What impact will the upcoming legislative change have on verification?

Online entertainment in Germany is being regulated more quickly and more strictly than originally planned. Even before 2026 has officially begun, politicians have already tightened the reins and intervened deeply in a market that has long been generating billions in revenue.

A law is coming sooner than expected

Anyone who has tried to gamble online in recent months has had to deal with warning windows, age checks, and identity checks. And it's not going to get any better. A set of rules that was not supposed to be comprehensively reviewed until the end of 2026 is being brought forward and fundamentally tightened. This refers to the so-called “Second State Treaty on Gaming.” It is already clear that users will feel its effects significantly.

Originally, the federal states had planned to thoroughly evaluate the State Treaty on Gaming, which was introduced in 2021, only after several years. But market developments have overtaken this plan. In fact, illegal offerings continue to spread. The political consensus now is that waiting is no longer an option. Incidentally, anyone planning to use casinos without data verification would be well advised to do their research beforehand. Does the provider have a license? What do the reviews and testimonials on the internet say? If there are any doubts about the provider's credibility, it is best to steer clear.

More enforcement power for the supervisory authority

The Joint Gaming Authority of the German states is at the heart of the reform. Until now, critics have often perceived it as too slow and too limited. This is precisely where the new draft comes in. The authority should not only observe, but also be able to intervene actively.

IP blocking is a key tool. Behind this technical-sounding term lies a way of specifically blocking internet access to illegal gambling sites. Until now, this approach has been legally controversial and difficult to enforce in practice. With the creation of a clear legal basis, this may change. The new paragraph is based on the European Digital Services Act and is intended to pave the way for faster blocking.

Security is becoming a decisive factor

In fact, the growing need for guidance no longer applies only to gambling. Whether it's digital entertainment or major online purchases, consumers are increasingly valuing reliability and transparency. Anyone who decides to buy a high-quality product today checks reviews, looks at test results published on the internet, and also obtains information about the provider. This attitude is increasingly transferring to online services.

Precisely because the state is increasingly regulating, users are specifically looking for platforms that are legally sound. Accordingly, there is growing interest in comparisons and overviews that clearly distinguish legal providers from problematic offers. No one wants to risk ending up on a platform that is blocked the next day.

A billion-dollar market under time pressure

The political will to respond also has economic reasons. Experts in Germany expect industry revenues of around €14.4 billion for the coming year. A large part of the revenue is now generated on mobile devices, i.e., via smartphones and tablets. The market is fast-moving, international, and technically sophisticated. These are all characteristics that traditional administrative processes have long been unable to keep up with.

The planned reform therefore does not only address network blocking. Payment flows are also to be monitored more closely in the future. The aim is to deprive illegal providers of their financial basis. At the same time, the aim is to improve the exchange of information between authorities. Until now, federal responsibilities and data protection issues have often led to delays. In the future, however, relevant data should be available more quickly, at least while an investigation is ongoing.

Within Germany, Bavaria is considered particularly consistent when it comes to enforcing gambling laws. This approach is likely to become even stricter with the reform. The Bavarian authorities now have additional options for taking action against illegal advertising and unlicensed offers.

Between transition and long-term goal

For consumers, the reform means more rules, but also more controls. In the long term, however, the aim is to create a safer and more transparent environment in which legal offers are clearly recognizable and black sheep can be stopped more quickly.

One thing is certain: legislators no longer want to stand by and watch as a market worth billions slips out of their control. The early reform marks a turning point in German gambling regulation. Whether the goal will be achieved remains to be seen.