Gluecksspiel (GGL), the Federal Gambling Authority of Germany, has revoked the licence of Tipster GMBH, the Cologne betting group currently under administration.
The decision was made on June 15th, when GGL determined that Tipster could no longer process bets and wagers in compliance with the laws of the Fourth Interstate Treaty on Gambling (GlüNeuRStv).
Consequently, Tipster has been removed from the official whitelist of permitted organizers of public games of chance. GGL joint President Ronald Benter emphasized that the enforcement was consistent with GlüNeuRStv rules.
“We take consistent action against licence holders if they violate elementary rules of the State Treaty on Gaming,” he stated, adding, “the authority does not shy away from taking action against the major players in the market.”
The licence withdrawal will impact the insolvency proceedings of Tipster GMBH, which expressed in May its preference for the business to be restructured and sold by Cologne law firm Heidland Werres Diederichs (HWD).
The decision to restructure and sell followed a raid on its offices by the Rhine-Westphalia police force and federal anti-corruption units in April. The raid was part of a pan-European investigation into Tipster GMBH’s business, based on suspicion of large-scale money laundering and tax evasion. This led the group management to file for immediate bankruptcy.
Tipster GMBH has been operating in the German sports betting market since 2010, under the domain of Tipster.de. HWD reported that the business generates an annual turnover of €250m, operates several hundred betting points of sale, and employs a workforce of more than 1,000 staff.
Under the guidance of Cologne courts, HWD continues the restructuring process of Tipster GMBH, seeking a stop-gap investment to secure operations and staff wages.