Germany’s governing Christian Democratic Union (CDU) has been presented with a comprehensive reform plan aimed at overhauling the country’s gambling regulations, as pressure continues to mount over the performance of the current legal framework.
The proposals were drafted by the Economic Council, a business association linked to the CDU, which argues that the 2021 State Treaty on Gambling requires significant legislative changes if Germany is to improve its regulated gambling market.
The recommendations arrive ahead of the official review of the State Treaty, which is scheduled to conclude later this year. According to the Council, the evaluation should be used as an opportunity to introduce targeted reforms rather than maintain rules that have struggled to achieve their objectives.
Germany’s regulated market has faced sustained criticism from operators and industry groups. Online slot games are currently taxed at 5.3% of every wager instead of on gross gaming revenue, while players are restricted to stakes of €1 per spin.
The licensed sports betting sector has also struggled to compete. The German Sports Betting Union (DSWV) estimates that illegal betting operators outnumber licensed providers by 11 to one. Meanwhile, H2 Gambling Capital projects channelisation rates of just 22-25%, with the figure potentially falling to 20% by 2030 if the regulatory framework remains unchanged.
Among the key recommendations is a restructuring of the State Treaty’s legal objectives to create a better balance between consumer protection and the freedom of adults to choose licensed gambling products. The proposal argues that excessive restrictions have undermined the regulated market without effectively reducing illegal gambling.
The Economic Council also calls for a new approach to reviewing gambling legislation. Instead of waiting for major treaty revisions, it proposes continuous independent research alongside a rolling evaluation process that would allow ineffective measures to be amended on a regular basis.
Improving channelisation is another major priority. The document recommends assessing the real impact of individual regulatory measures on player behaviour and placing greater emphasis on tackling illegal operators rather than imposing additional burdens on licensed businesses.
Licensing procedures are also highlighted for reform, with the Council advocating a more streamlined approval system instead of the current product-by-product licensing structure.
With the CDU currently leading Germany’s federal government, the proposals could carry significant political weight as policymakers prepare to assess the future of the country’s gambling framework. Industry organisations, including the European Gaming and Betting Association (EGBA), have repeatedly argued that meaningful reform will be necessary if Germany is to improve channelisation and strengthen its regulated market.