German police raid alleged €5.86bn illegal gambling operation
German authorities have raided an alleged illegal online gambling network accused of processing almost €5.9 billion in bets without a German licence, in one of the country’s largest recent gambling enforcement actions.
More than 100 officers searched 11 properties in the Rhine-Main region, with Frankfurt the main focus, following an investigation that has been running for more than three years. One principal suspect was arrested, while four other people are also under investigation.
Frankfurt prosecutors allege the group had been offering online gambling commercially and as an organised operation since at least July 2021 without the approvals required under German law.
Investigators say the platforms handled about €5.86 billion in wagers between July 2021 and the end of 2023 alone.
Authorities also allege that gambling taxes were either not paid or were underpaid. The suspected tax loss for 2024 has been estimated at €77.6 million.
Assets worth about €82 million were secured during the enforcement action, including several high-value vehicles and funds held in bank accounts.
The scale of the alleged operation is likely to add fresh pressure to Germany’s gambling regulator over the size of the country’s illegal online market.
Germany’s interstate regulator, the Gemeinsame Glücksspielbehörde der Länder, or GGL, published research in March estimating that unlicensed gambling operators accounted for 22.97% of the online gambling market, giving the regulated sector a channelisation rate of 77.03%.
The latest raid does not by itself prove that the GGL’s market estimates are wrong, because the €5.86 billion figure represents betting turnover across several years rather than operator revenue or a share of Germany’s total gambling market.
However, the sheer volume of alleged wagering highlights the continuing scale of black-market activity despite Germany having operated a nationwide regulated online gambling framework under the 2021 Interstate Treaty on Gambling.
The GGL has responsibility for regulating cross-state online gambling and taking action against illegal operators. Its enforcement powers include prohibition orders, payment blocking and referrals for suspected criminal offences.
Under German rules, online poker, virtual slots, sports betting and certain other gambling products can be licensed, while operators without the necessary German approval are considered illegal. Players can check authorised operators against the GGL’s official whitelist.
The regulator said earlier this year that its most recent research showed regulated operators still account for more than three-quarters of the German online gambling market, although it acknowledged that measuring an inherently opaque illegal sector requires increasingly robust methodology.
The five suspects in the Frankfurt case remain accused rather than convicted, with the investigation continuing.
