DIMOCO brings carrier billing to German iGaming

DIMOCO, a leading regulated payment service provider, has achieved a major milestone in the German iGaming sector by becoming the first officially authorised carrier billing provider for online gambling in the country. This development follows formal approval from the Gemeinsame Glücksspielbehörde der Länder (GGL), Germany’s federal gambling authority, which has confirmed that DIMOCO’s mobile payment solution complies fully with the stringent regulatory requirements applicable to the German gambling market.

The first operator to implement this newly approved payment method will be NEO.bet, operated by Greenvest Betting Limited. This partnership marks the launch of a new era in payment accessibility and security within Germany’s regulated online sports betting and casino markets.

Expanding mobile payments from Poland and Austria into Germany

DIMOCO has previously introduced its direct carrier billing (DCB) solution in other European markets, particularly Poland and Austria, where it is already being used by reputable sportsbook operators, including the Polish market leader STS. Its expansion into Germany involved extensive collaboration with NEO.bet's parent company, Greenvest Betting Limited, to ensure full regulatory compliance.

The decision to enter the German market was driven by Germany’s strong regulatory framework and growing iGaming sector. According to recent market analysis by the European Gaming & Betting Association (EGBA), Germany now ranks as Europe’s fourth-largest iGaming market based on gross gaming revenue. The combination of this market size and Germany’s high rate of smartphone penetration presents a compelling opportunity for mobile-first payment solutions.

How DIMOCO’s agent model supports regulatory compliance

DIMOCO employs an innovative agent-based framework for its mobile payment services, wherein mobile network operators (MNOs) operate as appointed agents acting on behalf of the company. This structure allows MNOs to facilitate payments that would otherwise be restricted under conventional European Union (EU) financial regulations.

Crucially, under this model, DIMOCO assumes full responsibility for compliance obligations, including Know Your Customer (KYC) procedures and transaction monitoring, thus relieving both mobile operators and gambling operators from performing these functions independently. DIMOCO is licensed and regulated by Austria’s Financial Markets Authority, providing further reassurance of its regulatory capabilities.

Now that the GGL has recognised and authorised this structure, DIMOCO is fully permitted to provide carrier billing services in the German market — a decision expected to reshape the digital payment landscape for gambling.

Industry reaction: A secure and simplified user experience

Bettina Sommer, Senior Vice-President of Sales at DIMOCO, hailed the approval as a significant milestone:

“We are honoured to have received official approval for our unique offering from the GGL, and this recognition reinforces our dedication to providing secure and efficient payment solutions for the rapidly evolving German iGaming industry,” Sommer stated.

Sommer also highlighted that Germany’s high smartphone adoption rate and cultural preferences for alternative payment methods make direct carrier billing particularly suitable for the market.

“Based on our experience in other European countries, we believe the addition of direct carrier billing will be very welcome in Germany, particularly given the country’s extremely high level of smartphone penetration. Germans are known for favouring alternative methods of payment over credit and debit cards, and also for preferring simplified payment systems.”

She emphasised that carrier billing would be available only to licensed operators, thereby giving a competitive edge to regulated businesses and supporting the broader objective of removing unlicensed operators from the German market.

GGL approval process reflects stringent regulatory standards

The approval process, undertaken with the support of DIMOCO and Greenvest Betting Limited, was described as lengthy and highly detailed, reflecting the GGL’s commitment to consumer protection, transparency, and compliance.

Galina Werner, Managing Director at Greenvest Betting Limited, commented:

“We are excited that NEO.bet will be the first sports betting provider in Germany to offer carrier billing. The process of gaining approval from the GGL was lengthy and rigorous, and DIMOCO proved the ideal partner to help us navigate this. We look forward to working together now this promising new payment option is authorised.”

Werner’s remarks indicate that both the technical reliability and regulatory compliance of DIMOCO’s system were essential in securing GGL’s approval, which now paves the way for other licensed operators to follow.

Germany’s mobile ecosystem supports DCB adoption

The German market is particularly well-positioned for mobile payment solutions. The GSM Association (GSMA) identifies Germany as a leading force in Europe’s 5G rollout, projecting that the number of smartphone connections in the country will climb to 111 million by 2030.

As of 2024, Germany had a mobile subscriber penetration rate of 87% and a smartphone adoption rate of 83% — indicators that underscore the country’s readiness for scalable mobile-based payment technologies such as direct carrier billing.

Furthermore, the rise in mobile usage has been paralleled by increased demand for seamless and instant payment experiences in online gambling, an area where carrier billing offers a distinctive advantage. The DCB model enables users to charge deposits directly to their mobile phone bill or prepaid balance, eliminating the need to input banking or card details, thus enhancing convenience and security.

