Casbit Group Declared Bankrupt Amid iGaming Challenges

The once-prominent operator of renowned online gambling platforms such as Lalabet, JungliWin, Justbit, and 0xBet, the Casbit Group N.V., has officially been declared bankrupt by the Court of Curaçao. The decisive declaration came on December 5, 2024, following a harrowing series of legal actions triggered by the company's failure to settle outstanding player claims totaling €619,500.

The depth of the financial disarray became evident when the bankruptcy case first emerged in August 2024 due to numerous unresolved claims from players. A particularly notable unresolved claim involved an individual still owed an impressive sum of over €237,000. Under Curaçao’s Bankruptcy Ordinance of 1931, businesses leaning towards fiscal insolvency due to unmet financial commitments can be officially declared bankrupt. The Casbit Group’s adamant refusal to compensate its players culminated in this definitive legal judgment by the court, underscoring the escalating financial and operational irregularities decidedly affecting Curaçao's iGaming sector.

Such events highlight a recurring theme of regulatory shortcomings and financial conflicts woven into the fabric of Curaçao’s iGaming landscape. Before its downfall in Curaçao, the Casbit Group relocated its online casino management to SkyGrow Group Limitada, a transition to Costa Rica designed to overcome the escalating challenges.

Tensions Rise with Dutch Gamblers

A significant contributor to Casbit Group’s fiscal demise was the assertive involvement of the Stichting Belangbehartiging Gedupeerden Online Kansspelen (SBGOK). This Dutch foundation, dedicated to advocating on behalf of players against online gambling operators, played a pivotal role in amplifying the bankruptcy petition. This was yet another incident involving numerous Dutch players, hinting at the growing territorial discord between Curaçao-licensed operators and European players. Adding another layer of complexity was an earlier penalty imposed by the Kansspelautoriteit, the Dutch Gambling Authority, on Casbit. This fine, amounting to "€280,000 per week, not only amplified the financial strain on the company but also contributed significantly to their eventual strategic exit from Curaçao. This incident illustrates the challenging regulatory terrains navigated by iGaming companies when dealing with regions enforcing stringent gaming practices.

Curaçao's iGaming Landscape in Transition

Following the cessation of its operations in Curaçao, Casbit Group strategically transitioned its online gaming activities, such as Lalabet and JungliWin, to SkyGrow Group Limitada located in Costa Rica. This strategic shift is emblematic of a broader trend seen across the iGaming industry, where companies are increasingly seeking out jurisdictions with contrasting regulatory frameworks to circumvent the adversities faced in more regulated locales. The bankruptcy of the Casbit Group has become notably the third occurrence within a span of just a few weeks.

It reflects a foreboding trend in which other Curaçao-based operators, such as Small House B.V., known for BC.Game, are similarly declared bankrupt. Compounding these occurrences includes a prominent bankruptcy claim filed by Paris Saint-Germain against gambling partner Cbet, citing accusations of brand misuse. Curaçao’s regulatory environment, long scrutinized for its licensing practices, is now under progressive transformation. Traditionally, the island's framework allowed master license holders to sub-license under minimal governance. Recent reforms introduced through the National Ordinance for Games of Chance (LOK) aim to optimize this structural framework, gradually eliminating sub-licensing while bolstering accountability. A recent ruling by the Dutch Supreme Court on a related case involving Cyberluck Curaçao NV further magnified the emphasis on licensee liability to players. This influential verdict highlights the island’s ongoing trend towards enhanced regulatory scrutiny, reflective of global movements towards tighter oversight in iGaming enterprises.

Source: Casbit Group Declared Bankrupt in Curaçao Amid Growing iGaming Challenges, lcb.org, December 25, 2024.

By GamesAndCasino