Behind the polished façade of software provider Delasport lie hundreds of gambling websites targeting countries where gambling is heavily regulated. A look into the #CasinoPapers – tens of thousands of leaked documents from inside the industry – shows that shell companies in Malta and Curaçao play a crucial role in obscuring the ownership of these websites.
In 2023, Manwel*, playing from Malta, deposited more than €100,000 into his online casino account. He never withdrew any money, ending up with a €0 balance. He is just one of many.
Lukas*, German, deposited over €110,000. Once, he withdrew his winnings: €10,000. His balance was soon back at €0.
An Italian player never took his winnings out of his account; he only deposited a total of €60,000 and lost it all.
The players have one thing in common: the online casinos where they lose their money are operated through shell companies, including in Malta.
Tens of thousands of internal documents from Delasport going up to 2023 show that below the surface of the software company, shell companies operated hundreds of gambling websites targeting markets with strict national laws on online gambling, like Germany, Sweden, and Austria.
Players caught in a trap
Delasport is a software company offering ready-made ‘solutions’ for online casinos and sportsbooks. They handle the technical aspects, including casino management, payments, and legal compliance, so iGaming operators don’t need to build their platform from scratch.
The company, which has licences and permits in some strictly regulated markets like The UK, positions itself as a provider for online casinos and bookmakers. But the #CasinoPapers show that the software company isn’t just providing solutions for online casinos; Delasport knows that online casinos are a goldmine.
Internal reports show that tens of thousands of active players likely generated hundreds of millions of euro in bets and several millions of euro in gross gaming revenue (the money lost minus the paid-out winnings) every month.
Players like Manwel and Lukas, who bring in large sums of money, are especially profitable. They are promoted to ‘VIP players’, also known as high-rollers or ‘whales’, and get extra bonuses to encourage their gambling.
In just a couple of weeks, gambling addicts can lose tens of thousands of euros without any questions asked.
Problematic gambling behaviour is considered a serious mental health condition known as ‘gambling disorder ’, with devastating effects on people’s personal, social, and work lives.
With around 11.9% of men and 5.5% of women experiencing gambling with behavioural symptoms or adverse consequences, the World Health Organization warns of negative public health implications.
Players try their luck at the slots at the SiGMA summit in November 2024.
Shell company in Malta
The #CasinoPapers show that Delasport runs hundreds of gambling websites through three shell companies: one in Malta and two in Curaçao, a small Caribbean island country that is part of the Kingdom of The Netherlands. These shell companies conceal the real owners of the websites.
It works like this: corporate service providers offer legal, financial, and administrative services to help businesses manage their operations. These corporate service providers can register a business at their office’s address and become the official directors. This process conceals the identities of the people behind the illegally operating gambling sites.
Delasport’s LinkedIn page says they are based in Malta and have offices across Europe, with their headquarters in Bulgaria. It lists more than 400 employees, some of which are in Malta, including the Sliema-based CEO.
In 2022, they got their B2B licence from the Malta Gaming Authority (MGA), which allows them to act as a provider in Malta.
The company’s address in Malta is at the Valletta Waterfront, at the same address as the office of a ‘multi-disciplinary firm’ providing legal, tax, advisory and corporate services for issues ranging from Maltese citizenship and medical cannabis to iGaming and blockchain services.
More than 300 businesses were registered at the Valletta Waterfront address.
More than 300 businesses were registered at Vault 14, Level 2, Valletta Waterfront. One of them is Shark 77 Ltd, a major name in the #CasinoPapers.
Mail for Shark77 was delivered to this address, which the Maltese firm forwarded to Shark77’s email, as shown in the leaked documents. The Shark77 employee who communicated with the Maltese firm used different email addresses; sometimes, he used his Delasport email, while other times, he emailed with a Shark77 email address.
Internal documents show that Shark77 runs three websites: 18Bet, Sportempire and Casinowinbig. Two Curaçao shell companies operate dozens more of similar websites.
Each comes with many hidden mirror domains: similar domains leading to the same content, which allow players to access them when the websites are blocked by gambling authorities.
18bet.com, one of the websites run by Shark77 Ltd.
The websites have caught the attention of European gambling authorities in recent years. In 2022, the Dutch gambling authority gave Shark77 a €900 thousand fine for the 18Bet website for illegally operating in The Netherlands.
