Deutsche Sportwettenverband (DSWV) has urged the German Government to restart the licensing process for sportsbook providers.
Impact of COVID-19
It is no secret that coronavirus (COVID-19) has widely impacted our lives and the economy. Recent commentary has suggested that gambling has been profiting through the pandemic. However, Mathias Dahms, president of the German association of sports betting providers (DSWV), has shot down this accusation as the figures are showing that it isn’t true.
The disruption caused by COVID-19 on the German sports betting sector has been uncanny. We have seen sales fall by approximately 16% in 2020 alone. Therefore, betting associations are pleading the German government to kick start the process of giving licenses to betting providers once again. It is believed that this will restart the market and, in turn, provide more optimism and opportunity for affiliates.
How bad is it been?
COVID-19 has severely diminished the betting industry. Recently, the Federal Ministry of Finance in Germany have revealed that industry turnover brutally declined to €7.8bn (£6.8bn) in 2020 from €9.3bn (£8.2bn) in 2019. Dahms further suggested that the industry has completely collapsed; this has only been made worse as betting shops have closed down.
The fact that sporting events have been cancelled and rescheduled has not given German betting providers much to look forward to. From this, we have seen loads of players transfer to unlicensed casino sites to play due to strict German gambling regulations on licensing. Dahms suggests that “the strict regulations for virtual slot machines have channelled the market away almost overnight – unfortunately in the wrong direction.”
Affiliates should take care when associating with sportsbook licensing in Germany at the minute – especially with the growing worry over black market operators.
