The Malta Gaming Authority (MGA) has suspended the licence of Tipster Limited following the revocation of the operator’s sports betting licence by the German regulator (GGL) last month.
Tipster attracted significant attention in April when it became the target of a large-scale police raid as part of a global investigation into illegal gambling, money laundering and tax evasion.
Initially, Tipster held licences to operate in both Germany and Malta.
In April, the MGA stated that Tipster’s Malta licence was inactive because the company was solely operating under its German licence.
Furthermore, the MGA indicated that the group had already started the process of surrendering its MGA licence prior to the investigation.
As a consequence of the licence suspension, effective 27 June, the beleaguered business is no longer authorised to conduct any gaming operations.
However, the company must grant all registered players access to their player accounts and refund all monies owed to players.
Tipster still has the option to appeal the decision.
Tipster is a major brick-and-mortar betting operator in Germany, with several hundred shops operating throughout the country.
The entire group, including franchise-operated shops, employs approximately 1,000 people.
Last month, Tipster announced it was undergoing a significant restructuring effort and actively seeking new investors after initiating insolvency proceedings in Germany.
In Germany, the insolvency process offers specific restructuring options that are not available outside of insolvency.
These options include the early termination of unfavourable contracts with suppliers and shorter notice periods for terminating employees.
Germany’s GGL has revoked Tipster’s sports betting licence after the company filed for bankruptcy.
Tipster first hit the headlines in April when it was targeted in a large-scale police raid as part of a global investigation into illicit gambling, money laundering and tax evasion.
Following a regulatory inspection, the German gambling regulator concluded that Tipster no longer met the requirements for legal operation.
As a result, the company has been removed from the official whitelist of authorised operators.
GGL co-CEO Ronald Benter stated: “We consistently take action against permit holders who violate fundamental rules of the State Treaty on Gambling.”
His colleague Benjamin Schwanke added that the GGL does not “hesitate to take action even against major players in the market.”
Insolvency proceedings
Earlier this month, Tipster said it was undergoing a major restructuring exercise and actively seeking new investors after launching insolvency proceedings in Germany.
In Germany, the insolvency process provides unique restructuring options that are not available outside of insolvency, such as the early termination of unfavourable contracts with suppliers and shorter notice periods to terminate employees.
Tipster also holds a licence from the Malta Gaming Authority (MGA).
However, according to the MGA, the group had already begun the process of surrendering its MGA licence prior to the investigation and was operating solely under its German licence.
Tipster is one of the largest brick-and-mortar betting providers in Germany, with several hundred shops operating across the country.
The entire group, including franchise-operated shops, employs approximately 1,000 people.
Photo credit: © Raimond Spekking
Sports betting operator Tipster is currently undergoing a major restructuring exercise and is actively seeking new investors after launching insolvency proceedings in Germany.
The firm hit the headlines in April when it was subject to a large-scale police raid as part of a global investigation into illicit gambling, money laundering and tax evasion.
While the investigation remains ongoing, Tipster has filed for insolvency.
A court in Cologne has appointed Dr Jörg Gollnick from law firm Heidland Werres Diederichs (HWD) to handle the insolvency proceedings of Tipster Ltd, which is based in Malta.
In May, the same lawyer was put in charge of the insolvency proceedings for the German Tipster Service GmbH.
Revenue of Є250m
Gollnick stated that the insolvency application for Tipster Ltd. in Germany paved the way for a restructuring of the entire Tipster Group.
“We have established a structured investor process to secure the long-term operations of the Tipster Group, including its franchisees, with the assistance of a strong partner,” he revealed.
According to him, the group still holds significant value: Tipster Ltd alone generates annual revenue of over Є250m.
In Germany, the company is one of the largest brick-and-mortar betting providers, with several hundred shops.
The entire group, including franchise-operated shops, employs around 1,000 people.
Unique restructuring options
In Germany, the insolvency process provides unique restructuring options that are not available outside of insolvency, such as the early termination of unfavourable contracts with suppliers and shorter notice periods to terminate employees.
Gollnick said that during the restructuring process, Tipster’s operations will continue without disruption.
Customers can place bets as usual and expect to receive winnings as usual, he added.
The law firm also assured employees would be paid.
In addition, the management of Tipster Ltd informed the Cologne Courts of its full cooperation with the authorities during the ongoing investigation.
Tipster Ltd was founded in 2010 and is licensed by the Malta Gaming Authority (MGA). It is also on the whitelist of Germany’s GGL.
In April, more than 1,000 officers participated in the police raid conducted by the Rhine-Westphalia financial police and the Federal Criminal Police Office.
German anti-corruption units in several German cities, as well as in Malta and Croatia, were also involved in the investigation.
According to the MGA, the group had already begun the process of surrendering its MGA licence prior to the investigation and was operating solely under its German licence.
Sports betting company Tipster has announced it will fully cooperate with the German authorities following a police raid on its offices last week (20 April).
German police suspect the company of being involved in illegal gambling and six persons were arrested, although specific charges have yet to be released.
The State Criminal Police Office of North Rhine-Westphalia had been carrying out an undercover investigation for more than two years, with those alleged responsible being investigated for forming a criminal organisation, conducting illegal gambling, and withholding wages.
MGA licence inactive
Tipster holds a licence from the Malta Gaming Authority (MGA) and is also on the whitelist of approved sports betting operators of Germany’s Gemeinsame Glücksspielbehörde der Länder (GGL).
A spokesperson for the MGA told iGaming NEXT the Maltese company had not been an active part of Tipster’s operation.
“It had, in effect, been non-operational on its MGA licence since January 2023 and had been operating under its German licence,” said the MGA spokesperson.
“Since Tipster had not registered any activity under its MGA licence for the past four months, the MGA had been closely monitoring it and discussions were in place for the company to surrender its MGA licence; a process that is expected to be completed in the coming days.”
GGL reaction
In Germany, the gambling regulator (GGL) said it was closely monitoring the investigation.
“If the investigation confirms the initial suspicion, the GGL will take regulatory measures against the provider,” said GGL co-CEO Benjamin Schwanke.
According to Automatenmarkt.de, Tipster said it fully supports the current investigations by the prosecuting authorities and will take necessary “actions promptly and in close coordination with the relevant authorities if any misconduct has occurred”.
German authorities have carried out a massive raid against MGA-licensed sports betting operator Tipster, German newspaper Bild has reported.
Over 1,000 officers from the North Rhine-Westphalia riot police and criminal investigation department searched more than 100 locations simultaneously in several German cities, as well as in Malta and Croatia.
According to Bild, the investigation is related to suspicions of illegal gambling and the formation of a criminal organisation.
The police are searching for evidence and assets related to the investigation, with six suspects in custody.
The suspects, all male and aged between 34 and 60, are part of the company’s management team.
According to chief inspector Markus Niesczery, the six main suspects were arrested in the German cities Cologne and Brühl.
In addition to the police officers, prosecutors from the Central Office for Organised Crime, customs officials, and financial investigators from North Rhine-Westphalia are also involved in the operation.
The police searched the company’s headquarters in Cologne, where they arrested one suspect and confiscated servers located in a secured vault.
The operation lasted several hours, during which authorities attempted to gain access to the servers, Bild reported.
Tipster was founded in 2010 and is licensed by the Malta Gaming Authority (MGA) and is also on the whitelist of Germany’s GGL.
iGaming NEXT has reached out to both regulators for comment.
The investigation is ongoing and Bild reports the authorities have not yet provided any further details regarding the specific allegations against the suspects.