Banned from Existence: The Harsh Reality of German Entertainment Market
Central Europe is definitely one of the worst places to run an online casino. Germany is one of those countries that explain why it is so by their very existence. We want to talk about this country and its government, their regulations, and the local entertainment market. If we are to understand what is the future of Dutch gambling industry, we must take a closer look at the state of affairs.
The Official Position
The country wants to keep things “on land” and favors companies that conduct business IRL. All national institutions do not really like the idea of having a hard-to-supervise and overly frivolous market with thousands of participants from all corners of the world. While the mechanisms of preventing their citizens from actively using all new websites are not yet implemented to the fullest extent, the position of the government is quite clear. They do not want to do anything with online casinos.
The country is actually quite famous for its loyal approach to supervising the industry. The landscape of the market is quite mild for those who want to allow locals to participate in games of chance. However, the real volume of land-based gambling domain is quite small compared to the rest of Europe and especially to powerhouses like Monaco.
So the consensus of many experts is that Germany is in a weird position. They do not fully utilize their potential in terms of allowing land-based businesses flourish while also not really allowing foreign online enterprises enter their national economy and changing the competitive landscape and bringing in more profits and taxes. This is a really interesting situation for the whole country. While some people are lobbying for the allowance of interactive betting platforms in the national segment of the world wide web, many specialists are against it and want to “protect” citizens from possibly fraudulent businesses.
The latter is a huge concern for everyone and the reason why the whole domain is being so heavily monitored and banned from many other countries in Europe and even the CIS region. The abundance of scammers and inexistence of proper regulations make the whole domain quite dangerous for law abiding citizens who fall victims to skillful scams.
Simultaneously, the government is taking a passive position when it comes to controlling the access to companies based abroad. Many Dutch players prefer to stay away from luxurious halls of local hotels with all sorts of fortune wheels installed and enjoy the coziness of their favorite sofas while playing on websites of companies based in Sweden and Eastern Europe.
The Real Deal
In order to give you the scale of financial loss caused by the passiveness of the government, we want to throw around some numbers. The expected amount of cash generated annually by the domain in 3 years from now is estimated to be over 60 billion US dollars which is an enormous number and it is only when taking into consideration the numbers in the US only.
The real turnover of all companies related to the market in the lands of Dutch is an impressive 660 million euros annually but this number is nothing compared to what France makes in a year and that is more than 2.2 billion euros. Another important note is that about 10% of the whole turnover is usually interactive part of business meaning that about 220 million euro made in France comes from internet enterprises. This also means that Germans could easily increase the tax revenue by introducing a 66-million-euro turnover after simply allowing locals access companies that actually operate within the regional internet segment.
As of right now, the amount of Dutch people spending time on foreign websites is huge and it can be changed.