Authorities Conduct Raid on King Gaming on the Isle of Man for Alleged Fraud and Money Laundering Investigation
Last summer, the Asian-focused online gambling operator, King Gaming Ltd., received approval from the Isle of Man government to construct a multi-million dollar headquarters on a vacant holiday resort. This venture would encompass office and residential areas, two restaurants, and a landscaped park, and was proclaimed by local press as the "greatest individual investment ever on the Isle of Man."
However, just recently, the police conducted a raid at King Gaming's offices on the island, ending with the arrest of seven staff members. This action was part of an ongoing inquiry into potential scams, money laundering, and immigration law infractions.
In response to the allegations, the Island's gambling oversight body, the Gambling Supervision Commission, summarily suspended King's permit. Along with this, the permit of its B2B branch, Dalimine Ltd., was also revoked.
Correlation to Crypto Firm
A day after the police investigations, the Isle of Man Financial Services Authority mandated the suspension of operations for Soteria Solutions, a cryptocurrency company. Both Soteria Solutions and King Gaming shared board members and administrators, as well as the same address.
The website kgvip.com, operated by King Gaming, is currently offline except for Japanese user access. Its only known client appears to be Dalamine, King's B2B arm. Moreover, in the past three months, the kgvip.com website has recorded less than 5,000 visitors, indicating minimal success in the gaming market. It is unclear where the funds for King's luxurious new headquarters came from.
Isle of Man: a Sanctuary for Gambling and Tech Business
Located in the Irish Sea, the Isle of Man is a self-governed British Crown Dependency that has become a prominent European hub for financial services, IT infrastructure, and lenient regulation, attracting a multitude of online gambling and fintech firms. Prominent online gambling platforms, such as PokerStars, are licensed there.
In recent times, several Asian-facing gaming companies have forged connections with the island. These are enticed by the chance to indirectly serve the UK through the "white-label" system practiced by TGP Europe Ltd. and other providers. This method allows a website to look and feel like a certain gaming brand, but its content and management are entrusted to a third party, which then falls under the umbrella of TGP's UK license.
Sports Sponsorships
This access to the UK market allows many of these companies to sponsor English professional soccer teams. They can utilize the sport's worldwide audience to market their services in areas such as China, where offering and advertising gaming is explicitly against the law.
Notably, most of these entities, such as King Gaming, possess secretive ownership structures. TGP has been closely connected to gambling websites linked to former gambling tycoon Alvin Chau, who, in 2023, received a 18-year prison sentence in Macau for gambling-related crimes and criminal association.
Despite the lack of clear evidence implicating King Gaming in the Isle of Man's loopholes or TGP's network, the stringent actions by the island's administrators call for inquiry - what was King Gaming truly seeking on the island?
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Source: www.casino.org
