Casbit Group Bankruptcy Reflects Mounting Challenges in Curaçao iGaming
The Casbit Group N.V., known for operating prominent online casino brands such as Lalabet, JungliWin, Justbit, and 0xBet, was officially declared bankrupt by the Court of Curaçao on December 5, 2024. This decision follows unresolved debts totaling €619,500 owed to gamblers, marking another significant development in Curaçao's iGaming industry.
Bankruptcy Highlights Ongoing Disputes
The bankruptcy proceedings began in August, prompted by claims from players who had not received their winnings. One individual remains unpaid for more than €237,000. Curaçao’s 1931 Bankruptcy Ordinance allows courts to declare bankruptcy when financial obligations remain unmet. The court’s decision stemmed from the Casbit Group’s inability to address these claims.
This case reflects a growing number of disputes tied to Curaçao’s iGaming sector, where questions over regulatory practices and operator accountability are increasingly under scrutiny. The Casbit Group, which dissolved earlier this year, relocated its operations to Costa Rica under the management of SkyGrow Group Limitada.
Legal Action from Dutch Gamblers
The Stichting Belangbehartiging Gedupeerden Online Kansspelen (SBGOK), a Dutch advocacy group for online gamblers, was instrumental in filing the bankruptcy petition. Representing players who suffered losses at casinos previously operated by the Casbit Group, SBGOK has been active in holding iGaming operators accountable for unpaid winnings.
The Dutch Gambling Authority (Kansspelautoriteit) had earlier fined the Casbit Group for targeting Dutch players without proper licensing. This penalty, set at €280,000 per week, compounded the group’s financial struggles, ultimately leading to the company’s decision to cease operations in Curaçao.
Transition to Costa Rican Operations
Following its dissolution in Curaçao, the Casbit Group transferred its casino operations, including Lalabet and JungliWin, to SkyGrow Group Limitada in Costa Rica. This relocation illustrates a broader industry trend, as operators facing regulatory challenges in stricter jurisdictions often seek alternative licensing arrangements.
The Casbit Group’s bankruptcy is one of several recent cases in Curaçao’s iGaming sector. Another operator, Small House B.V., which managed BC.Game, was also declared bankrupt. Additionally, Paris Saint-Germain filed a claim against Cbet, citing misuse of the football club’s branding.
Regulatory Overhaul in Curaçao
Curaçao’s licensing practices have long been criticized for permitting a two-tier system where master license holders issue sub-licenses with limited oversight. The island’s recent National Ordinance for Games of Chance (LOK) seeks to reform this system, phasing out sub-licensing and increasing regulatory accountability.
In a separate but related legal case, the Dutch Supreme Court recently ruled on the liability of master licensees like Cyberluck Curaçao NV. The court held that such license holders are responsible for ensuring sub-licensees comply with terms, including paying out winnings to players. This decision reinforces the growing demand for stricter oversight across the iGaming industry.
Source: Casbit Group Declared Bankrupt Over Player Debts, World Casino Directory, December 25, 2024.