German gambling market grows by 300 million euros

Berlin, May 8, 2018 — The German gambling market is continuing to grow. In 2017, the German gaming market (lotteries, stakes, gambling machines and casinos) generated a gross gambling revenue of 13.5 billion euros which is an increase of 300 million euros compared with 2016. This equates to further biennial earnings of 1 billion euros in comparison with 2015. Most of the gambling segments gained from the overall positive economic development in Germany, however, this varied from segment to segment.
These findings are part of the new report German Betting Market Monitor 2018 released by Goldmedia Strategy Consulting.
Record growth in the betting segment, however, lotteries are under pressure
In 2017, gambling notched up the strongest level of expansion of all the gaming segments with a 17 per cent and in gross gambling revenue (wagers minus payouts) compared with 2016. As compared with 2015, the marketplace has grown by 33 percent in total. This positive trend is expected to continue. The forthcoming 2018 FIFA World Cup in Russia will spark additional earnings growth for the 90+ sports betting operators that are active in the German marketplace. What’s more, the dysfunctional regulatory policies that are still in effect in Germany are ongoing to provide favourable operating conditions which are supporting additional growth.
However, the German lottery segment remains static and gross gambling revenue has fallen by 3 per cent, primarily due to declining ticket sales from the highest grossing 6aus49 lottery game. In addition, the state-owned lotteries are having aggressive competition from online lotteries operating from Malta with no German licence.
Changes in the gambling machines section Gaming machines achieved yet another very lucrative year, generating a gross gambling revenue of over 7 billion euros in 2017. But, significant structural changes on the marketplace are impending after the introduction of new regulations. Stricter rules regulating the entire number of gaming halls and the minimum distance allowed between them may result in a considerable decline in the amount of gambling venues in the medium term. Even though the gaming system operators have initiated over 1,000 legal event to stall the implementation of these policies, the strong market growth that has been seen in the past few years has now come to a stop.

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