Overregulation in Gambling – A Path to Unlicensed Operators?

By

Denitsa Lyutskanova

Denitsa Lyutskanova Chief Editor

Denitsa Lyutskanova is the Head of Content at iGaming.com and a passionate advocate for Safer Gambling. With over a decade of experience in digital marketing, she has been with the company since 2011, working across 20+ markets. Denitsa leads a growing team of 30+ talented content writers and editors, driving impactful content strategies while promoting responsible gaming practices.

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· Chief Editor Last Updated: June 27, 2025

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Is overregulation the right approach to preventing gambling harm? Or is it a surefire way to push players toward unregulated operators?

In recent years, numerous countries have imposed significant gambling regulations. In turn, this has made legal gaming less attractive. However, in some cases, the approach has already led to adverse consequences.

Let’s take Germany, for example, which has a high turnover tax and rather strict limitations. The channelization rate is below 50% according to the latest market data. This means that almost half of German players use the black market instead of legal platforms.

iGaming’s CEO, Prof. Dr. Andreas Ditsche, spoke at the recent Gaming in Holland (GIH) Conference, discussing the dangers of the black market and overregulation. According to him, the two are interrelated.

In the short video above, he gives a great analogy. He explains that when legal gambling options become less appealing, players are more likely to turn to illegal platforms offering better deals.

What do you think? Is overregulation the right approach? Or should regulators and operators work together to find a better solution? Watch Prof. Dr. Ditsche’s full speech on YouTube and share your thoughts.