TLDR
- The Economic Council, a group linked to the CDU, wants changes to Germany’s 2021 State Treaty on Gambling.
- The treaty review is expected to finish by the end of 2026.
- Critics say the 5.3% tax on stakes for online slots hurts licensed operators.
- Illegal betting sites reportedly outnumber legal ones by eleven to one.
- The proposal calls for simpler licensing and a focus on cutting illegal gambling.
Germany’s gambling rules may be heading for another shake-up. A group tied to the CDU party has put forward a proposal to change the country’s 2021 State Treaty on Gambling. The timing matters because the official review of that treaty is set to wrap up later this year.
The group behind the plan is the Economic Council. It has close ties to the CDU and says the current rules are not working as intended.
Why the Current Rules Are Under Fire
Germany’s regulated gambling market has struggled since the 2021 treaty took effect. At the same time, illegal gambling activity has kept growing.
A big target of the criticism is the tax on online slots. Licensed operators pay 5.3% on every stake placed, not on revenue earned. Many in the industry say this makes it harder for legal businesses to compete.
There is also a €1 cap on each spin for online slot games. Operators have long said this limit pushes some players toward unlicensed sites instead.
Trade groups have data to back up these concerns. The German Sports Betting Association says illegal betting sites outnumber licensed ones by eleven to one.
Research firm H2 Gambling Capital estimates that only 22% to 25% of gambling activity currently happens through legal channels. The firm expects that number to drop to around 20% by 2030 if nothing changes.
What the Proposal Recommends
The Economic Council’s paper argues that Germany has leaned too far toward restrictions. It says the treaty’s original goal was to balance freedom and responsibility, but the balance has shifted.
The group wants adult consumers to have easier access to regulated gambling products. It also wants stronger player protection measures kept in place alongside that access.
One key recommendation is ongoing, independent research into the market. Right now, review happens only at set intervals. The group says a rolling system would let regulators react faster to problems.
The proposal also focuses on the illegal market itself. Rather than adding more rules for licensed operators, it suggests cracking down on the reach and visibility of unregulated sites.
Licensing is another area flagged for reform. The current system is described as fragmented, with product approvals seen as slow and inconsistent. The group wants a simpler, faster process for companies entering the market.
Pressure is also coming from outside Germany. The European Gaming and Betting Association has questioned whether the country can fix its channelisation problem without structural changes.
With the treaty review due to conclude before the end of 2026, the question now is whether lawmakers will adjust the existing framework or consider a larger overhaul. The outcome could shape how Germany’s gambling market operates for years to come.
