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Gambling & Betting Activities in Germany - Market Research Report (2014-2029)

Chris Merklein Chris Merklein Frankfurt, Germany Last Updated: September 2024 WZ R92.00DE

Revenue

€17.3bn

2024

€17.3bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

89,780

Businesses

5,275

Wages

€X.Xbn

Gambling & Betting Activities in Germany industry analysis

The German gambling market is subject to very strict regulations, the primary aim of which is to protect players. Online gambling was still largely prohibited until July 2021 - however, as it is becoming increasingly attractive, more and more consumers have migrated to the illegal gambling market. As a result, the federal states lost out on tax revenue and gambling providers were also unable to utilise the industry's full revenue potential. Nevertheless, industry turnover stagnated between 2019 and 2024 and is expected to amount to 17.3 billion euros in the current year. This again corresponds to growth of 0.9% compared to the previous year, which is still attributable to the legalisation of online gambling.The development of industry turnover is influenced less by the income of private households and more by the development of jackpots and the amount of free time available to consumers. The gaming industry competes with numerous alternative leisure activities, among which consumers divide their income. Advancing digitalisation means that online offers are becoming increasingly popular, as they are easy and convenient to use. For a long time, Schleswig-Holstein was the only German federal state to issue licences to online providers. The licences were extended until the new State Treaty on Gambling came into force in 2021. With the introduction of the new State Treaty on Gambling, all providers of online gambling are now entitled to operate in the German market with a German licence under certain conditions. < />The Interstate Gambling Treaty was adopted by the state premiers on 12 March 2020 and came into force on 1 July 2021. It has brought numerous relaxations for the industry. The legalisation of online gambling in particular is likely to trigger extensive changes in the industry in the future. It can be assumed that this will counteract illegal gambling and generate more turnover in the authorised market. Over the next five years, industry turnover is expected to increase by an average of 0.8% per year, reaching 18.1 billion euros in 2029.

Trends and Insights

  • With the entry into force of the new Interstate Gambling Treaty, online gambling has also been permitted since 2021. Legalisation has caused the illegal market to shrink.
  • Amusement arcades and gaming machines account for the majority of industry turnover. However, their share of turnover has decreased significantly in recent years.
  • The distribution of companies in the gambling industry is largely based on the population distribution. Accordingly, the densely populated centre region has the most gambling companies.
  • The industry currently still faces the greatest external competition from the unregulated online gambling market. Sports betting accounts for the majority of illegally generated gross gaming revenue, followed by online casinos, online secondary lotteries and online poker.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 0.0 % over the past five years, to reach an estimated €17.3bn in 2024.

Trends and Insights

The new Interstate Gambling Treaty is shaking up the gambling industry

  • The new Interstate Gambling Treaty came into force in 2021 and allowed online gambling such as online roulette or virtual machines for the first time in the entire German gambling market, the largest in Europe.
  • Additional trends and insights available with purchase
Gambling & Betting Activities in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

The state generates ever higher revenues through gambling

  • Gambling providers must pay various duties and taxes to the state. Following the legalisation of online gambling, a tax was also introduced in 2021 for virtual slot machines and poker rounds on the internet, which is levied on the stake.

Biggest companies in the Gambling & Betting Activities in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Merkur.com AG
1,203.0
Westdeutsche Lotterie GmbH & Co. OHG
1,033.9
Novomatic AG
431.4

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Gambling & Betting Activities in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Gaming arcades and machines, State lotteries and Online gambling. Gaming arcades and machines is the largest segment of the Gambling & Betting Activities in Germany.

Trends and Insights

Gaming machines and arcades are heavily regulated

  • Slot machines are machines with mostly different games, the outcome of which is determined by chance. They are set up individually in various catering establishments or are located in amusement arcades. The machines are subject to numerous regulations, including the maximum win and stake or the loss per hour.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The gambling, betting and lottery sector comprises the legal gambling offer in Germany, i.e. lotteries, casinos, gaming arcades, sports betting and online gambling. The gross gaming revenue, which results from the stakes less the winnings distributed, is used as turnover.

What's included in this industry?

Gaming arcades and machinesState lotteriesOnline gamblingCasinosSports bettingHorse betting

Companies

Merkur.com AGWestdeutsche Lotterie GmbH & Co. OHGNovomatic AG

Purchase this report to view all 4 major companies in this industry.

Related Terms

VIRTUAL REALITYCONCESSIONCASINO LEVYSECOND LOTTERYTRONC

Industry Code

WZ 2008

WZ 92.00 - Gambling & Betting Activities in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

With the entry into force of the new Interstate Gambling Treaty, online gambling has also been permitted since 2021. Legalisation has caused the illegal market to shrink.

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Amusement arcades and gaming machines account for the majority of industry turnover. However, their share of turnover has decreased significantly in recent years.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The distribution of companies in the gambling industry is largely based on the population distribution. Accordingly, the densely populated centre region has the most gambling...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The industry currently still faces the greatest external competition from the unregulated online gambling market. Sports betting accounts for the majority of illegally genera...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

In 2020, the Gauselmann subsidiary Cashpoint received the state licence for sports betting in Germany, meaning that the company has been operating as a betting provider both s...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Merkur.com AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Westdeutsche Lotterie GmbH & Co. OHG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Novomatic AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Merkur.com AG, and factors influencing its performance in the industry
  • Description and key data for Westdeutsche Lotterie GmbH & Co. OHG, and factors influencing its performance in the industry
  • Description and key data for Novomatic AG, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The advancing digitalisation poses a risk for the industry. The increasing use of digital technologies is also increasing consumer interest in online gambling offers, which a...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The taxes incurred in the industry are very high. The casinos have to pay the so-called casino levy, the amount of which is regulated in the casino laws of the federal states...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Gambling & Betting Activities industry in Germany in 2024?

The market size of the Gambling & Betting Activities industry in Germany is €17.3bn in 2024.

How many businesses are there in the Gambling & Betting Activities in Germany industry in 2024?

There are 5,275 businesses in the Gambling & Betting Activities industry in Germany, which has grown at a CAGR of 0.4 % between 2019 and 2024.

Has the Gambling & Betting Activities industry in Germany grown or declined over the past 5 years?

The market size of the Gambling & Betting Activities industry in Germany has been declining at a CAGR of 0.0 % between 2019 and 2024.

What is the forecast growth of the Gambling & Betting Activities industry in Germany over the next 5 years?

Over the next five years, the Gambling & Betting Activities industry in Germany is expected to grow.

What are the biggest companies in the Gambling & Betting Activities market in Germany?

The biggest companies operating in the Gambling & Betting Activities market in Germany are Merkur.com AG, Westdeutsche Lotterie GmbH & Co. OHG and Novomatic AG

What does the Gambling & Betting Activities in Germany include?

Gaming arcades and machines and State lotteries are part of the Gambling & Betting Activities industry.

Which companies have the highest market share in the Gambling & Betting Activities in Germany?

The company holding the most market share in Germany is Merkur.com AG.

How competitive is the Gambling & Betting Activities industry in Germany?

The level of competition is moderate and increasing in the Gambling & Betting Activities industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Amusement & Theme Parks in Germany

Complementors

  • Bars & Nightclubs in Germany

International industries

  • Global Sports Betting & Lotteries
  • Non-Hotel Casinos in the US
  • Gambling in Canada
  • Lotteries in Australia
  • Lotteries and Bookmaking Operations in New Zealand

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.