An Insight into German's loosened restrictions (hopefully)

[fiulpro]

A super interesting article which portrayed how heavy restrictions can cause probelms not only for the people but for the government as well, since with more restrictions in things like Gambling, people try and look for other options and opportunities so they move onto the black, unregulated market, which ends up bad not just for them but for the government alike.

Let's look at the article :

Gambling Insider was in attendance at the Betting on Sports Europe conference for a discussion on the new proposed regulations in Germany.

The panel, comprised of Dominik Beier, Managing Director, Emotion Group, Nico Jansen, Bet it Best Founder & CEO (through video call), Christian Madlindl, Magic Sports Media COO, and Dr. Wulf Hambach, Hambach & Hambach Co Founder and Lawyer.

With worries that users may move into muddy waters and into the black market due to tight regulations, in such a complex market, what is allowed, what isn't allowed, and who is responsible?

The conversation around Germany, and its restrictive and high taxed gambling market, saw the panel of judges discuss what is needed in terms of compliance, laws and marketing regulation.

“Sports betting is fun and if you spoil the game, customers will have fun somewhere else,” said Dr Wulf Hambach.

“A lengthy activation period can cause customers to easily drop out,” he explains. “If I [a user] am registering at a website that is too complicated, or a website that asks me to verify myself all of the time, then I am not coming back and will choose a different option.

“The return of investment all depends on that activation period, viability and being realistic… and exemptions, of course, give players more freedom to play.

“The customer doesn’t see that the market is black, they just see a colourful offer on the internet, easy to register and if they win, they get their money.”

Jansen explained: “We already see a shift in revenue, in 2019, pre Covid-19, the overall revenue for slots was €6.1bn ($7bn); for 2021 the estimated overall revenue for slots is €3bn, so it has been cut by 50%. We already see a shift and I’m pretty sure this revenue is down to the black market.”

There is an evident shift in revenue but at most places ( most countries)revenue is rising for gambling, which does give a scope for people getting engaged in the black market and it's not their fault because they would look for looser options, options where they can enjoy more instead of always submitting their identities on every site.

Sports betting is much loved by everyone around the world and the person rightly said that this is nothing but spoiling the fun and therefore tighter laws did not work in the favour of the government at all this time.

What the government needs to do:

Renew the laws
Make sure the rules and regulations are not too harsh for the people engaging in them
Make sure the gambling section is healthier for both parties.

What do you think about it ?
I do think this is a really powerful article especially concerned with gambling laws, rules and regulations since time and again we see them change for the worse and people can take a break and look at Germany.

https://www.gamblinginsider.com/news/13852/panel-germany-loosen-restrictions-or-customers-will-easily-drop-out-to-the-black-market

[worldofcoins]

No doubt it's in favor of gambling companies in Germany.
But it doesn't prevent the victims especially the underaged that get into gambling and losing their earnings in a casino that charges a 10% house edge.
I'm not against them but what I've seen is people start gambling for fun and start to think of it as their earning source, especially under the 20s.

[tulusikhlas]

So the government should open up strict rules regarding providing data to casinos and relax at least to allow access to no longer relate to giving out multiple identities?
If it is said to be profitable, that is what gamblers expect. But some casino rules may apply differently. By following the requirements of a gambling license, then taxes on the government can also benefit the casino. Although gamblers often avoid it all, and explore casinos that are less restrictive to the rules.

[goaldigger]

Restrictions are supposedly meant to protect its protect and of course to give more advantage to the government but if its too restricted many will look for other ways to gamble and the government can’t really control that. Anyway, if they see that gambling industry on their place is booming despite of that restrictions I guess making a resolution to update that restriction is necessary, its time now to give more freedom and this can also be an opportunity for the government to collect more taxes.

[Quidat]

Restrictions are supposedly meant to protect its protect and of course to give more advantage to the government but if its too restricted many will look for other ways to gamble and the government can’t really control that. Anyway, if they see that gambling industry on their place is booming despite of that restrictions I guess making a resolution to update that restriction is necessary, its time now to give more freedom and this can also be an opportunity for the government to collect more taxes.

Government do always mind off about on how to get more taxes and its just sensible that they would be loosening something if they do saw that there's really a potential when it comes on getting
more revenue out of those businesses knowing that gambling is a big and profitable industry. Some might had make out some prohibition or total ban but most countries doesnt really restrict out
gambling businesses if they do wanted to take advantage without compromising much of their citizens situation in terms of addiction then they should impose those casual regulation
when it comes to that.

