License revocations occur relatively rarely at European sports betting providers or online casinos and are often not made public. The attention is only greater when it affects well-known names in the industry or when criminal events are involved. Anyone who has approval from a licenser in Europe generally ensures that it remains valid. After all, the whole business usually depends on it.
Tipbet’s violations, which have now led to the Malta Gaming Authority (MGA) revoking the bookmaker’s license, do not appear to be that far-reaching. There is initially no apparent criminal background here. However, Tipbet apparently did not fulfill its obligations under the license agreement. The MGA criticized several points. Because Tipbet is one of the best-known sports betting providers in Central Europe, the authority issued a comprehensive press release about the case.
Why exactly was Tipbet’s license revoked?
Specifically, Tipbet is said to have violated the provisions of Section 9 of the license agreement. The press release states that it has decided to revoke the approval with reference number MGA/B2C/303/2015 of Tipbet Limited with effect from November 28, 2023. The “Status of License” is currently “Cancelled”.
“This is done 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 area contains the MGA’s termination rights in connection with certain violations. What exactly Tipbet did wrong is not mentioned in the statement. From the information contained in the relevant sections of the Gaming Compliance and Enforcement Regulations, only a general picture can be drawn:
- “The authorized person has failed to comply with one or more applicable obligations under regulatory instruments or other applicable Maltese legislation.”
- “The approved person has failed to meet the financial obligations of its business – or the authority has reason to believe that such failure is imminent.”
- “The approved person has failed to fulfill obligations to players in a timely manner – or the authority has reason to believe that such failure is imminent.”
- “The licensed person failed to timely pay all amounts owed to the agency.”
- “The authority has determined, in its sole discretion, that there is a substantial and sufficient reason for the suspension of approval.”
- One of the grounds for suspension set out in Rule 9 exists and the Authority, in its sole discretion, determines that revocation of approval is the most appropriate action.”
These steps were imposed on Tipbet by revoking its license
In its press release, the MGA not only published the points of the license agreement that Tipbet is said to have violated. She also describes the measures that the bookie must take in accordance with the decision:
- All gaming operations should be stopped with immediate effect and no new customers should be accepted.
- Existing players should continue to be able to access their accounts to request payment of their outstanding player balances.
- A refund of all player funds to legitimate players must be ensured in accordance with the Gambling Act (Chapter 583 of the Laws of Malta).
- All outstanding fees due to the authority must be paid within five days.
- A transaction report extracted from Tipbet’s back-end system must be provided to the Authority within seven days with the relevant account statements showing that all player funds have been properly transferred to the registered players (the MGA reserves the right to do so independently). to export such a document).
- With immediate effect all references to the Authority and the authorization under Article 51 of the Gambling Act (Chapter 583 of the Laws of Malta) are to be removed.
About Tipbet
Tipbet has been operating as an online sports betting provider since 1995, making it one of the oldest companies in the industry. The headquarters are in Gzira, Malta. Since 2014, the MGA license has been held, which has now been revoked. In addition to the online business, which includes sports betting, e-sports betting as well as casino games and a live casino, Tipbet has also operated stationary betting offices for over two decades – especially in Germany. After the new regulation of the German market, many branches went to the competition. Tipbet was also known as a sponsor of Werder Bremen, Fortuna Düsseldorf and the Basketball Bundesliga. Tipbet does not have a German license.
Conclusion
What exactly led to the MGA deciding to revoke Tipbet’s license or the extent of the violations is not officially announced. Basically, it’s obviously about money. The bookie probably owes his customers and the authorities a lot of cash. Many players may have complained to the MGA. It is questionable whether the bookie can pay the corresponding sums. There appear to be significant economic problems here. The requirement to maintain the login for existing customers and the associated payout guarantee is not being met – at least currently: the website is not accessible. It remains to be seen whether there will be further consequences.
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