New betting law will fuel demand for online sports betting in Germany
Although the data is not clear Betting in Germany is growing. For a long time, online betting in Germany had been banned but the passage of a new law now paves way for online betting in Germany. International bookmakers are now allowed to put a shop in Germany. Even with the prolonged ban, it does mean that online sports betting was not taking place in Germany, the black market existed.
Punters were taking advantage of the gaps in the law to place bids, mostly using international bookmakers. A good indicator that sports betting in Germany is growing is the amount of revenue that the industry generated. Gambling regulators in German states where the market is regulated stated that the industry raked in 11 billion Euros. This figure does not factor in what comes from the black market.
There are no official figures on the number of German punters who bet illegally or take part in online sports betting on Asian and American markets. The only clear thing is that online betting Germany, though not well developed when compared with other European markets, is experiencing exponential growth.
Kate Richardson, an online sports betting expert at Mightytips posits that with the passage of the new law the demand for sports betting in Germany is expected to rise even more. If you want to read more on Kate Richardson at Mightytips click here. In this article we will examine the following:
- How the proposed new laws will affect sports betting Germany. The expected rise in demand for sports betting
- How the new laws will help in the development of online betting, and
- How bookies can positively align themselves with the new changes
The existing rules
One reason that has made online sports betting lag behind other European countries is the legal situation. The rules that existed up to 30th June were a big hindrance and as analysts point out, they allowed the black market to thrive. It is not that punters were not wagering, they were taking advantage of the gaps that existed in the law to place a bid using international bookmakers.
The law outrightly prohibited online betting although there was what experts say was the experimentation clause that permitted brokerage of lotteries and bookies in sports betting to operate under certain conditions. However, genuine online betting remained prohibited. Anyone familiar with betting in Germany is aware that gambling is a big political issue. Apart from the moral disrepute of gambling, there have been calls to control it to reduce addiction. It is felt that without control punters can put their finances at risk.
They may become addicted due to the thrill of winning leading to using all their possession in placing bets. Many have always felt that instead of an outright ban on sports betting, technical measures should be put in place to counter addiction. It is now clear that using technical and regulatory measures to counter addiction can achieve greater results while at the same time guaranteeing fundamental constitutional freedoms.
Doing it otherwise, as has been the case for many years, has only allowed a black market to thrive. Analysts are aware that online betting has been taking place even in states where there is a blanket prohibition of gambling and the numbers could be large. They have posed the question of whether the black market should be left to flourish instead of creating a regulated market where those who are interested in online sports betting can do so without looking over their shadows.
There are lots of gains that will come with the regulation of the market, the demand for sports betting will increase and this time the statistics will be available as the action is happening in the open. States will increase their revenue and also it will be easy to counter the addiction issues in betting.
How the new law will affect the demand for online betting Germany
The new law seeks to regulate online betting, it came into effect on July 1, 2021; this is after the parliament approved it. With the new law, the market has been opened up. Domestic and international bookmakers seeking to exploit the sports betting Germany now have a chance to do it and within the confines of the law.
Analysts point out that with the new law; it is not only an opportunity for online sports betting Germany that is created. It also addresses the issue of betting addiction. The state-regulated and supervised betting industry provides punters with limited chances of indulging in gambling urges. The law also goes a long way in fighting the black market which has been thriving due to the ban.
For those who have operated in the black market for a long, it will not be easy to get into a regulated and supervised market. They could have been wagering on online bookmakers who were offering a wide range of markets. With the opening up of the German market, competition will increase as bookies offering attractive German betting odds set shop in the country.
What this means is that some providers may be pushed out of business. For punters, the law bans some features such as live streaming on sports betting sites, delay when switching bookmakers, and limited in-play markets. With this ban, they might not get the same experience as they had when they were playing in the black market. Some of these measures as pointed out by experts aim at curbing addiction and also protecting punters from engaging in risky habits such as selling their possessions to participate in online sports betting.
Some see the new laws as a win while others fear the losses which will be occasioned by the regulation of online betting. Like any other change in the law, some will benefit while others may lose. It will be up to those who are disadvantaged by the law to make the necessary adjustments and avoid losses. Overall, there is a feeling that the new law is necessary, they will curb the black market, give attractive German betting odds, and ultimately fuel demand for online sports betting and at the same time protect punters from betting addiction.