[samcrypto]

If they see a huge loss and a shift to a black market, then there’s a possibility that they’ll change the restrictions since this is a big loss to casinos as well so for sure they are contacting the officials to help them prevent the black market for growing, and a change like this is a big help for them and really in favor to the casinos. Well, black market will always be here, some politicians also run a black market (based on my experience here in my place), so technically they can’t really stop it the next option for them is to lessened the restrictions and make it more accessible to many.

[magneto]

What the government needs to do:

Renew the laws
Make sure the rules and regulations are not too harsh for the people engaging in them
Make sure the gambling section is healthier for both parties.

Exactly.

Healthy regulation is going to get them so much further compared to draconian bans/restrictions on betting.

Let the people choose for themselves what they want to do with their money, but of course have the necessary measures in place to still ensure that sportsbooks/casinos are operating fairly and aren't ripping people off.

[carlfebz2]

What the government needs to do:

Renew the laws
Make sure the rules and regulations are not too harsh for the people engaging in them
Make sure the gambling section is healthier for both parties.

Exactly.

Healthy regulation is going to get them so much further compared to draconian bans/restrictions on betting.

Let the people choose for themselves what they want to do with their money, but of course have the necessary measures in place to still ensure that sportsbooks/casinos are operating fairly and aren't ripping people off.

Everything should really be in order and fair so there wouldnt be any problems which would benefit out both the industry and government without the needing of harming out their citizens.

It is just ethical that they wouldnt really be that impose strict regulation and laws in regards to this but lets accept the fact that there are countries which is like this.

Good thing German government had able to realize up things and sees the potential and other benefits and ending up with this decision.

[Johnyz]

What the government needs to do:

Renew the laws
Make sure the rules and regulations are not too harsh for the people engaging in them
Make sure the gambling section is healthier for both parties.

Exactly.

Healthy regulation is going to get them so much further compared to draconian bans/restrictions on betting.

Let the people choose for themselves what they want to do with their money, but of course have the necessary measures in place to still ensure that sportsbooks/casinos are operating fairly and aren't ripping people off.

Fair rules are mostly the common reason why gamblers are leaving the casinos, because some of them are not fair at all and also this is one of the reason why some gambler choose to play in the dark market, because the law is not fair and the casinos are just taking advantage it. If Germany really want to increase the profit in gambling industry again, they must adopt the change but don't expect that it will eliminate dark market, and restrict the underage from gambling because its not.

[Silberman]

There is something called the Laffer curve which basically states that there is an optimal point at which a tax rate maximizes the tax revenue and any raise beyond that decreases the revenues governments can get, I think this is what is happening here, besides I think the Laffer curve applies to other aspects of our lives, like for example how much regulation are we willing to tolerate, in a fiat casino KYC is a given but if you have to go way beyond that and you have to wait a long time for it while paying huge taxes then people are not going to tolerate it and will move the the black market casinos, even if that is not what they wanted to do.

[timerland]

A super interesting article which portrayed how heavy restrictions can cause probelms not only for the people but for the government as well, since with more restrictions in things like Gambling, people try and look for other options and opportunities so they move onto the black, unregulated market, which ends up bad not just for them but for the government alike.

Regulators really need to read your post, OP.

Black markets absolutely proliferate whenever there are excessive controls because people still need to seek risk somewhere. It's human nature and people aren't going to back down from looking for sportsbooks or casinos just because you place a blanket ban on them.

It takes effort to regulate positively as opposed to ban outright, which is why a lot of governments are unwilling to do it. But the article is completely right and hopefully German regulators (as well as overseas ones) can wake up to this.

[24Kt]

What the government needs to do:

Renew the laws
Make sure the rules and regulations are not too harsh for the people engaging in them
Make sure the gambling section is healthier for both parties.

Exactly.

Healthy regulation is going to get them so much further compared to draconian bans/restrictions on betting.

Let the people choose for themselves what they want to do with their money, but of course have the necessary measures in place to still ensure that sportsbooks/casinos are operating fairly and aren't ripping people off.