Regulatory focus on eliminating unlicensed operators

The GGL’s decision to authorise DIMOCO’s agent-based carrier billing model aligns with its broader strategy to strengthen the position of regulated operators and reduce the market share of unlicensed competitors.

Germany’s regulatory authorities and federal government have repeatedly stated their intention to protect consumers from illegal gambling operators, which often fail to meet compliance standards, such as anti-money laundering (AML) controls and responsible gambling measures.

By restricting access to efficient and secure payment methods like DCB to only licensed platforms, the GGL is reinforcing its policy of limiting the appeal and functionality of unregulated operators.

Strategic significance for the iGaming industry

The adoption of carrier billing within Germany’s regulated online gambling market signifies a key improvement in both user convenience and the overall efficiency of payment transactions. Operators will be better positioned to serve casual and mobile-first players, while also benefiting from a reduction in payment frictions and potential abandonment rates.

Moreover, DIMOCO’s entry into the German market may inspire further innovations in compliance-centric payment services, especially those suited for regulated digital industries.

As governments and regulators across the European Union continue to update frameworks for gambling and financial technology, Germany’s approval of a hybrid model that merges regulatory integrity with user simplicity may serve as a template for other jurisdictions.

Looking ahead: Scaling regulated mobile payments in Europe

With regulatory clearance in Germany now secured, DIMOCO is well-positioned to expand its direct carrier billing model to additional European markets where legal gambling is permitted under strict licensing regimes.

The successful implementation of DCB in Germany will be closely watched by other EU regulators and market stakeholders, as it could lead to broader acceptance of the agent model as a compliant and scalable solution for payment processing in sensitive sectors such as gambling.

As the digital economy evolves, demand for secure, user-friendly, and regulator-approved payment methods will continue to grow — and DIMOCO’s approval in Germany signals a significant step in that direction.

Conclusion

DIMOCO’s official entry into Germany’s regulated iGaming market marks a pivotal moment for the evolution of digital payments in the gambling sector. By securing GGL approval for its direct carrier billing model, the company has not only expanded its European footprint but also introduced a payment solution tailored to the preferences and technological readiness of German consumers. The collaboration with NEO.bet and Greenvest Betting Limited illustrates the growing demand for seamless, secure, and compliant payment alternatives that enhance user experience while satisfying stringent regulatory obligations.

As the German regulator continues to promote a safe and transparent gambling environment, DIMOCO’s presence offers a strategic advantage to licensed operators and reinforces the country’s commitment to curbing unlicensed activities. This development sets a strong precedent for future innovations in regulated markets across Europe, highlighting the potential for compliant fintech models to drive growth, improve consumer trust, and strengthen the legal gambling ecosystem.

FAQs

What is direct carrier billing (DCB)?
Direct carrier billing is a payment method that allows users to charge online purchases to their mobile phone bill or prepaid balance, bypassing the need for traditional banking methods.

Who is DIMOCO and what role does it play in the German iGaming sector?
DIMOCO is a licensed Austrian payment provider that has become the first company authorised by Germany’s gambling authority to offer direct carrier billing for iGaming.

Is direct carrier billing legal for online gambling in Germany?
Yes, direct carrier billing is now legal and authorised for use by licensed operators in Germany’s regulated iGaming market, following approval by the GGL.

Why is NEO.bet the first operator to offer carrier billing in Germany?
NEO.bet partnered with DIMOCO and was the first operator to go through the regulatory process with the GGL, enabling them to pioneer the use of DCB in Germany.

What is the GGL and what does it regulate?
The GGL (Gemeinsame Glücksspielbehörde der Länder) is Germany’s federal gambling regulator, responsible for overseeing licensing, compliance, and enforcement in the gambling sector.

How does DIMOCO’s agent model work?
DIMOCO partners with mobile network operators who act as its agents. DIMOCO takes on all compliance responsibilities, including customer verification and KYC procedures.

What advantages does carrier billing offer to players?
Carrier billing allows for fast, secure, and seamless deposits using a mobile phone, without the need for bank or card information, which enhances convenience and privacy.

Why is carrier billing only available to licensed operators?
To ensure compliance with responsible gambling and anti-money laundering regulations, GGL has mandated that only licensed operators may offer carrier billing.

How will this affect unlicensed gambling sites in Germany?
The restriction of carrier billing to licensed platforms may reduce the competitiveness of unlicensed operators, aiding the GGL’s goal of removing them from the market.

What impact might this have on the wider European iGaming market?
Germany’s approval of DIMOCO’s model could encourage other EU regulators to consider similar compliant and user-friendly payment solutions for their regulated markets.