Softswiss and the Regulatory Crackdown: Implications for Online Gambling Operators

Overview

The Australian Communications and Media Authority (ACMA) has intensified its efforts to combat illegal online gambling platforms, particularly targeting operators that breach the Interactive Gambling Act 2001. Recently, the regulator reported 75 websites to internet service providers for blocking. This analysis examines ACMA’s recent initiatives in relation to known illegal casino operations, especially those linked to Dama N.V. and Softswiss.

Key Findings

1. Ongoing Enforcement: ACMA has been proactive in blocking illegal gambling websites, having blocked a total of 1,059 sites since November 2019. The latest ACMA report frequently references Dama N.V. and its various illegal online casinos.
2. Recent Actions: Between October and December 2024, ACMA issued blocking orders for multiple gambling websites that were operating unlawfully in Australia.
3. Regulatory Framework: The Interactive Gambling Act 2001 explicitly prohibits unlicensed online casino-style games, including pokies and table games, for Australian customers.
4. Impact on Operators: Since the enforcement of new regulations began in 2017, over 220 illegal services have exited the Australian market.

Context of Rabidi and Softswiss

Although not directly mentioned in the ACMA report, it is important to highlight the connections to known illegal operators:

• Rabidi N.V.: This defunct Curacao-based operator was part of a network of illegal online casinos, with operations resembling those currently under ACMA’s scrutiny.
• Dama N.V.: Another Curacao-based operator within the Softswiss group, likely engaging in similar illegal activities as Rabidi.
• Softswiss Group: FinTelegram has previously identified the ultimate beneficial owners behind Softswiss and its illegal gambling operations:
  • Ivan Montik (originally from Belarus)
  • Roland Isaev (from Russia)
  • Paata Gamgoneishvili (from Russia)

Implications

1. Regulatory Pressure: ACMA’s actions signify mounting pressure on illegal operators, which could impact entities like Dama N.V. and others within the Softswiss network.
2. Consumer Protection: The blocking of these websites is aimed at safeguarding Australian consumers from unregulated and potentially harmful gambling services.
3. Market Withdrawal: The substantial number of operators exiting the Australian market indicates that regulatory measures are producing significant results.

Conclusion

ACMA’s persistent efforts to tackle illegal online gambling reflect a broader global trend in regulatory enforcement. The actions taken against various operators underscore the risks associated with entities like Dama N.V. and the wider Softswiss group. As regulatory scrutiny escalates, operators linked to known illegal schemes will face increasing difficulties in sustaining their operations in regulated markets such as Australia.