Gambling in Germany: Golden Times for Online Casinos

In 2017, the Handelsblatt Research Institute (HRI), an independent research institute of the Handelsblatt publishing group (Germany), published an economic analysis of the gambling market in Germany. The publication was created by Drs. Bernhard Köster and Jan Kleibrink.

In their observations, the authors shed light on gambling forms, the legal situation in Germany, and the general economic significance and indirect macroeconomic significance of gambling.

Of particular significance for the online casino business from this analysis are its longer-term forecasts and its perspectives on digitalization of the market.

The Future: Online Casinos instead of “Classic” Casinos

Kleibrink and Köster’s analysis, with regard to online casinos, should please online casino operators, as the authors assume that the unregulated realm of online casinos is
increasingly taking up space in the German market. However, the regulated sector, which includes physical casinos and class lotteries, is rapidly declining. To put it another way: Germany’s future gambling market belongs to online casinos, not physical ones in buildings.

Amended legal regulations that came into force in July 2017 have accelerated this market evolution in Germany, leading to a steady reduction in the number of arcade locations. At least 58% of gambling halls in Germany have subsequently closed. The authors surmised that the unregulated online casino market profits from this:

“The suppliers operating on the non-regulated market would benefit from this. […] the declining number of gaming halls may lead to an increasing demand for casino games on the Internet.”

In addition, online casinos with German customers benefit from the fact that previously popular games of chance, such as Lotto 6 out of 49, are becoming increasingly unpopular in all age groups and among both genders, with a significant decline seen in game participation. The same applies to “classic lotteries” in Germany, e.g., Spiel 77 and Super 6.

Conclusion: The economic outlook for online casinos in Germany is excellent.

Gambling Digitization: The Introduction of Online Casinos

Terms like “industry 4.0” and “digital transformation” are being tossed around more and more nowadays. This digital transformation has affected almost every area of daily life, including gambling. The establishment of online casinos/gambling can be viewed as a direct consequence of the digital transformation.

This development is particularly noteworthy economically if one looks at, for example, Facebook and the travel industry, which demonstrate how digitalization has led to far-reaching changes in business models. The gambling industry is also experiencing these changes. The shift from physical gambling entities to online casinos is unstoppable and will intensify over the next few years. Therefore, online offerings of casino services will become even more important than they already are and will generate orresponding profits in the coming years.

The authors also note that changes within the online casino industry are unstoppable as well. Regional politics cannot stop the industry’s technological developments and proliferation, i.e., the sector will expand globally regardless of regional political climates.

In addition, it can be stated that all age and socio-demographic groups gamble, and this aspect has been considered in the creation of our games. Within the framework of our online casino software, we only offer games that are trendy and can give beginners a pleasant gambling experience quickly through so-called easy versions.

You can download the complete publication in PDF format from the Handelsblatt website (in German):

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