German online sports betting site Mybet has shut down its website after a debt of US$4.5 million in sports taxes forced the company to file for insolvency.
Mybet, a German online sports betting site, has shut down its gaming operations.
The website welcomed its visitors with a block of text announcing the cessation of operations. According to the text, Mybet has “paused” both its sportsbook and online casino offerings. The betting site, however, did not reveal when the site will return or if the site will ever return.
Mybet would return the wagers placed on unfinished open bets to its clients’ accounts. The betting site also assured its punters that all players’ funds are safe and secure under the protection of the Gaming Protection Regulation in Malta. Mybet is licensed by the Malta Gaming Authority (MGA).
However, the sportsbook forewarned its clients that they might experience delays when withdrawing their funds. Mybet explained that money transfers are under intense scrutiny by the MGA to ensure their security.
On its page, Mybet said:
“Mybet can guarantee all players’ account balances are safe as they are protected by the Maltese ‘Gaming Protection Regulation’… Because of the regulatory requirements that come into play in this situation, withdrawals will be carried out with significant delays. All money transfers are subject to rigorous checks by our licensor, the Malta Gaming Authority (MGA), to ensure that customer funds are protected as required by the license.”
One of the biggest betting operators in Germany, Mybet has posted poor financial performances these last quarters. One of the reasons given for the impending shut down is the company’s inability to pay its debts.
Debt Leaves Mybet Insolvent
All three of Mybet’s German companies—Mybet Holding SE, ANYBET GmbH, and SWS Service GmbH—has filed for insolvency earlier this August. Mybet, which entered the gaming sector back in 1998, faced a debt of around US$4.5 million in sports betting taxes, an amount the company could not pay in time.
The company has tried to avoid becoming insolvent by selling its customer-facing business to focus on its relatively successful business-to-business (B2B) operations. However, the deal with an anonymous investor fell through.
The press release stated:
“The background to the petition for opening insolvency is the failure of talks with potential investors. On this day, talks with a strategic investor announced on 13 June 2018 on a possible sale of the company’s online business operated under the domain www.mybet.com were terminated. The talks failed due to unrealizable conditions on the part of the investors.”
Mybet has tried to seek relief from the Frankfurt tax authorities and has requested for the suspension of the sports betting taxes it owed. However, the German department has rejected the application. The rejection was a huge factor in Mybet’s decision to ask help from the government and to file for bankruptcy.
The press release continued:
“The board’s decision to file bankruptcy following the failure of the investor talks was also influenced by the Frankfurt Revenue Department having rejected an application for interim termination of the enforcement of withholding sports bills, which had become the group company Associated Personal Exchange International Limited based in Malta.”
Despite these, the company recently revealed that is has no current plans to sell either its online operations or its technology.