German Gambling Market Faces Q2 Decline as Black Market Expands

The German gambling market slipped in Q2 2025, with new data from regulator Gemeinsame Glücksspielbehörde der Länder (GGL) showing stakes of €3.22 billion, down from €3.5 billion in the first quarter. The drop highlights how regulatory pressure and unlicensed competition are shaping the industry.

Good to know

• Online poker fell from €204m to €184m in Q2.
• Virtual slot stakes ticked up slightly to €1.12bn.
• The black market is estimated to account for 25–50% of all play.

The GGL’s latest quarterly report shows mixed results across verticals. Online poker wagers dipped, while virtual slot machines managed only a modest rise.

Germany’s stricter rules under the 2021 State Treaty on Gaming (GlüStV) are partly to blame. The treaty enforces:

• A €1 maximum stake per spin on slots.
• A €1,000 monthly deposit cap across platforms.
• A 5% stake-based operator tax.
• Tight restrictions on advertising.

While intended to protect players, these measures have nudged more gamblers toward unlicensed operators.

The Black Market Problem

The regulator estimates around 25% of gambling activity in Germany takes place on the black market, though some sources claim it’s closer to 50%.

In 2024 alone, the GGL identified 858 German-language sites run by 212 unlicensed operators. Efforts to combat them included:

1. Shutting down 231 illegal websites.
2. Blocking 657 more with geo-blocking.

Still, tactics like “cloaking,” where illegal operators disguise their content to dodge detection, remain a serious challenge.

Calls for International Cooperation

GGL CEO Richard Benter noted that stronger cross-border action is needed to close loopholes:

“This fight requires close cooperation with international partners. Equally crucial are clear and uniform frameworks for the legal market that ensure the protection of players and apply equally to all permitted providers,” he said.

Without broader cooperation, unlicensed operators will continue exploiting fragmented rules across Europe.

Germany’s legal gambling sector earned €14.4 billion in 2024, up 5% year-over-year. Yet the real size of the market is much larger once unregulated play is factored in.

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