German gambling market grows by 300 million euros

German gambling market grows by 300 million euros

• New Goldmedia report analyses current developments in the German betting and gambling market
• Record growth in the betting market generates a 33 per cent increase in gross betting revenue from 2015 to 2017
• German lotteries face aggressive competition from unregulated EU competitors

Berlin, May 8, 2018 – The German gambling market is continuing to grow. In 2017, the German gambling market (lotteries, bets, gaming machines and casinos) generated a gross gaming revenue of 13.5 billion euros which is an increase of 300 million euros compared with 2016. This equates to additional biennial earnings of 1 billion euros compared with 2015. Most of the gambling segments benefited from the overall positive economic development in Germany, however, this varied from segment to segment.

These findings are part of the new report German Gambling Market Monitor 2018 published by Goldmedia Strategy Consulting.
Record growth in the betting segment, however, lotteries are under pressure

In 2017, betting notched up the strongest level of growth of all the gambling segments with a 17 per cent plus in gross gaming revenue (wagers minus payouts) compared with 2016. In comparison 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 additional revenue growth for the 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 provide favourable operating conditions which are supporting further growth.

However, the German lottery segment remains static and gross gaming revenue has fallen by 3 per cent, primarily due to declining ticket sales in the highest grossing 6aus49 lottery game. In addition, the state-owned lotteries are experiencing aggressive competition from online lotteries operating from Malta without a German licence.

Changes in the gaming machines segment

Gaming machines achieved yet another very profitable year, generating a gross gaming revenue of over 7 billion euros in 2017. However, significant structural changes in the market are imminent following the introduction of new regulations. Stricter rules governing the total number of gaming halls and the minimum distance allowed between them may lead to a considerable reduction in the number of gaming venues in the medium term. Even though the gaming machine operators have initiated more than 1,000 legal proceedings to stall the implementation of these policies, the strong market growth that has been seen in recent years has now come to a halt.

Chart: German Gambling Market, Gross Gaming Revenue 2015-2017

Source: German Gambling Market Monitor 2018
The Goldmedia report German Gambling Market Monitor 2018 examines the development of the German gambling market through a segment-by-segment analysis of the lottery, casino, betting and gaming machines markets. In addition to presenting an analysis of the years 2015 to 2017, the report also provides gross gaming revenue forecasts for 2018.

Goldmedia:
Goldmedia is a research and management consulting group with a focus on media, entertainment and telecommunications. Goldmedia has been helping national and international clients to face challenges relating to digital transformation since 1998. Business activities include consultancy services, research, political analysis and advising staff. Goldmedia has offices in Berlin and Munich. For further information, please visit our website www.Goldmedia.com.