Rollbit, an online casino, has recently lost its license and now faces allegations of operating illegally. The most pressing issue for players is Rollbit’s legal status after losing its license, as the removal of the required shield and license from the site indicates that the casino may be operating illegally.
Rollbit has stated that they are engaged in an annual license review, an explanation that some commentators find unconvincing. As one expert in a press release distributed on cryptonews.com notes, “These licenses are valid indefinitely as long as the master license remains valid for five years,” which seems to contradict Rollbit’s claim of needing to renew its license annually.
Marketing Practices and Potential Fraudulent Activities
In light of the allegations of illegal operation, Rollbit’s influencer marketing strategy has also come under scrutiny. The company’s founder is accused of making undisclosed influencer deals to increase the price of their RLB token, the token used in their crypto casino. These deals have raised concerns about potential market manipulation due to their undisclosed nature.
Furthermore, Rollbit is said to have provided influencers with fake balances to showcase large wins using house money, enticing audiences to gamble through affiliate links. This practice raises concerns about potential deception and fraud, as unsuspecting players might be drawn into gambling and generating revenue for the casino.
Accusations of Manipulation and Controversial Tactics
Rollbit has faced accusations of price manipulation with its Rollbot NFTs, with claims that the company resorted to these tactics to avoid insolvency. In October 2021, a player reportedly won $10 million, which the casino could not pay. Rollbit is said to have raised funds through the release of Rollbots V1, a collection of 10,000 NFTs, and manipulated floor prices by buying up low-listed Rollbots.
Additionally, the casino has been accused of imposing undisclosed fees on players for crypto futures trading, which even their staff cannot explain.
The Crucial Role of Regulation
Players should be cautious of casinos like Rollbi losing licenses, which may be operating without regulation and with potential transparency issues or questionable practices. Regulators play a vital role in protecting consumers from unethical business practices and should closely examine the actions of companies like Rollbit to ensure fair and lawful operations.
