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German Sports Betting Association Calls for Rethinking of Regulation to Combat the Black Market

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The German Sports Betting Association (DSWV) will report on the current development of the sports betting market in Germany at its 2023 annual press conference.

Although millions of people in Germany show great interest in sports betting, it is becoming increasingly difficult for legal providers to meet the high demand with attractive products due to overly strict regulation and a rampant black market. As a result, there was also a noticeable decline in the market in 2022. The latest figures and data are cause for great concern, because the undesirable development feared a year ago has been confirmed and is obviously intensifying.

After the German sports betting market stabilised again at pre-Corona levels in 2021 with stakes of EUR 9.4 billion, there was a massive decline in the permitted market in 2022. Despite the World Cup year, gaming stakes fell to around €8.2bn last year. State revenues from sports betting tax were also correspondingly lower than in the previous year, at €433m.

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However, the rather disappointing World Cup, partly due to Germany’s early exit and the resulting up to 80% drop in betting, is only contributing to a small extent to this development. The main reason for the market decline has to do with the extremely restrictive German regulation and the rampant black market.

Legal providers are only allowed to operate within a very narrow regulatory framework and are therefore unable to offer sufficiently attractive products. In a European comparison, Germany’s legal gambling market is one of the most restrictive in this respect. At the same time, the black market continues to expand unhindered. Customers are not gambling less than before, but elsewhere.

“Unfortunately, in 2022, exactly the scenario we have warned about time and again has come to pass: The legal market has to hold its own against the countless black market providers who do not adhere to any specifications or rules. For most customers, whether a provider has a permit from Germany is secondary. They are looking for the most comprehensive offer, the best odds, uncomplicated payment processes and interesting bonuses. That’s where the legal offers have a hard time,” DSWV President Mathias Dahms said.

And customers are finding it. In February 2023, the DSWV repeated its market study from the previous year and found an increase of at least 65% in active illegal gambling and sports betting offers. Out of a total of around 1500 websites without a German license that were checked, players from Germany can access 840 illegal websites and open a gaming account on 723 sites. This contrasts with only 46 permitted providers – 31 of which are sports betting providers – which have little room for maneuver due to the excessive regulation. In the area of betting shops, too, there are still too many unauthorised betting opportunities. In some cases, providers whose applications for permission have been rejected are still operating on the web and locally with betting stores. Here, too, the local authorities must step up controls and take action.

The previous enforcement measures of the Joint Gambling Authority of the Federal States (GGL) are visibly reaching their limits in the fight against the black market. The fact that the authority’s push for IP blocking, i.e., the blocking of illegal websites by Internet providers, has now also been curbed by three court rulings should give cause to focus on alternative approaches in the fight against illegal offerings. This includes, in particular, the consistent strengthening of the legal market: In order to be competitive, the permitted sports betting providers need as attractive and broad a range of offers as possible. The extremely strict restrictions on offerings and advertising urgently need to be put to the test.

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“Advertising serves to steer all those who are already interested in sports betting into the state-supervised, and thus safe, market. In order to obtain a sports betting license in Germany, providers must meet numerous player protection criteria. The illegal providers from third countries do not care about the German regulations. Many advertise even in the Internet purposefully thereby to let also blocked players play. This type of advertising must be urgently prevented, and the advertising possibilities of legal providers must be strengthened,” DSWV Chief Executive Luka Andric said.

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SYNOT Games teams up with win2day to revolutionize Austria’s iGaming scene

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SYNOT Games, a leading iGaming provider, has partnered with win2day, taking a major step in its Austrian market growth strategy.

The collaboration marks its debut with the launch of Resin Joker, a fan-favorite slot that combines the simplicity of a classic gaming experience with a fresh, modern twist. With its smooth gameplay, vibrant audio-visuals, and universal appeal, Respin Joker has become a standout title for players seeking both entertainment and nostalgia.

As this partnership progresses, players can look forward to a steady rollout of additional games from SYNOT Games’ extensive portfolio, further enriching win2day’s already robust catalog. This collaboration is designed to offer Austrian players a premium gaming experience, with a diverse selection of games that blend cutting-edge innovation and top-tier quality.

