In 2023, the total revenue (GGR) of the German gambling market reached 13.7 billion euros, a 2% increase from the previous year. This growth was primarily driven by the online gambling sector, which contributed 3 billion euros, accounting for 22% of the market. The largest contribution came from sports betting, with revenues reaching 1.8 billion euros, an increase of 400 million euros from 2022.
Gambling Cash Rating Platform
The German Sports Betting Association (DSWV) reported that the total betting volume in 2023 was 7.7 billion euros, of which 6.6 billion euros were paid to customers. The sports betting sector alone contributed 409 million euros in taxes to the government. With 12 out of 18 Bundesliga football teams having partnerships with gambling companies, sports betting has become an important part of the sports industry.
According to DSWV data, the industry created 6,700 jobs. Advertising expenses were 136 million euros, while subsidy expenses were 55 million euros.
Online Gambling
Online gambling has been the main driving force for industry growth. In 2023, approximately 36.5% (about 2100 people) participated in some form of gambling, with many turning to online platforms, which are convenient and offer a variety of options. However, this growing market has also raised concerns about gambling addiction, with 2.4% of the population (about 140 people) reporting issues related to gambling.
2024 Forecast
Entering 2024, the online gambling sector is expected to dominate industry growth. According to Statista's forecast, the revenue of the German online gambling market in 2024 is expected to reach 5.14 billion euros, with a compound annual growth rate (CAGR) of 5% from 2024 to 2029, and the market size is expected to grow to 6.56 billion euros.
By 2024, online sports betting is expected to generate 1.93 billion euros in revenue.
The expected user penetration rate will reach 11.9%, with over 21 million people participating in some form of gambling throughout the year. This makes it one of the highest gambling markets in Germany.
2024 Forecast:
Total online gambling revenue: 5.14 billion euros
Online sports betting revenue: 1.93 billion euros
User penetration rate: 11.9%
Average revenue per user (ARPU): 519 euros
Illegal Gambling
Illegal gambling remains a challenge. The Joint Gambling Authority (GGL) estimates that the GGR of the illegal gambling market in 2023 was between 400 million euros and 600 million euros. GGL has initiated studies to assess the scope of illegal gambling, aiming to develop it and lead customers to regulated platforms.
For example, in Bavaria, the number of investigation cases related to illegal gambling increased from 77 in 2019 to 762 in 2023. The German Green Party has criticized the government for its lack of action in addressing this issue, calling for increased financial resources and preventive measures, especially for vulnerable groups such as people and gambling addicts.
Player Protection
GGL has allocated 1.4 million euros for player protection, advertising, and guiding users from illegal to legal markets. Virtual slot games are particularly under scrutiny, and GGL is working with development studios to explore ways to simplify the process for individual games.
Germany's Regulatory Framework
Germany's regulatory environment is complex, involving federal and state laws managing different aspects of the gambling industry. The Gambling State Treaty (GlüStV 2021) provides the main regulatory framework, but states have the authority to impose their own regulations, especially in the areas of casinos and lotteries. Further adjustments to GlüStV are expected in 2024, particularly regarding the licensing processes for virtual slot machines and individual games.
