Behind the shiny facade of software provider DelaSport at the Office X business park in Sofia, Bulgaria, lie dozens or even hundreds of gambling websites. They are also specifically targeted at EU countries where gambling is really strictly regulated and consumers there are being alienated. This is reported by several European media outlets who conducted joint research evaluating the “Casino Papers”, which included thousands of documents leaked from the industry. Operators of highly addictive online portals therefore have difficulty reaching regulators on the Old Continent: letterbox companies in Malta and Curaçao reportedly play a decisive role in hiding the owners.
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For example, regulatory authorities and consumers in Germany, Italy and the Netherlands regularly complain about the network of associated websites, who feel that they have been deceived and exploited on a large scale. According to analysis by follow the money, swedish radioThe Standard, ORF and the shift Continue gambling on sites like CasinoWinBig, 18Bet, 1Bet and PalmSlots. He put his losses at tens and hundreds of thousands of euros.
The structure behind illegal gambling offerings is not transparent. Public sources such as the Curaçao Commercial Register show on paper which service providers operate letterbox companies on the island. But customers keep it quiet. Casino leaks bring more light into the darkness. Israeli businessman Avi Shemesh, who owns Delasport, also owns the Maltese shell company Shark77 Ltd. It in turn operates three online casinos that are on the radar of gambling authorities in European countries. For example, the Dutch regulator fined the company nearly 900,000 euros in 2023 because it operated 18Bet.com without a license in Holland.
Lawsuits against addiction business models
Curaçao mailbox companies Bellona and Nuera are reportedly owned by Ilan Shemesh, who also hails from Israel. Both companies operate dozens of other gambling sites that are being investigated by European regulators. Correspondents were unable to clarify whether the two men with similar surnames were related. However, leaked papers revealed that DeLaSport’s management had signed contracts relating to the online casino and were informed, or directly informed, about disputes with regulatory authorities and legal proceedings by players against the sites. Was included in it. Spanish and Dutch regulators have already imposed hefty fines on operators. But he did not get any money. Instead, at least the Spanish market is no longer served by the manufacturers.
According to the documents, the hard-to-stop players have achieved their biggest sales so far in Germany, Italy, Sweden, Austria and Denmark. The Federal Republic was by far the largest market. In 2022, the German Gaming Authority complained in a letter about twelve Bellona locations on Curaçao and threatened fines and prison terms if Germany maintained access to those locations. That too has had very little impact so far. DelaSport said only that its own business activities were conducted “in strict compliance with all applicable laws, regulations and licensing conditions in the countries in which we are licensed”. At the same time, the players’ lawsuits are ongoing: “We are currently preparing a large number of cases against Bellona in Curaçao,” said German expert lawyer Mark Ellerbrock. “The business model is not gambling, but addiction.”
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