1xBet’s Bankruptcy in Curaçao Appears Inevitable

1xBet, one of the world’s largest online sports betting companies, continues to make headlines in the worst possible ways. After a protracted legal battle with the Foundation for Representing Victims of Online Gambling (SGBOK), the company is now facing impending bankruptcy in Curaçao. 1xCorp N., originally from Russia, operates 1xBet and many other online sports betting and iGaming platforms. The company has drawn its fair share of controversy over the years, but 2022 could be its worst year yet. 

Many considered the online sports betting giant too big to fail, but 1xCorp’s empire is showing apparent cracks.

The Operator Stalled the Court as Long as Possible

Trouble has been brewing in Curaçao since November 2021, when 1XCorp was declared bankrupt by a local court. Player defense group SBGOK has filed a lawsuit on behalf of several players whose winnings are allegedly not paid out by 1xBet. According to the Attorney General of Curaçao, failure to meet even one due claim was sufficient reason to declare a company insolvent. Further investigation revealed that 1xCorp owed millions of dollars in unpaid taxes and profits but managed to juggle its debts to stay afloat. The court finally ruled in favor of SBGOK and declared the operator insolvent.

However, some clever legal maneuvers allowed 1xCorp to overturn the original court decision by challenging SBGOK’s rights to represent the players. What followed was a lengthy legal tug-of-war. As of this writing, 1xCorp is a work in progress. It appears the company is only delaying the inevitable to appeal the latest court ruling.

A Final Ruling Seems Imminent

Boswijk, Attorney General of Curaçao, has recommended that the Supreme Court officially declare 1xBet bankrupt. Although this advice has no official legal weight, historical precedent shows that the court often complies in such cases. Such an error would terminate any attempts by the operator to delay. According to Arend de Winter, the lawyer in charge of the bankruptcy proceedings, 1xBet was wholly uncooperative and even refused to participate in the original proceedings. He also drew attention to the fact that 1XBet sites changed hands several times during the bankruptcy proceedings. , although 1XCorp was still listed as the operator.

Questions are avoided, and promises are not kept. The trustee cannot avoid the impression of a conscious contradiction. SBGOK initially claimed that the 17 players it represented owed 1.6 million Netherlands Antillean guilders (about €830,000) in a mix of fiat and cryptocurrencies. Since then, three others have filed individual lawsuits, and the Curacao government has joined the €1 claim for 3 million unpaid taxes.

Bankruptcy Would Barely Inconvenience 1xBet

One important caveat to the whole case is that even if 1xBet goes bankrupt in Curaçao, it is unlikely to impact the site’s operation immediately. Since the operator is mainly based abroad, he does not even have a bank. Account in the Dutch overseas territory makes significant legal action extremely difficult. Attempting to seize the company’s foreign capital would spark another protracted legal battle. The only natural step the Curacao government can take is to revoke 1XCorp’s license. However, the operator is probably already prepared for this eventuality and, as shown in Russia, is more than willing to circumvent the law to make a profit.

Nevertheless, a successful lawsuit would prove that the giant is not invulnerable and could prompt other jurisdictions to investigate the company’s unsavory practices.