Entain Criticizes Restrictive German Regulations

Article by : Milena Petrovska Nov 28, 2023

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Entain, a leading online gambling operator, has voiced its concerns over the restrictive German regulations. The operator has commented on a study that revealed almost 50% of German online gambling happens on illegal sites.

“When looking at individual gaming behavior, it becomes clear that players are obviously switching to illegal providers and continuing to play there.” This statement came from the group’s Director of Corporate Affairs, Grainne Hurst.

Entain’s point of view highlighted how the regulations in place were disincentivizing for customers and contributed to substantial losses. Ever since the strict rules and restrictions went into force, the operator has been seeing drops in sales. This situation motivated Entain to become vocal in its demands for improved legal frameworks.

Entain is the company behind Bwin, a leading sportsbook on the regulated German market. The company has been claiming that the restrictive regulations imposed by the country’s authorities decreased competitiveness with illegal operators.

This time hasn’t been the first one for Entain and Hurst to call out German regulators.

The company has even offered its collaboration to lawmakers to improve the situation. More criticism has been seen, as well. Namely, the country’s regulator reported an illegal gambling activity share of only 2-4%, significantly lower than what experts believe to be the actual figure.

Per Entain’s latest statements, the company remains dedicated to implementing the best player protection in Germany.

Study Reveals About Half of German Players Opt for Unlicensed Operators

Entain has been commenting on the University of Leipzig study commissioned by the German Online Casino Association and the German Sports Betting Association. The study made headlines earlier this month when it revealed that nearly 50% of German players choose unlicensed operators.

Per the report’s figures, 50.70% of players in Germany use the services of licensed sites. Among the rest who opt for unlicensed operations, 28.90% choose European providers, and 19.90% go for offshore websites.

According to the study, German consumers who play at unlicensed sites appreciate the ease of access. Aggressive advertising, campaigns, and the lack of limitations are other contributing factors. Namely, the overly restrictive regulations imposed by German authorities, such as stake limits and low bonuses, have decreased the competitiveness of German operators.

Hundreds of millions of euros in tax revenue are lost every year due to unlicensed gambling activities, the study concludes.

Not a Great Month for Entain

While this week the company has focused on its German operations, last week it finally reached an agreement in the UK. Namely, Entain was in trouble for its Turkish operations six years ago when the company was under different management.

Under the settlements, Entain has to pay a fine of £585 million in addition to making a £20 million charitable donation. Entain also agreed to cover the case’s legal costs of about £10 million.

A final judicial court approval has been requested and is expected to arrive on the 5th of December, 2023. If that happens, the settlement will become official, and Entain will have to cover the penalty in installments over the next four years.

In a statement regarding the settlement, Entain highlighted the “stark differences between the GVC of yesterday and the Entain of today.” The operator reminded the public of its best-in-class reputation through its responsible and regulated operations.

Another blow came from Goldman Sachs, which downgraded the company’s share from Buy to Sell. Disappointing online growth and the high settlement amount were cited among the reasons for the decision.