Following an extensive review of Tipster.de’s operations, financial status, and compliance with regulatory requirements, Gluecksspiel (GGL) has concluded that the company’s license must be revoked. The measure will prevent the company from offering games of chance in Germany, effectively banning it within the country. GGL’s decision will significantly impact the struggling operator as it looks to sell off its assets.
The Regulator’s Decision Was Fully Justified
The decision to revoke Tipster’s license is based on the concerning factors uncovered during GGL’s evaluation process. The business currently finds itself in a precarious position after its recent filing for bankruptcy, rendering it unable to meet its obligations to customers, suppliers, and regulatory authorities. Since the betting group is under administration, it cannot effectively dispute GGL’s verdict.
We take consistent action against license holders if they violate elementary rules of the State Treaty on Gaming.
Ronald Benter, GGL co-executive director
Things came crashing down for Tipster after the German police raided the operator’s premises due to alleged ties with organized crime, leading to the arrests of six people. The sudden action was part of a joint pan-European investigation regarding unlicensed gambling, corruption schemes, large-scale money laundering, and tax evasion. In the aftermath of the raid, the group filed for bankruptcy, sealing its fate.
Losing its license at such a critical time will have a devastating effect on Tipster. The company hopes to find a buyer after it restructures its operations. However, its spotty history and inability to operate in one of Europe’s leading markets significantly reduces its attractiveness and can negatively impact the ongoing insolvency proceedings.
Tipster’s Fate Should Teach Operators a Valuable Lesson
GGL’s decision to revoke Tipster’s license appears justified considering the operator’s current state. With its leadership and operations in shambles, the company cannot guarantee basic player protections and meet its contractual obligations. The company refused to comment on the situation, and its website remains offline, making any hopes of a resurgence virtually nonexistent.
Such a sudden downfall came as a shock, considering the business had annual revenues of €250 million ($273,76 million) and employed over 1,000 people. However, GGL noted that it was willing to take action even against the high-profile operators, evidenced by its recent probe into Daily Fantasy Sports operators in the country.
Glücksspiel’s revocation of Tipster GmbH’s license represents a significant development in the German gambling industry, demonstrating the regulator’s ability to implement harsh punishments given sufficient justification. The case should also send a message to other operators, highlighting the need to uphold financial stability, compliance with regulations, and responsible gambling practices.