William Hill, the UK’s largest bookmaker, confirmed last week it had pulled out of the German sports betting market, joining rivals such as Asian powerhouse 188Bet.
Operators have to grapple with a 5 percent turnover tax on betting, one of the highest in Europe, after Germany’s Bundestag approved the rate in June. There are also strict controls on advertising, customer spending and in-play betting, an increasingly integral product for online bookmakers, under the new Interstate Treaty on Gambling passed by 15 of Germany’s 16 regions.
One operator that cannot afford to pull out of the market is Bwin.Party, the world’s largest publicly listed online gambling company. Analysts have predicted a dent of up to €50m in Bwin.Party earnings from the new German regulations, and co-chief executive Norbert Teufelberger admitted at WGES there was “a long road ahead”. Still, Teufelberger insisted they could make money under the new laws.