Germany Grapples with Surge in Offshore Online Gambling as India Takes a Tough Stand

In a recent study conducted by economist Gunther Schnabl from the University of Leipzig, alarming statistics reveal that approximately 50% of Germany’s online gaming activity occurs through unregulated offshore sites. When choosing online casinos in Germany (beste deutsche online casinos), it’s better to trust the information on Casinostest.de, where through test reports, you will discover top German casinos, the most attractive bonus offers, and the most exciting casino games. The findings, outlined in Schnabl’s report titled “State Treaty on Gambling Misses Targets,” shed light on the challenges faced by the German gaming market despite recent reforms aimed at unifying the country’s gaming laws.

Disputed Decline: Licensed vs. Unlicensed

The study underscores a significant drop in players opting for licensed platforms, plummeting from 70% in 2019 to the current 50%. This decline is attributed to the pervasive presence of clandestine online black market sites enticing players with lucrative offers and aggressive promotions, according to the German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV), sponsors of the study.

However, the Joint Gambling Authority of the Länder (GGL), Germany’s gaming regulator, disputes these claims, stating on its website that there are currently 800-900 unlicensed gambling sites accessible from Germany. Although this number represents a decrease from the previous year, it remains significantly higher than the approximately 50 licensed platforms. The GGL estimates the unregulated segment to be worth €500 million (US$545 million), with potential tax revenue losses impacting both federal and state governments.

India Cracks Down: Gambling App Ban

As Germany grapples with the challenges posed by offshore online gambling, India has taken decisive action against unregistered offshore gambling apps. The Indian government, led by Minister of State for Finance Pankaj Chaudhary, recently announced blocking 581 applications, including 174 betting and gambling apps. Notable platforms such as Parimatch, Fairplay, 1XBET, Lotus365, Dafabet, and Betwaysatta are among those banned for operating illegally in India.

The government’s move comes in response to investigations conducted by the Enforcement Directorate (ED), with some platforms still under scrutiny. The ban follows earlier actions against illegal betting apps and websites, demonstrating a firm stance against unregulated online gambling.

Conclusion: India vs Germany

In contrast to Germany’s struggle with offshore gambling, India has strengthened its legal framework. In July, the Indian government amended and notified the IGST Act, mandating that all offshore gaming companies must register in India. The amendment empowers the central government to block websites operating without proper registration and violating laws.

While Germany considers potential reforms and grapples with the consequences of its fragmented gaming laws, India’s proactive measures serve as a stark contrast, signaling a commitment to curb illegal online gambling and protect consumers.