Astralis, the Danish esports organization, terminated its partnership with Roobet a day after making a public announcement about the arrangement. Roobet is an online casino brand that has been working to build a name for itself since its launch in 2019.
The operator is known for being among the leading crypto casinos with a Curacao gambling license. If you are interested in learning about the operator, read more about Roobet here.
According to a recent statement by Astralis, the company spokesperson admitted that they had failed to perform due diligence as required by local laws, hence the frustration of its contract with Roobet.
The Unexpected Turn of Events
A day before the sad news, the two companies had announced a two-year partnership deal. The agreement entailed having Roobet’s logo featuring on the jerseys of Astralis’ CS: GO roster and all digital platforms.
Besides the jersey sponsorship agreement, the two brands were poised to collaborate on a host of other projects that would have benefited both brands. The termination of the partnership will therefore hurt both Astralis and Roobet.
When commenting on the matter, Astralis CEO Anders Horsholt noted as follows:
“We have advised Roobet on the issue, making it known that we wish to terminate our initial contract. We take the blame for this frustration because we failed to perform our due diligence around the legalities of the arrangement per local legal provisions. Whenever you make a mistake, you ought to correct it, which is what we are doing.”
While Anders did mention that the reason for termination of the contract was due to the legality of its subject, the actual details of the alleged legal matters were never confirmed in the statement.
The Legal Hallmark in Denmark
According to the guide published by the ICLG, any operator interested in setting up an online casino in Denmark must be legitimately established in the EU/EEA, or alternatively, have an appointed representative in Denmark.
Roobet, a brand name of Raw Entertainment B.V, holds a license issued by the Government of Curacao. It has been operating within the jurisdiction of the Dutch Caribbean Island since its inception back in 2019.
Additionally, gaming providers are required to obtain a gaming license from the Danish Gaming Authority for them to offer online casino gaming and gambling in Denmark. As of this writing, it was not clear whether Roobet had acquired the requisite online casino license, but what’s certain is that the entity does not appear on the list of License Holders.
How Did Roobet Respond to the Contract Termination?
As of this writing, Roobet’s spokesperson is yet to make a statement regarding Astralis’ termination of their contract. We are left to make our assumptions as to why the casino operator has decided to remain silent.
The obvious guess would be that the operator is yet to receive the approval of Denmark’s gaming and gambling authorities. If that’s the case, the contract between Astralis and Roobet was prima facie void on the grounds of illegality.
An esports insider was quick to commend Astralis for taking prompt action to correct its misstep. The Copenhagen-based esports organization has taken accountability for its mistake, setting a good example for other industry players.
It would be interesting to see the public statement that Roobet will make on the matter if at all the company is planning to make such a statement. We have got no option here but to flex our patience muscle.
A Brief Overview of Astralis
Astralis is a professional esports organization representing one of the top Counter-Strike teams globally. The Danish organization is best known for its Counter-Strike: Global Offensive team, but there are other teams representing the organization in games such as League of Legends and FIFA.
Its parent company is the Astralis Group, which previously managed Future F.C and Origen before its merger with other teams under the Astralis brand. However, Australis was originally founded by RFRSH Entertainment ApS.
RFRSH Entertainment was later split into an independent subsidiary known as the RFRESH Teams ApS in November of 2018. This too did not last for long due to conflict of interests within the tournament series BLAST Pro Series.
RFRSH demerged Astralis in 2019. RFRESH was renamed Blast ApS, while RFRESH Teams ApS renamed Astralis Group Management ApS, which is now a fully owned subsidiary of the Astralis Group Holding ApS.
Astralis Group holds the record for being the first esports organization to issue an initial public offering (IPO).
A Brief Overview on Roobet
Roobet is a crypto-powered online casino platform based in Belize City, Belize. The gambling site allows players to set up real-money accounts and enjoy some of the best online casino games such as slots, blackjack, baccarat, roulette, and more. What makes the brand popular among players is its wide range of payment options, including the most recent, cryptocurrencies.
The operator has successfully managed to combine crypto with online gambling, creating a virtual environment where casual gamblers and high rollers can coexist. In under three years since its launch in 2019, the company has managed to bring significant changes to the online gambling world.
Players at Roobet can choose to place wagers using the top cryptocurrencies such as Ethereum and Bitcoin. The use of crypto for online casino gambling allows players to players to play low wagers on the tune of 1 cent, and the stake amount can grow to thousands of dollars if the player so wishes.
The game collection at this virtual casino is so rich, guaranteeing an immersive and thrilling gambling experience. This flexibility is what renders Roobet such an ideal online casino platform.
Both Roobet and Astralis are two well-established brands in the iGaming industry. The partnership between them would have gone a long way to boost their brand awareness and further cement their establishment in the sector.
It is unfortunate that the contract did not get to see the light of day, but we are also glad that Astralis took a bold step to right its wrong. Whatever legal challenge the contract suffered, we are hoping that the two will work on having it remedied, reinstating the contract and the original arrangement.