Deutsche Telekom targets online sports betting expansion with Sportwetten deal

Deutsche Telekom targets online sports betting expansion with Sportwetten deal

Wednesday, February 25, 2015 Totally Gaming

German telecommunications giant Deutsche Telekom is to bring its huge resources to the online sports betting market after it struck a deal to acquire a majority stake in Deutsche Sportwetten (DSW), a subsidiary of Tipp3 owner Österreichische Sportwetten.

Deutsche Telekom, which generated revenue of €60.1 billion ($68bn) in the 2013 financial year, is to acquire a 64 per cent stake in the German-facing betting operator, while Österreichische Sportwetten will retain a minority stake. Deutsche Telekom has also confirmed its intention to launch “purely internet-based sports betting services” within the first quarter of this year.

The new betting service will operate in Germany under Österreichische Sportwetten’s Tipp3 brand and offer customers access to betting options on sports such as football, basketball and Formula 1.

Deutsche Telekom is the owner of mobile networks EE and T-Mobile and has substantial shares in companies across 50 countries. It has 143 million mobile customers, 31 million fixed-network lines and more than 17 million broadband lines.

The acquisition comes after a spokeswoman for Deutsche Telekom confirmed in September last year that the telecommunications company was planning to expand into the online sports betting market, but was yet to identify the products it would be offering to customers.

“The sport betting market is booming so an entry is of interest to Deutsche Telekom,” a spokeswoman told the Reuters news agency in September. “It is not yet clear what products we will be offering.”

Speculation surrounding a potential expansion intensified when the Hesse Ministry of the Interior and Sports (HMDIS) awarded a number of online sports betting licences to regional and international operators. The Deutsche Telekom spokeswoman confirmed at the time that the telecommunications company was one of those being considered for a licence.

However, reports in the German media now suggest that the new sports betting service will operate services in the country under a licence gained by DSW in Austria.

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