When the Interstate Treaty on Gambling (Glücksspielstaatsvertrag) came into force in Germany on 1 July 2021, it was presented as a turning point for the regulation of online gambling. Daniel Hagemeier, a member of the governing CDU party in North Rhine-Westphalia (NRW), highlighted its importance by stating:

“The Interstate Gambling Treaty and our implementation in NRW must strike a balance between state regulation and freedom. We must protect people with a high potential for addiction from the temptations of gambling, but respect the freedom of each individual to gamble if they so wish. Our aim is not to demonise gambling and drive it into obscurity, but to channel it.”

Now, nearly four years later, this balance remains elusive. The Treaty has succeeded in creating a legal framework, but its implementation is fraught with challenges. In 2025, the focus is on two critical areas shaping the online gambling sector: Player claims and regulatory adjustments.

Player Claims: Awaiting crucial European Court of Justice decisions

In recent years, player claims for chargebacks have emerged as a pressing issue in the online gambling sector in Germany. Courts across the country are seeing a surge in such claims, mostly due to big litigation funding companies supporting such claims. Whilst the majority of German courts grant claims by players, many cases have special circumstances (also depending on the vertical), resulting in claims being dismissed.

Notably, both the German Federal Court of Justice (BGH) and the Regional Court (LG) of Erfurt have recently suspended proceedings in key cases and referred pivotal legal questions to the European Court of Justice (ECJ). These questions concern the interpretation of EU law and its interaction with national gambling regulations for both sportsbook and casino/slots.

The ECJ’s decisions, expected no earlier than late 2025 or even 2026, will likely have far-reaching consequences. They could either bolster the claims of thousands of players seeking refunds or provide legal clarity that strengthens operators’ positions. Until then, the uncertainty is creating significant financial risks for litigation funding companies and gambling companies alike.

After the difficult development in player claim case law, the referrals and ECJ procedure can be cause for slight optimism in the industry.

Regulatory Challenges: Debates Ahead of the Interstate Treaty Evaluation

Germany’s Interstate Treaty on Gambling (Glücksspielstaatsvertrag), which came into force in July 2021, is approaching a crucial milestone as it undergoes its major evaluation. This process has already sparked heated debates among regulators, politicians and industry stakeholders over potential changes to the framework.

The core issues include:

• Advertising Restrictions: There is a growing divide between advocates of advertising bans and those pushing for more liberalised advertising rules to ensure the legal market remains attractive compared to unregulated offshore providers.
• Market Attractiveness: The regulations, including the €1 stake limit per spin for virtual slot machines and the mandatory 5-second interval between spins, are under scrutiny. Even the higher administrative court Saxony-Anhalt – ultimately handling disputes of many operators and the gambling authority – has questioned whether these measures make the regulated market too unattractive for players, assuming it to be the “deciding reason for players to resort to the black market“.

The outcome of these debates will have significant implications for the future of the regulated market in Germany. Any failure to address the attractiveness of the legal market or underestimating the black market could undermine the treaty’s goals.

Outlook for 2025 and beyond

As Germany grapples with these challenges, the year ahead promises to be pivotal for the online gambling sector. The delayed clarity on player claims will continue to cause uncertainty for operators, while the regulatory debates surrounding the evaluation of the Interstate Treaty will likely set the course for the market’s future.