Offshore online betting services gain popularity in Germany

The Football World Cup in South Africa is generating a lot of online sports betting at the moment. The majority of the German soccer punters prefer to use foreign online betting services. Germany’s government passed the State Treaty on Gambling in 2008. This law was introduced to fight gambling addictions. It also prohibited private providers to offer online gambling and it banned advertising of gambling services. Germany has a very restrictive regulatory structure.

Offshore online sports betting

Goldmedia has released a new report with regard to the consequences of the restrictive restructuring. Decreased revenues and increased use of foreign gambling forms are only two consequences. Additionally, it has resulted in a huge fiscal downfall for Germany: €2.4 billion since 2005. On the whole, the German gross gaming revenue totaled up to €10.3 billion last year. This total amount includes legal services and illegal services. Last year, illegal segments covered one-fifth of the total market. This will increase to one-third if the present developments continue.

Sports betting service

Offshore providers capture considerable market shares. The offshore market has a market share of 94%. This is the largest segment in the betting market. Only approximately €240 million of €7.8 billion in revenue was generated by licensed providers like Deutscher Lotto und Totoblock (DLTB). State-run gambling providers experienced extensive revenue decreases. The licensed lotto market wager revenues declined by approximately €1.8 billion in the period 2005 – 2009. Sports betting service Oddset posted in 2009 a 60% decline in comparison to 2005.

German State Treaty on Gambling

“Germany struggles with a controversial issue. The German State Treaty on Gambling will be renewed next year. This opportunity can be used to eliminate the negative consequences of the law. Particularly with regard to the fast growing online gambling market,” Senior consultant doctor Michael Schmid commented.
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