Fair rules are mostly the common reason why gamblers are leaving the casinos, because some of them are not fair at all and also this is one of the reason why some gambler choose to play in the dark market, because the law is not fair and the casinos are just taking advantage it. If Germany really want to increase the profit in gambling industry again, they must adopt the change but don't expect that it will eliminate dark market, and restrict the underage from gambling because its not.

The existence of black market will always be there. But if the government is already offering a good deal to its citizens, then, definitely people may patronize those legal casinos than go under the radar. If people have no ill intentions other than entertainment and possible earnings of money, then I guess, they will opt for legal means rather than go to the black market.

[Obito]

There is something called the Laffer curve which basically states that there is an optimal point at which a tax rate maximizes the tax revenue and any raise beyond that decreases the revenues governments can get, I think this is what is happening here

Not really familiar with this one but I can see the point, if they impose more taxes on people, it will only end up with businesses losing all their profits slowly because they need to pay more taxes rather than get some profit. It will be difficult for Germany to get a lax restrictions, I think that they have the strictest laws in Europe if I'm not wrong.

[ipanks]

I agree that the governments need to renew the laws or modify them with the current condition in Germany because if they still force people to obey the old rules, people will search for other ways to gamble.

The government needs to take a look or imagine if they become a user who wants to play gambling. What needs the people wants from the gambling and how will be the rule so their people can play gambling without thinking about the strict rules. The government also needs to think about the impact which is positive and negative if they modify the rules because once they change the rule, the impact will come with that.

[davis196]

The gamblers are going to gamble,with or without restrictions.
Putting too much restrictions opens the door for the black unregulated market.I wonder why the German government did this mistake.Maybe there are too many old politicians and clerks,who are thinking "gambling bad,we should ban gambling" without any analysis of the possible damages to the industry and the gamblers.
It's way better for a gambler to gamble in a regulated and legit offline casino,rather than going into some unregulated casino,which is controlled by mobsters,where the risk of being scammed and financially exploited is huge.

[bittraffic]

The government I guess sees they are losing money from those users who rather want to go to the black market which they felt on the slot revenue that is cut in half after the pandemic. 3Billion is a lot.

It's true too. Online gamblers will not want to go KYC which they will prefer the black market. Even the cryptocurrency users will not find it amusing to find out that the online casino they are playing is making it too complicated even in just registering. The online casino is going to make it hard for the government to set healthy regulations.

[Wexnident]

Well, it's something that I've always favored and said, the government should instead regulate instead of removing or banning an industry, whatever that industry may be. It's much better in terms of handling what's happening in that certain industry with regards to the laws that surround it as well as being able to see what exactly is happening inside it. Unlike completely removing it, wherein that case, they'd simply be completely blind whenever illegal company props that up, they'd basically have no idea what to do. Putting something where you can see and guard it is much better than removing it out of your sight, no matter how unpleasant.

[AicecreaME]

I agree with the article.

Government don't need to ban or put too much restrictions in gambling because it will backfire on them. They need to make the right law that will benefit all parties (Gambling platforms, players, and Government) because the taxes that is being generated in gambling industry is no joke, it contributes a lot in the Government that could be use to develop their countries into a better one.

Underage people playing gambling cannot be avoided unless a proper monitoring from parents are gonna be done every single day.

[YOSHIE]

Renew the laws
Make sure the rules and regulations are not too harsh for the people engaging in them
Make sure the gambling section is healthier for both parties.

If this has to be done by the german government, I myself make sense and agree, indeed gambling taxes have been carried out by other countries, but do not cross the line that is burdensome to one side as well as the law of course has an understanding that suits both parties.

I think @Dr Wulf Hambach's words lead to disappointment and frustration with the new rules from the German government to gambling sites and gamblers themselves, where so far they are more focused on sports betting than slot games, if germany requires stricter rules, i think it will be a waste.

In the world of gambling, maybe we should realize that we can't force every user to play certain games/slots, of course they have a hobby in making bets, what is clear is that the german government is too pushy for gambling bettors to increase in slot bets, this is too harsh for the rules, lacks freedom and fun.

[KTChampions]

An interesting article, I see that it emphasizes the negative effect of regulation and strict KYC, but one most important issue is completely bypassed - taxes. I do not know how things are with this in Germany, but it is obvious to me that the main reason for going to the black market is unreasonable taxes.
Maybe gamblers from Germany will tell us how they are doing with taxes on completely legal sites.