Another day, another exposure of an illegal online casino operating through Cyprus. Payment processors play a critical role in supporting this underground economy.
Research based on the “follow the money” paradigm has repeatedly shown that without these payment processors, many illegal online schemes, especially in the gambling sector, would not be able to thrive. We are currently focusing on brands from the collapsed Rabidi Group that continue to operate anonymously and without authorization.
Cazimbo Casino: Case Study
Cazimbo Casino is a prime example of an online gambling platform that operates without proper regulatory approval. Formerly part of the Rabidi Group, a notorious operator of illegal online casinos that FinTelegram previously reported on, Cazimbo continues to operate despite lacking a valid license.
The collapse of Rabidi NV in Curaçao and the revocation of its license did little to prevent the activities of former Rabidi such as Cazimbo , which have either gone under anonymous ownership or are run by entities with dubious offshore licenses. In the case of Cazimbo , the responsible jurisdiction listed in the terms and conditions is the Marshall Islands, a jurisdiction often associated with minimal regulatory oversight.
As previously reported, Cazimbo is associated with the Cyprus company Tilaros Limited , part of the former Rabidi Group , which is owned by Denis Butko and operates under the ButOn Group . Like many other online casinos, Cazimbo hides the identity of its operators on its website and in its terms and conditions, shielding its operations from regulatory scrutiny.
Despite this opacity, Cazimbo manages to accept players from around the world. Similarweb's analysis shows that traffic to a website on Cazimbo's , Cazimbo5.com (screenshot at right), comes almost entirely from Italy, another regulatory regime in which Cazimbo is not authorized to operate.
The casino site, linked to the main domain Cazimbo.com , receives traffic from Brazil, Tunisia, the US, the UK and Spain, further highlighting the casino's global reach despite its lack of compliance with local regulatory regimes.
Notably, the domain cazimbocasino.it redirects Italian visitors to Dama Group's N1 BET Casino website to register, demonstrating the interconnectedness of the various illegal operators in this space.
The role of payment processors
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 variety of payment options, which is a clear sign that payment processors are knowingly facilitating this illegal activity.
Our review conducted on August 21, 2024, found that Cazimbo works with a number of well-known payment processors, many of which have already been implicated in similar schemes. These include:
- PaymentIQ : A commonly used 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 : processes cryptocurrency deposits for Cazimbo and other illegal online casinos;
- Jeton and MiFinity : Provide e-wallet services for Cazimbo and many other illegal online casinos.
It is noteworthy that the paying agent appears to be Tilaros Limited , the same company that owns the Cazimbo brand. This connection further strengthens the connection between organizations based in Cyprus and facilitating illegal online casinos.
In cases like these, the question that constantly arises is how regulated payment processors, who must 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 simple negligence. On the contrary, it appears that these processors systematically accept high-risk clients, most likely due to the lucrative commissions such clients can offer.
Wider context: Cyprus and the Rabidi group
A worrying picture emerges from our investigations: Cyprus is becoming a central hub for payment agents facilitating the operation of illegal online casinos. The country's lax approach to anti-money laundering (AML) regulations creates an environment where payment processors are allowed to support high-risk and unauthorized operators such as Cazimbo .
Cyprus has become 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 attractive to organizations that want to operate in the legal gray area. This is clearly seen in the example of the ButOn Group and its connection with the Rabidi Group , which FinTelegram spoke about in detail. Rabidi case highlights how Cypriot entities play a key role in supporting illegal online gambling operations around the world.
