Rootz CEO: Germany needs better regulations to combat illegal market

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Rootz CEO Sam Brown has argued that the regulations in Germany are making it difficult for licensed operators to remain competitive, resulting in the illegal market growing in size.

Speaking at the Federal Congress on Gaming and Gambling in Germany, Brown was featured on a panel alongside Betting and Gaming Council’s Executive Director, Wes Himes, evaluating and discussing the challenges faced by the industry in the German market.

Focusing on legislation and player protection, the CEO of the igaming platform noted how the licensed gaming industry is facing challenges, such as channelisation and black markets impacts, presenting data to demonstrate how it has affected Rootz’s German business.

Brown stated that Germany’s regulation is negatively impacting the group, and he believes that players have moved to the illegal market, which has a more competitive offering with higher RTP, faster game mechanics and higher bet limits.

As a result, the Rootz CEO believes that a large proportion of online gaming revenues in Germany are currently generated by illegal entities.

To combat this, Brown is pushing for German regulators to work with operators and suppliers to develop a market that is not only safe but competitive, as well as giving police the tools to take aggressive action against illegal operators.

Brown noted: “The opportunity to engage with decision-makers on challenges faced by both the regulators and operators within the German market was a welcome one.

“The roundtable environment helps to address certain issues in a neutral manner that can potentially contribute to long-term resolutions.”

Last month, Gemeinsame Glücksspielbehörde der Länder, Germany’s gambling regulator, held a meeting with federal state coordinators to evaluate the best approach to online gambling player protection and addiction prevention.