Web of SOFTSWISS, Dama N.V., and N1 Interactive in Global Gambling Industry

In the intricate and often opaque world of online gambling, Dama N.V. emerges as a significant player, albeit one surrounded by numerous questions and concerns. The company's rapid financial ascent, coupled with its complex network of relationships, has placed it under intense scrutiny.

This article seeks to unravel the connections between Dama N.V., its affiliates, and other key entities within the online gambling industry, highlighting the implications for regulatory oversight and transparency.

Financial Success amid Growing Concerns

Dama N.V.'s rise in the online gambling sector has been nothing short of remarkable. According to court filings, revenues exceeding €500 million in 2021 and surpassing €900 million by 2023, the company's financial success is undeniable. However, this rapid growth has not come without its share of challenges.

In June 2024, Dama N.V. entered bankruptcy procedures—a development that has raised eyebrows given the substantial revenues the company had been generating just months prior.

The bankruptcy procedures have triggered a cascade of concerns about the company’s operational practices and financial management. How does a company with such significant earnings find itself in financial distress?

This question has led to a closer examination of Dama N.V.'s business model, its network of affiliated companies, and the strategies it employed to navigate the volatile online gambling market.

Observers have pointed out that Dama N.V.'s association with a network of online casinos shortly after its incorporation in 2019, particularly those formerly managed by DIREX B.V., complicates the picture further.

DIREX B.V., which was finally liquidated in 2023, transferred its operations to Dama N.V. in a move that has been characterized by some as a strategic reorganization aimed at maintaining market presence while potentially evading regulatory scrutiny.

This transition aligns with the contents of a letter obtained by Malta Media, dated June 3, 2019, from the Australian Communications and Media Authority (ACMA) to Helen Mourashko of Revera Law Group, who was acting as the lawyer for Direx N.V.

The letter reveals that Mrs. Mourashko also represents Mr. Ivan Montik and Mr. Maksim (Max) Trafimovich, both of whom are high-ranking officials in SOFTSWISS. Mentioned in this letter is a “possible acquisition of the gambling operation of the Direx B.V. casinos,” which is presumed to be the announcement of the transfer of casino websites to Dama N.V. or N1 Interactive Ltd.

According to Jason Alleyn in his publication, Mrs. Mourashko is married to the CFO of SOFTSWISS, Pavel Kashuba. Curiously, Mr. Kashuba's LinkedIn profile does not list a position as CFO at SOFTSWISS, although his personal website, currently in maintenance mode, lists him as a partner and CFO of the company.

The SOFTSWISS Connection

Before going further into this aspect, it is noteworthy that the authors of this article have been in contact with SOFTSWISS since April 2024 concerning questions related to Curacao licensing, illegal gambling, and other online casino topics.

Upon sending SOFTSWISS a draft of this article, the company, through its PR Manager Pavel Mikhalenia and Head of PR Alexandra Kavelich, stated on August 13, 2024:

“There is no operational and corporate connection and/or relationship between Stable Aggregator Limited, N1 Interactive Ltd., and Dama N.V.”

This statement, however, seems to contradict some of the more obvious connections in this whole article.

• For instance, Stable Aggregator LTD was previously known as N1 AGGREGATOR LTD, according to Dato Capital.
• Furthermore, N1 Bet and N1 Casino, which are listed on the SOFTSWISS website as partners, are operated by N1 Interactive Ltd., as noted on their respective “About Us” page.
• Alexey Shlapunov seems not only to be the CEO of N1 Partners Group, according to this article on SOFTSWISS which covers the release of the sportsbook platform on JooSports.com (which is redirected now to com), he is according to his LinkedIn bio also an “Adviser” to BGaming (Ivan Montik lists in his bio that he is the founder of BGaming) for more than six years.
  Looking at the imprint on BGaming website N1 Games Ltd. is listed as the owner. When looking onto the MGA register for the Licence Number: MGA/B2B/785/2020 mentioned on BGaming, it is not N1 Games Ltd which appears there, we can see the details for Stable Games Ltd. All of these companies (no matter if N1 or Stable) share the same address: WISELY HOUSE, 206 OLD BAKERY STREET, VALLETTA, VLT 1451, Malta.
  For N1 GAMES LTD – Curran Gianluca Caruana is listed as a Key Principal according to Dun&Bradstreet. Also he holds the position as director in N1 Greece and is connected to Christopher Ems and Green Goblin companies in Malta which have the same Old Bakery Street address.
• Many of Stable Aggregator LTD's partners listed on the SOFTSWISS website for White Label Casino solutions, as well as Turnkey solutions, are Dama B.V. casinos. These include well-known platforms such as BitStarz, Lukki, 7BitCasino, BetChain, and many more. The Dama N.V. details can be easily found on each casino website in the footer area.

