Canbet Sportsbook for sale: Director comments to SBR
Sportsbook Review has spoken with the Director of Canbet (SBR rating D-) via telephone conference regarding unpaid player funds. Players have reported being owed over $740,000 through sportsbook complaints to SBR. The Canbet Director acknowledged this sum is a small fraction of their delinquent payout obligations and of user balances.
Canbet is unwilling to confirm the amount owed to players out of fear that a potential buyer would not want the public to know how much debt it took on. Canbet claims to have appointed an advisement group to assist with what they are calling an assets evaluation and sale. Canbet has to date maintained their position that poor accounting and glitches in their bonus software led the company to insolvency.
SBR will stay in contact with Canbet and post any updates received or learned. Players who have not already done so are asked to record their details via sportsbook complaint form through the SBR website.
SBR first reported of the Canbet delays in October 2013. A small handful of Canbet players reported payment as the backlog of delinquent withdrawals grew.
Canbet released a statement claiming to be working as diligently as possible to process payouts. Canbet was downgraded from C- to D+ on 31 October 2013. Several more SBR updates were posted during the course of the next few months as players voiced their outrage. Canbet was eventually blacklisted by SBR after failing to process payouts and showing signs of insolvency.
Canbet released the following statement to players on 12 February 2014:
Dear Canbet Clients
We are writing to update you on your client withdrawal that is still outstanding and explain the reason behind the delay. As has been previously reported during the last quarter of 2013 an issue occurred in the Canbet IT system that was related to a number of bonuses and promotions that were offered to our clients. This issue has been fully investigated and the outcome that resulted left a discrepancy between what management believed were the client balances and what the actual balances were.
At the end December as the full extent of this procedure was becoming clear, the step was taken to cease trading until the problem was completely identified. During January we were able to ascertain the full extent of what has taken place and as such there was a cash deficit within Canbet Sports Bookmakers UK Ltd.
This has occurred through the issuing of the cash bonuses which far outweighed the sum of cash deposits, therefore creating a “bubble effect” within our customer balances. Once discovered, the preference of the Directors of the company was to work with the shareholders to increase the capital within the company that would alleviate the problem and pay out the existing claims. The directors initially hoped that the parent company would reach agreement amongst the shareholders for this to occur, but unfortunately agreement could not be reached with the majority shareholder. We acknowledge that we had made previous statements that were made on the belief that these funds would be forthcoming and apologise for the inconveniences that this has caused. Such statements were made in good faith at the time they were made.
As such, the Directors over the last week have taken the steps to engage and work with a business asset agent to liquidate assets from within Canbet and its associated companies to recoup the funds to pay you and other clients. We wish to stress at this point in time that the directors of Canbet are doing everything possible to ensure that you are paid.
The UK Gambling Commission have continually been updated with our progress and have been advised of this direction that the directors have taken and are aware of the circumstances that have led to this decision. They also have diligently sought information from the company’s independent auditors and legal counsel ensuring that the facts that have been portrayed can be verified. They have also received a copy of this letter.
Finally, we wish to acknowledge that this experience has caused a lot of angst and anger amongst the Canbet customers. This has not been deliberate in any shape or form and we look forward to reaching a satisfactory outcome.
In summary, we reiterate that we have not abandoned Canbet or its clients and are working towards the objective of full payout of legitimate claims.
Board of Directors
Canbet Sports Bookmakers UK Ltd
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