That fine remains unpaid to this day, a spokesperson of the authority confirmed to research partner Follow the Money. That same year, the Danish authorities sent a letter regarding the website Casinowinbig performing illegal activities in Denmark.
The #CasinoPapers show who actually owns the shell company and gambling websites: the Israeli owner and founder of Delasport, Avi Shemesh. He did not personally respond to our inquiries and request for comment.
Targeting illegal markets
Delasport operates in many European countries: the company claims in a 2023 statement that they “entered” The Netherlands, Sweden, Malta, and Denmark, as well as being “fully compliant” in Mexico and Germany.
In Malta and the United Kingdom, Delasport has a B2B licence, while in Sweden, the authorities granted the company a permit. At the same time, Dutch, Danish and Swedish authorities are chasing shell companies linked to Delasport.
An innovator for sure – even in markets where they don’t have national licences. At the iGaming event SiGMA in November 2024, one representative said Delasport targets “most regulated markets” in Europe. Then, offhandedly, he slips up: “We have a separate company that has everything to do with the Curaçao licence.”
The #CasinoPapers confirm that shell companies operated by Delasport deliberately targeted countries where they are considered illegal: “At the moment, our main target countries are most EU countries and in particular Germany, Austria, Italy, the Netherlands, Finland and Denmark,” wrote a Delasport employee to a payment provider in 2022.
In response to our inquiries, Delasport said it “categorically denies the false allegations and insinuations presented in [our] approach”. The company stated it takes its regulatory and compliance obligations “very seriously”, operating strictly within the laws and regulations of the jurisdictions where it is active.
#CasinoPapers is a collaboration between Dutch investigative platform Follow the Money and journalists Nikolai Atefie, Benjamin Breitegger and Belle de Jong.
This investigation is supported by a grant from the IJ4EU fund. Partners in the IJ4EU fund are not responsible for the content published or any use made of it. The Shift has received no funds from this investigation and is publishing the report to support independent work.
Find the other international reporting on the #CasinoPapers here:
Follow the Money, The Netherlands: Authorities struggle to shut illegal gambling sites that target European players and These illegal casinos have nothing to fear thanks to gambling paradise Curaçao
Sveriges Radio, Sweden: Inside the Gambling Industry documentary and Gambling-addicted Swedes are exploited by banned casino sites
Der Standard, Austria: Profit and Addiction – Insight into a dubious online industry
*Names have been changed to protect the anonymity of individuals involved.
And now the million dollar question is – who governs the conduct of company service providers in Malta? You know, the ones that knowingly and willingly aid such obscure characters to exploit and rip-off people, for a lucrative retainer? Gambling, trading, crypto, adult, you name it, they got it. The Maltese CSP serves as a regulatory umbrella with no questions asked. And they defend their clients by setting up complex structures, which comes in handy if challenged by the (not so) competent authority.
It’s a rhetorical question, of course. And this island’s permanent business model for decades, let’s stop pretending shall we?
From all above your only question is regarding CSP??? What about narrative of this article. Let’s focus on Regulators who are legally obliged to check this informations. I dont care about CSP as long as Regulators are okay with this!! Government is a problem not legal practitioners if you ask me.
Eman Pulis must be so proud! No wonder he wants to do charity…best way to wash
i am very sad to read the above becuase it only aims to tarnish Malta’s reputation by making it appear that gambling happens only from malta. I would like to ask the Ms de jong whether she bothered reading statistics issue by the UKGC on the levels of online gambling in the UK. Similarly in the netherlands and other EU jurisdictions which all regulate gambling, notwithstanding the harm on society. No body bats an eye when a big gambling company sponsors a sports team!!!! No body bats an eyelid when such gaming affiliate sites sponsor indirectly portals like this one, through banner ads!!!
I wonder whether Ms De Jong and her colleagues at casinopapers, came across anything about the irregularities happening on the Dutch by the biggest landbased operator, especially in terms or AML breaches. Furthermore, the authors could also enquire why the Netherlands took over a decade to get online gambling legislation approved through their parliaments the inefficiencies within their gambling regulator, which is the biggest drive for black market. But this would not be news worthy in Malta!!!
We take no banner ads from igaming companies. And you would do well to read the articles linked to the partners on the project, who are based in The Netherlands!