Tipbet loses MGA licence due to several violations

Tipbet is one of the oldest online sports betting providers in the world. It has been active in many European countries for more than 20 years. Currently, however, the bookie's business seems to be largely flat. The MGA has withdrawn its licence - and the website cannot be accessed. This is due to breaches of regulatory provisions in numerous points of the licence agreement.

Licence withdrawals from European sports betting providers or online casinos are relatively rare and often do not come to public attention. Only when it affects well-known names in the industry or is based on criminal activities does it attract more attention. Those who have a licence from a licence provider in Europe generally ensure that it remains in place. After all, the whole business usually depends on it.

The reference case in Germany is (and will probably remain) the revocation of Tipster's German licence by the GGL. Following a major raid on Tipster, the people responsible were charged with various offences. Tipster was charged with tax fraud totalling around 700 million euros, the formation of a criminal organisation and other offences.

Tipbet's offences, which have now led to the Malta Gaming Authority (MGA) revoking the bookmaker's licence, do not appear to be quite so far-reaching. A criminal background cannot initially be recognised here. However, Tipbet apparently failed to fulfil its obligations under the licence agreement. Several points were criticised by the MGA. Probably also because Tipbet is one of the best-known sports betting providers in Central Europe, the authority issued an extensive press release on the case.

Why exactly was Tipbet's licence revoked?

Specifically, Tipbet is said to have breached the provisions of Section 9 of the licence agreement. The press release states that the decision has been made to revoke Tipbet Limited's licence with reference number MGA/B2C/303/2015 with effect from 28 November 2023. The ‘Status of Licence’ is currently set to ‘Cancelled’.

‘This is in accordance with regulations 9 (1) (c), 9 (1) (d), 9 (1) (i), 9 (1) (l), 9 (1), 9 (1) (m) and 10 (1) (a) of the Gaming Compliance and Enforcement Regulations (S.L. 583.06).’

This section sets out the MGA's termination rights in connection with certain offences. What Tipbet has done wrong in detail is not mentioned in the statement. Only a general picture can be drawn from the information in the relevant sections of the Gaming Compliance and Enforcement Regulations:

• ‘The authorised person has failed to comply with one or more applicable obligations under regulatory instruments or other applicable Maltese legislation.’
• ‘The authorised person has failed - or the authority has reason to believe that such a failure is imminent - to meet the financial obligations for its business activities.’
• ‘The authorised person has failed to fulfil obligations to players in a timely manner - or the authority has reason to believe that such a failure is imminent.’
• ‘The Authorised Person has failed to pay all amounts due to the Authority in a timely manner.’
• ‘The Authority has determined, in its sole discretion, that there is substantial and sufficient cause for the suspension of the authorisation.’
• One of the grounds for suspension set out in Rule 9 exists and the Authority determines, in its sole discretion, that revocation of the authorisation is the most appropriate action.’

These steps were imposed on Tipbet with the revocation of the licence

In its press release, the MGA has not only published the points of the licence agreement that Tipbet is alleged to have breached. It also describes the measures that the bookie has to take in accordance with the decision:

1. All gaming operations are to be suspended with immediate effect and no new customers are to be accepted.
2. Existing players are to be given continued access to their accounts in order to request payment of their outstanding player balances.
3. A refund of all player funds to legitimate players must be ensured in accordance with the Gaming Act (Chapter 583 of the Laws of Malta).
4. The payment of all outstanding fees due to the authority must be honoured within a period of five days.
5. A transaction report extracted from Tipbet's back-end system with the relevant bank statements showing that all player funds have been duly transferred to the registered players must be provided to the authority within seven days (the MGA reserves the right to export such a document independently).
6. With immediate effect, all references to the Authority and the licence under Article 51 of the Gaming Act (Chapter 583 of the Laws of Malta) shall be removed.

Conclusion

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