The connections between Dama N.V. and SOFTSWISS do not end here. One of the most intriguing aspects of Dama N.V.'s operations is its connection to SOFTSWISS, a technology company with deep roots in the online gambling industry. SOFTSWISS, owned by Stable Aggregator Limited and led by CEO Ivan Montik, is a key player in providing software solutions to online casinos.

 

Mr. Montik, a figure with significant ties to the online gambling world, is reportedly connected to several online casinos that have come under scrutiny in recent years. These include Playamo and CasinoChan, both of which were managed by DIREX B.V.

A casino review about Playamo casino, written by Leading Online Casinos back in 2021, lists Ivan Montik as a contact under the email: [email protected]. The German phone number listed in the review is associated with Julia Haroshka, who is linked to SOFTSWISS, according to online telephone listings. The same information is used for the CasinoChan review, and it is likely that further research would uncover more examples of direct involvement.

Mrs. Haroshka also manages a branch of SOFTSWISS in Pöttelsdorf, Austria. Back in 2010, SOFTSWISS posted on Twitter that Ibedio e.U. was the official branch of SOFTSWISS in Austria.

 

 

The history of Ibedio e.U. and its website, ibedio.com, reveals an interesting trajectory. The company transitioned from Ibedio e.U. to Ibedio GmbH (a limited company) at the beginning of 2014, with a registered number FN 406209t at Landesgericht Eisenstadt.

Another intriguing detail is that Alexander Riedinger was listed as a director of Ibedio GmbH, alongside Ivan Montik and three others. The company was liquidated in July 2015.

Curiously, despite its liquidation, Ibedio GmbH reportedly took over the development and distribution for numerous casino platforms, including Break da Bank, Ballys, Goldenbet Casino, 32Red, Buck Casino, and others. The news related to Ibedio’s activities, found on various sources, dates to 2023 and 2024—some eight to nine years after the company was liquidated.

Alexander Riedinger is also known for his involvement with CoinsPaid, A.R. Merkeleon GmbH in Austria, and other ventures. However, the focus here today remains on the complex connections surrounding Dama N.V. and SOFTSWISS.

Moreover, Ivan Montik, besides being associated with well-known companies listed on his profiles, holds positions in a vast number of companies globally. These include Rodny Holding GmbH, Sonne 99 Vermögensgesellschaft-UG, M Capital Beteiligungs-UG, Nabelse Holdings Ltd, Ibedio GmbH, and many many many more.

After four months of research into this complex topic, it is anticipated that a series of around 20 articles will be published in the coming weeks, covering the numerous companies, their connections and the people behind them.

The Transition of Casinos to Dama N.V.

Returning to the previously mentioned casinos, even a direct connection to SOFTSWISS can be observed on the Playamo website, as it appeared in February 2017. A deeper look into the website's information reveals further ties between these entities.

 

The transition of these casinos to Dama N.V. following the liquidation of DIREX B.V. has led to speculation about the motivations behind this reorganization. Some industry analysts suggest that the move was designed to preserve the operations of these casinos while distancing them from the legal and financial troubles that plagued DIREX B.V.

Adding to the complexity is the involvement of Maksim (Max) Trafimovich, SOFTSWISS’s Chief Commercial Officer, who is believed to have played a significant role in the restructuring efforts of Direx N.V. during its bankruptcy procedures, as he is listed as the liquidator in official documents.

Mr. Trafimovich’s involvement in both SOFTSWISS and the transition of DIREX B.V. to Dama N.V. has fueled concerns about the interconnected nature of these entities and the potential for coordinated efforts to maintain control over a vast network of online casinos while sidestepping regulatory accountability.

Regulatory Oversight and Global Impact

The operations of Dama N.V. and its associated entities have not escaped the attention of international regulators, particularly the Australian Communications and Media Authority (ACMA) and Rochelle Zurnamer, a Delegate for the ACMA.

The ACMA has issued warnings related to the activities of these entities, especially concerning their compliance with the Interactive Gambling Act (IGA). The ACMA’s involvement underscores the global reach of Dama N.V.’s operations and the challenges that regulators face in ensuring compliance across multiple jurisdictions.

Several casinos managed by Dama N.V. have faced regulatory actions, including fines and formal warnings (here some PDF’s with the information: Wanted Win, BetiBet, Greenspins, Slotman and Jettcity, Lukki, Cleopatra, Goodman and Zoome, Pokizino and many more). These regulatory interventions underscore the importance of oversight in the online gambling industry, where the rapid pace of technological innovation and the transnational nature of operations can complicate efforts to enforce legal standards.

Together with Dama, official warnings have been issued against Friolion and Strukin, both acting as a payment agent for Dama from their base in Cyprus.

