Betting License of Tipster Ltd Cancelled by GGL
Sports betting operator Tipster Ltd has seen its multi-state license in Germany revoked by the central gaming authority of Germany, Gemeinsamen Glücksspielbeh?rde der L?nder (GGL). There is a lot of ambiguity surrounding the situation as the reason for this revocation has not yet been revealed by the German regulator. The only thing GGL has revealed is that strict action has been taken to protect the players and ensure that player safety standards are not hampered due to the activities of Tipster Ltd. According to reports, there is an ongoing investigation for alleged criminal activities related to the operator.
Sports betting operator Tipster Ltd has seen its multi-state license in Germany revoked by the central gaming authority of Germany.
?Claudio Schwarz/Unsplash
The German gambling market is one of the most competitive markets in Europe and also one of the strictly monitored ones. It has undergone noteworthy changes over the past few years, with the most significant one coming in the regulatory body. Germany switched from state-wise regulation to a central regulator in GGL at the start of this year. Before that, the Interstate Treaty on Gambling (ISTG 2021) was put into force in 2021. This treaty opened the market up for several gambling operators worldwide, enabling them to enter the regulated German markets by attaining gambling licenses from state-based regulators. The treaty also highlights the rules regarding advertising, licensing, taxation, and more. It also comprised standardized measures for player safety that must be followed by each operator entering the nation’s gambling market. Failure to follow the protocols could force the regulator to issue penalties or even revoke an operator’s license. However, the latest regulation based on which the market operates is less restrictive compared to the previous regulations.
Despite this leniency in the regulations, player safety is one of the key aspects the GGL takes extremely seriously. Any licensed operator that fails to comply with the Gambling Code (GluStV) will be putting its German gambling permit in jeopardy. If an operator commits a mistake for the first time, they may get away with just a stern warning, but repeated violations will directly lead to the revocation of their gambling license. Recently, Tipster Ltd. is standing under the spotlight in the German market after its gambling permit was revoked by the GGL earlier this month. According to the regulator, an investigator determined that the operator’s license requirements had changed, and they were no longer following the country’s gambling code. No further information was disclosed to the public, but after the results of the investigation were out, GGL wasted no time in not just revoking Tipster Ltd’s license but also removing the operator from the country’s gambling whitelist. The regulator claimed that this permit cancellation had to be done to maintain player safety standards in the market.
Established in 2010, Tipster Ltd. is currently in a chaotic situation that has forced a little bit of restructuring. The Malta-based operator is also looking for new investors after the recent fiasco in Germany. The investigation that eventually led to the cancellation of Tipster Ltd.’s license was conducted in the form of a large-scale police raid. It was part of a global investigation that was performed to look into several illicit activities like illegal gambling, money laundering, tax evasion, and more. While the regulator has not shed much light on the investigation, several sources claim that Tipster Ltd. filed for insolvency while the investigation was still on. This will be a high-profile case considering the fact that Tipster Ltd. is one of the biggest brick-and-mortar betting operators in GGL’s jurisdiction. The Maltese operator had established hundreds of betting shops all across the country even before GGL came into the picture. This was possible because Tipster Ltd. had obtained a multi-state license and was able to offer sports betting in all 16 federal states of Germany.
Abiding by the regulations and measures stated in GluStV 2021, GGL have revoked Tipster Ltd’s license and removed the operator from the country’s whitelist. GGL Board members Benjamin Schwanke and Ronald Benter issued concise statements on the issue. “We take consistent action against license holders if they violate elementary rules of the State Treaty on Gaming,” said Benter. “We don’t shy away from the big players in the market either,” added Schwanke, commenting on Tipster Ltd.’s presence in Germany and how, despite that fact, the regulator acted on the breach in regulations.
Advertising on affiliate domains could land operators in trouble
One of the many regulations that licensed operators have to comply with is the gambling advertising restriction in Germany. Around the globe, there are very few gambling jurisdictions where there is a blanket ban on all marketing and promotional activities that are related to gambling. In other countries where the gambling markets are regulated, there is usually a partial ban on advertising. Germany is one of those countries. The partial ban is instated to boost player safety as it prohibits licensed gambling operators from targeting the vulnerable and young individuals of a particular country.
About a month ago, GGL gained the authority to stop licensed gambling operators from advertising on affiliate marketing domains that also promote illegal gambling offers. The authority was granted to the German regulator by the Higher Administrative Court of Saxony-Anhalt. Advertising and marketing activities on affiliate domains that also host illegal offers go against the Fourth State Treaty for Gambling Regulations and hence it is categorized under prohibited activities. The Court also advised GGL to contact these domains and inform them about the country’s whitelist, so they can differentiate between licensed and unlicensed operators before advertising their services.
ZEAL received a new gambling license in Germany last month
There are several gambling segments in the competitive German market. One of these segments is lotteries, and ZEAL is one of Germany’s leading lottery operators. Almost 24 years into existence, the German lotto operator wanted to try something new. Probing into a new segment, the operator applied for an iGaming license that will enable one of its subsidiaries to offer virtual slot games at ZEAL’s own web shops.
LOTTO24 AG will be ZEAL’s brand that will offer these games to German players under the new license. After a thorough check of ZEAL’s application, the GGL approved it and issued a license for virtual slots. This will be the first time since its inception that the lottery operator offers something other than a lottery to German players. However, it is not a big surprise that the entity wants to enter a new segment after having a market cap of over €830 million.
