As Germany prepares for the 2026 evaluation of the Interstate Treaty on Gambling (GlüStV 2021), one metric has emerged as the central indicator of whether the country’s regulatory framework is working: the channelisation rate.
The concept refers to the percentage of gambling activity that takes place within the regulated market rather than on unlicensed offshore platforms. The upcoming review will determine whether Germany’s strict regulatory model is successfully steering players toward licensed operators while maintaining strong consumer protections.
However, recent research suggests the answer may be far from clear.
Germany’s gambling regulator, the Joint Gambling Authority of the Federal States (GGL), maintains that the black market represents only a small share of overall gambling activity. According to its estimates, channelisation in Germany reaches around 96–97 %, implying that the vast majority of gambling takes place on licensed platforms.
Independent research paints a very different picture.
A study by the Handelsblatt Research Institute concluded that more than half of Germany’s online gambling activity may occur outside the regulated market, suggesting that the scale of the black market is significantly underestimated.
Other analyses support this concern. Some industry studies estimate the overall channelisation rate at around 36 %, meaning a majority of players may be using illegal gambling websites.
The discrepancy between these figures has triggered one of the most intense policy debates currently shaping the German gambling industry.
The most significant channelisation challenges appear in the online slots sector, which is heavily regulated under the GlüStV framework.
Industry estimates suggest that channelisation for online slots may be as low as 20 % to 40 %, raising concerns that a large share of players in this segment are turning to offshore platforms.
Germany introduced strict limitations for these games, including a €1 maximum stake per spin, mandatory delays between spins and cross-operator deposit limits. The aim of these rules is to reduce gambling harm and prevent addiction.
However, critics argue that these restrictions may also make licensed platforms less competitive compared to offshore alternatives.
The channelisation rate is one of the most important metrics used by regulators worldwide to evaluate gambling policy.
When a large share of gambling activity occurs outside the licensed market, several consequences follow:
Unlicensed operators often bypass regulatory requirements entirely, offering higher betting limits, faster gameplay and broader game libraries.
This creates a policy dilemma: regulations designed to protect players may also reduce the attractiveness of the regulated market if they become too restrictive.
The issue has become one of the defining debates ahead of the 2026 review of Germany’s gambling framework.
Industry stakeholders have raised concerns that the 5.3 % turnover tax on wagers, combined with strict product limitations, may reduce the competitiveness of licensed operators and contribute to the growth of offshore alternatives.
At the same time, regulators have intensified enforcement efforts against illegal platforms, issuing prohibition orders and blocking hundreds of websites targeting German players.
According to Tim Buchmann, Chief Editor at CasinoBernie, the disagreement over channelisation figures illustrates how difficult it is to measure illegal online markets.
Buchmann, who analyzes regulatory developments at the German casino comparison platform CasinoBernie, notes that different studies rely on very different methodologies.
“Channelisation estimates vary widely because researchers measure different indicators — from website traffic and player surveys to tax data and operator reports,” Buchmann explains. “That’s why the gap between official figures and independent studies can appear so dramatic.”
He adds that the upcoming regulatory evaluation will be a crucial moment for the German market.
“The 2026 review will ultimately show whether the regulatory framework is successfully balancing player protection with market competitiveness.”
The evaluation of the GlüStV framework is expected to examine several key issues, including:
For policymakers, the challenge will be determining whether the current regulatory model is achieving its primary objective: steering players toward the legal market while maintaining strong consumer safeguards.