The same reportedly happened in a separate probe into mafia infiltration of online gambling. A source close to the investigation told IrpiMedia that it was not possible to investigate further on the e-wallets’ role in the criminal scheme due to a lack of collaboration from the payment providers. Investigators believe the Martiradonna brothers transferred large proceeds of crime to the e-wallets, when they suspected Italy’s financial police may try and freeze their assets. Police records show that Centurionbet’s top management relied on Skrill and Neteller to shield some of their assets. He added that it would not be possible to trace the owner of the card and, in case of enquiries from authorities, he could have justified the money as a poker win. The latter asked him how he could receive thousands of euros without a legitimate receipt: the manager told him not to worry because using Skrill and Neteller cards he would have had no problems. The reason was explained by Bet1128 manager wiretapped by investigators during a conversation with an aspiring agent. Skrill and Neteller were also used for off-the-book payments of commissions to the company’s area agents who acted as a link between the betting centers and Centurionbet. The company’s internal accounting records – seized by police – showed that on a single day over 220,000 euros were stored by Centurionbet with the three digital payment providers.Ĭourt records show that Centurionbet also relied on Skrill and Neteller accounts to wire money to its betting centers, which accepted bets and paid out winnings in cash, in breach of Italy’s gambling laws. Last year he was sentenced to 11 years and 4 months in prison on mafia-related charges.Īccording to investigators, almost all money passing through Bet1128 was handled by Skrill, Neteller and PaysafeCard.
According to police investigations, Francesco Martiradonna, Centurionbet’s beneficial owner, placed the gambling company at the disposal of ‘ndrangheta and cosa nostra families for money laundering purposes.
At the height of its success, Bet1128 was used in hundreds of betting shops across Italy, Spain and South America, turning over 100 million euros a year. Known for its brand Bet1128, the company was owned by the children of Vito Martiradonna, a convicted associate of the Sacra Corona Unita mafia syndicate, located in southern Italy. Until 2017, among the gambling operators using Skrill and Neteller was Centurionbet, a Malta-based firm suspected by investigators of mafia ties. Centurionbet, a gambling brand at mafia’s disposal After losing out on its largest market in America, Neteller shifted its focus to Europe. The founders pleaded guilty, while Neteller admitted wrongdoing and reached a $136 million settlement with U.S. authorities and charged with handling billions of dollars in illegal gambling proceeds. Neteller quickly rose to success but in 2007 Lawrence and Lefebvre were arrested by U.S. It moved to the UK in 2004, when it was floated on the stock market with a $70 million valuation. Neteller was created in 1999 by two Canadians, Stephen Lawrence and John David Lefebvre. Skrill was founded in London in 2001, when it became the first e-money operator to be licensed by the Financial Conduct Authority. Today part of the same group, Skrill and Neteller were for a long time rival companies. Prior to the buyout, Paysafe had been listed on the London Stock Exchange. The Paysafe empireĪn Isle of Man company, Paysafe was acquired in 2017 by Blackstone and CVC Capital Partners, two of the world’s largest private equity funds, for $3.9 billion (3.3 billion euros). The reliance on the sector had previously been even more strong: a Skrill executive told analysts in 2015 that, in previous years «95% of the revenue was coming from gambling operators». Gambling-related transactions accounted for 45% of Paysafe’s turnover in 2017, the last year detailed figures were disclosed.
Their core market is online gambling, an industry traditionally shunned by banks due to the higher risk it carries. They allow clients to deposit money on an online account, which can be used to make transfers or pay selected merchants with only an email and a password. Skrill and Neteller are two of the leading digital payments providers in the so-called e-wallet industry. Paysafe told IrpiMedia that it takes its obligations extremely seriously and it has a comprehensive compliance framework in place to prevent the abusive use of its services. As financial institutions regulated in the United Kingdom, they are required to follow robust anti-money laundering rules and submit suspicious transactions reports to authorities. It is possible that Skril, Neteller, and their controlling party Paysafe, were not aware of the organised crime ties with the gambling operators.