Online casinos are easily transferable digital assets. The transfer of Gammix Ltd casino to offshore operator Starscream Ltd raises serious questions about the ongoing illegal gambling activities in Europe.
Despite heavy fines from Dutch regulator KSA, Gammix appears to have simply moved its operations offshore, where it continues to ignore oversight from regulated payment processors.
Key points:
Starscream Limited, an offshore company based in Saint Lucia, is believed to have taken over the online casino operation from Gammix Ltd, a Malta-based MGA-regulated operator that has been heavily penalized by Dutch regulators.
The transfer of Starscream Casino appears to be in response to the Dutch Gambling Authority's (KSA) crackdown on Gammix Ltd, which has said it will fight KSA fines.
Starscream operates under a license from the Kannawake Gaming Commission (KGC), but continues to offer services in markets such as EEA countries where it does not have permission.
Regulated financial institutions, including payment processors such as Revolut and MiFinity, are involved in facilitating payments for Starscream's illegal operations.
The report draws parallels with the Rabidi Group, which similarly moved its casino operations offshore to avoid regulatory scrutiny.
Brief description:
Starscream Ltd, a company registered in Saint Lucia, quickly gained attention in the online gambling world after allegedly taking control of the Gammix Ltd casino operations. Gammix, licensed by the Malta Gaming Authority (MGA), was subject to significant fines by the KSA in the Netherlands for operating without proper licensing. Despite a €19.6 million fine imposed by the KSA in early 2024, Gammix appears to have continued to operate, prompting speculation that its casinos were taken over by Starscream to avoid the influence of European regulators.
Starscream, which operates the same casinos that were once under Gammix's MGA license, operates under a license from the Kahnawake Gaming Commission (KGC), which allows it to operate legally in Canada but not in Europe. However, its casinos are actively attracting players in European jurisdictions. This offshore transfer raises concerns that Starscream may be a strategic move by Gammix's beneficial owners to continue offering services illegally in Europe.
Compliance Insight:
There is a clear pattern of casino operators such as Starscream using offshore jurisdictions to evade European oversight, especially following punitive measures by bodies such as the KSA. However, it should be noted that such illegal casino activity is only possible because (in addition to direct cryptocurrency transactions) there are payment processors who apparently neglect their compliance activities.
Starscream Casino uses a Cyprus-registered company called Stardust Global CSS Ltd (Stardust Ltd) to process payments from or to players, which appears to be readily accepted as a merchant by regulated payment processors.
The involvement of regulated financial institutions such as Revolut, MiFinity or emerchantpay (eZeeWallet) in facilitating payments for unlicensed casinos is a concern. There is a need to investigate and encourage these institutions to take a stronger stance when vetting their customers, especially in high-risk sectors such as online gambling.
As payment agents we of course found Binance Pay again (they never have any problems), as well as CryptoProcessing (powered by CoinsPaid) and Jetonbank, which operates under license in Dominica.
Further analysis is needed to assess the extent of Starscream's operations in unlicensed jurisdictions and the role of payment agents in Cyprus, such as Stardust Global CCS Ltd, who facilitate this illegal activity. Regulators in Europe must coordinate more effectively to block access to unlicensed casinos and reduce the involvement of payment processors in supporting them.
Call for information:
As with the Rabidi Group, Starscream's operations appear to be shrouded in anonymity and carried out through offshore companies and paying agents in jurisdictions such as Cyprus. We encourage industry insiders and professionals to provide information about Starscream's beneficial owners, payment agents, and related entities to help FinTelegram uncover the full extent of their illegal operations.
