Brazilian operator Hanzbet will cease operations by the end of July following a clash with its licence holder in Brazil, EA Entretenimento e Esportes Ltda (EA).
Earlier this month, EA announced Hanzbet would close its operations by 31 July, with the site only remaining active for players to withdraw their balances.
Hanzbet founder and CMO Eduardo Peres published a statement on his LinkedIn page on Monday, describing the situation as a “true operational dictatorship” and explaining he and his team had been removed from all internal communication channels and decision-making.
According to Peres, the statement announcing the closure of the Hanzbet brand was issued without their consent, causing payments to affiliates, suppliers and service providers to be suspended.
Peres also claimed EA is intentionally diverting Hanzbet users to BateuBet, another of EA’s brands, via its support channel.
“This is revolting,” Peres said. “It is a lack of respect for our history, for the partners and for all the professionals who helped build HanzBet with so much effort.”
Peres believes this should serve as a warning to other operators working under a similar structure, saying he and his colleagues will continue to battle against EA’s actions.
“If you have an operation allocated under another [company’s] structure, be aware,” Peres continued. “Analyse who you are hanging out with. Not everything that looks like a partnership is, in fact, a partnership.
“We are taking all legal and appropriate measures. And above all: we will fight to the end for what is ours.”
iGB has reached out to EA Entretenimento e Esportes Ltda for comment but had not received a response at the time of publishing.
Hanzbet users unable to withdraw
Peres said he hadn’t experienced or witnessed anything like this in the three years working in the betting sector with Hanzbet.
Even with contracts signed between Hanzbet and EA, Peres explained the reliance on a judicial process will be extremely drawn out, with serious reputational damage happening in the meantime.
Even more seriously, Peres has accused EA of making withdrawals impossible by withdrawing company liquidity while also informing customers they must withdraw from their accounts prior to Hanzbet closing down.
“In other words, they induced customers to withdraw, but those responsible themselves prevented this from being done by emptying the funds,” Peres said.
Licensing structures in Brazil
This situation could prove concerning to operators in a similar position to Hanzbet, with parent company licence holders maintaining financial control.
Many legal operators in Brazil are licensed under parent companies, as licensing requirements dictate that operators must be at least 20% owned by a locally operating business and have local headquarters
Notably, in a separate Instagram post, Hanzbet hinted at a possible return for the business in the future, though it’s currently unclear how the company will achieve this with links with its previous licence holder now severed.
The post stated: “Hanzbet is about to return with a new phase. More modern, more complete and better than before.”
Original article: https://igamingbusiness.com/legal-compliance/licensing/hanzbet-cease-operations-dispute-brazil-licence-holder/
