GamDom Compliance Update: Regulatory Violations and Enforcement Actions

tamir
Fri, 12 Sep 2025 11:25:44 +0000
Compliance, Illegal gambling, Illegal Payment Services, ticker, Bitinvestor, Gamdom, Hub88, MetaWin, MoonPay, PayOp, Smein Hosting, Swapped, Vilius IT Solutions

GamDom, operated by Smein Hosting B.V. under Curacao license GLH-OCCHKTW0702182020, presents significant regulatory compliance concerns that mirror broader issues identified in our previous analyses of MetaWin and BC.Game. The Spanish Gambling Authority’s €5 million fine against Smein Hosting for targeting Spanish players without proper authorization exemplifies the regulatory enforcement actions crypto casinos face when operating in jurisdictions where they lack appropriate licenses. This report examines GamDom‘s regulatory violations, payment facilitation structures, and connections to Hub88 and other entities within the crypto casino ecosystem.

Read our reports on GamDom here.

Spanish Regulatory Enforcement: The €5 Million Fine DGOJ Sanctions Against Smein Hosting

Spain’s Directorate General for the Regulation of Gambling (DGOJ) imposed a €5 million fine on Smein Hosting B.V. in 2023 as part of broader enforcement actions against unlicensed gambling operators targeting Spanish consumers. This penalty was categorized as a “very serious infringement” under Spain’s gambling laws for operating without proper Spanish licensing while actively soliciting Spanish players.

The fine was part of a larger regulatory crackdown that saw €77.4 million in total penalties distributed across 14 unlicensed operators in the first half of 2025, with most operators receiving €5 million fines and one facing a €10 million penalty. Payment Status: Our investigation could not confirm whether Smein Hosting has paid the €5 million fine, as Spanish regulatory authorities do not publicly disclose payment status of imposed sanctions.

Regulatory Pattern and Enforcement Trend

The Spanish enforcement action against GamDom follows a consistent pattern of regulatory violations by Curacao-licensed crypto casinos. Between 2021 and 2024, Spain imposed over €475 million in fines across 180 sanctions, with the DGOJ demonstrating increasingly aggressive enforcement against offshore operators. This trend reflects broader European regulatory tightening around unlicensed gambling operations targeting EU consumers.

Corporate Structure and Key Personnel

Primary Operating Entities

Legal Entity: Smein Hosting N.V.

Registration: Company Number 141727, Curacao

License: Curacao Gaming Control Board GLH-OCCHKTW0702182020

Registered Address: Zuikertuintjeweg Z/N (Zuikertuin Tower), Curacao

Payment Agent: Vilnius IT Solutions UAB, Lithuania

Payment Agent Structure

GamDom operates through Vilnius IT Solutions UAB as its Lithuanian payment agent, providing direct EEA market access despite lacking appropriate European licensing. This Lithuanian entity, with registration address at Ateities g. 31B-101, LT-06326 Vilnius (company code 304988128), facilitates European Union payment processing while the parent company remains offshore.

Payment Processing and FIAT Conversion

Swapped Integration

GamDom utilizes Swapped (Swapped.com) for fiat-to-crypto conversion services, enabling European players to deposit euros and other fiat currencies by purchasing cryptocurrencies on-platform. Swapped processes bank payments from players for the purchase of cryptocurrencies for use on GamDom the bank account (DE31202208000050484620) of Swapped ApS‘s at Banking Circle (www.bankingcircle.com).

Swapped, registered with Australian ASIC, FinTRAC Canada, and Danish Financial Supervisory Authority, operates as a regulated crypto payment processor offering over 40 payment methods.

The Swapped integration creates a two-step transaction process where players first purchase cryptocurrency using traditional payment methods, which is then automatically transferred to their GamDom account for gambling purposes. This structure potentially complicates chargeback processes and regulatory oversight, as identified in FinTelegram’s previous analysis.

