Significant Growth Predicted for German Market

The German gambling market could grow to be worth as much as €3.3 billion by 2024, according to new projections from a research company, Goldmedia.

The report into the German market looks at developments covering numerous areas of the industry, including lottery, casinos, sports betting and gaming machines up until the year 2019. It also takes into account the revenue losses that the sector will face due to the impact of the coronavirus.

Despite the short term difficulties, the report indicates that German online casino gaming revenues could grow from €2.2 billion in 2019 to €3.3 billion by the end of 2024. Figures for 2019 showed that turnover across all gaming sectors rose by 5.5% with gaming machines accounting for 42% of gaming revenue. Online sports betting and casino were the biggest-gaining sectors, making up 42% of gaming revenue for the year. In the short term, however, the report predicts a fall in revenue, due to the pandemic shutdown with a drop of 12.9% in revenue predicted.

Alongside their assessment of the gambling market, Goldmedia also carried out a survey of gaming customer in the German market. The survey found that despite the tougher restrictions that would be placed on operators as part of the upcoming national licensing regime, around 62% of respondents said that that they would opt for a locally-licensed gambling company, while 38% said that they would continue to gamble through unregulated gambling sites licensed in other jurisdictions.

The survey also found that around 12% of gamblers play online slots games daily, with 32% playing on a weekly basis. The most common platform for playing online slots was the smartphone, which accounts for nearly two thirds of casino gaming activity. The majority of those who responded said that they spent less than €50 per month on online gambling, while online advertising at 39% accounted for the majority of customer acquisitions.

When they were asked about customer protection tools including deposit limits, around 81% of respondents agreed that they should be available.

The report will make interesting reading for German industry stakeholders at a time of considerable turmoil in the market. Legislation introduced at the national level to legalise online gambling was approved by the German heads of state back in March, and is due to take effect from July 1, 2021.

The rules are set to include a maximum stake limit per spin of €1 for online casinos, a deposit limit of €1000, which will apply to all sectors and a ban on advertising between 06:00 and 21:00.

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