Betway, a Malta-based online gaming company, is being investigated for its operations in Belgium following an investigation connected to the Panama Papers.
The Belgian Gaming Commission said it had started a sanction procedure against Betway because of its “cumulative license and the lack of transparency of its ownership.” The commission’s findings have been sent to Belgium’s anti-money laundering unit and the Special Tax Inspectorate.
The investigation began in 2017 after the company was mentioned in the Panama Papers, which detailed an opaque corporate structure of companies looking to minimize their tax obligations in various countries.
Betway is licensed by the Malta Gaming Authority and is owned by Betway Group Ltd, registered in the British Virgin Islands and Cybergaming Consultants, a Ta’ Xbiex company, which only holds a nominal share.
A spokesman for Betway told the Times of Malta that the company was collaborating with the Belgian authorities and said no sanctions have been proposed and the case is still only under review.
“All information requested by the Gaming Commission in Belgium has been provided to them, and they have informed us that a review of that information is now underway by the board. At this stage no sanction has been decided on,” the spokesman said.
Maltese regulatory authorities said they are monitoring the situation.
According to the Times, documents in the Panama Papers appear to show that Betway received a €28 million investment in December 2014 from the unknown shareholders in the British Virgin Islands. Belgian regulators said they have attempted to identify the sources of these payments, but was unable to do so.
In another matter, Bet Service Group, which operates the Gamebet brand, has been ordered to halt activities in Malta after the Malta Gaming Authority suspended its gaming license.
The authority has informed Bet Service Group it must cease all activities including registering new players or accepting any deposits. The regulator has also ordered all other websites operated by or associated with Bet Service Group and its license to cease operations. The authority did not announce a reason for the suspension.
The authority has also requested that Bet Service Group submit a collection of data and documentation to the regulator so that it can investigate its activities.
