Key Takeaways:
- Gibraltar Court rejects appeals by former Mansion CEO Karel Mañasco in civil case
- Mañasco’s attempts to overturn strike-out order and appeal disclosure ruling fail
- Court upholds judgment favoring Mansion Group in €2.5 million embezzlement claim
Former Mansion CEO’s Appeals Denied in Gibraltar Court
The Gibraltar Court of Appeal has delivered a significant blow to Karel Mañasco, the former CEO of online gaming operator Mansion Group. In a ruling on June 12, the court rejected multiple applications filed by Mañasco in a high-profile civil case centered on alleged misappropriation of company funds.
The WWML Claim
At the heart of the legal battle is the ‘WWML claim,’ which alleges that Mañasco funneled over €2.5 million ($2.68 million) and £127,000 (about $172,600) to a company called WWML between 2018 and 2019. Mansion Group contends these payments were for fictitious consultancy services, effectively channeling funds to an offshore entity for Mañasco’s personal benefit.
Court’s Decision
The Chief Justice had previously ruled that Mañasco’s defense and counterclaim on the WWML issue would be struck out unless he provided complete answers about a €112,000 ($129,400) payment to KM Accountants, a firm allegedly under his control. Despite Mañasco’s eventual response, the court found his submission dishonest and made in bad faith.
The Court of Appeal upheld this assessment, finding no grounds to overturn the lower court’s decision to enter judgment in Mansion’s favor on this aspect of the case.
Implications for the iGaming Industry
This case highlights the importance of financial transparency and accountability in the online gambling sector. As the industry continues to grow and attract more scrutiny, operators must ensure robust internal controls to prevent potential misuse of funds.
Mansion Group: A Major Player in Online Gaming
Mansion Group has been a significant presence in the online gaming landscape for over two decades. The company operates two prominent casino brands, Casino.com and MansionCasino, known for their strong performance and premium user experience.
Regulatory Compliance
All Mansion brands adhere to UK regulations and are licensed under Gibraltar’s stringent e-gaming framework, widely regarded as one of the world’s most respected regulatory jurisdictions for online gaming. This commitment to compliance underscores the importance of maintaining high standards in the competitive iGaming market.
The outcome of this legal battle may serve as a cautionary tale for industry executives and reinforce the need for strict governance practices within online gambling companies. As the sector evolves, maintaining trust and integrity will be crucial for operators looking to thrive in an increasingly regulated environment.