Via Swapped Connect (connect.swapped.com), players can also make deposits to GamDom via other crypto exchanges such as Binance, Coinbase, Kraken, or ByBit. In fact, all leading crypto exchanges have been connected to GamDom via Swapped Connect.

Additional Payment Facilitators

Beyond Swapped, GamDom works with multiple payment processors:

PayOp for Gamdom Coin transactions

MoonPay for direct crypto purchases

Traditional card processing through various third-party providers

Hub88 Partnership and Game Distribution

Content Aggregation Relationship

GamDom maintains a business relationship with Hub88 (website), a Malta-based casino games aggregator that provides access to over 12,000 games from 100+ suppliers through a single API integration. Hub88, recently crowned “Best Game Aggregator” at the International Gaming Awards 2025, serves as a content distribution platform for multiple crypto casinos, including GamDom.

Hub88’s Compliance Framework

HUB88 Limited, licensed and regulated by the Malta Gaming Authority (MGA) under the B2B Critical Supply License number MGA/B2B/536/2018, operates from Malta with operational bases in Estonia, providing game aggregation services to licensed and unlicensed operators across multiple jurisdictions. The company’s aggregation model enables crypto casinos like GamDom to access premium gaming content while potentially circumventing direct relationships with individual game providers, which may have stricter compliance requirements.

Regulatory Compliance Analysis

Jurisdictional Violations

GamDom‘s Curacao license does not provide automatic authorization to operate in EEA jurisdictions, yet the platform actively targets European players through localized payment methods and marketing. This creates multiple regulatory violations:

1. Unlicensed Operation: Operating gambling services without proper national licenses in restricted jurisdictions

2. Payment Processing Violations: Using EU-based payment agents while lacking European gambling authorization

3. Consumer Protection Failures: Offering gambling services to consumers in jurisdictions where such services are prohibited

Restricted Jurisdictions

GamDom is explicitly blocked in 36 countries, including major markets such as the United States, United Kingdom, Spain, Germany, Netherlands, and France. However, enforcement of these restrictions relies primarily on IP geoblocking, which can be circumvented through VPN usage.

Risk Assessment and Compliance Concerns

Consumer Protection Deficiencies

GamDom’s operational model presents several consumer protection concerns:

1. Chargeback Complications: The fiat-to-crypto conversion process makes traditional chargeback mechanisms difficult or impossible to execute

2. Jurisdictional Confusion: Players may unknowingly violate local gambling laws by accessing offshore services

3. Regulatory Arbitrage: The platform exploits regulatory gaps between Curacao licensing and European enforcement

AML and KYC Considerations

While GamDom claims to have implemented a three-tier KYC verification, the crypto-first model and offshore licensing create potential AML risks. The platform’s acceptance of players from jurisdictions where it lacks proper licensing may facilitate regulatory arbitrage and complicate efforts to detect money laundering.

Conclusions and Regulatory Outlook

GamDom‘s regulatory profile demonstrates the broader compliance challenges facing Curacao-licensed crypto casinos operating in global markets. The Spanish €5 million fine against Smein Hosting represents a clear enforcement trend toward stricter penalties for unlicensed operators targeting European consumers. The platform’s reliance on Lithuanian payment agents while maintaining offshore licensing creates a complex regulatory structure that may face increased scrutiny as European authorities enhance cross-border enforcement coordination.

FinTelegram has submitted formal inquiries to GamDom management regarding the Spanish fine payment status, future compliance strategies, and explanations for the operational structures identified in this analysis. This report serves as the foundation for continued investigation into the crypto casino industry’s regulatory compliance practices and enforcement vulnerabilities.

Note: This analysis builds upon FinTelegram’s previous examinations of MetaWin and BC.Game, contributing to our comprehensive assessment of regulatory patterns within the offshore crypto casino sector. Future reports will examine additional operators and enforcement actions across multiple jurisdictions.

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This compliance report was prepared based on comprehensive research into public regulatory filings, corporate records, and enforcement actions. FinTelegram maintains its commitment to transparent financial crime reporting and regulatory compliance analysis.