Deutsche Telekom preps sports betting launch
Telecoms giant acquires 64% stake in tipp3 owner Deustche Sportwetten with launch of new site slated for Q1 2015
German telecoms giant Deutsche Telekom has taken aim at the German sports betting market after acquiring a 64% stake in Deustche Sportwetten (DSW), from the operator of one of Austria’s leading sportsbook brands.
The telecoms firm, which owns T-Mobile, had previously formed a strategic partnership with DSW owners Österreichische Sportwetten, which was one of the 20 operators to receive a sports betting licence from the Hessian Ministry of the Interior in October 2014.
But yesterday Deutsche Telekom announced the acquisition and said it would launch tipp3.de using DSW’s existing licence focusing on football, Formula 1 and basketball markets when it goes live later this quarter.
According to German newspaper Die Welt, Deutsche Telekom claimed it would not have to wait for Germany’s drawn-out sports betting licensing process to be complete as tipp3 already holds an Austrian permit where it operators the tipp3.at sportsbook site.
Tipp3, founded by Austrian Sportwetten, is one of Austria’s market leaders and retains a minority stake in the business, while the fee Deutsche Telekom paid for the 64% stake has not been revealed.
“We will not reinvent the theme of sports betting, we have a partner on board a fast-growing market, an internet-based business. That fits the strategy of Deutsche Telekom,” a Deutsche Telekom spokesman told Die Welt.
Germany’s lucrative sports betting market remains a source of frustration for operators, 19 of which have been awarded licences but remain on stand-by as several large firms complain over their omission from the process.
Some operators have voiced optimism that the market could still open early next year, however sources familiar with the matter suggest that it will be several months before the courts have even finished compiling evidence.