Does Germany’s new government have a shot at tackling illegal gambling?
Germany’s new coalition government, formed by the Christian Democratic Union (CDU), Christian Social Union (CSU), and Social Democrats (SPD), has pledged to tackle the country’s rampant illegal gambling sector. In their coalition pact released on April 9, 2025, the parties emphasized improving the fight against illegal gambling in collaboration with federal states.
The illegal gambling market in Germany has been expanding, with data from intelligence platform Yield Sec indicating a significant increase in unlicensed operators and user engagement. In 2023, there were 1,620 unlicensed operators targeting the German market, interacting with 13.5 million Germans. By 2024, this number rose to 1,926 operators engaging with 15.8 million people, approximately 20% of the population. Yield Sec’s figures reveal that around 54% of Gross Gaming Revenue (GGR) was generated on the black market in 2024, amounting to approximately €4 billion. The prevalence of unlicensed operators online suggests this figure could be as high as 88%.
Legal operators face challenges due to Germany’s federal system, which delegates online gambling regulation to its 16 federal states. The Interstate Treaty on Gambling, effective since 2021, has been criticized for stringent regulations that may inadvertently push players toward unlicensed platforms. Industry stakeholders argue that the current regulatory framework makes it difficult for licensed operators to compete with the illegal market.
