German gambling market grows by 300 million euros
Berlin, May 8, 2018 — The German gaming market is continuing to rise. In 2017, the German gaming market (lotteries, bets, gaming machines and machines ) generated a gross gaming revenue of 13.5 billion euros that’s a rise of 300 million euros compared with 2016. This equates to additional earnings of 1 billion euros in comparison with 2015. The majority of the gambling segments gained from the overall positive economic development in Germany, but this varied from segment to segment.
These findings are part of the new report German Betting Market Monitor 2018 released by Goldmedia Strategy Consulting.
Record growth in the betting segment, however, lotteries are under pressure
In 2017, gambling notched up the strongest level of growth of all of the gaming segments using a 17 percent plus in gross gambling revenue (wagers minus payouts) in comparison with 2016. As compared with 2015, the market has grown by 33 per cent in total. This positive trend is expected to continue. The upcoming 2018 FIFA World Cup in Russia will stimulate extra revenue growth for its 90+ sports betting operators who are active in the German market. Furthermore, the dysfunctional regulatory policies which are still in effect in Germany are continuing to supply favourable operating conditions that are supporting additional growth.
On the other hand, the German lottery segment remains static and gross gaming revenue has fallen by 3 percent, primarily due to declining ticket sales in the top grossing 6aus49 lottery sport. In addition, the lotteries are having competitive competition from online lotteries operating from Malta without a German licence.
Changes in the gambling machines segment Gaming machines attained yet another very lucrative year, generating a gross gambling revenue of over 7 billion euros in 2017. However, significant structural changes on the marketplace are imminent following the introduction of new regulations. Stricter rules governing the entire number of gambling halls as well as the minimum space allowed between them may lead to a considerable reduction in the amount of gambling venues in the medium term. Even though the gaming system operators have initiated over 1,000 legal proceedings to stall the execution of those policies, the strong market growth that’s been seen in the past few years has come to a halt.