In the latest installment of our investigative series on offshore online casinos and gambling operators, we turn our focus to Spinbookie. This operator, part of the B90 Holdings Group, is managed by Famagousta B.V. and operates under an offshore license granted by the Kahnawake Gaming Commission. Despite this, Spinbookie actively targets players in the European Union and other areas where it lacks the necessary regulatory approvals, leading to its inclusion on our Red Compliance List.
Regulatory Concerns and Operational Red Flags
Spinbookie’s operations raise significant concerns, chiefly due to its engagement with markets where it does not hold appropriate licensing. Most European countries have stringent regulations governing online gambling, requiring operators to secure local licenses. Despite this, Spinbookie, through its website, reaches players across Europe, including high-traffic regions such as Germany, Norway, and Spain, without adhering to these local laws.
A report by Similarweb notes that a significant number of players on the Spinbookie website hail from South America, with notable traffic also coming from North America and the EU. This broad and unregulated reach into different jurisdictions highlights potential non-compliance with various national gambling regulations.
The Payment Scheme: Crypto and Compliance Issues
Spinbookie accepts various forms of payments, including cryptocurrencies like Bitcoin and Ethereum, without requiring initial Know Your Customer (KYC) or Anti-Money Laundering (AML) checks. This practice, allowing unlimited crypto deposits, poses a serious risk and signals non-compliance with global financial regulatory standards. Such operations could potentially facilitate money laundering, given the anonymity associated with cryptocurrency transactions.
Moreover, the involvement of a Cyprus-based payment agent, Fodenmacko Trading Co Limited, suggests that funds are also channeled through EU territories, raising concerns about the legitimacy of these transactions within the European legal framework.
Involved Payment Processors:
Cashlib, MiFinity, NummusPay, Dropayment, Jeton, Rapid, Neteller, Noda, Paysafe Card, Skrill
B90 Holdings: A Background of Controversy
Spinbookie is intertwined with the B90 Holdings Group, formerly known as Veltyco Group, which is listed on the AIM segment of the London Stock Exchange. The group’s history is marred by its association with Uwe Lenhoff, who was arrested in 2019 on charges of investment fraud and died in custody in 2020. The leadership of B90 Holdings has since seen significant changes, with industry veteran Ronny Breivik currently at the helm, and Mark Blandford, a founding figure in Sportingbet, serving as a strategic advisor and major investor.
Conclusion
The case of Spinbookie exemplifies the challenges and risks associated with offshore online gambling operations. Its approach to regulation, payment processing, and corporate governance illustrates the intricate issues at play in the online gambling industry, especially in regions with stringent regulatory requirements. Our findings underscore the importance of thorough regulatory oversight and the need for consumers to be vigilant, highlighting why Spinbookie has been flagged on our Red Compliance List. This case serves as a cautionary tale for players and regulators alike, emphasizing the need for heightened scrutiny in the ever-evolving landscape of online gambling.