Gambling's Popularity Grows in Germany

As reported by the Deutsche Welle: "After a slow start, the gambling business in Germany has begun to boom. The growth will likely be accelerated by an expected liberalization in the sports betting market and the Soccer World Cup in 2006.

"German pay-TV channel Premiere has placed a huge bet on growth in the gambling sector -- and the odds are looking good. On August 1, the company started a new channel, Premiere Win, which will exclusively broadcast betting sports.

"So far the young channel has shown horse races from around the world, but plans to branch out into other sports -- soccer, handball, Formula 1 racing -- are in the works. Premiere Win viewers can go online and place bets with Premiere partner Betandwin, a private bookmaker.

"The move was a natural one for Premiere, which broadcasts all the matches of the German Bundesliga soccer league live and has the rights to live broadcasts of all 64 World Cup matches in 2006.

"…Currently, state-run German bookmaker Oddset has a monopoly on most sports betting, but that is being challenged in the courts, and a hearing is slated for Nov. 8. When the decision comes early next year, it is widely expected to open up the betting market for competition -- just in time for the World Cup games.

"…In addition to Oddset, five other firms hold licenses to operate in Germany, including Betandwin, whose license dates back to the East German era. In addition, numerous small bookmaking parlors, whose businesses are incorporated in other countries, have sprung up in Germany in recent years. Mostly present in Berlin, they operate in a sort of legal grey area.

"If the market is opened up, these betting parlors can expect to become completely legitimate. In that case, industry insiders say, Germany's betting scene will look more like England's.

"…Everyone agrees that the advent of Internet gambling, which allows punters to place bets without having to get out of their bathrobes, has played a large role in the growth of the industry. Worldwide, surfers spent some 300 billion on Internet gambling in 2004, with all signs pointing to continued rapid growth.

"…One other factor may stand behind the growth in Germans' willingness to plunk down a few euros for a chance at big money: the ailing economy…"