fair market as quickly as possible.”

The association added that its recent market study was able to identify 507 unlicensed operators in the market, compared to the 36 operators licensed under the Fourth State Treaty on Gambling.

Dahms went on to say that ensuring a safe and fair market for operators should be an utmost priority for the GGL.

“The goal of everyone involved should be to create a secure market that is interesting for customers. GGL must therefore ensure that licensees can offer their customers attractive products on the legal market,” continued Dahms.

“Effective action against illegal providers and an attractive range of products on the legal market can actually stop the increasing migration of players to the unregulated black market.”

Last week, the Sachsen-Anhalt State Administration Office announced that it had approved nine more licences for virtual slot machines and poker in Germany. This was in addition to the three permits already issued to Mernov, Tipwin and Mybet.

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