Sports betting provider Hypbet moves into the German market

In Germany, the sports betting market is undergoing major changes, even if it is still in the often talked about grey legal zone. However, recent developments suggest that eventual liberalisation is imminent. This fact has prompted the still young sports betting provider Hypbet to invest millions and numerous marketing campaigns. So will there soon be a new industry leader in this country?

A managing trio with big ambitions

When it comes to sports betting and online casino sports betting providers in Germany, the same names are often mentioned: First of all is very well known in this country, which may well have something to do with the fact that two major players in the industry are partners of well-known German football clubs . But now the established companies are threatened by strong competition. Because a hitherto relatively unknown name is now preparing to shake up the German sports betting industry. We're talking about Hypbet, a subsidiary of the Playtech listing company BGT Sport Group (PBS). Hypbet is only two years old, so it was only founded in 2017, but it has big ambitions in the German market. At the moment, Hypbet can already be found in 500 locations in Germany. That number is expected to double in the foreseeable future. To make sure it works, the company has brought on board managers with industry experience, such as Peter Reinhardt and Michael Lessig . Both have held senior positions at betting companies in recent years, including Bet365, Betfair and X-Tip. But Andreas Köberl is also there, who does not work directly in the sports betting industry, but worked for many years as a consultant at Microsoft. The new management level at Hypbet thus offers a combined specialist knowledge and a lot of entrepreneurial experience. But they have to, as the trio of managers have ambitious goals.

"We anticipate that the sports betting market will continue to consolidate, and we aim to be among at least the top two providers in the medium term."

Massive investment already planned

500 betting shops is already a good number, particularly in such a short space of time and considering that there are 'only' 4,000 outlets in Germany. Incidentally, most of them are run by sports betting provider Tipico, which therefore has the biggest market share. But this is exactly what Hypbet wants to adopt from the most famous gambling brand in Germany. However, it should not be a simple undertaking, much less a costly one. But Hypbet and the parent company are apparently willing to invest huge sums in the German gambling market precisely because they envisage that consolidation is inevitable. At least it is known for sure that the current National Gambling Agreement is valid until 30 June 2021. At a ministerial conference on 21 March, politicians agreed on a rewording of the legal text, whereby the sports betting market in Germany should in principle also be open to private providers. At least the legal issue seems to have been clarified with relative certainty. But how does Hypbet intend to displace the current industry players? This is primarily due to new technical standards. While Tipico and company spend millions every year as a sponsor of major German football clubs such as FC Bayern Munich or Borussia Dortmund, Hypbet wants to invest more in omnichannel technology. Because that is exactly what the existing forces are lacking. Hypbet customers should soon no longer notice any differences in the betting offer and service, whether they use the on-site betting offer on a terminal, desktop or mobile device .

"We are approaching a potential 3,000 shop operators to switch to us. We want to take advantage of the upheaval in the industry and go to market with our product, brand and our franchise partners. Hpybet products are particularly innovative because of their multi-channel architecture. In the future, it will no longer make any difference to us whether our customers call the service on a mobile device, on a PC or on a stationary device.

Afraid of the black market?

Although Hypbet has not yet given a specific figure, it is generally said that a double-digit amount of a million dollars will be invested in the German market in the near future . Thus, the amount of investment will be roughly equal to the amount that Tipico and bwin pay out to German football clubs every year. However, these sums can still be considered insignificant in view of the sales figures of the German sports betting market. 

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