German Gambling Regulation Under Scrutiny as Key Treaty Evaluation Looms
The German gambling market is approaching a critical juncture with the first comprehensive evaluation of the 2021 Interstate Treaty due by year-end. The review comes as the national regulator details extensive enforcement actions and European courts provide key rulings on market restrictions and player refunds.
- Germany's gambling regulator, the GGL, reported significant enforcement in 2025, blocking access to over 1,800 unlicensed websites.
- Recent European Court of Justice activity has supported Germany's ability to restrict its market and established a basis for player stake refunds from unlicensed operators.
- A statutory evaluation of the Interstate Treaty on Gambling 2021 is due by 31 December 2026, assessing the framework's performance since its introduction.
Germany’s regulated gambling market is facing a period of intense assessment, with the first full statutory evaluation of the Interstate Treaty on Gambling 2021 (ISTG2021) scheduled for completion by the end of 2026. This review will take place against a backdrop of robust enforcement activity by the national regulator and significant legal clarifications from the European Court of Justice that are shaping the operational landscape for licensed and unlicensed providers.
Regulator Details Enforcement Action
The Gemeinsame Glücksspielbehörde der Länder (GGL) published its Activity Report for 2025 on 3 July 2026, detailing its supervisory and enforcement efforts. The regulator conducted 621 supervisory measures involving licensed operators throughout the year and processed 148 applications for new licences or amendments. A primary focus was the illegal market, with the GGL reviewing 2,662 websites operated by unlicensed providers or their advertisers.
These reviews led to concrete action against the black market. By the end of 2025, prohibition orders and blocking measures had rendered 1,843 websites inaccessible from within Germany. The GGL also targeted financial flows, confirming that by the same deadline, payment services from common providers were no longer possible on 178 of the reviewed websites.
Market Performance and Legal Precedents
According to the GGL's report, the licensed German gambling market generated approximately EUR 14.4 billion in gross gaming revenue in 2025, with online gambling contributing around EUR 3.5 billion of that total. Data from a 2024 player survey indicated a channelisation rate of approximately 77 per cent of online GGR to licensed offerings, with the remaining 23 per cent directed towards the non-regulated market.
The legal framework underpinning the GGL’s actions has been reinforced by recent European court decisions. In a judgment on 16 April 2026, the ECJ affirmed that EU law does not prevent a member state from prohibiting online casino games and other specific betting products offered by operators licensed in another EU country. The court held that such restrictions are permissible if they pursue objectives of consumer protection and channelling gambling activity into a controlled environment.
Further pressure on the unlicensed sector comes from the issue of player refunds. In an Opinion delivered on 19 March 2026, Advocate General Emiliou addressed the matter, concluding that a sports-betting operator active in Germany without the necessary licence could, in principle, be compelled to refund stakes to players. This opinion adds weight to the numerous player refund cases progressing through German courts, although a final ECJ judgment in a related case, C-530/24, was still pending as of October 2026.
The findings from the GGL's enforcement activities, alongside the market performance data and evolving legal precedents, will form a crucial evidence base for the final evaluation report on the ISTG2021. The report, mandated under section 32 of the treaty and due by 31 December 2026, will provide the first official verdict on the effectiveness of Germany's current regulatory model.
