GGL calls for direct powers to prosecute illegal gambling threats

Gluecksspiel Behoerde (GGL), Germany’s federal gambling authority, has called for an expansion of its direct powers to combat illegal gambling and to expose criminal networks. The message was relayed by Ronald Benter, Co-President of the GGL, who laid concerns that the regulatory framework of Germany Interstate Gambling Regime (GlüStV 2021), did not provide sufficient enforcement powers for the GGL to take on illegal gambling threats directly. Speaking to the Mitteldeutsche Zeitung, Benter argued that the framework “cannot respond quickly enough to developments within the illegal online market”. Benter argued that many provisions of the treaty are too prescriptive and can only be amended through lengthy negotiations involving Germany’s 16 federal states. “Currently, the regulations in the state treaty are sometimes very detailed,” Benter said. Even when the GGL and the federal states agree that changes are required, revising the legislation can take several years. The delay prevents the authority from reacting to emerging risks, new technologies and changes in the operating structures of unlicensed gambling businesses. “The illegal market is very dynamic. That’s why we as an authority need to be faster,” Benter stated. GGL requires shorter process Benter has proposed that the GGL’s Administrative Board be granted direct oversight over the regulator’s activity. He argues that a new structure is needed to ease enforcement procedures with the Administrative Board continuing to cooperate with Germany’s 16 federal states, but with permission to make operational decisions through a shorter approval process. “But ultimately, we have the expertise and should therefore be able to react more quickly to developments and decide on new measures,” he added. Benter warned that regulatory delays risk weakening Germany’s licensed market by allowing illegal operators to adapt faster than the authorities pursuing them. The GGL currently combats illegal operators through prohibition orders, payment blocking, IP and network-blocking procedures, advertising restrictions and referrals to criminal prosecutors. However, the authority believes these administrative tools must be supported by more consistent criminal enforcement, particularly where businesses and individuals are based outside Germany. Benter called on German public prosecutors to open more proceedings against overseas-based individuals suspected of targeting German consumers without a licence. “This is almost never done so far, but it could increase deterrence,” he said. Frankfurt investigation exposes scale of black market The intervention follows a major investigation into an alleged illegal online gambling network operating from Frankfurt and the wider Rhine-Main region. More than 100 officers searched 11 residential and commercial properties after an investigation conducted covertly for over three years. The operation involved the Frankfurt Public Prosecutor’s Office, Frankfurt tax investigators, the North Rhine-Westphalia Office for Combating Financial Crime and Frankfurt police. Five people are suspected of commercially and collectively operating unlicensed online-gambling platforms from at least July 2021. One principal suspect was arrested under a warrant. Prosecutors allege that the platforms processed approximately €5.86bn (£5bn) in player stakes between July 2021 and the end of 2023. The suspects are also accused of failing to pay gambling taxes in full, with the estimated tax loss for 2024 alone placed at €77.6m. Authorities executed an asset-freezing order worth approximately €82m, seized several high-value vehicles and froze multiple bank accounts. The GGL welcomed the investigation and confirmed that it supports prosecutors by sharing intelligence gathered through payment-blocking cases, network restrictions, advertising enforcement and examinations of operators’ technical and corporate structures.