GGL: Diverging Approaches to Collecting Data on the Size of the Illegal Gambling Market

Halle (Saale) Germany (December 4, 2023) — In the gambling industry, studies to determine the market size of the illegal online gambling market are currently causing a stir, which come to different conclusions than the data from the states’ Joint Gambling Authority.

The GGL takes a position on this as follows:

In principle, a scientific discourse on survey methods is to be welcomed. The aim is to obtain valid figures about the German online gambling market. In this respect, the GGL is open to new or further developed approaches to gaining knowledge. The authority is continually developing its data collection methods.

According to GGL estimates, there are currently between 800 and 900 websites with illegal online gambling offers, e.g. B. virtual slot games, online poker, online casino games, so-called secondary lotteries and sports betting. However, the proportion of these offers will decline overall in 2022. It is assumed that the illegal websites recorded represent a market volume of between 300 and 500 million euros. This corresponds to around 2% to 4% of the permitted market.

These surveys are based, among other things, on: on the recording and analysis of visitor activities from illegal websites, analysis of offers from illegal providers, evaluation of affiliate marketing networks, etc. These surveys and analyzes are regularly adjusted and further developed.

The GGL firmly rejects the industry’s criticism that the GGL’s approach to collecting data from the illegal online gambling market is based on a static model that does not take market changes into account.

Collecting data on illegal online gambling is very complex because the black market is constantly changing. Regardless of the data collection model, it is an estimate and a snapshot. A regulatory authority will always assess the data situation conservatively, while the gaming industry tends to assess the competitive situation due to the illegal market as greater.

For this reason, the GGL is in close contact with the industry in order to reach a uniform understanding. Despite different interests, the GGL’s declared aim is to find a common position on how to measure the illegal market.

SOURCE: Gemeinsamen Glücksspielbehörde der Länder (GGL).