Germany’s gambling market has reported a concerning decline in state tax revenues for Q3 2025, collecting €559.5 million down 6% from the same period in 2024. This marks the lowest quarterly figure in the past year. The first nine months of 2025 brought in €1.82 billion in gambling taxes, slightly below the €1.85 billion recorded in the previous year.
The breakdown reveals that lottery revenues fell by 2% to €418.9 million, while sports betting saw a sharp 24% decline to €76.9 million. Horse racing also slipped by 5% to €1.9 million. The only segment that recorded growth was online slots, with revenues up 4% to €53.8 million, underscoring a growing shift in player preferences toward digital formats.
Industry experts attribute much of the overall decline to the surge in illegal operators. According to data from the German Sports Betting Association, there are at least 382 unlicensed betting sites accessible in German, compared with only 34 licensed operators. These platforms are estimated to control about 25% of the high-risk gambling market, diverting players away from legal operators and reducing tax revenue.
Regulatory measures introduced under GlüStV 2021 including a €1,000 monthly deposit limit monitored through the LUGAS system have further constrained the market. Although designed to protect consumers, these limits are viewed by some as unintentionally driving users toward offshore sites with fewer restrictions.
The German regulator GGL continues to strengthen enforcement, issuing more than 1,500 warnings and initiating 25 criminal cases since 2021. However, the ongoing balance between regulation, consumer safety, and revenue sustainability remains a central challenge for the country’s gambling ecosystem.
