Channelisation Remains a Key Test for Germany’s Gambling Market

Channelisation—the ability to direct players toward licensed operators—is one of the main goals of Germany’s gambling regulation. Since the introduction of the Glücksspielstaatsvertrag (GlüStV) in 2021, policymakers have aimed to create a system where the majority of gambling activity takes place within the regulated market.

However, achieving this goal has proven to be more difficult than expected. While licensed operators have gained a foothold, a significant portion of online gambling activity still occurs on unlicensed platforms. Industry estimates suggest that the legal market captures only a portion of total activity, particularly in the online slots segment.

Why Some Players Still Choose Unlicensed Platforms

One of the main reasons for this challenge is the difference between regulated and unregulated environments. Licensed operators must comply with strict rules, including deposit limits, stake restrictions and identity verification. These measures are designed to protect players, but they also affect the overall user experience.

In contrast, offshore platforms often offer fewer restrictions, a wider range of games and more flexible conditions. This creates a competitive imbalance that influences player behaviour.

Tim Buchmann, Editor-in-Chief at CasinoBernie, explains that “channelisation is not just about enforcement—it depends on whether the regulated market can meet player expectations.”

Another factor is the complexity of the regulatory system. Players must navigate limits, verification processes and monitoring tools, which can make the experience feel more structured compared to international alternatives.

Why Regulation Alone May Not Improve Channelisation

At the same time, Germany has strengthened its enforcement efforts. Authorities have introduced payment blocking measures and increased oversight of advertising channels in an attempt to reduce the visibility of unlicensed operators.

However, enforcement alone cannot fully address the issue. The global nature of online gambling means that offshore platforms remain accessible, even with stricter controls in place.

CasinoBernie’s analysis highlights that channelisation is influenced by a combination of regulation, usability and accessibility. A system that is too restrictive may reduce its own effectiveness by pushing players toward alternative options.

Looking ahead, the upcoming review of the Glücksspielstaatsvertrag is expected to focus on this issue. Policymakers will need to assess whether current measures are sufficient or whether adjustments are necessary to improve the balance between protection and competitiveness.

The future of Germany’s gambling market will depend on how effectively it can address this challenge. Achieving higher channelisation rates will require not only strong regulation, but also a system that aligns with how players interact with digital platforms.