Why Do Online Casino Sites Get Closed?

Online gambling has been an industry in constant growth for the last couple of decades. Gamblers see new casino sites opened every month and wonder if using their services is worth it. Most experts warn that new brands are more vulnerable to early closure. However, the real question is how to protect ourselves from dishonest operators, closing their venues and not paying our money! The answer could be in the reasons that forced these companies to seize business. After all, iGaming is one of the most profitable sectors these days.

Reasons for Shutting Down

You may never know the exact reason for your favorite online casinos’ closure. But in most cases, it’s one of the following:

• Merger with other brands or absorption by another operator;
• Black PR and impossibility of a proper reaction;
• Bankruptcy – huge losses and unavailability to register profits;
• Online gambling legislation changes;
• Fraudulent activities detected by regulatory authorities;
• Major reputation loss due to scandals, negative feedback, or unresolved complaints.

Some reasons will not affect your account balance, as companies that are facing difficulties but are willing to assist their customers will give a heads-up. Thus, you’ll know that even if a certain operator is accused of fraud, it is rather not guilty.

Reputation could continue to be essential for many enterprises as they may run other gambling platforms. This is why detailed research is crucial before trusting your money to an unknown and recently launched casino. We would say that using the services of well-established and popular brands is the key, but we saw giants collapse in the last few years too. Gambling is risky for many reasons, so cash out your money as soon as possible and keep only a small amount in your account for future playing. We recommend avoiding operators paying jackpots in monthly installments!

Recently Closed Online Casinos

It’s hard to track the record of all casino brands running on the market today. However, we did detailed research, and here are some of the popular gambling sites that have closed recently:

• Big on Bets
• Planet Casino
• Adler Casino
• Free Spins Casino
• VegasCasino.IO
• Roxy Palace
• All Irish Casino
• Dash Casino
• Golden Riviera Casino
• Prestige Casino.

Keep in mind that the list is quite long, so always check the platform and read reviews from reputable sources. Some casinos may resume operation after fighting the difficulties, especially if they are due to a delay of license renewal or disputes escalated to an ADR. The major regulators, like the UK Gambling Commission and the Malta Gaming Authority, are very sensitive and prefer to freeze the activities of certain operators in such cases. Of course, if the reason is bankruptcy, the chances of getting your money are lowered significantly. Unfortunately, this is why most online casinos close!

Poor Management?

Poor administration does not always mean a lack of qualities or experience in the people who practice it. The problem is in the complexity of the iGaming industry. The same strategy may work with a few brands and fail with another in the same market. A few consecutive periods without an operation profit usually mean bankruptcy due to the extremely high expenses every online gambling operator faces. For example, a starting casino site must pay in advance for software, license, website cost, and integration of payment providers, marketing, and servicing staff. The sum only for all this can easily reach a million dollars.

We said only because every online casino must keep a cash balance, a mandatory requirement by all major regulatory bodies. It can be from several thousand to half a million, depending on the size of the venue. Many companies are tempted to skip that rule, but this is a pure example of poor management plus a deviation from fraudulent activities. The key could be a larger budget or better research, but since this is a customer-oriented article, we would suggest tracking your casino operator’s behavior. If you see a major drop in bonuses and promotions or slower withdrawals than before, it’s better to search for an alternative and collect your money immediately.

Casino Closures vs. Their Reputation

Perhaps the first association in your mind with the current subject is fake casinos. And you will not be far from the truth in many cases, as solid operators are too heavily connected to the market to allow easy closure. However, here is a thought to consider – rebranding. Due to a bad reputation and unsuccessful attempts to repair it, some companies decide to abandon their current projects, register new firms and run the same venues under different names.

Of course, those are just the bad examples. In online gambling, acquisitions and mergers are common. If any fresh site makes a major breakthrough for any reason, the chance of being quickly bought by a larger group of companies is almost 100%. Huge minds in this business know that a brand’s value can rise by millions in just a few months. Of course, some keep the name, while others change it, redirecting the existing and satisfied customers to their “new” project. In any case, reputation is the main driver and reason for the closure of many online casinos.

Final Words

Casinos will continue to pop up and close, so you need to know when to switch sides. These places are not financial institutions, and your money is only guaranteed by the company and, eventually, the licensing authority. However, a few-hundred dollar case may prolong with years, and it’s just not worth the effort. So, our advice is to play your favorites, complete bonuses, and cash out your profits!