A recent investigation has revealed that Swiss-Georgian software provider Upgaming is connected to at least eight unlicensed online casinos, including Velobet, Mystake, and Goldenbet, which operate in Europe without valid local licenses. Many of these platforms were run by Santeda International under a Curaçao license, unrecognized in the UK and most European nations, exposing players to heightened financial and addiction risks. The unregulated sites even targeted self-excluded British gamblers enrolled in Gamstop. Following public exposure, Upgaming terminated its collaboration with Santeda in March. The case underscores the growing challenges of offshore gaming, regulatory gaps, and the urgent need for stronger consumer protection frameworks.
Unlicensed Operations and Regulatory Violations
Domain registration data indicates that Upgaming, led by CEO Tornike Tvauri, directly registered several URLs for casino platforms targeting European customers. These operations circumvented national licensing requirements, operating illegally in jurisdictions including the UK, France, Italy, Poland, Greece, and Sweden.
Santeda International managed the majority of these sites under a Curaçao license, which is not valid across most European markets. Regulatory authorities in multiple countries placed the websites on official blacklists, highlighting ongoing enforcement challenges against offshore gambling entities.
Risks to Players and Public Health
The unlicensed platforms bypass critical safeguards present in regulated markets. Without robust protections, players face significant risks related to problem gambling, fraud, and money laundering.
Traffic data shows these casinos attract over two million unique monthly visitors from the UK. Alarmingly, the investigation uncovered that certain domains were specifically designed to lure individuals enrolled in the UK’s Gamstop self-exclusion program, undermining self-imposed limits and placing vulnerable players at heightened risk.
Termination of Partnership
In late March, Upgaming officially ended its software collaboration with Santeda International following public scrutiny. While this move signals responsiveness, industry experts warn that offshore operators can rapidly exploit regulatory loopholes, maintaining high levels of unregulated gambling activity in European markets.
Deceptive Sports Partnerships
Further findings revealed that some platforms fabricated sports partnerships and promotional materials to enhance legitimacy. These strategies mislead consumers, increase user engagement, and obscure the illegal nature of operations, complicating regulatory oversight.
Conclusion
The Upgaming case illustrates the significant challenges posed by unlicensed online gambling targeting Europe. Regulatory authorities must address jurisdictional gaps and enforce compliance more aggressively to protect vulnerable players. Simultaneously, industry stakeholders should prioritize transparency, licensing integrity, and public health safeguards to mitigate financial and social risks associated with offshore digital casinos.
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