Illegal online casinos are thriving, with platforms like Cazimbo Casino exemplifying the complex web of operations that enable these unregulated entities to flourish. Central to their survival are payment processors, which, intentionally or otherwise, facilitate transactions for these shadowy operations. A recent investigation by FinTelegram has shed light on the disturbing role that these financial intermediaries play in sustaining such illegal enterprises, particularly focusing on the operations linked to Cyprus-based entities.
Cazimbo Casino: A Case Study in Illegality
Cazimbo Casino is a glaring example of an online gambling site operating without proper regulatory authorization. Despite the collapse of its former parent company, Rabidi N.V., and the subsequent withdrawal of its license in Curacao, Cazimbo continues to operate, now under the ambiguous jurisdiction of the Marshall Islands. This is a common tactic among illegal casinos—moving to jurisdictions with minimal oversight to evade scrutiny.
The casino is linked to Tilaros Limited, a Cyprus-based company previously connected to the now-defunct Rabidi Group. Despite the opaque nature of its operations, Cazimbo manages to attract players globally, including from countries where it is not authorized to operate, such as Italy, Brazil, and the United States. This widespread reach is facilitated by a network of payment processors that handle transactions for the casino, allowing it to function despite its legal status.
The Role of Payment Processors in Facilitating Illegal Operations
One of the most alarming aspects of the Cazimbo case is the involvement of regulated payment processors. These companies are supposed to adhere to strict Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, yet they continue to process transactions for Cazimbo and other illegal casinos.
A review conducted by FinTelegram on August 21, 2024, revealed that Cazimbo works with several well-known payment processors, including:
- PaymentIQ: A popular payment gateway in the high-risk online gambling sector.
- utPay (Utrg UAB): Facilitates deposits through Rapid, Skrill, Neteller, Postepay, and PaySafeCard.
- Kvitum: Processes Binance Pay payments for Cazimbo and other illegal casinos.
- CryptoPay: Handles cryptocurrency deposits, providing an additional layer of anonymity for users.
- Jeton and MiFinity: Offer e-wallet services commonly used by illegal online casinos.
Notably, Tilaros Limited, the owner of the Cazimbo brand, also acts as a payment agent, further entrenching the connection between Cyprus-based entities and illegal gambling operations.
Systematic Compliance Failures or Strategic Choice?
The continued involvement of these payment processors raises significant questions about their compliance practices. These processors are expected to conduct rigorous checks to prevent money laundering and other illegal activities. However, the repeated facilitation of transactions for illegal casinos like Cazimbo suggests a deeper issue. Rather than mere negligence, it appears these companies may be strategically accepting high-risk clients due to the lucrative fees they can charge.
This situation underscores a broader problem within the payment processing industry, where financial gain often takes precedence over legal and ethical obligations. By enabling these illegal operations, payment processors are not just passive participants—they are active facilitators in the proliferation of unregulated online gambling.
Cyprus: A Hub for High-Risk Payment Processing
The case of Cazimbo is not an isolated incident but part of a troubling trend centered in Cyprus. The country has become a hub for payment processors working with unauthorized online casinos, largely due to its lax regulatory environment. Cyprus’s approach to AML regulations and its tolerance for high-risk clients make it an attractive jurisdiction for entities that want to operate in the gray areas of the law.
The involvement of Cyprus-based companies like Tilaros Limited and the broader ButOn Group in illegal online gambling operations highlights the country’s role in sustaining these activities. The Rabidi Group’s downfall and the subsequent continuation of its brands under different guises demonstrate how deeply entrenched these practices are. Without the complicity of payment processors, many of these illegal casinos would struggle to survive, let alone thrive.
Conclusion
The facilitation of illegal online casinos like Cazimbo by regulated payment processors is a clear example of the challenges facing the global financial system. As long as these intermediaries continue to process transactions for unauthorized entities, the underground gambling economy will persist. The situation in Cyprus, where lax regulations allow such practices to flourish, further complicates efforts to curb illegal online gambling. To address this issue, there must be a concerted effort to hold payment processors accountable for their role in sustaining these illegal operations. Without such action, the proliferation of unregulated online casinos will continue, putting countless players at risk and undermining the integrity of the global financial system.