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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.