Tipico CEO Rejects Maltese Legal Shield

Tipico, a leading player in the European online gambling sector, faces mounting legal scrutiny over its historical operations in Germany.​

At the heart of the issue is the legality of online bets placed in Germany before 2020, a period marked by regulatory ambiguity. Tipico operated under a Malta Gaming Authority (MGA) license during this time, as Germany had not yet established a comprehensive licensing framework.​

In a recent interview with Frankfurter Allgemeine Zeitung, CEO Axel Hefer addressed the ongoing proceedings at the European Court of Justice (ECJ), which could potentially reshape the legal landscape for online gambling providers operating without a German license prior to 2020. Hefer emphasized, “We are a Maltese-German company with 1,500 employees at several major locations in Germany. It’s clear to us that we don’t hide behind Maltese law. We have never invoked ‘Bill 55.’”

This stance signals Tipico’s commitment to transparency and legal compliance, setting a precedent for other operators in the industry.

Tipico’s Stand: CEO Axel Hefer Declines Maltese Legal Shield Amid German Gambling Disputes

Key Points

1. Rejection of Bill 55: Tipico’s CEO, Axel Hefer, publicly states the company will not use Malta’s Bill 55 to avoid potential repayments related to past operations in Germany.​
2. Awaiting ECJ Ruling: The European Court of Justice is reviewing cases that could determine the legality of online gambling activities conducted without a German license before 2020.​
3. Financial Preparedness: Tipico adheres to International Financial Reporting Standards (IFRS) and will make financial provisions if potential payouts become probable.

Navigating Legal Complexities: Tipico’s Commitment to Compliance

Tipico‘s historical operations in Germany, conducted under an MGA license, are now under legal scrutiny. The company’s decision not to invoke Malta’s Bill 55—a law preventing Maltese courts from enforcing foreign rulings against MGA-licensed operators—demonstrates a commitment to addressing legal challenges head-on.​

Hefer acknowledges the gravity of the situation, stating, “We believe we did the right thing based on EU law. The Federal Court of Justice has doubts about this, and the matter is now being examined by the ECJ. Depending on the ECJ’s decision, we will make repayments or not.”​

The legal uncertainty centers on bets placed in Germany before 2020, when the country’s gambling framework was still in regulatory flux. One of the cases currently pending before the ECJ involves a dispute between an online sports bettor and Tipico, where the player reportedly lost €3,719.26 with the operator between 2013 and 2018.​

In terms of financial preparedness, Hefer explains, “We adhere to the accounting principles of the IFRS standard, and if the payouts become sufficiently probable, we will, of course, make provisions for them.” He notes that no significant items have been created in the balance sheets published to date.​

Hefer also expresses skepticism about the ethics of retroactive claims, stating, “Honestly, I don’t think that’s right. The bets were placed under an EU license. We paid taxes on the stakes and our earnings. The business practices were legal.” He criticizes the growing role of litigation funders in these cases, noting that most lawsuits are now being filed by investors seeking profit rather than affected players.​

Several cases are currently awaiting decisions from the ECJ. Earlier in April, the ECJ heard its first case involving a German player who sued Malta-based secondary lottery operator Lottoland to recover gambling losses in Germany. The claims were later acquired by a German lawyer, who pursued the case in Maltese courts, eventually resulting in a referral to the ECJ.

Tipico’s proactive stance in addressing legal challenges related to its historical operations in Germany reflects a broader commitment to compliance and transparency. By choosing not to rely on Malta’s Bill 55, the company sets a precedent for ethical conduct in the online gambling industry. As the European Court of Justice deliberates on these pivotal cases, Tipico’s approach may influence future regulatory frameworks and industry standards across Europe.