Germany’s legal sports betting industry is sounding the alarm after new figures revealed a worrying rise in illegal betting. According to the 2024 Activity Report of the Joint Gambling Authority of the Federal States (GGL), the number of illegal German-language sports betting websites identified by the regulator surged by 36 percent last year.
However, while the German Sports Betting Association views this increase as evidence that the illegal market is expanding, it could just as well indicate that the regulator is becoming more effective at detecting and monitoring unauthorised offerings.
The GGL’s latest report estimates that illegal gambling websites generate between 500 and 600 million euros annually, representing approximately 3 to 4 percent of Germany’s entire legal gambling market — both land-based and online. However, these unlicensed operators now account for around 25 percent of the market for so-called high-risk online gambling, which includes sports betting, virtual slot games, online poker, and internet horse betting, according to the GGL.
Legal market “under increasing pressure”
“This development is a warning signal,” commented Mathias Dahms, President of the German Sports Betting Association (DSWV). He pointed to the dramatic rise in unlicensed websites — from 281 to 382 in just one year — as evidence that the legal market is “under increasing pressure.”
The ratio of legal to illegal online sports betting options is cause for concern, he added. “There were only 34 websites from 30 providers with permission that are on the safelist published by the GGL,” Dahms explained. “The ratio of legal to illegal sports betting offers on the internet is therefore around 1:11.”
Majority of illegal sites offer virtual slots and casino games
The GGL’s data also shows that the illegal market extends beyond sports betting. Of the 858 illegal websites observed, 838 offered virtual slot games and online casino games, while 382 provided sports betting — with almost all of these also giving access to virtual slot and casino games.
First-time publication of official betting stakes
In an effort to improve transparency, the GGL has, for the first time, published official market data on betting stakes from licensed sports betting providers. In 2024, these amounted to 8.2 billion euros, an increase from 7.9 billion euros the previous year.
“With this figure, the GGL is creating more transparency for the market and the public,” Dahms said. “Fact-based debates on the development of sports betting in Germany are only possible if we have access to reliable official figures — we expressly welcome this step.”
Wider range of bets draws users to illegal sites
Illegal operators often entice players by offering a far broader range of betting options, particularly popular live bets and a greater variety of sports and competitions, the DSWV warned. “Illegal providers benefit from the fact that they can offer a much wider range of bets,” Dahms said. “This is precisely why many users switch to these illegal sites.”
The DSWV believes that the official figure of a 25 percent black market share likely understates the true scale of the problem. “At least a quarter of the market is illegal — this is clear, official confirmation that the black market has long been a serious structural problem and not a marginal phenomenon,” Dahms stated. He added that independent studies suggest the black market could account for more than 50 percent of the online gambling sector.
Calls for more attractive legal offerings
The industry association argues that the solution lies not just in enforcement but in making the legal market more appealing to players. “Anyone who wants to strengthen player protection must ensure that legal providers become competitive,” Dahms urged. “Otherwise, it is precisely this protection that will be undermined by illegal offers.”
“The legal market is safer today than ever before, with extensive measures to protect players,” Dahms said, citing identity checks, betting limits, and cross-provider blocking systems as examples. But over-regulation, he warned, risks driving users away.
“Only those who create a reputable but also attractive offering can keep players in the legal market and effectively curb the black market,” he argued. This includes allowing more permitted types of bets, expanding live betting, and ensuring regulation remains realistic.
Recently, the German Sports Betting Association expressed frustration over the fact that, unlike many of their European neighbours, Germans were not allowed to bet on events like the Eurovision Song Contest. For the association, this outdated prohibition highlights the need for regulation to evolve with modern betting interests—otherwise, players may be pushed toward unlicensed platforms that offer what the legal market does not.
