Supreme Court upholds bankruptcy judgment largest online sports betting company in Curaçao

THE HAGUE – The largest online sports betting company 1xBet/1xCorp has been declared bankrupt after all. The Attorney General of the Supreme Court had already concluded that earlier, and the Supreme Court has adopted those conclusions. 1xBET, owned by 1xCorp, was declared bankrupt in absentia by the First Instance Court in 2021, but the verdict was successfully challenged. The Foundation for the Representation of Victims of Online Gaming (SGBOK), subsequently appealed and was ultimately successful.   


1xCorp then appealed in cassation, but the judgment on appeal stands: the bankruptcy petition based on a claim by SGBOK of more than one and a half million guilders and various support claims were still lawful. The largest betting company 1xCorp N.V., originally from Russia, operates 1xBet and numerous other online sports betting and casinos. The company has an unlawful and unregulated sublicense in Curacao from Cyberluck and is the largest sports betting company in the world, with over 1800 gambling sites worldwide.   


Until recently, management was carried out by trust offices Carmanco and Global Related Services. Both Cyberluck (Curacao Egaming) and these boards are held liable for bankruptcy by the trustee. SGBOK SGBOK filed for bankruptcy of 1XCorp in 2021. A large number of gambling players were duped when gambling online on the 1XCorp website, they were not paid. SGBOK litigated for them.   


On appeal, the foundation was able to convince the judge that it was indeed a creditor and that there were others who had claims against the gambling company. In cassation, the Supreme Court does not see why the verdict should be overturned. For example, more debts had indeed remained unpaid, such as preferential claims from the Tax Authorities and SVB of more than two million guilders, followed by eighteen duped players with a claim of almost one and a half million guilders.   


Declaring bankruptcy requires that the debtor, 1xCorp, has ceased to pay, i.e. does not pay its debts, for which, according to the Supreme Court, it is sufficient that it does not pay one due and payable claim. The fact that 1xCorp selectively pays other debts or still has sufficient cash in hand does not, therefore, stand in the way of a declaration of bankruptcy.