The Freehansatic City of Bremen, Germany’s smallest state, has announced a complete shutdown of all bookmakers following a state-wide investigation into money laundering.
The announcement has impacted four operators (Tipico, HappyBet, Tipwin and XTiP) offering retail betting services in Bremen, with 32 betting stores operating among them.
According to a statement posted on the Bremen website, a total of 24 operator franchises were “accepted” in the state before the closure came into effect, but were awaiting full approval.
But now Bremen has issued rejection letters to all 32 gambling establishments. This was due to money laundering concerns as the four operators failed to prove the origin of the funds.
Once the refusal notice was issued, betting with the Bremen bookmaker became illegal.
The announcement came from the Bremen Legislature after Senator Ulrich Maurer held a press conference explaining the closure.
“Basically, it’s about checking the reliability of these operators,” says Mäurer. “We also want to ensure that funds from dubious transactions such as drugs and human trafficking are not washed here and thus flow into a legitimate cash cycle.”
“We are breaking new legal grounds with our initiative. It’s always a constant risk. But it’s worth it for us.”
Mäurer added that all four operators are set to take legal action against the decision.
According to a statement on the Bremen parliamentary website, no operator has so far provided evidence of a source of funding that meets the state’s requirements, but the German sports betting trade body Deutscher Sportwettenverband (DSWV) said in a document has been submitted. The organization also labeled the closure a “politically motivated and arbitrary action.”
This was expressed through a statement on the website of DSWV President Mathias Dahms.
“Extensive and meaningful documents have been submitted to the Bremen internal affairs authorities regarding the operators of gambling establishments and their financial resources,” the statement read. “Money laundering experts have verified the evidence.”
“As usual, the authorities did not ask any questions about the submitted documents.”
Dahms also said the “reliability” of the “legal source” of the operator’s funds has also been proven.
Maurer added that he was “weakening” the Fourth State Treaty on Gambling, which came into force in July 2021.
“The point is to create transparency and consumer protection through a legitimate market controlled by validated providers,” said Derms. “Mowler is treating the problem unfairly and is significantly strengthening the black market.”
“Providers operating illegally in Bremen will be pleased today.”
Tipwin was also granted a German slots license last month, making it the third operator to win the award.
