Kiel: Criticism of regulation after gambling raid

A few weeks ago, various media reported on a major raid against illegal gambling in Kiel. In fact, a considerable number of unregulated machines were seized in the harbour city. The criticism of the German regulatory system voiced by the industry and addiction counsellors in this context is at least as interesting and relevant.

Targeted raids against illegal gaming machines, or investigations in which such machines are incidentally seized, have long since become the norm rather than the anomaly. This is hardly surprising, as the German Gaming Machine Industry Association estimates that there are currently up to 50,000 illegal machines in operation in Germany: this was one of the statements made in connection with an initiative to improve the reputation of gaming arcades in 2024.

Although the campaign in Kiel was somewhat larger, the vending industry association does not consider it to be of great significance. There are simply too many illegal machines in circulation. In fact, we read about smaller or larger operations of this kind almost every week. That's why this case has fallen off the radar. On closer inspection, however, it is quite interesting in terms of the statements made by search consultants and the industry. They are clearly critical of the current regulatory environment.

What the Kiel officers achieved during the raid

At the end of December, 25 properties in the Gaarden district of Kiel were searched and numerous illegal gaming machines were confiscated. The Public Prosecutor's Office, the Kiel Police Department and the City of Kiel, which were responsible for the operation, stated in a press release that approximately 170 police officers were involved in the operation. Eight search warrants were executed. Specifically, it was suspected that illegal gambling was being organised through the unauthorised installation of gaming machines.

The new Coordination and Investigation Unit for Combating Organised Crime (KE OK), which was only set up by the Schleswig-Holstein Public Prosecutor's Office at the beginning of the year, was primarily responsible for carrying out the operation. The trade supervisory authority of the city of Kiel was also involved, as can be seen from the press release. It carried out inspections in numerous restaurants in the aforementioned district. Numerous indications of illegal gambling were found in these establishments. Further investigations have been initiated.

Criticism of the strong regulatory measures for legal vending machines

In the course of reporting on the raid in Kiel, the German Gaming Machine Industry Association clearly pointed out the problems of illegal gaming machines, but also criticised them. According to an NDR report, the protection offered by legal machines in the form of win freezes, mandatory breaks and deposit limits is good and important, but at the same time critical. This is precisely why so many players knowingly switch to illegal machines.

The same NDR article quotes the Kiel City Mission: According to the responsible addiction counsellor, Burkhard Schweiker, such machines are a "huge problem". Unfortunately, "the more legal slot machines are regulated, the more people use illegal ones". In addition, the regulatory authorities are too limited in what they can do. They have no overview of what is happening on the ground with the machines. Controls are too limited. Finally, it is often almost impossible for players to tell whether they are looking at a legal or illegal machine.

Georg Stecker, spokesman for the German vending machine industry, spoke to the German Press Agency about the incident and once again criticised the current regulatory situation:

"To limit the growth of the black market in the long term, we need two things. Strong enforcement, which is why we welcome the new investigation unit and the current raid". However, he also stressed the importance of an attractive and competitive legal offer from the client's point of view. This is the only way to dry up the black market.

For the Association of the Vending Machine Industry, the 58 vending machines are not a major find!

Announcing the raid, Senior Public Prosecutor Georg-Friedrich Güntge described it as an unusually extensive find. This shows that illegal gambling in the state of Schleswig-Holstein is of considerable proportions," he said, warning that winnings from such unregistered machines are not subject to tax.

The Association of the German Slot Machine Industry, on the other hand, takes a more sober view of the case. According to the press, the 58 illegal machines are not a major discovery. They point out that there are illegal machines in all the major towns in Schleswig-Holstein. It can be assumed that the number of unreported cases is quite high. It is clear to the association that when machines are confiscated, new illegal machines are immediately set up.

Major success for new investigation team

The operation was carried out primarily by the new Coordination and Investigation Unit for Combating Organised Crime at the Public Prosecutor's Office in Schleswig-Holstein. The state's Minister of Justice, Kerstin von der Decken (CDU), says the results are encouraging and is convinced that the decision to strengthen the authorities in this area was very important:

"The establishment of the new Coordination and Investigation Unit at our Public Prosecutor's Office has been a great success. Thanks to a better overview of nationwide criminal structures, investigations into organised crime can be conducted centrally and even more effectively".

Conclusion

Image source: https://pixabay.com/photos/kiel-at-night-at-night-city-260290/