DSWV asks German government to issue licences to sportsbook providers
Deutsche Sportwettenverband (or DSWV) has been asking the country’s government to reinitiate the process of giving licences to sportsbook providers in the country.
Since the COVID-19 pandemic hit, almost all sectors and industries have been doomed time after time, and some recent reports have seen that the gambling sector has been generating profit through the coronavirus pandemic. The president of the German association of sports betting providers (DSWV) Mathias Dahms has stated, however, that these numbers are actually false and that the truth is quite the opposite.
The pandemic has had horrifying effects on the German sports betting sector since it started, and sales have decreased by 16% throughout the previous year. Now, the German government is being asked by various betting associations to start off the process of supplying betting providers with licenses again and let them operate. They are firmly convinced that doing so will reinforce the sector and the betting market in the country, and at the same time offer better chances for affiliates.
Moreover, the coronavirus pandemic has taken its toll on the sports betting industry all across the globe. The German Federal Ministry of Finance unveiled that the industry turnover in Germany decreased from €9.3bn in 2019 to €7.8bn in 2020, marking a huge €1.5bn loss. The DSWV president also implied that the sector has collapsed totally, and this collapse has been mainly driven by the closure of betting shops.
Obviously, closure of physical betting shops and the cancellation or postponement of sporting events has left the country’s betting providers with nothing to really do or await. This is also a large part of the reason as to why we have witnessed many players head to black market or unlicensed casino sites because of the severe gambling regulations that Germany has imposed on licencing.
The strict regulations for virtual slot machines have channelled the market away almost overnight – unfortunately in the wrong direction.