- In July, the shareholder of the betting company personally promised to find a solution to release customers’ frozen funds. However, the Gaming Commission is now struggling alone to manage the unprecedented collapse, while Chaleplis fails to deliver on his promises.
- A total of 107,000 player accounts have been affected, with funds frozen. For 7,767 accounts, the balance is up to €10; for 4,631 individuals, up to €100; for 1,618 players, up to €500; for 529 customers, up to €5,000; and for 13 users, up to €25,000. In the last two categories, the average balance per player is €1,162 and €9,253, respectively.
- According to sources from Data Journalists, attention is now focused on two guarantees provided by Betshop, amounting to €1 million. However, even if these funds are released, priority will be given to settling Betshop’s outstanding tax liabilities, not reimbursing players.
- Efforts are underway to create a roadmap to ensure that players can access their funds in future “crash” situations.
- The dark timeline of the Betshop scandal and its current status.
By Vasilis Galoupis
On July 13, 2024, Gabriel Chaleplis personally vowed in statements to the media following the collapse of his company, Betshop, that “our top priority is to release the players’ funds that were frozen due to the seizure of our customer service bank account by the tax authorities”. He went on to say, “We did not expect the players’ account to be seized, especially since the tax dispute has not yet been legally resolved.
Two months later, B2B Gaming Services, Betshop’s shareholder, has yet to fulfill the promises made after the company’s closure. Thousands of players are still waiting for their funds to be released.
Διαβάστε: Στοιχηματικές: Ντόμινο ελέγχων από την ΑΑΔΕ μετά το κραχ της Betshop
This unprecedented situation has severely impacted the entire online gaming industry. Experts warn that trust in betting companies has been shaken, possibly irreparably, while a solution remains elusive. It has become clear that while a customer may bet with their own money, their account balance may not always truly belong to them. Players are often unaware of the intricacies of financial dealings between a betting company and state authorities. Until recently, verifying that a betting company had the proper operating license was seen as a safeguard, but as the Betshop case has shown, this is no longer enough.
The paradox is that instead of holding Mr. Chaleplis accountable—the very person who promised to fix the problem—the Gaming Supervision and Control Commission is being tasked with finding a solution.
Who Are the “Victims”?
According to the Gaming Commission, the total amount of frozen player funds is €1.286 million. Betshop has 177,135 registered players, the majority of whom have either zero balance (107,202 accounts) or amounts up to €1 (55,375 accounts).
Διαβάστε: Στον «αέρα» η άδεια της Betshop
However, frozen amounts include: up to €10 for 7,767 accounts, up to €100 for 4,631 players, up to €500 for 1,618 players, up to €5,000 for 529 customers, and up to €25,000 for 13 users. In the last two categories, the average balance per player is €1,162 and €9,253 respectively.
In total, 2,160 players are owed amounts between €100 and €25,000, while another 4,631 are waiting for amounts between €10 and €100. These are funds rightfully belonging to Betshop’s customers, and they are demanding their money back.
Solutions are Difficult, Tax Authorities Take Priority
For the past two months, the Gaming Commission has been searching for a way to return players’ funds, but there is no established framework for handling such a situation as there is no precedent. The goal is to resolve the issue and stabilize the industry, as confidence has plummeted following the Betshop collapse.
According to Data Journalists’ sources, the focus is now on two guarantees provided by Betshop totaling €1 million. These were submitted in two installments of €500,000 each.
Διαβάστε: Καλούν σε «απολογία» την Betshop: Σφίγγει ο κλοιός για την στοιχηματική
However, legal and bureaucratic obstacles are hindering the process. By law, the tax authorities have priority over all other claims in such cases. Even if the €1 million in guarantees is released, it is uncertain if players will receive any of it, as Betshop has significant “outstanding debts” to the government, particularly the tax authorities.
In addition to dealing with the frozen player funds, the Gaming Commission is attempting to create a roadmap for the creation of a common fund that would protect players from situations like the Betshop scandal. Since the legalization of betting companies in Greece in 2021, and under previous transitional regulations, this is the first time such an incident has occurred.
Chaleplis “Missing”
In July, the Chairman of the Gaming Commission, Dimitris Dzanatos, told the media: “We have asked Betshop to inform us of the amount frozen in players’ accounts. If it’s up to €500,000, we will cover it from the provided guarantee. If it’s more, we will consult the legal department and seek a solution with the Independent Authority for Public Revenue (IAPR). This case highlights the need to protect players’ funds from seizure.
Chaleplis stated that €8 million had been frozen due to a pending case before the Council of State and that he hadn’t anticipated customer accounts being affected. However, despite initially claiming he would cover €1.2 million, he has yet to do so. Additionally, Chaleplis is also entangled in a significant legal dispute in the U.S. over another investment.
The timeline of the scandal
On December 22, 2023, Data Journalists reported that the Hellenic Gaming Commission (HGC) had issued a warning on October 30, 2023, along with a €500,000 fine against “B2B Gaming Services (Malta) Limited.” The independent authority stated at the time that the fine was related to “violations of the terms for online gambling licenses”.
A month later, on January 22, 2024, we reported on the activation of all audit procedures by the Independent Authority immediately after the holiday season. The Hellenic Gaming Commission (HGC) established a Hearing Committee to examine each case of violations by online operators, starting with Betshop. The Hearing Committee for matters related to online gambling was established following the publication of a Government Gazette on December 27, 2023.
Our investigation concluded: “Sources indicate that although the measure of license suspension is considered very severe, nothing can be ruled out if the required documents are not provided after repeated requests, as issues of fair competition with companies that consistently meet all operational requirements also arise.”
On April 21, we followed up with a report titled “Betshop’s license hangs in the balance,” which highlighted the HGC’s strict recommendation for the company to comply and a new call for a hearing in the near future. The report also noted strategic maneuvers by Chaleplis’ company amid the Council of State’s decision on the “pending tax dispute with the state for a tax audit” amounting to €25 million.
On July 12, B2B Gaming Services, which manages Betshop.gr, announced the seizure of its customers’ bank accounts by the tax authorities.
The company stated: “We regret to announce that due to the sudden and unjust seizure of our customer service bank account by the tax authorities, we are forced to suspend operations until the issue is resolved”.
According to the company, the tax authorities identified a tax discrepancy related to the calculation of tax obligations for the years 2013 and 2014, specifically concerning the withholding tax on player winnings.
According to the Company, the tax authorities identified a tax discrepancy in the calculation of tax obligations for the years 2013 and 2014, in particular with regard to the withholding tax on player winnings.
Including penalties, the total amount of fines now exceeds €40 million. Betshop.gr has appealed to the Council of State and filed a request for annulment, with the case to be discussed on November 14, 2022. The decision has not yet been issued.
Three subsidiaries
Immediately following the Betshop debacle, the Independent Authority for Public Revenue (IAPR) conducted audits of all betting companies operating in Greece, as later revealed by Data Journalists.
On June 18, the IAPR ordered an audit and investigation of another parent company operating in Greece with three subsidiaries. The audit covers revenues, compliance with tax obligations, accurate accounting, and other matters. The IAPR has issued an ultimatum to the relevant subsidiary to file overdue initial or amended tax returns.
According to Data Journalists’ sources, the Gaming Commission is already considering the creation of a fund with contributions from all legal companies, similar to insurance funds for road accidents and incidents involving uninsured vehicles. However, this initiative, although at the top of the Commission’s agenda, is quite time-consuming until its final implementation.
As of the first days of September, the players’ funds remained frozen, and no solution to the impasse was announced.
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