Report on Cazimbo Casino: The Role of Payment Processors in Facilitating Illegal Online Casinos!

tamir
Thu, 22 Aug 2024 10:10:36 +0000
Illegal gambling, Illegal Payment Services, ticker, ButOn, ButOn Group, Cazimbo, Denys Butko, Jeton, Kvitum, MiFinity, Neteller, PaymentIQ, PaySafeCard, pscd, Rabidi, Rabidi Group, Rapid, Skrill, Tilaros, utPay, Utrg

Another day, another exposed illegal online casino facilitated via Cyprus. Payment processors play a crucial role in sustaining this underground economy. FinTelegram's research repeatedly reveals that without these facilitating payment processors, many illegal online schemes, particularly in the gambling sector, would not thrive. Currently, we are focusing on the brands of the collapsed Rabidi Group that continue to operate anonymously and unauthorized. Here is our report on Cazimbo.

Another day, another exposed illegal online casino facilitated via Cyprus. Payment processors play a crucial role in sustaining this underground economy. FinTelegram’s research, based on the “follow-the-money” paradigm, repeatedly reveals that without these facilitating payment processors, many illegal online schemes, particularly in the gambling sector, would not thrive. Currently, we are focusing on the brands of the collapsed Rabidi Group that continue to operate anonymously and unauthorized. Here is our report on Cazimbo.

Cazimbo Casino: A Case Study

Cazimbo casino is a prime example of an online gambling platform that operates without proper regulatory authorization. Formerly part of the Rabidi Group—a notorious operator of illegal online casinos that FinTelegram has previously reported on—Cazimbo continues to function despite its lack of a valid license.

The collapse of Rabidi N.V. in Curacao and the withdrawal of its license did little to hinder the operations of former Rabidi brands like Cazimbo, which have either moved into anonymous ownership or are being run by entities holding dubious offshore licenses. In the case of Cazimbo, the responsible jurisdiction cited in the terms and conditions is the Marshall Islands, a jurisdiction often associated with minimal regulatory oversight.

As already exposed previously, Cazimbo is linked to Cyprus-based Tilaros Limited, a part of the former Rabidi Group, which is owned by Denys Butko and operates under the ButOn Group umbrella. Like many other online casinos, Cazimbo conceals the identity of its operators on its website and in its terms and conditions, shielding its activities from regulatory scrutiny.

Despite this opacity, Cazimbo manages to accept players from various countries around the world. A Similarweb analysis indicates that website traffic to Cazimbo’s domain, Cazimbo5.com (screenshot right), originates almost entirely from Italy—another regulatory regime in which Cazimbo is not authorized to operate.

The casino website connected with the main domain Cazimbo.com, receives traffic comes from Brazil, Tunisia, the United States, the United Kingdom, and Spain, further underscoring the casino’s global reach despite its lack of compliance with local regulatory regimes.

Notably, the domain cazimbocasino.it redirects Italian visitors to the Dama Group’s N1 BET Casino for registration, demonstrating the interconnectedness of various illegal operators in this space.

The Role of Payment Processors

One of the most troubling aspects of the Cazimbo casino case is the continued involvement of regulated payment processors. Even though Cazimbo operates anonymously and without regulatory approval, it still offers its customers a range of payment options, a clear indication that payment processors are knowingly facilitating these illegal activities.

Our review on August 21, 2024, revealed that Cazimbo works with a number of well-known payment processors, many of which have been implicated in similar schemes before. These include:

PaymentIQ: A frequently utilized payment gateway in the high-risk online gambling sector;

utPay (Utrg UAB): Used to process deposits via Rapid, Skrill, Neteller, Postepay and PaySafeCard (pscd);

Kvitum: Processes Binance Pay payments for Cazimbo (and other illegal online casinos);

CryptoPay: Handles deposits in cryptocurrencies for Cazimbo and other illegal online casinos;

Jeton and MiFinity: Provide e-wallet services for Cazimbo and many other illegal online casinos.

Notably, the payment agent appears to be Tilaros Limited, the same entity that owns the “Cazimbo” brand. This connection further strengthens the link between Cyprus-based entities and the facilitation of illegal online casinos.

The recurring question in cases like this is how regulated payment processors, which are expected to comply with AML and Know Your Customer (KYC) requirements, continue to facilitate transactions for illegal online casinos. Based on our investigations, it is unlikely that this is due to mere negligence. Instead, it appears that these processors are systematically accepting high-risk customers, likely because of the lucrative fees such clients can offer.

The Broader Context: Cyprus and the Rabidi Group

A concerning pattern emerges from our investigations—Cyprus is becoming a central hub for payment agents facilitating illegal online casinos. The country’s relaxed approach to Anti-Money Laundering (AML) regulations creates an environment in which payment processors are allowed to support high-risk and unauthorized operators, such as the Cazimbo casino.

Cyprus has emerged as a popular jurisdiction for payment processors working with unauthorized online casinos. The country’s lax approach to AML regulations and high-risk clients makes it an attractive destination for entities that want to operate in a gray area of the law. This is evident in the case of the ButOn Group and its connection to the Rabidi Group, which FinTelegram has reported on extensively. The Rabidi case underscores how Cyprus-based entities are playing a pivotal role in sustaining illegal online gambling operations worldwide.

Call for Information

As FinTelegram continues to investigate the dark sector of illegal online casinos and their facilitating payment processors, we encourage anyone with relevant information regarding the former Rabidi Group, the ButOn Group, or the payment processors supporting these illegal operations to come forward. You can submit any tips or information via our whistleblowing system, Whistle42.

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