German Regulator GGL Reports on Efforts to Combat the Illegal Market

The German gambling regulator says that efforts to combat the illegal market are paying off. However, the industry itself still disagrees on the actual size of this market. GGL, a joint agency of the federal states, has released its latest annual report, which details efforts to combat the illegal online segment. A total of 2,263 websites were inspected. Of these, the regulator took down 1,208 sites offering illegal games and additionally removed 343 advertisers who were promoting prohibited content.

Operator Withdrawals and Prohibitive Procedures

The year is presented as a story of the gradual elimination of illegal offerings. GGL reported that as of December 31, 2025, 254 illegal operators had ceased their operations in the market, and 370 advertisers had stopped promoting banned brands. Compared to last year’s statistics, this represents an additional 66 illegal operators and another 86 advertisers that have ceased operations.

This is the result of the regulator’s formal efforts. GGL conducted 287 enforcement proceedings regarding unlicensed activities and advertising. Following hearings and enforcement decisions, 152 illegal companies, which included operators and advertisers, were removed from the market.

The Debate Over the Channeling Figure

Data on law enforcement coexists with a more controversial assertion about the state of the market. The report was released following GGL’s March statement that channeling in Germany stands at 77%. According to the regulator’s estimate, this puts the size of the illegal market at 22.97% of the total volume.

This is precisely where the regulator’s position diverges from that of part of the industry. Operators believe that the actual share of the illegal segment is higher than GGL’s estimate. The discrepancy is significant because channeling is the key indicator used to assess the effectiveness of Germany’s strict regulatory regime. The illegal market has long been at the center of industry discussions, and alongside Germany, the United Kingdom and the Netherlands are also under similar scrutiny.

Why the Removal Figures Don’t Settle the Issue

The removal figures cited are significant, but more important is the debate in which they are being discussed. As long as the regulator and operators disagree on the size of the illegal market, every enforcement report will serve two purposes at once. For GGL, this is proof that the system is working. For the industry, it’s an opportunity to highlight how much gaming activity still bypasses legal platforms. The outcome of this debate will determine whether German regulations will be relaxed in the future.