Not only the ACMA has issued fines and warning. The Hellenic Gaming Commission (HGC), the regulatory organization from Greece, has gone a step further and banned the majority of the casinos associated to DAMA N.V., DIREX N.V., DIREX LIMITED, SOFTSWISS N.V. and NABELSE HOLDINGS LIMITED.

In their published Blacklist, which you can find here, they have banned prominent names like Betchan, Bitstarz, Playamo, LokiCasino, KingBilly, Cleopatra, dasistCasino, EldoradoCasino, BobCasino, SurfCasino, JooCasino, BitCasino, Winz …

 

The restructuring of Dama N.V., reportedly overseen by Allyant Group B.V. and its managing director Nathaniela Kwidama, appears to be a strategic manoeuvre to address past problems while ensuring continued operations. However, the lack of transparency in some areas has led to calls for greater accountability and clarity.

 

 

Quick look into who else is using the address: Scharlooweg 39, Willemstad, Curaçao

Allyant Group, DAMA B.V. (between 80-100 casinos), Affilka, Rabidi N.V., Galaktika N.V. Lux Casino, Revera Law Group, Hollycorn N.V., NewEra B.V., Sunseven N.V., Galaktika N.V., Run4Win Partners, Dreamtek Solutions B.V., Latiform B.V., FIIKS & CO., Spades Queen and many many more..

Upon closer examination, it is noteworthy that several prominent entities from the casino industry are associated with this address. According to court filings submitted by the company itself, Dama B.V. alone reported revenues exceeding €900 million in 2023. Given the modest appearance of the premises, it raises questions about the plausibility of such a substantial turnover being managed from a location of this nature.

Potential Implications for Mr. Montik as a German Resident

Given Mr. Montik’s status as a resident of Berlin (according to his LinkedIn profile), several legal and tax-related questions arise, particularly if it were established that he is the beneficial owner of companies such as DIREX, DAMA, and others linked to SOFTSWISS. Germany has stringent regulations concerning taxation, fraud, and compliance, especially when it comes to income derived from international operations.

BZSt: Firstly, under the German Income Tax Act (Einkommensteuergesetz, EStG), all residents are required to declare their worldwide income. If Mr. Montik is indeed the beneficial owner of these entities, would this not mean that he is obligated to report and pay taxes on income generated from these companies, regardless of where the income originates?

Could the failure to declare such income potentially lead to significant legal consequences under German law, including penalties for tax evasion as outlined in Sections 370 and 371 of the German Fiscal Code (Abgabenordnung, AO)?

BaFin & StA Berlin: Moreover, Germany’s Interstate Treaty on Gambling (GlüStV) mandates that any entity offering gambling services within Germany must hold a valid license. If companies under Mr. Montik’s ownership are offering such services without proper licensing, could this not expose him to criminal liability under Section 284 of the German Criminal Code (StGB)?

Given the severe penalties, including fines and imprisonment, for operating unauthorized gambling services, might this situation warrant closer scrutiny?

FA Berlin: Furthermore, the corporate income of entities like SOFTSWISS and its affiliates might also fall under German taxation if they are controlled or significantly influenced by a German tax resident. The German Corporation Tax Act (Körperschaftsteuergesetz, KStG) could be applicable, raising questions about whether appropriate taxes have been paid on profits generated by these entities.

Should there be any discrepancies; could Mr. Montik be at risk of facing charges related to corporate tax evasion?

BZSt & BKA: Finally, considering the complexity of international operations and the intertwining of various entities across multiple jurisdictions, one might ask whether the proper transfer pricing regulations have been adhered to. German tax authorities are known for their rigorous enforcement of transfer pricing rules to prevent profit shifting and ensure that all income is taxed fairly.

If these rules were not followed, could this not lead to additional scrutiny and possible financial and legal repercussions for Mr. Montik?

 

The Malta Connection and the Call for Transparency

The involvement of Malta-based entities, particularly the potential connection to N1 Interactive Ltd., introduces additional complexity to this matter. Malta, recognized as a key hub for online gambling, has faced scrutiny regarding the activities of entities linked to Dama N.V.

The potential role of N1 Interactive Ltd., a prominent company based in Malta, raises questions about the extent of connections between SOFTSWISS, Dama N.V., Direx N.V., and other entities within this intricate network.

Malta's significance in this network, given its central role in the online gambling industry, complicates regulatory oversight and raises concerns about compliance with legal and ethical standards (MGA). The ongoing investigation into these connections underscores the global nature of the online gambling industry and the regulatory challenges it presents.

A Call for Transparency and Accountability

Given the substantial revenues generated by Dama N.V. and its affiliates, alongside the complex web of connections across multiple jurisdictions, there is a growing demand for greater transparency. The full extent of these companies' operations and relationships remains unclear, but the ongoing scrutiny highlights the need for clear and accountable business practices in the online gambling industry.

