Tallinn Crypto Gaming Makes Pandora Papers

Tallinn crypto gaming firm makes Pandora Papers. According to the newspaper Eesti Päevaleht (EPL), a corporation located in Estonia. Whose primary activity is online crypto currency gambling was mentioned in the latest Pandora Papers leak. While linked subsidiaries and individuals have moved substantial sums of money. Between several jurisdictions.

In actuality, the company, now known as Yolo Group, formerly known as the Coingaming Group. It is part of a network of many firms that have proliferated in recent years. And has what EPL (link in Estonian) describes as a “very healthy slice” of the world’s online casino market. Estimated by some experts to be worth US$60-70 million. With forecasts predicting that it will grow to US$93 billion by 2023. To one of the firms (link in Estonian).

While this in and of itself may not be newsworthy a year after the fact. EPL claims that some of these companies were included in the Pandora Papers leak. In October of this year, with documentation revealing a set-up across a number of well-known tax havens. Including the British Virgin Islands, Malta, and the Netherlands Antilles.

According to EPL, crypto currency gaming is at the heart of the company’s operations, a phenomenon that. In particular with the advent of the lightning network, has had the effect of speeding up. The traditional “house always has the edge” principle. The company was founded at a meeting with business partners during the Christmas season of 2013.

EPL claims that the group’s founder, Australian Tim Heath, rarely speaks to the media. In part because many journalists are unable to grasp the nuances of an industry. That they do not share Heath’s enthusiasm for – though he did give this amusing interview. To an i-gaming industry-focused podcast in July of this year.

The Estonian media has tended to overlook

EPL also stated that the Estonian media has a tendency to overlook. The overall story of the company, only jumping into action when major events. Such as the signing of multi-million-euro sponsorship deals. With English Premier League teams Watford, Southampton. And Arsenal take place, according to the company.

While Heath is no longer involved in the day-to-day operations at Yolo. He has reportedly been known to drop in on customer service. Heath is well-known in the expat community for his support for Estonian cricket. Which nowadays, or at least during the summer. Enjoys the use of a purpose-built pitch at Tiskre, west of Tallinn. While the company itself relocated to louche offices purpose-built in Kalamaja (It has around eight other offices in other).

Despite EPL’s inquiries and the company’s and its activities’ appearance in the Pandora Papers leak. A spokesperson for Yolo Group told EPL that there was transparency surrounding the company’s activities. Stating that: “There is exactly as much information about every aspect of the company. That can be found from public sources as we deemed necessary to publish.” And that this information constituted sensitive company information.

As EPL points out, Heath and his associates’ trail in managing assets. Stemming mostly from cryptocurrency gambling and channeled. Through tax havens discovered and published in Pandora’s papers. Heath himself, who owns Yolo Tech OÜ to the tune of 68%. Recalls forming various subsidiaries with the intention of managing investments. But claims they never got past the planning stage.

The EPL piece had a bizarre spider chart

A spider chart of Yolo Tech OÜ and its related enterprises published in the EPL. With shareholders including Maarja Pärt (CEO), Taruri Tiitsaar (CFO). Raido Purga (CFO), Reio Piller (CFO) and Mikk Kard (CFO) and Tallinn crypto gaming.

Most of the newer organizations are based in Malta, the “blockchain island”. That was the first EU jurisdiction to accept crypto-currency. As legal tender while exempting inhabitants from various taxes. (The standard tax in Malta of 35 percent on profits can mitigated almost to zero. EPL reported, by legally exploiting tax loopholes and the like).

Many countries still prohibit online gambling, but it has grown to be a lucrative industry worth. Around €500 million annually. Using cryptocurrency to gamble online. Is one method use by money launderers. And it is difficult for authorities to also distinguish from legitimate gambling.

Other issues the company has faced include the availability of Evolution games in jurisdictions. Where they banned – easy workarounds include using a VPN. aAnd links between video gaming and Tallinn crypto gaming marketed to children and later. Being susceptible to online gaming, as reported by the BBC.

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