ABSTRACT
Gambling is quite popular in Germany. Three out of four adults gamble at least once each quarter. This popularity is surprising, as gambling, at least in principle, is prohibited by criminal law. Exceptions are state-operated or state-licensed games. The gambling market is therefore highly regulated. The legislative control over most of the games lies with the 16 German states (Bundesländer). Federal law applies to the so-called “Amusement Machines with Limited Money Prizes” (AWPs) 1 in pubs and gambling arcades, and also to horse racing betting. 2 In this chapter, I will examine the casino gambling market. Before doing so, it makes sense to provide a quantitative economic picture of the German gambling market as a whole.