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Georg Wawer, Managing Director of win2day, said: „As the sole licensed operator in Austria, our goal is to host all leading iGaming providers on our platform. Synot, being a major player on the international stage, makes us proud to feature their content. We regard SYNOT Games as a skilled and trustworthy partner for win2day, and we are confident that this collaboration will yield great success.

Martina Krajčí, CCO at SYNOT Games, commented: “We are excited to partner with win2day and bring our games to Austrian players. At SYNOT Games, our focus has always been on providing quality entertainment, and this partnership highlights our commitment to delivering an outstanding gaming experience.”

The post SYNOT Games teams up with win2day to revolutionize Austria’s iGaming scene appeared first on European Gaming Industry News.

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25 years of ZEAL: A quarter century of online lottery in Germany

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  • From living room start-up to online market leader
  • Ambitious growth targets and innovative product ideas

ZEAL Network SE, the market leader for online lotteries in Germany, is celebrating its 25th anniversary. Founded in 1999 as Tipp24, the company was one of the first on the German market to bring lotteries to the internet. Since then, ZEAL has had a lasting impact on the German online lottery business. 

“We are very proud of a quarter century of ZEAL,” says Helmut Becker, CEO of ZEAL. “What began 25 years ago as a two-man start-up in Hamburg has now developed into a group of companies with more than 250 employees. We are more successful than ever in our core business of lottery brokerage and are continuously expanding our market share and our business model. In doing so, we are staying true to our motto: we define the future of lottery.”

From start-up to international group

ZEAL was founded as Tipp24 in Hamburg in 1999. The company was one of the first providers to enable participation in state lotteries in Germany via the Internet – with great success. The IPO followed in 2005. This was followed by the temporary relocation of the company headquarters to London, the change of name to ZEAL Network SE and the development of new business abroad. In 2019, the company returned to Hamburg and took over LOTTO24 AG. This made ZEAL the largest lottery broker in Germany. Today, more than 1.3 million customers play with ZEAL’s brands every month.

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“As one of the founders, I am particularly happy about ZEAL’s success story,” says Jens Schumann, co-founder of ZEAL 25 years ago and now a member of the Supervisory Board. “When we founded the company, we printed out the lottery tickets that our customers played online and handed them in at the kiosk around the corner. A lot has happened since then. Today, ZEAL is one of Germany’s leading e-commerce companies. It gives me great pleasure to have been so closely involved in its development to date.”

Continuing to grow in the core business, developing new business areas

Today, ZEAL is the market leader for online lotteries in Germany. The brokerage of participation in state and charity lotteries remains the company’s core business, which it intends to expand in the future. In addition, ZEAL is continuously developing its portfolio: in the summer, for example, the company launched the first raffle of an existing property in Germany with Traumhausverlosung (English name: Dream House Raffle). ZEAL also appeals to younger target groups in particular with the freiheit+ charity lottery. Last year, ZEAL also launched an online games offering, which has been continuously expanded since then. ZEAL also operates the online presence of the ONCE charity lottery in Spain, a public organization for the blind, and invests in industry-specific start-ups via its ventures department ZEAL Ventures.

The post 25 years of ZEAL: A quarter century of online lottery in Germany appeared first on European Gaming Industry News.

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NOVOMATIC once again honored with the “Business Superbrands Austria Award”

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The world’s largest independent brand evaluation organization, Business Superbrands Brand Council, has once again recognized NOVOMATIC as one of Austria’s strongest brands for the year 2024/2025.

The prestigious award is given to brands that have built up an outstanding image in their market segment and clearly stand out from their competitors. After a pre-selection by the credit rating service provider Bisnode D&B, an independent panel of experts decides on the awarding of the title. NOVOMATIC’s exceptional brand strength and innovative power were convincing and underlined our success on both the domestic and international markets.

Stefan Krenn, Executive Board Member of NOVOMATIC AG, accepted the award from András Wiszkidenszky, Superbrands Regional Director, and emphasized: “This award underlines our strong market position and the continuous pursuit of innovation and excellence in the international gaming industry. At the same time, it is a sign of appreciation for the extraordinary commitment of our employees, who contribute to the success of the NOVOMATIC brand every day.”

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András Wiszkidenszky added: “The Superbrand award underlines the economic appeal of the NOVOMATIC brand. Congratulations on the outstanding brand management and strong positioning that have made NOVOMATIC one of the strongest brands in Austria.”

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