Germany interstate authorities have begun targeting illegal gambling networks amid warnings by the Financial Action Task Force (FATF) of heightened money-laundering risks as a direct threat to the German economy.
A three-year long investigation has resulted in the raiding of eleven premises by German authorities, Frankfurt’s Prosecutor’s Office revealed, with total stakes said to be worth almost €6bn (£5.1bn).
The raids were part of a coordinated operation between the Prosecutor’s Office, the Frankfurt Tax Office, the North Rhine-Westphalia Counter-Financial Crime State Office, and the Frankfurt police, involving more than 100 officers.
According to official government sources, five suspects were identified to be involved in the illegal gambling ring, which operated an online casino without the required licence for the period between 2021 and 2023. The casino processed more than €5.8bn worth of wagers.
Authorities seized several luxury vehicles, froze a number of bank accounts, and executed a property freezing injunction with a combined value of around €82m.
At least one arrest has been confirmed, with the individual also facing tax evasion charges for at least €77.6m in unpaid taxes.
The bust comes days after the FATF published its report on money laundering risks of its review of 80 financial jurisdictions. Online gambling was deemed as a high-risk sector, requiring inter-agency cooperation on the monitoring of criminal transactions.
Authorities have been urged to recognise “risk indicators”, which include account deposits coming from multiple third-party accounts, heavy reliance on cash or virtual assets, consistent betting on all possible outcomes, automated betting patterns, repeated use of VPNs, multiple account creation using fake names, and attempts to bypass customer due diligence.
Additionally, illegal gambling was the focus of the recent knowledge exchange between DACHL German-speaking gambling authorities, whose annual meeting also took place this week.
€6bn in two years sparks more black market concerns in Germany
Following the raids, Germany’s Sports Betting Association (DSWV) congratulated authorities for the major blow dealt to illegal gambling, but also questioned whether the size of the black market in Germany is being underestimated.
Mathias Dahms, DSWV President, said: “Nearly €6bn in wagers over two-and-a-half years in a single investigation must prompt a critical review of previous assumptions about the size of the black market.
“If even a single case reveals such proportions, it inevitably raises the question of whether previous black market estimates realistically reflect the actual scope of the illegal market.”
Germany has one of the worst player channelisation rates across all of Europe – a result of both restrictive legislation and a rampant black market.
Estimates delivered by H2 Gambling Capital in 2025 put market channelisation for licensed online slots at between 22% and 25%, expecting a rate of as low as 20% by 2030 if no key reforms are introduced.
The 2026 Gaming in Germany conference will re-visit some of the most pressing issues facing the country’s regulated gambling sector, and shed light on whether there has been any improvements since last year. SBC News will provide on-the-ground coverage in November.
