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Frankfurt prosecutors arrest suspect in €5.86bn illegal gambling case

German authorities searched ten properties, seized luxury vehicles and froze bank accounts following an investigation into an alleged unlicensed virtual slots operation.

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Key Points
Prosecutors allege that €5.86bn was wagered through unlicensed websites between July 2021 and December 2023
The principal suspect was arrested following raids involving approximately 100 officers
The group is also suspected of causing €77.6m in tax losses during 2024

German authorities have arrested the principal suspect in an investigation into an alleged unlicensed online slots operation that reportedly accepted €5.86bn ($6.82bn) in stakes.

Approximately 100 officers searched ten residential and business properties in Frankfurt, the surrounding region and Cologne on 8 September, following more than three years of covert investigation. The Frankfurt public prosecutor’s office announced the arrest the following day.

Expensive vehicles were seized during the operation, while authorities also froze several bank accounts.

Prosecutors allege that the main suspect and four other identified individuals offered a virtual slot game through websites without the required German licence from at least July 2021.

Between July 2021 and the end of 2023, customers allegedly placed €5.86bn in wagers through the websites. The figure represents stakes rather than operator revenue or profit.

The suspects are also under investigation for alleged tax evasion. Prosecutors estimate that the operation caused €77.6m in lost tax revenue during 2024 alone, although no figure was provided for the earlier period covered by the gambling allegations.

Germany permits licensed virtual slots under the Interstate Treaty on Gambling, which took effect in July 2021. Operators offering the products nationally must hold the relevant authorisation and comply with regulatory and tax requirements.

The enforcement action comes as German authorities consider additional measures against illegal gambling. Baden-Württemberg lawmakers are debating a legal basis for network and IP blocking, while GGL has warned that operating or participating in unauthorised prediction markets may constitute a criminal offence.

Good to know

Research cited by GGL estimated that unlicensed activity represented 23% of Germany’s online gambling market in 2024

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