A business association linked to Germany’s governing Christian Democratic Union (CDU) has proposed a series of changes to the country’s gambling framework, arguing that the current regulatory model requires substantial reform to improve the legal market.
The recommendations, prepared by the CDU’s Economic Council, come as Germany’s 2021 State Treaty on Gambling undergoes an evaluation scheduled for completion by the end of 2026. The document is intended to help shape the ruling party’s position as policymakers assess whether the existing rules remain fit for purpose.
The proposal highlights several areas that it believes require attention, including taxation, licensing, channelisation and the overall structure of the regulatory framework.
Council Calls for Changes Across Key Policies
The Economic Council argues that the State Treaty’s legal objectives should be revised to give equal weight to player protection and the freedom of adults to choose licensed gambling products.
Its proposal describes these priorities as the “Freedom” and “Responsibility” pillars, suggesting that future policy should seek a better balance between the two.
The document also recommends replacing the current review process with an ongoing evaluation model. Rather than waiting for comprehensive reviews of the legislation, the Council proposes continuous independent research supported by a “rolling evaluation clause.” Under that approach, regulators could regularly assess individual measures and amend rules found to be ineffective without reopening the entire treaty.
Another recommendation focuses on channelisation. The Council says authorities should routinely examine how specific regulatory measures affect player behaviour and place greater emphasis on reducing illegal gambling activity instead of imposing further restrictions on licensed operators.
Licensing and Market Structure Under Review
The proposal also addresses Germany’s licensing system, calling for a more streamlined process that moves away from separate approvals for different gambling products.
The recommendations come against a backdrop of persistent criticism of Germany’s regulated gambling market.
Under the current framework, online slot wagers are taxed at 5.3% per stake rather than through a gross gaming revenue model. Online slot games are also subject to a €1 maximum stake per spin.
The German Sports Betting Union (DSWV) estimates that illegal sports betting providers outnumber licensed operators by 11 to one.
Market data from H2 Gambling Capital also points to low channelisation. The research group estimates that between 22% and 25% of gambling activity currently takes place with licensed operators and projects the figure could decline to 20% by 2030.
Evaluation Could Shape Future Policy
The Council argues that these figures demonstrate the need for legislative changes and believes the ongoing review of the State Treaty provides an opportunity to revise the existing framework.
Because the CDU currently leads the federal government, the proposals could influence future gambling policy if adopted by lawmakers.
The recommendations also align with broader concerns raised by the European Gaming and Betting Association (EGBA), which has argued that Germany will struggle to improve its regulated gambling market while maintaining the current regulatory framework.
The treaty evaluation is expected to conclude before the end of 2026, after which policymakers will determine whether amendments to Germany’s gambling laws are required.
Source:
“Governing party given clear strategy to end German gambling deadlock”, sbcnews.co.uk, Jun 26, 2026
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