The gambling scene in Germany has seen some major changes in the last few years, with regulations changing how players interact with casino games. Before July 2021, the German market was in limbo, attracting international operators and drawing consumers to a highly thriving black market. However, the new treaty of 2021 legalized online gambling, setting out strict regulations for iGaming operators.
The reforms introduced by the treaty have raised a vital question. Can the German market really grow with such tight regulations? Well, many casinos, like the ones reviewed by platforms like Zamsino.com, still continue to thrive, not only in Germany but all over the globe, but there are some concerns that should be addressed. At least according to what some iGaming critics think.
What is the controversy surrounding the gambling restrictions?
But someone outside the country would be wondering, what are these strict regulations that are being spoken about? Essentially, the treaty’s main aim is to protect players and promote responsible gaming in a bid to prevent problem gambling. Data from The Gambling Atlas reported that in 2023, 7.7% of German adults were suffering a problem associated with gambling addiction. It is because of such statistics that the government is doing what it can to curb problem gambling.
Some of the restrictions that have been imposed on German players include:
- The stake limit per slot spin is capped at €1.
- Each slot spin must last at least 5 seconds.
- Players are limited to a €1,000 monthly deposit cap.
- No live casino games or progressive jackpot slots allowed.
- Live betting is not allowed.
How have these restrictions affected players?
With the tight restrictions set in the legal market, the legal operators are becoming even less appealing to players. Players have been frustrated, limited and have less rewarding gaming experiences. Despite good intentions, the strict rules have dramatically reshaped how Germans interact with online gambling, often pushing them towards unlicensed alternatives.
Take, for instance, the reduction in game time in online slots. Every slot spin is slower than every other market, the maximum stake is quite low and there are no progressive jackpots. This means that the players who previously enjoyed fast-paced and high-stakes slots now find the games slower and far less engaging. Unfortunately, this has reduced the player engagement on legal slots. In fact, the Deutscher Online Casinoverband (DOCV) reported that online slots channelization in Germany was as low as between 20% and 40%.
Apart from just speeds and stakes, legal German casinos face the limitation of game availability. You see, players are normally attracted to different gaming platforms because of the huge variety of games they can find there. Live betting and live dealer games have been a major attraction in the iGaming world in the last few years. Now, that is missing in the German market, and it is quite frustrating to players who were already used to live gambling.
Also, there are limited versions of games as major studios offering international titles have refused to adapt their games to Germany’s slow-spin rules. All this has been pushing more and more players to the black market, which offers more variety and thrill.
The black market saga
Just recently, the German Sports Betting Association (DSWV) warned that only one out of 12 German-language betting websites was legally operating. A 2024 evaluation by the German gambling regulator (GGL) gave these statistics after finding 382 illegal operators targeting the market against 34 licensed websites. According to the DSWV president, Mathias Dahms, this was risky to the players.
The GGL evaluation was even more alarming when it showed 858 German-language websites that offered unauthorized online casino games.
The issue with illegal providers is that they do not adhere to any of the rules. They offer no security and have a higher risk of gambling addiction. However, apart from just the risks of fraud and addiction, the DSWV also warned that players who involved themselves in illegal gaming were exposing themselves to criminal liability. Once you are found participating in such, you could find yourself a jail term of up to six months or a fine under German law.
Changing habits and the rise of cautious players
Despite the frustrations, many players are also adapting their gambling habits to the set regulations rather than abandoning the legal market. This is helping players to reduce their casino spending and have better gambling habits. For example, with slower spin speeds, players spend less time per visit. This means that someone is less likely to use so much money at a go. Also, since the monthly deposits across all platforms are capped at a maximum of €1,000, many players are able to plan their monthly deposits more carefully.
Interestingly, there has been a surge in self-exclusion, meaning that problem gambling is significantly reducing. For example, OASIS, the central gambling self-exclusion system of Germany, recorded an increase in the number of people who had self-excluded in 2024. During that year, more than 320,000 more exclusions were recorded.
Well, it is true that the iGaming industry in Germany is facing a tough time because of the strict regulations imposed, but this does not mean that everything is bad. Gaming has become slower and less intense for many casino players, but at the same time, the issues of problem gambling are also going down. Whatever will happen in the market in the next few years is still a mystery that people are waiting to unravel.
This article was written in cooperation with BAZOOM