Tipwin and Mybet Got Licenses for Online Slot Machines

Tipwin and Mybet Got Licenses for Online Slot Machines

On June 23, Tipwin and Mybet obtained licenses in Germany for slot machine games, becoming the second and third-biggest gambling company in the whole country that offers such games online.

The new license has allowed renowned sports betting operator Tipwin to offer slot games as part of a new section on its website, while Mybet acquired its license through owner Ruleo Alpenland.

In July 2021, came into force Germany’s Fourth State Treaty on Gambling, was the start of the legal online casino market in Germany. Before the passage of the treaty, gamblers in the country could only place sports bets online, while now they can play poker and slot games as well. However, the treaty came together with a bill imposing a 5.3% tax rate and a EUR 1 ($1) cap on online slot games.

Online operators have criticized these regulations pointing out that they are being put at a tax disadvantage in comparison to brick-and-mortar gambling venues, which are taxed with lower rates. In regard to these conditions, the Deutsche Sportwettenverband (DSWV), which is the German sports betting association, has also made a statement highlighting that the introduced tax rate could “jeopardize the success of the new gambling regulation in Germany”.

These new regulations also allowed online table games, however, they put a limit on the number of licenses that can be issued. Another option the German states were given, was to choose between a monopoly or a number of permits that are the same amount as the brick-and-mortar casinos in the respective state. For example, the state of Thüringia has decided to go for the monopoly model, while Schleswig-Holstein and Nordrhein-Westfalen, among others, will be granting licenses.

Tipwin’s Troubles in Denmark

In the meantime, a police report has been filed against Tipwin by Spillemyndigheden, the Danish regulator on gambling, for breaching the Danish Money Laundering Act.

Tipwin has been accused of not providing a risk assessment of its betting operations and having no written procedures and controls, which aim to prevent money laundering based on this assessment. The watchdog has stressed that the compulsory risk assessment is a fundamental part of the Money Laundering Act and the main tool to help companies determine how exposed they are to money laundering or terrorist financing. Spillemyndigheden has given Tipwin three months to correct these omissions.