German state parliament debates anti-illegal gambling legislation
The state government of Baden-Württemberg, Germany, has been discussing potential amendments to the Interstate Gambling Treaty that aim to strengthen player protection measures and intensify efforts against illegal online gambling.
Network blocking and expanded enforcement among key legislation elements
When introducing the relevant bill which would amend the Interstate Treaty, Interior Minister Manuel Hagel remarked that while gambling can serve as entertainment, it can also be dangerous, including through how it can be potentially misused for criminal business models.
This, Hagel commented, is the reason why gambling needs clear rules and regulations, complete with effective controls and a state capable of enforcing compliance with those requirements. As he introduced the bill, he focused on expanded enforcement powers and network blocking, among other things.
The new, proposed regulations include a number of things, including expanded powers for gambling regulators at foreign police authorities, with the reasoning behind such a change being that most gambling providers that are licensed in Germany are actually based abroad.
Furthermore, the proposal aims to create a legal basis for network blocking and IP blocking as a tool to employ against and combat illegal gambling.
Mixed reactions from the Baden-Württemberg state parliament
These proposals reportedly received mixed reactions during the parliamentary debate, with supporters stating that the use of measures such as IP blocking is a necessary step in the efforts against illegal operators, and also warning that an insufficient or unprotected legal market could ultimately result in consumers being pushed towards unlicensed platforms.
The struggle between properly regulating the licensed market and effectively combating the black market is a well-established one, with other jurisdictions, such as the United Kingdom, being a hotbed for such discussions among industry stakeholders.
Supporters of the draft legislation in the Baden-Württemberg state parliament expressed that unlicensed platforms and operators do not offer player protection and anti-money laundering safeguards as regulated operators do, nor do unlicensed platforms comply with regulatory oversight.
Meanwhile, those opposing the legislation questioned whether such measures would achieve their intended objectives, and instead called for a comprehensive review of the existing regulatory framework. Questions were asked of whether the illegal market has truly been pushed back, and whether supervisory authorities are properly staffed and equipped to fulfil their roles.
As things stand, the draft legislation has been referred to the Internal Affairs and Digitalisation Committee, and a final vote is expected in the coming months during autumn.
Sentiments at the national level
Looking at Germany as a whole, the Gemeinsame Glücksspielbehörde der Länder (GGL), Germany’s national regulator, had engaged in discussions towards the end of 2025 with the Federal Government’s Commissioner for Drugs and Addiction, during which the emphasis was on a stronger national focus on player protection and enforcement against illegal gambling services.
One of the key elements of the discussions at the time was with regard to the challenge of illegal gambling providers operating from outside of Germany, and, as previously mentioned, the draft legislation proposed in Baden-Württemberg seeks to tackle this challenge in part by utilising network blocking.
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