Germany’s New Esports Betting Laws: What Operators Must Know

Germany’s esports betting market faces a significant regulatory shift under the State Treaty on Gambling 2021 (Glücksspielstaatsvertrag). In 2025, operators must navigate tighter compliance requirements and uncertain classifications of esports betting, creating both challenges and opportunities.

Key Takeaways

• Uncertain Classification: Esports betting is reviewed case-by-case, with team-based events more likely to be approved.
• Tight Restrictions: Prohibited markets, deposit limits, and mandatory player protections are central to the new regulations.
• Enforcement: The GGL rigorously enforces compliance, with penalties for unlicensed operations.
• Political Uncertainty: Upcoming elections and legal challenges add complexity to the regulatory landscape.
• Strategic Adaptation: Pre-approval partnerships, localized compliance, and active lobbying are crucial for operators.

The Legal Status of Esports Betting in Germany

Under the 2021 treaty, sports betting is defined as wagering on “sporting competitions between people according to defined rules.”

Although esports is not outright banned, its status as a sport remains unclear. The Gemeinsame Glücksspielbehörde der Länder (GGL) reviews each esports event individually. Team-based games such as Counter-Strike 2 or League of Legends are more likely to be approved, while solo-player titles often encounter tougher scrutiny.

Germany’s licensing authority in Darmstadt has been cautious about esports events. Operators must provide detailed documentation for every esports title they wish to offer, including game rules and integrity measures.

Main Restrictions & Compliance Requirements

New rules include several restrictions to protect players and maintain market integrity:

• Prohibited Markets: Operators cannot offer bets on amateur leagues, which are seen as more vulnerable to manipulation. Live betting on esports is also currently banned.
• Player Protection Measures: A €1,000 monthly deposit limit has been set across all gambling activities. Strict ID verification and affordability checks are required for high-risk players.
• Taxation: Esports betting revenue is taxed at 5.3% on stakes. A 2024 ruling in Hesse noted that this tax contributes to a high black market share, though changes are not expected until at least 2027.

Regulatory Authority & Enforcement

The GGL enforces these regulations strictly. Measures include IP blocking to shut down unlicensed platforms and maintaining a whitelist of approved operators, such as Neo.bet and Bet365.

Non-compliant operators can face fines of up to €500,000.

Political & Legal Challenges

Political and legal uncertainties add further complexity.

With upcoming federal elections, a CDU/CSU-led government might eventually ease some restrictions. However, current state-level control keeps reforms on hold. Additionally, ongoing lawsuits by players claiming that pre-2021 bets were illegal are being reviewed by courts, with a decision from the European Court of Justice expected later in 2025.

Strategic Recommendations for Operators

Operators should adopt several strategies to navigate the evolving landscape:

• Pre-Approval Partnerships: Collaborate with established esports leagues like ESL Pro League to help certify events as sporting competitions.
• Localized Compliance: Work with payment providers such as Paysafecard and Giropay to ensure transactions meet German standards.
• Lobbying Efforts: Join industry groups such as the German Sports Betting Association to advocate for clearer definitions and more favorable regulations, especially ahead of the 2027 treaty review.

Closing Thoughts: Is Esports Betting over in Germany?

Germany’s esports betting market offers potential for growth but demands strict adherence to new regulatory standards.

Operators must balance innovative offerings with detailed compliance measures to succeed in this challenging environment. As Dr. Wulf Hambach, a Hamburg-based lawyer, advises, “The path to profitability lies in patience – and playing by the GGL’s rules.”

The evolving market presents a promising opportunity for companies prepared to invest in robust compliance and strategic partnerships.

Sources:

• iGaming Business – Germany Politics & Gambling Reform (2025)
• Esports Legal News – German Esports Betting Law (2024)
• IDnow – German Gambling Regulations (2023)
• Chambers & Partners – Germany Gaming Law 2024