Around a third of gaming machines in Germany are illegal.
This is what the DAW, an association that brings together gaming operators, reveals in a note to the national press. “We estimate that out of around 180.000 legal devices across the country there are at least 50.000 illegal devices and the trend is increasing,” says Georg Stecker, spokesperson for the association. According to the DAW there would be 269.000 in the area. The association therefore sees the reasons for the sharp decline of the legal market, especially in legislative changes at the federal and state levels. Many gambling halls are forced to close in compliance with the minimum distances of up to 500 meters between gambling halls and facilities for children and young people. The stricter gaming regulations of 2018 also weigh on legal gaming halls. The rule prohibits playing in parallel on different devices. Only a maximum of twelve slots are allowed in each gaming room. The playing time was limited, as were the stakes, losses and wins. A maximum of 60 euros per device can be lost and a maximum of 400 euros can be won.
Due to these tightenings and regulations in legal gaming, illegal gaming is thriving. There are no restrictions. “With an illegal device, you can usually generate an average of 10.000 euros of income per month,” the newspapers write, quoting a Cologne police official. According to Cologne police investigators, up to six billion euros in turnover can be made with illegal gaming machines every year: tax-free. An immense loss for the Treasury. According to DAW, net sales in the sector amounted to 4,8 billion euros in 2021. 1,2 billion euros in taxes and other charges were paid. “Thanks to the black market, the state escapes tax revenues of at least half a billion euros,” claims Stecker. “The black market does not fall from the sky. It is produced by significantly reducing the legal supply.”
Those offering illegal games are mainly part of organized crime, according to the police. According to media reports, it is also difficult to counteract them because the legislator allows it. For example, illegal gambling is only considered a crime and wiretaps cannot be used in the investigation phase. “They talk openly about everything on the phone. Because they know we are not allowed to use it,” the police officers said.
For the media, the medium-entertainment vending machine industry numbers as many as 5.000 – often family-run – companies and employs around 64.000 people. Hundreds of jobs have already been lost due to numerous closures of legal gaming venues. According to a study by DAW, the illegal market is increasingly displacing legal gaming offerings. While the 2022 commercial slot machine game black market share was between 30 and 46 percent, 62 percent of all slot game devices could be illegal through 2026.
