German Casinos Urge GGL to Balance Channelization Over Pure Enforcement

Online casino operators in Germany have sent a clear message to the new Chairman of the Joint Gaming Authority of the Federal States (GGL). They are calling for a focus on channeling players into the regulated market rather than merely intensifying enforcement. This approach, they argue, aligns with the recommendations of his predecessor. The goal is to combat the black market without undermining already licensed offerings.

The GGL-regulated industry feels constrained. They fear that excessively strict measures could push players back to unlicensed providers. Effective regulation must strike a balance that ensures player protection while creating an attractive environment for legal operators.

Numbers and facts

The appeal from German gambling providers comes at a critical time. The GGL, which oversees compliance with the State Treaty on Gambling 2021, continues to face the challenge of curbing the black market while strengthening the regulated market. Too restrictive regulation could achieve the opposite, the industry fears. Even the former Chairman of the GGL, Ronald Benter, advocated for understanding channelization as a core objective.

Ted Menmuir of SBC News reported in November 2025 that Gustaf Hoffstedt from the Swedish industry association BOS (Branschföreningen för Onlinespel) also emphasized that gambling regulation requires rational representation, rather than just focusing on 'vibes.' This statement underlines the need for a fact-based and pragmatic approach, which is also being called for in Germany.

Background

Gambling policy in Germany has been a hot topic for years. The State Treaty on Gambling 2021 established a new legal framework that regulates online gambling nationwide for the first time. The goal was to improve player protection and at the same time curb the proliferation of unregulated offers. The GGL plays a central role in this. It issues licenses, monitors providers, and takes action against illegal gambling advertising.

However, the industry repeatedly criticizes that the requirements are too strict. In particular, the betting and deposit limits, the prohibition of certain games, and the strict advertising regulations make it difficult for regulated providers to compete with the black market. The latter often offers players more freedom and higher bonuses without having to adhere to German rules. This leads to a lower channelization rate than originally intended.

A key point of contention is the balance between player protection and the attractiveness of the legal offer. If legal offers are unattractive, players migrate to the unregulated area, where they are not subject to any player protection. This is a paradox that the GGL urgently needs to resolve.

Why it matters for German players

For German players, this means that the debate about the right balance in regulation directly affects their gaming experience. The State Treaty on Gambling 2021 has established strict guidelines, such as the GGL whitelist, which lists all legal online casinos. For example, a bet limit of 1 euro per spin and a monthly deposit limit of 1,000 euros apply, which is controlled via the central monitoring system LUGAS.

If the casinos' demands for more rational regulation are heard, this could potentially lead to a greater variety of legal offers that are more attractive to players. Fewer bureaucratic hurdles could also help enable innovative forms of play within the legal framework. At the same time, it is essential that player protection is not neglected. Currently, the black market is a tempting alternative for many players, precisely because the limits of the GlüStV 2021 do not apply there. This poses a significant risk. The GGL must find ways to effectively guide players into the safe, regulated market without stifling it. A balanced approach is key here to protect players. Because only an attractive legal market can cut off illegal providers.

What it means for GGL-licensed casinos

GGL-licensed casinos in Germany face the challenge of operating in the tension between strict regulations and competition from the black market. Their survival and innovation capabilities depend significantly on how the GGL shapes its course in the future. A stronger focus on channelization means that the voices and concerns of these providers may receive more attention. This could lead to adjustments that make the legal market more competitive without compromising player protection.

The GGL license is a sign of safety and seriousness. Providers with this license commit to adhering to high standards in player protection and addiction prevention. The industry hopes that the GGL recognizes this value and takes measures that strengthen this advantage over the black market. A constructive dialogue between the supervisory authority and providers is essential to create a sustainable and safe gambling market in Germany.

"Forget the vibes, gambling needs rational representation." - Gustaf Hoffstedt, Secretary General at Branschföreningen för Onlinespel (BOS)