Why Germany’s 2026 evaluation is putting the offshore market and enforcement tools back in focus
Germany will conduct a statutory evaluation of its online gambling framework in 2026, focusing on the measures taken in 2021.
The measures include consumer protection, support for legal operators, and the restriction of gambling offshore. The latest findings of the regulatory framework reveal that a considerable amount of online gambling continues to occur offshore.
This article analyzes the background of the evaluation, incorporating the offshore market and the renewed interest in enforcement tools.
Germany’s online gambling regulations have been the subject of criticism since the Interstate Treaty on Gambling regulations came into effect in 2021. These controls sought to balance the gambling market to mitigate the potential risks of illegal gambling and gambling harms.
After considerable time, the German gambling authorities are obtaining data and evidence to support the evaluation that is legally due in 2026.
This legally mandated evaluation will focus on the balance of conflicting objectives in offshore operators and the enforcement of gambling regulations.
The accumulating data will be essential to this evaluation, and the outcome will be critical regarding the success of the German legal gambling framework and its designed objectives.
Germany’s 2026 evaluation and why it matters now
The 2026 review will decide whether or not Germany’s regulatory goals match actual results. These goals are aimed at describing player movement to legal platforms, consumer protection, and public revenue.
As per the German Gambling Authority GGL, legal internet gambling for the first time registered 5.3 billion euros for 2023. This reflects consistent growth since the start of the gambling market.
However, illegal gambling is still present. A 2023 study by economists from Heinrich Heine University Düsseldorf estimated that still between twenty and thirty per cent of all German online gambling goes to companies operating unlicensed.
While the methods to estimate these figures are different, they all point to it being a considerable slice of unregulated demand.
Policymakers constraining the need for further refinements and technological adjustments will rely on facts, not conjecture, to determine the impact of the review.
If consumer diversion remains high, the review will likely result in significant adjustments to Germany’s gambling regulations.
The offshore gambling market under renewed scrutiny
Offshore gambling operators have come under scrutiny from regulators over the last two years. Advertising, payment processing, and consumer complaints are now tracked by the authorities more systematically.
As per GGL’s 2024 report, more complaints have been reported about online casinos, especially those that offer bonuses and have vague advertising.
In the last few reports, the term casinos with no deposit appears often. These casinos are considered “no deposit” because customers can initiate gameplay without handing over any money, and instead are given some promotional credits.
These listings have disclaimers that clearly outline the bonus offer, the applicable wagering requirements, and the legal status of the site to German customers.
German regulators have felt that bonus offers are the most enticing tools to lure customers to the illegal offshore sites, especially where the local market does not offer similar alternative legal sites.
This is likely why regulators are most concerned about offshore gambling operators who are able to remain easily accessible and visible to German consumers.
Lessons learned from earlier regulatory gaps
Germany’s present reflection very much draws from prior challenges with enforcement. Prior to the 2021 treaty, the division of regulatory enforcement was, to say the least, state-centred, with very little in the way of coordination, as well as a feeble cross-border enforcement capability.
The European Gaming and Betting Association outlined in a 2022 report that, in that period, Germany was one of the laggards in online gambling channelization as compared to its European counterparts.
More recently, regulators have noted that there was far too little behavioral change with players, particularly with respect to regulatory enforcement targeting the closure of offshore sites, coupled with blacklisting and cease-and-desist letters.
These enforcement actions were largely ineffective, and in many instances, did not even result in a demonstrable impact in the market. These lessons have been incorporated into the design of the GGL and the broadening of its mandate.
The evaluation will, again, draw on prior lessons to assess if the new systems have rectified old gaps or simply obfuscated them.
Enforcement tools moving from theory to practice
Priority has been given to enforcement in light of the evaluation. Germany has, for the most part, begun to combine enforcement measures such as advertising bans and, in collaboration with digital gatekeepers, the enforcement of payment bans.
The GGL’s 2024 report indicates that more than 1800 payment bans were instituted over the course of a year, which is an increase relative to prior reporting periods.
The report mentions that banks and payment service providers have responded to rapid changes. This can mean that compared to previous reports, regulators are focusing on more practical, as opposed to theoretical, initiatives.
Also, regulators are focusing on the use of more data-driven monitoring systems that can identify unregistered systems quickly than previous systems.
The lack of discussions on the legality and proportionality of some of the measures remains. Blocking access to IP addresses is controversial from an EU law perspective, but some measures that are more targeted and are more transparent have survived judicial review in other countries, which seems to validate the measures. The analysis will attempt to capture the results of Germany’s method in reducing illegal offshore activities.
