An investigation has revealed that Swiss-Georgian software provider Upgaming is connected to at least eight unlicensed online casinos, including Velobet, Mystake, and Goldenbet, operating across Europe without valid local permits. Many of these platforms are run by Santeda International under a Curaçao license, which is not recognized in the UK or most European jurisdictions. These unregulated casinos bypass safeguards against gambling addiction and money laundering, targeting vulnerable players—including those enrolled in the UK’s self-exclusion program, Gamstop. Following public exposure, Upgaming terminated its collaboration with Santeda in March. The findings underscore the growing risks posed by offshore gaming platforms exploiting regulatory gaps and unprotected consumers.
Unlicensed Operations and Regulatory Gaps
Upgaming, led by CEO Tornike Tvauri, is reported to have directly registered multiple online casino domains aimed at European players. The affected websites operate without valid legal permits in key jurisdictions, violating consumer protection and gambling regulations.
Most of these operations fall under the purview of Santeda International, which uses a Curaçao gambling license. While legitimate in some offshore contexts, this license is not recognized in the UK, France, Italy, Poland, Greece, or Sweden. Consequently, authorities in these countries have blacklisted the sites, highlighting the persistent challenges of policing cross-border digital gambling.
Public Health and Consumer Risk
The unlicensed casinos exploit regulatory loopholes, bypassing mechanisms designed to mitigate gambling harm. Key protections against problem gambling, money laundering, and fraud are largely absent, exposing players to heightened financial and psychological risks.
Website traffic analysis reveals over two million monthly visitors from the UK alone. Alarmingly, these platforms deliberately target individuals previously enrolled in Gamstop, the UK’s national self-exclusion program. By registering domains explicitly designed to attract these players, the operators undermined self-imposed safeguards and promoted gambling among vulnerable populations.
Upgaming’s Response and Termination of Partnership
In response to media scrutiny and regulatory pressure, Upgaming officially ended its software collaboration with Santeda International in late March. While this move represents a corrective step, industry observers warn that similar offshore operators could emerge quickly, exploiting the persistent regulatory fragmentation in European markets.
Experts stress that transparency, jurisdictional compliance, and stringent licensing are essential to mitigate public health risks and maintain trust in online gambling ecosystems.
Targeting Players Through Deceptive Partnerships
Beyond unlicensed operations, the investigation uncovered efforts to fabricate legitimacy through pseudo-sports partnerships. These tactics amplify user trust and engagement, masking the illegal and unregulated nature of the platforms. Analysts note that such strategies compound the risk for consumers, making regulatory oversight and cross-border enforcement increasingly urgent.
Conclusion
The Upgaming case illustrates the evolving threat posed by unlicensed online gambling operators targeting Europe. Without enforceable jurisdictional compliance and effective safeguards, vulnerable players remain exposed to financial loss and addictive behaviors. Policymakers and industry regulators face mounting pressure to close offshore loopholes, enhance consumer protections, and ensure that digital gaming aligns with public health imperatives.
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