Online sports betting platform 1xBet has a storied history that includes allegations of direct ties to Russia, all the way up to President Vladimir Putin. This hasn’t prevented it from finding high-profile sponsorship deals with sports teams, but a court’s ruling that it is officially bankrupt could change everything.
The Supreme Court of the Netherlands during they day. It has determined that sports betting operator 1xBet is bankrupt, but the company continues to operate as if everything is normal. (Image: Mecanoo)
1xBet has partnered with sports teams around the globe – most notably, it has been a sponsor of soccer teams FC Barcelona in Spain and Paris Saint Germain (PSG) in France. Barcelona rejected calls that it break up with the company following Russia’s illegal invasion of Ukraine, ostensibly in light of money issues with the soccer club.
However, the sports betting operator reportedly spent more than it took in as it tried to position itself in the global market. It ran out of money last year and is now facing definitive court action that could bring it to an end. This was after it had already faced forced exits in the UK and other countries.
No Room For Scandals
1XCorp, the owner of 1XBet, was declared bankrupt by a court in Curaçao last year. However, it appealed to the Netherlands Supreme Court, which has jurisdiction over Curaçao, in an effort to protect itself against legal action.
The Netherlands Supreme Court held up the ruling last week, according to Curaçao News, after it had considered the complaints against the lower court’s verdict. As a result, the Supreme Court came to the conclusion that the arguments cannot lead to the annulment of the judgment and, therefore, it dismissed 1XCorp’s appeal.
The Foundation for Representation of Victims of Online Gaming had filed a lawsuit on behalf of customers who claim ANG6 million (US$3.3 million) in winnings the company still owes them. In addition, it is believed that more than 200 customers are suing 1XBet in Russia after the company lost its license to operate there. Parlan, a Moscow-based legal firm, is reportedly leading that suit.
Three exiled Russians living in Cyprus are widely believed to be behind the company. Roman Semiokhin, Dmitry Kazorin and Sergey Karshkov have sordid pasts, but have never been held accountable for their actions.
A number of complaints about 1XBet not paying its customers have appeared on social media over the year. It has repeatedly received bad reviews and criticism, but this hasn’t stopped it from being able to find support in the sports community.
Last December, Brazilian soccer pro Dani Alves, who has played for both Barcelona and PSG, became its ambassador. In addition, it has signed sponsorship deals in South America and Africa. Primarily, it seeks countries where regulations are loose or non-existent. It is also active in India, where the government has accused it of not paying taxes.
Chasing 1xBet’s ties to Russia
1xBet, on one level or another, has ties to Russia. It has even attempted to maintain operations in Ukraine, despite Russian sanctions.
The nature of the relationship between the sportsbook and the Russian regime is still open for debate. However, evidence suggests it has links to Putin.
Semiokhin, Kazorin and Karshkov are reportedly wanted men in Russia for operating in the country without a license. However, and in absence of tangible evidence, that could be nothing more than a ruse.
A Ukranian activist, “Peter M,” recently uncovered information that ties the company to Putin, which he shared with Casino.org. He alleged that, in addition to Putin, there are others profiting from 1xBet’s illegal activities. Among these are Russian intelligence forces, his family, corrupt bankers and others in Russia and Cyprus.
1xBet, according to the investigation, is active in Italy and Spain. In both, it has received a license from the countries’ gaming regulators. By tracking down names of individuals from in-country business registries and cross-referencing them with other databases, Peter was able to make the connections.
For example, Terminus Platform is a company in Madrid, Spain. However, the same name is the owner of 1xBet in Italy, and the director of both companies is Perrin Vazquez Yago-Marcel, a lawyer who allegedly tried to scam consumers as part of a lawsuit against bet365.
The registered office is not a single-occupancy space. Instead, it points to a company that rents space to other companies by the hour, day, week or month. Spain’s gaming regulator refused to comment when Casino.org reached out.
In Italy, media outlet Rai created a report on the link between 1xBet and Serie A soccer late last year. However, while it still maintains the webpage about the deal, it has removed the video exposé from its website.
Unscrupulous Behavior
Last October, Ukraine’s gaming regulator came forward and raised additional concerns about the company. It said 1xBet, through shell platforms MelBet, PointLoto, FanSport and BetWinner, was illegally mining user data.
There could be a number of reasons why. Perhaps it’s an attempt to see who has big bank accounts that thieves can rob. Or, it could be to find out who could be most susceptible to coercion in exchange for payments. The third option is to make them kidnapping targets in exchange for ransom.
Regardless of the reasons, nothing good has come out of being a 1xBet customer. The fact that it would use Russian porn stars, such as Eva Elfie, to promote itself in Sri Lanka shows the lack of a moral compass running the show.
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