One of the primary markers of a healthy regulated gambling market is its channelisation percentage. Channelisation is an important metric because it clearly indicates what percentage of the gambling population is playing at licensed online casinos and betting sites versus the number who are choosing to frequent black market operators.

When local gamblers choose to play at unlicensed gaming sites, it is a case of the customer voting with their money. In this case, they are saying that the bonus offers, game selection, and overall customer service are better at illegal sites. This action is a major red flag for a gambling authority looking to create a safe and secure market for its citizens.

 The GGL Gets a Gold Star

The GGL (Gemeinsame Glücksspielbehörde der Länder) has had its work cut out in the German market. The organisation was allowed to prove its worth for a few months before being officially handed the reins of the  German-regulated gambling market on 1 January 2023. While Germany consists of sixteen federal states, the GGL has been empowered to manage the licensing and daily operations for the entire federal republic.

The regulator has proven to be tenacious, driven and incredibly effective in combating unlicensed gambling and enforcing market standards among licensed operators. One of the feathers in its cap is the recent announcement that it has achieved a 95% channelisation rate!

GGL CEO Ronald Benter said:

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“According to our market analysis, the channelling rate is well over 95 percent, which means that apart from less than five percent, the betting stakes are placed with the permitted sports betting providers according to the tax data of the Federal Ministry of Finance.”

To put this achievement in context, not only has the GGL been in power for less than a year, but well-established regulators like the Netherlands, Sweden, and Denmark vary between 80%-90%. The UK Gambling Commission, which has been in operation since 2007, is the only European regulator to come close to a channelling rate of 95%.

 Monitoring the Black Market

The GGL has taken firm action against sites offering unlawful offers to German players and promises to continue with that hard-line approach.

Board member Benjamin Schwanke explains:

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“We cannot find any crowding out of legal offers by illegal offers. The illegal websites mentioned by the DSWV are known to us and will be prosecuted under gambling law and, if necessary, passed on to public prosecutors, tax offices and the Central Office for Financial Transaction Investigations (FIU). According to current tax data, these illegal providers have a very small market share of less than five percent.”

Benter voiced his support of Schwanke’s comment, adding:

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“The GGL is picking up speed in the fight against illegal gambling, including in the area of sports betting and related advertising. We will make success measurable on the basis of the data collected at GGL.”

Regardless of any short-term challenges the newly installed regulator might face, successfully navigating the onboarding of new licensees, shutting down sites offering illegal offers, and maintaining a greater than 95% market channelling rate is an admirable achievement!