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Lorean Hoefert
One of the best-known sports betting and casino games providers operating under a Curaao licence is 1xBet. Analysts agree that 1xBet has a multi-billion-dollar turnover and is one of the largest (if not the largest) online casinos in the world.
This makes the company a major factor in the general dissatisfaction with Curaao's casino policy. It is also internationally known for its difficult relationship with regulations. Earlier, Follow the Money discovered that 1xBet-related gambling sites appear most often on international regulatory blacklists: a total of almost 1,800 website addresses in all kinds of name variants.
Although 1xBet is not licenced in the Netherlands, as in many other countries, you still often see the name popping up on Dutch television. This is because 1xBet has sponsorship deals with the Italian football league Serie A, the Spanish La Liga, the Africa Cup and the teams FC Barcelona and Paris Saint-Germain.
Until recently, 1xBet even operated in Ukraine, leading to a scandal that President Zelensky had to get personally involved in. Indeed, there are those in Ukraine that suspect Russia is profiting from the revenues of the gambling company with Russian roots.
The situation in Curaao is unique: the gambling licences which can be used internationally by online gambling companies are not issued by the government, but by a handful of companies. There is no form of state supervision. Meanwhile, these companies have issued thousands of sublicences to letterbox firms managed by Curaao trust offices.
1xBet is a master at finding its way into new markets. In doing so, the company cleverly exploits the fact that social media companies like Instagram do not pay very close attention to surreptitious advertising from gambling companies.
In India, 1xBet is promoting brand awareness by illegally offering Hollywood films for download, a tactic it also used previously in Russia. These films are subtitled and shown online with the 1xBet logo burnt in.
In 2019, an investigation by The Sunday Times linked 1xBet to a casino where cards were dealt by topless women, illegal websites were advertised and even taking bets on children's sports. As a result, top British clubs Chelsea, Liverpool and Tottenham Hotspur discontinued their partnership with 1xBet.
The company also operates in a shady manner in the Netherlands. Several Dutch-language websites actively explain how to play at 1xBet, despite the fact that the company does not have any kind of permit to operate in the Dutch online gambling market. And whoever is behind these sites remains a mystery.
In the Netherlands, the gaming authority imposed a 400,000 euro fine on 1xBet and its Curaao letterbox firm after it emerged that the company had targeted Dutch online gamblers with as many as 83 different websites in 2018.
The three Russian founders of 1xBet, Roman Semiokhin, Sergey Karshkov and Dmitry Kazorin, are all from the city of Brjansk, some 370 kilometres west of Moscow, although all three currently live in Cyprus. Before the invasion of Ukraine, Russian authorities had issued an international arrest warrant against them. However, it is unclear what kind of relationship the three have with 1xBet nowadays.
What is clear is that there is a lot of money flowing towards them. Their new headquarters in Limasol, a city in southern Cyprus, was developed by these men themselves, as Semiokhin told Russian Forbes in a rare 2021 interview. The trio also organise their own dance festival in Cyprus, Beon1x, which this year features DJ stars such as Maceo Plex, Black Coffee and Paul Kalkbrenner.
The gambling company runs its own online gambling houses under a limited number of brand names. Other variations, such as 1xStavka for the Russian market and 1xBit for crypto gambling, are clearly recognisable as part of the 1x family. Follow the Money also found more than 50 networks, which at first glance appear to have nothing to do with 1xBet: they use a different brand name, have their own design and are in the name of other legal entities that on paper have nothing to do with 1xBet.
But the software these sites use gives away that they belong to the 1x network. Follow the Money created a script which could check to see whether certain files on a website were being hosted in the expected place. We then unleashed that script onto any website that was blacklisted by a gaming authority. If a 1xBet logo or other promotional material was found, the script would track it.
These networks collectively run more than a thousand websites, which target more than two hundred countries. What is striking is that it is mainly the brands operating in areas which are regulated by relatively strong gambling authorities: European countries, the United States and Australia. Official 1xBet websites, by contrast, only allow gamblers from other parts of the world to register.
However, a Russian court judgement from 2021 that Follow the Money has in its possession does offer some insight into the company. In Russia, 1xBet was the subject of criminal investigations after it had made many millions from illegal gambling operations between 2014 and 2019. In the court case, the manager of a local branch of 1xBet was convicted.
Another company that appears in the judgement is Techinfusion Limited, which organises illegal gambling from Gibraltar and banks with Valartis Bank in Liechtenstein. According to the judgement, Techinfusion was set up by 1xCorp in Curaao and money went through an intermediary channel from Techinfusion to companies in Cyprus and elsewhere, all of which were owned by Semiokhin.
He ignored examples presented to him by Follow the Money, such as the blacklist entries, the criminal case in Russia and the fine imposed on 1xBet in the Netherlands. He also ignored 1xBet being placed on the Ukrainian sanctions list. According to De Mei, geoblocking is used to keep online gamblers out of countries where 1xBet is not allowed to operate.
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