Deutsche Telekom makes egaming debut with German launch

German telecommunications giant Deutsche Telekom yesterday entered the online betting industry in a move the company said had “opened a new chapter” in sports betting.

Deutsche Telekom said sportsbook Tipp3.de would “make sports better” with the company focused on being a fair and responsible operator, offering markets on professional sports events only and making betting limits compulsory.

The sportsbook has been launched through joint-venture Deutsche Sportwetten, established last year alongside Austrian operator Österreichische Sportwetten (ÖSW), with Tipp3 using the venture partner’s Austrian operating licence to enter the market.

Deutsche Sportwetten, which is led by directors Jochen Weiner and Helmut Löschenberger, is 64% owned by Deutsche Telekom, with the remainder held by ÖSW.

And Deutsche Sportwetten chairman of the supervisory board Matthias Schmidt-Pfitzner, who is also head of digital media at Deutsche Telekom, said Tipp3 would benefit from its association with the telecommunications company.

“We are betting on the growth market of sports wagers,” Schmidt-Pfitzner said. “We are entering the business as a trustworthy online provider – with a maximum focus on security, quality and the customer experience,” he added.

However, speaking to eGaming Review, a senior exec at a German-facing firm questioned whether Tipp3 would be able to succeed in the German market.

“They enter the market with a fairly unimpressive product which is years behind market leaders such as Tipico and bet365,” the exec said.

“And Deutsche Telekom is such a big company that many discussions are required in order to make a simple decision and that results in unnecessary costs and means it won’t have the flexibility needed to adapt quickly to changes in the market,” he added.

The launch of Tipp3 in Germany has faced criticism in some quarters with part government-owned Deutsche Telekom deciding to enter the market amid a period of regulatory and legal uncertainty.

In February, Deutsche Lotto and Totoblock, an association of German state-owned operators, called on the German government to block the launch, accusing Deutsche Telekom of showing a lack of respect to German law.

Last year Deutsche Sportwetten received one of 20 sports betting licences handed out by authorities but the accompanying regulatory framework has been put on hold due a number of unsuccessful applicants contesting what they viewed to be a licensing process which lacked transparency.