Germany has long held one of the worst reputations in European gambling, and the ruling Christian Democratic Union now has a concrete plan to change that.
The Economic Council, a business association linked to the CDU, has compiled a reform proposal arguing that the 2021 German State Treaty on Gambling urgently needs legislative change.
The document makes the case that the domestic market is in serious trouble and that decisive action from the governing party is now necessary.
Germany’s current regulatory framework taxes slot game wagers at 5.3% per play rather than using a gross gaming revenue-based tax model, with online stake limits capped at just €1 per spin.
The situation is no better on the sports betting side, where the German Sports Betting Union calculates there are 11 times more illegal betting providers operating than licensed ones.
H2 Gambling Capital estimates channelisation rates currently sit between 22% and 25%, with projections pointing to a further decline to around 20% by 2030.
The Economic Council’s proposals directly address each of these problem areas, setting out a series of targeted recommendations designed to help the CDU act decisively on gambling reform.
A central recommendation is the restructuring of the Treaty’s legal objectives, balancing what the Council labels as the “Freedom” and “Responsibility” pillars, placing equal importance on player protection and adult freedom of choice.
Overregulation has been a major point of contention in the German market for several years, with industry voices growing louder in their calls for a more proportionate regulatory approach.
The proposals also call for a complete rethinking of how the gambling framework is assessed, including the implementation of continuous independent research and a “rolling evaluation clause” that periodically reviews ineffective rules rather than renegotiating the entire Treaty at once.
With the CDU currently in power, the Economic Council’s recommendations carry genuine political weight and stand a strong chance of shaping official policy in the near term.
The European Gaming and Betting Association has been adamant that Germany will struggle to move forward meaningfully while the current regulations remain in place, adding further pressure on the government to act.
