This month in iGaming: May 2023

No more daily fantasy sports in Germany, Brazil hits a (tentative) green light, and Lithuania overperforms.

Daily fantasy sports classified illegal in Germany

Germany recently regulated its gambling market, causing both celebration and controversy.

The country’s ban on gambling was long considered at odds with pan-European legal standards that prohibit states from limiting industries. However, while the gambling industry is now permitted, there are still plenty of limits. 

Players can only bet €1 per spin on slots and deposit €1000 per month. There’s a waiting period enforced between spins, and players can’t access multiple sites at the same time. 

While some feared that the restrictive regulations — which continue beyond those listed above — would hamstring operators so badly that players would simply stay on the black market, that hasn’t been the case. Two months ago, Regulator Gemeinsamen Glücksspielbehörde der Länder (GGL) reported a 95% channelization rate, meaning only 5% of bets placed in the country are on black market sites. 

However, players looking for some daily fantasy sports action will be out of luck. The GGL has determined that certain types of daily fantasy sports constitute illegal gambling under the country’s laws. Germany’s Fourth State Treaty on Gambling, the framework for its current gambling market, states that all forms of gambling need explicit permission from the state.

Brazil enacts provisional measure

The dawn of sports betting in Brazil is finally…at long last…(almost) here. 

President Luiz Inácio Lula da Silva has adopted a provisional measure that will enact the country’s fledgling sports betting regulations. Once signed, the provisional measure will go into effect for 60 days, at which point it can be extended for another 60 days. Betting was legalized in 2018, but the prospect of fully regulating the market has taken the back seat to other concerns in the Brazilian congress since then. 

The measures include a 16% tax on GGR and a 30% tax on player winnings up to R$2,112 (€395).

Once the provisions come into force, Brazil will be among the world’s biggest sports betting markets. But sports betting regulations could be just the beginning. Further legislation to regulate other forms of gaming, including land-based and online casino gaming, are in the congressional pipeline, so the gambling landscape could soon be utterly changed.

In other news from the country, the Brazilian Institute of Responsible Gaming has partnered with the International Betting Integrity Association to combat match-fixing in the country, a sign of the market’s growing stability. 

Revenues grow in Lithuania

If you haven’t been keeping an eye on Lithuania, now might be a good time for a closer look. 

Year-on-year gambling revenues in the country are up by 26% for the first quarter of the year. Of the period’s €55.3 million in revenues, online gambling accounted for €36.6 million, with €29.1 million of that coming from slots. Online sports betting generated €9.6 million.

The last few years have seen dynamic growth in the Lithuanian market, driven by the country’s dynamic economy. To learn more about the Lithuanian market, read our academy article here.