German online gaming market could reach €5.14 billion in 2024
In 2023, the German gambling market reached a gross gaming revenue (GGR) of €13.7 billion, a 2 percent increase compared to the previous year. This growth was primarily driven by the online gambling sector, which contributed €3.0 billion, accounting for 22 percent of the total market. The largest share of the market came from sports betting, with gross revenues reaching €1.8 billion, a €0.4 billion increase from 2022.
The German Sports Betting Association (DSWV) reported that total betting in 2023 amounted to €7.7 billion, with €6.6 billion paid out to customers. The sports betting sector alone contributed €409 million in taxes to the government. With 12 out of 18 Bundesliga football teams having betting partners, sports betting has become an important part of the sports industry.
According to the DSWV, the industry has created 6,700 jobs. Advertising expenditure amounted to €136 million, while sponsorship expenditure totalled €55 million.
Online gambling has been the primary catalyst for the industry’s growth. In 2023, 36.5 percent of the adult population, or around 21 million people, participated in some form of gambling, with many turning to online platforms due to their ease of use and the variety of options they offer. However, this growing market has also raised concerns about gambling addiction, with 2.4 percent of the population, or 1.4 million people, reportedly suffering from gambling-related disorders.
As we move into 2024, the online gambling sector is expected to lead the charge in driving industry growth. According to projections from Statista, the revenue from the online gambling market in Germany is expected to reach €5.14 billion, with a compound annual growth rate (CAGR) of 5 percent between 2024 and 2029. By 2029, the market volume is anticipated to grow to €6.56 billion. Online sports betting is expected to generate €1.93 billion in 2024 alone.
With user penetration expected to reach 11.9 percent, more than 21 million adults will have participated in some form of gambling over the course of the year. This would make Germany one of the largest gambling markets in Europe.
Key figures:
Total online gambling revenue: €5.14 billion
Online sports betting revenue: €1.93 billion
User penetration: 11.9 percent
Average revenue per user (ARPU): €519
Illegal gambling
The illicit gambling sector remains a challenge. The Joint Gambling Authority of the States (GGL) estimated that the illegal gambling market generated between €400 million and €600 million in GGR in 2023. The GGL has initiated studies to assess the scope of illegal gambling, with the aim of curbing its growth and steering customers towards regulated platforms.
In Bavaria, for instance, the number of investigations related to illegal gambling increased from 77 cases in 2019 to 762 cases in 2023. The Greens, a political party in Germany, have criticised the state government for not doing enough to address this issue, calling for increased financial resources and preventive measures, especially to protect vulnerable groups such as minors and gambling addicts.
Player protection
The GGL has allocated €1.4 million towards studies on player protection, advertising, and channeling users from the illegal to the legal market. Virtual slot machine games, in particular, are under scrutiny, with the GGL exploring ways to streamline the approval process for individual games in collaboration with development studios.
Germany’s regulatory framework
The regulatory landscape in Germany is complex, with a mix of federal and state laws governing different aspects of the gambling industry. The State Treaty on Gambling (GlüStV 2021) provides the primary regulatory framework, but individual states have the power to impose their own regulations, particularly around casinos and lotteries. In 2024, further adjustments to the GlüStV are anticipated, particularly in relation to virtual slot machines and the licensing process for individual games.
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