Paysafe Deny Charges of Enabling Illegal Gambling in China
Online payment provider Paysafe has seen their company stock fall over 37 percent following a report from Spotlight Research that accuses them of enabling illegal gambling in China. Paysafe’s largest client is Bet365 which make up around 50 percent of its business.
Both Bet365 and Paysafe have vigorously denied any illegal activity and rejects the claims by Spotlight Research. In a statement Paysafe said,” Paysafe confirms that all material information in the report is either factually inaccurate or has been previously disclosed.”
Spotlight stated in their report that Paysafe,”appears to be enabling both illegal gambling and Chinese capital control evasion through alleged undisclosed related parties run by recent former executives.”
Bet365 went on the attack in response to the report but did not deny accepting bets from China, They went on to explain that there is ,” no legislation which expressly prohibits the supply of remote gambling services into China by operators who are based outside China.Bet365 has no people, assets or infrastructure in China and does not engage any agents, aggregators or intermediaries, for any purpose, in China. In the view of Bet365, and its lawyers, Chinese law does not extend to the provision of services into China by gambling operators and service providers who themselves have no nexus with the territory.”
They went on to say that Bet365 considers the analysis of the relevant legislation in China surrounding the alleged illegality of the provision of remote gambling services to be self-serving, misleading and inaccurate.