Tighter government-mandated regulations and controls on all forms of gaming seem to be driving German players away from legal, regulated providers and into the arms of unlicensed operators. That is one plausible explanation for the decline in gaming revenue being seen across the casino, lottery and sports betting industries.
The new regulations, which include a partial smoking ban and restrictions on advertising, came into effect at the start of 2008. Since then, one-third of all casinos in Germany are reportedly feeling the pinch, and even some long-established lottery and sports betting organizations are hurting.
The casino industry reported a 19 percent drop for the first six months of 2008.