Mybet to File for Insolvency

This story was published more than 2 years ago.

Betting group MyBet has announced that they've made the decision to file for insolvency after investor talks aimed at clearing the operator's tax debts fell apart.

The company is facing major financial woes, as they owe €4 million in sportsbetting taxes, and have been seeking an investor to help bail them out in the short term. Those talks haven't been fruitful, and the German company looks like they'll be pushed out of business as a result. The company is preparing their application and is expected to file the paperwork in court by Friday. Mybet was founded in 1998 and employs about 130 people in their offices.

In a statement mybet spoke about their situation, noting: "The background for the application for the opening of insolvency proceedings is the failure of discussions with potential investors."

"Today, the discussions with a strategic investor reported… on July 13 regarding the possible sale of the online business of mybet Holding under the domain mybet.com were closed. These talks failed due to conditions set by the investors which could not be fulfilled."

The company hasn't made plans for player payment clear, but disclosures made in the site's terms and conditions reveal that the site only meets the UKGC "basic" standards for protection of player funds from creditors in the event of insolvency. This is effectively no protection at all as deposited monies can be legally claimed by creditors before being paid out to players. Needless to say, MyBet customers are advised to submit a withdrawal as soon as possible and hope for the best.

Casino Listings News will follow the story and update readers as we learn more.

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About the author

Therese Williams // UK Correspondent
Therese Williams
Therese is a fervent fan of slot machines and pub fruities, often trying her luck at some of the top online casinos. She covers news for Casino Listings with a focus on the UK and Europe. Therese studied arts and creative writing at university and has written for newspapers in the UK.
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lvblck
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15 August 2018 - 10:06am
#1

I wasn't expecting that from mybet but of course those are some upsetting news. I just hope that people ho still play there will read this and not deposit anymore since the terms what happens if the company goes bankrupt, don't really secure players payments as we can read here.

usbarbadosslim93
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15 August 2018 - 3:39pm
#2

Yeah, this is a relatively large site to go under, so it's surprising. Hopefully, the player funds have been segregated to pay out what's owed.

auCL-Ed
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16 August 2018 - 1:19am
#3

Yeah on the face of it that isn't going to happen. They did not segregate customer funds further than what the UKGC classifies as "basic" which may as well be not protected at all. It is incredible to me that the UKGC even allows anyone to operate without at least what they call "medium" level protection of player funds.

sharpe

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usbarbadosslim93
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17 August 2018 - 3:33pm
#4

Woofta, that's terrible. Here's hoping things work out for the best. There really needs to be a strict enforcement for the segregation of funds. That sucks.

sharpe

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22 August 2018 - 7:49pm
#5

So...I thought it would of be a tough ask for any company in this branch to declare a bankruptcy, especially a brand with some name on the market but apparently it occurs and it isn't pretty.

I hope all their customers will be compensated properly but that's not seems to be the case here, so what happens in such extraordinary circumstances?

lvblck
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24 August 2018 - 11:05am
#6

I'm no expert here but my guess is that the players can file a case? Because if they have Curacao and basic terms for player funds, there's not much that can be done..