Germany🇩🇪: GGL regulator seeks to expand its powers to combat illegal gambling

Germany🇩🇪: GGL regulator seeks to expand its powers to combat illegal gambling

The German Federal Gambling Authority (Gluecksspiel Behoerde, or GGL) is concerned that the regulatory framework of the Interstate Treaty on Gambling (GlüStV 2021) does not give GGL sufficient powers to directly combat illegal operators.

📌 What does the regulator lack❓ — Agility. The regulatory framework is too rigid, and amendments can only be introduced after lengthy negotiations among all 16 federal states. While the gambling sector is constantly improving its technologies and operational structures, supervisory authorities simply cannot keep pace with these changes.

📌 What is being proposed❓ — To grant the GGL Administrative Council the authority to directly oversee the regulator's actions. In other words, to allow operational decisions to be made while shortening the approval procedure.

📌 What powers does it already have❓ — The GGL can issue orders banning platforms, blocking payments, restricting advertising and blocking IP addresses, as well as refer cases to prosecutors.

📌 What prompted the concern❓ — A case in Frankfurt. Three years of investigation, a police operation involving more than 100 officers, and raids at 11 residential and commercial properties. The investigation uncovered an illegal gambling network with a turnover of approximately EUR 5.86 billion. Five suspects are also accused of tax evasion: unpaid taxes owed to the state for 2024 alone are estimated at EUR 77.6 million. Assets worth EUR 82 million were frozen, several high-value vehicles were seized, and bank accounts were blocked.

👨‍💻 Context: in Germany, organizing illegal gambling is a criminal offense punishable by several years in prison. Players using unlicensed platforms may also face criminal liability under Article 285 of the German Criminal Code (StGB): a fine or up to six months in prison.

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