Since the German State Treaty on the New Regulation of Gambling (GlüStV) came into force, only real-money games licensed by the German gambling authorities are permitted. Nevertheless, there is still a significant proportion of players who consciously or unconsciously play in illegal online casinos without a licence from Germany. What are the reasons and justifications for this?

In order to legally offer online gambling in Germany, operators need a licence from the Joint Gaming Authority of the Federal States (GGL). A look at the authority's official whitelist shows that 39 gaming companies currently hold such a licence for virtual slots. A further five companies hold a German licence for online poker (as of 24 January 2024). However, the actual number of platforms where players can register and play slots and other games for real money is many times higher. We wondered why, two and a half years after the opening of the online gambling sector, players are still playing in unlicensed online casinos.

Are players aware of the illegality of some online casinos?

If you clumsily search for "online casinos" on the internet, you will still find advertisements for illegal online casinos on the first pages of search results. The majority of these are online casinos licensed in Curacao or Malta. However, such operators have been illegal in Germany since the new GlüStV came into force. It was only at the beginning of January this year that we reported on the Federal Minister of Justice's intention to decriminalise illegal gambling.

The fact that such unlicensed online casinos are so easy to find means that some players are probably still unaware of the illegality of the offer. To make matters worse, most of the illegal online casinos are German-speaking and often give the impression that they are legitimate.

Of course, there is probably a significant proportion of players who knowingly play in illegal online casinos. When asked, the explanation often given is that German online casinos are not attractive enough. But is it really an acceptable explanation to turn to an unregulated and therefore illegal site if the legal one is not attractive enough? Probably not.

One example: In Germany, a packet of cigarettes now costs an average of €8. In neighbouring Poland, smokers only have to pay between €3 and €4 for a packet. If all smokers in Germany bought their cigarettes in Poland because they were significantly cheaper, the German state would lose billions in tax revenue every year. It would therefore be neither permissible nor acceptable to buy all one's cigarettes abroad.

It is true that an unregulated offer will always be more attractive at first sight, and may even be more attractive in the end, than a legal product. However, it is also true that the functioning of the system would be jeopardised if everyone resorted to untaxed or even illegal products. Therefore, it is up to each customer or player to decide whether to buy their cigarettes cheaply in Poland or to play in an online casino without a licence from Germany.

Reasons for operating in online casinos without a licence

Of course, players who decide to make a deposit at an unlicensed online casino should not be prejudiced. After all, there are compelling reasons why players choose to play in illegal online casinos. These include, first and foremost, the player protection regulations, which we reported on in detail at the end of November.

Specifically, players are bothered by the following measures:

  • Minimum playing time of five seconds
  • Maximum stake of one euro per game round
  • Ban on autospin
  • High tax especially on online slots (= low RTP value)
Anyone who plays for real money in an online casino in Germany without a German licence currently faces prosecution and a fine or prison sentence. According to Section 285 of the German Criminal Code, anyone who "participates in public gambling" is liable to prosecution.

What legal alternatives are there?

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Conclusion

Many German players are still active in illegal online casinos. Strictly speaking, this alone is an offence under Section 285 StGB (participation in illegal gambling). For this reason, everyone should carefully consider whether they are willing to take this risk "just" to avoid the annoying player protection regulations such as minimum playing time and maximum stake.

The fact is: yes, the illegal offer is more attractive in some respects. But that is the nature of illegal offers. Untaxed cigarettes from abroad are also cheaper than cigarettes in Germany. But that alone should not be a reason to turn away from the legal supply.

Image source: https://pixabay.com/de/photos/hacker-silhouette-hacken-hack-3342696/

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