The Wall Street Journal (WSJ.com) has reported that the private owners of German focused sports betting operator Tipico Ltd are preparing to sell the company
The Malta operated online betting firm, whose key target markets are Germany and Austria is reported to have appointed JP Morgan and Rothschild as deal advisers, who will begin to sound out options.
The news source further claims that based on recent UK acquisition valuations the operator, will seek a sale of price of around €1 to €1.5 billion (£800 to £1.1 billion).
Tipico’s valuation will be aided by its strong presence within the German online sports betting market, as rival operators look to expand their presence in new markets.
Founded in 2004, the Tipico’s sports betting brand is amongst the most prominent in German and Austrian markets, the bookmaker is currently official betting partner of Bayern Munich, Germany’s biggest football club.
Nevertheless Tipico’s high valuation may be undermined by Germany’s slow progress in establishing a legal framework for sports betting. 2015 has seen numerous delays to the implementation of sports betting licensing by the Hesse Ministry of the Interior and Sports (HMDIS), which awarded 20 licenses in May.
Opposed by a number of European operators, HMDIS framework is currently being investigated by the European Court of Justice, who announced this September that its review had been delayed until 22 October.
At present it appears that no progress will be forthcoming on German sports betting in 2015. At matter which may force Tipico governance to review its sale options.