The intricate network involving Dama N.V., SOFTSWISS, and related entities underscores the importance of transparency and regulatory oversight. The public deserves clarity about the true nature of these entities and their impact on the industry. The revelations concerning Dama N.V. and its connections to SOFTSWISS call for increased transparency and accountability.

As global regulators intensify their scrutiny, it is essential to uncover the true extent of these companies' operations and the identities of those who benefit from them. Transparency, regulatory compliance, and ethical business practices are crucial in an industry that spans multiple jurisdictions and affects millions worldwide.

Recommendation for Players:

If you have used SOFTSWISS, Dama N.V., Direx N.V. Casinos and are concerned about the legality of its operations in your country, it is advisable to contact the relevant gambling authority in your jurisdiction to file a player complaint.

The following is a list of countries mentioned in this article, along with their respective gambling authorities and the link to the player complaint form or direct contact:

• France: Autorité Nationale des Jeux (ANJ) –  Accéder au site du médiateur des jeux
• Australia: Australian Communications and Media Authority (ACMA) – Complaint for illegal gambling operators
• Sweden: Spelinspektionen (The Swedish Gambling Authority) – Illegal gambling and lottery operations
• United Kingdom: United Kingdom Gambling Commission (UKGC) – Unlicensed gambling or criminal activity
• US: Individual state authorities, such as the Nevada Gaming Control Board (NGCB) or the New Jersey Division of Gaming Enforcement (NJDGE)
• Malta: Malta Gaming Authority (MGA) – Lodge a Complaint Form
• Denmark: Spillemyndigheden (The Danish Gambling Authority) – Illegal gambling activities
• Germany: Gemeinsame Glücksspielbehörde der Länder (GGL) – Verstoß melden / Beschwerden
• Austria: Bundesministerium für Finanzen (BMF – Austrian Ministry of Finance) – Verstöße im Glücksspiel- oder Wettbereich in Österreich

 

Filing a complaint with your national gambling authority can help to address any issues related to the legality of SOFTSWISS, Dama N.V., Direx N.V. Casino operating in your country. It is important for players to take proactive steps in protecting their rights and ensuring that they are engaging with a legally compliant platform.

FAQs

What is the significance of Dama N.V. in the online gambling industry?
Dama N.V. is a major player in the online gambling industry, noted for its rapid financial growth and substantial revenues. However, its operations and financial management have come under scrutiny, particularly after entering bankruptcy in June 2024.

How did Dama N.V. manage to achieve such rapid financial success?
Dama N.V. achieved rapid financial success through a network of online casinos and strategic acquisitions, including the transition of operations from DIREX B.V. This growth, however, has raised questions about its business practices and financial stability.

What are the concerns surrounding Dama N.V.’s bankruptcy?
The bankruptcy of Dama N.V. is concerning because it occurred despite substantial revenues. This has led to investigations into its operational practices and financial management, questioning how a profitable company could fall into financial distress.

How is SOFTSWISS connected to Dama N.V.?
SOFTSWISS is linked to Dama N.V. through its technology and services provided to online casinos. There are allegations of deeper connections between SOFTSWISS and Dama N.V., although SOFTSWISS has publicly denied any direct operational or corporate relationship.

What role did DIREX B.V. play in Dama N.V.’s operations?
DIREX B.V., a company liquidated in 2023, transferred its operations to Dama N.V. This move has been interpreted as a strategic reorganization to preserve market presence and potentially evade regulatory scrutiny.

How does SOFTSWISS's involvement in online gambling impact regulatory oversight?
SOFTSWISS’s involvement, particularly through its connections with various online casinos, complicates regulatory oversight. The company’s extensive network and the transition of casinos to Dama N.V. raise concerns about compliance and transparency.

What are the regulatory challenges faced by Dama N.V. and its affiliates?
Dama N.V. and its affiliates face regulatory challenges due to their complex network and operations across multiple jurisdictions. These challenges include compliance with gambling laws and addressing warnings and fines from international regulatory bodies.

How might Mr. Montik’s residence in Germany affect his legal obligations?
As a German resident, Mr. Montik might be subject to German tax laws and regulations related to his income and business activities. This includes obligations to declare worldwide income and ensure compliance with gambling regulations.

What is the role of Malta in the context of Dama N.V. and its affiliates?
Malta is a key hub for online gambling and is involved in the regulatory scrutiny of companies like Dama N.V. The potential connections to Malta-based entities raise questions about compliance and transparency within the industry.

What should players do if they have concerns about the legality of these gambling operations?
Players concerned about the legality of operations involving SOFTSWISS, Dama N.V., or Direx N.V. should contact their local gambling authority to file a complaint. Relevant authorities include the UK Gambling Commission, the Australian Communications and Media Authority, and others depending on the player's location.