GGL: First provider loses German sports betting licence again

The Joint Gambling Authority of the Federal States (GGL) has revoked an already granted licence from the first gambling company. To be more precise, Tipster Limited's permission to organise sports betting on the internet and in stationary operations was revoked with the announcement of a corresponding notice. But why did tipster lose the German licence again so quickly?

It was only a few weeks ago when we at GambleJoe reported on the major raid at tipster. Investigations are still underway for illegal gambling, tax evasion, moonlighting and the formation of a criminal organisation, among other things. Now, the Joint Gambling Authority of the Federal States, GGL for short, seems to draw its conclusions from the scandalous developments at tipster. As the authority announced on 15 June, tipster Ltd. has had its licence to organise sports betting revoked with immediate effect.

Tipster Ltd. disappears from the official whitelist

On 15 June, the Halle (Saale) gambling authority informed Tipster Limited that it had revoked its licence to offer sports betting via the internet and in its bricks-and-mortar premises. As a result, Tipster Ltd. is not permitted to offer or arrange sports bets either on the internet or in its bricks-and-mortar offices. The German platform has been unavailable since the withdrawal of the licence became known.

The GGL had previously conducted an extensive audit and found that the company no longer met the licensing requirements to operate legally. As a result, Tipster Ltd. has been removed from the official whitelist. This is an official overview of all licensed providers in Germany. The current whitelist is available online as a PDF document here (status: 19 June 2023).

Insolvency application has already been filed

Shortly after the high-profile raid, Tipster Ltd. filed for bankruptcy at the local court. No official reason has been given by the gambling authorities as to why the German sports betting licence has been revoked. However, it can be assumed that this has something to do with the company's (poor) financial situation.

In its official press release, the GGL states that it is an important concern of the Authority to ensure that players are protected in every respect. As this is no longer guaranteed in the case of Tipster, they are now informing the public about the withdrawal of the licence. In September 2021, we reported that gaming operator Evobet had also been stripped of its MGA licence.

Just a few days ago, an article in the German newspaper "Süddeutsche Zeitung" reported on the alleged multi-million dollar fraud at Tipster. According to the article, the Cologne-based betting company is said to have smuggled a lot of money past the tax authorities over a number of years. There is talk of as much as €700 million going untaxed.

GGL Board: Consistent action against black sheep

In a statement, the Gaming Board's two executive directors, Ronald Benter and Benjamin Schwanke, emphasise that the full implementation of the new regulations is very important to them.

"We take consistent action against permit holders if they violate elementary rules of the State Treaty on Games of Chance" (Ronald Benter).

 "We do not shy away from the big players in the market" (Benjamin Schwanke).

Conclusion 

The 'tipster scandal' began at the end of April with a major raid in which a total of six people were arrested. In the weeks that followed, it was revealed that Tipster was insolvent. Now, the German gambling regulator has also taken action, withdrawing Tipster Ltd's licence to organise sports betting on the internet and in bricks-and-mortar betting shops.

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