On April 18, 2023, Araxio was declared bankrupt by the court in Curaçao. Araxio appealed against this declaration of bankruptcy, but the judge also declared the gambling company bankrupt there. The court in Curaçao has based the bankruptcy declaration on the fact that Araxio has been ordered to pay players in Austria and Germany and has so far refused to do so.
Araxio, a sublicensee of a licensee in Curaçao, which operates online casinos, has also been declared bankrupt on appeal. The reason for the bankruptcy is the fact that the gambling company has several outstanding debts with more than one creditor, as can be read in the judgment. In both Austria and Germany, Araxio still has an outstanding claim from players who claim their lost amount back.
In Austria, the gambling company was sentenced in absentia to pay € 25,314 to a player who did not receive his prize money. In addition, Araxio also has to pay for almost € 4,000 in litigation costs. It is no longer possible to appeal against this decision.
Araxio also has to pay the bill in Germany, because the Landgericht Hamburg ruled in favor of Hendrik Schlüsselburg on 2 June 2022. Schlüsselburg is entitled to an amount of € 5,760 plus interest and costs. As in Austria, it is no longer possible to appeal against this ruling for Araxio.
Araxio has to pay these amounts to its creditors because the company in Austria and Germany allowed players to play in their online casinos without a license. A sublicence from Curaçao is not valid in these two countries. Although Araxio acknowledges these statements, the company says it cannot be declared bankrupt because of these statements.
Araxio indicates as one of the arguments that between the players and the gambling company the law applicable in Curacao is contractually applicable, since Araxio operates as a sublicense holder of a Curacao license holder. Therefore, Araxio believes that the claim of the players who won money is not enforceable in Curaçao. The recognition of the judgments in Austria and Germany would be contrary to public order. Therefore, no bankruptcy can take place on this basis, according to the sublicensee.
Foreign claims can be executed
Although the Court understands the position that the foreign judgments are contrary to public order in Curaçao, it does not apply in this case. The rulings concern online gambling at an online casino. This activity is no longer regarded as socially undesirable in Curacao, according to the judge’s opinion.
Due to the lack of the necessary license at the online casino in Austria where the player had lost his money, the agreement that Araxio entered into with the player is not legally valid. The situation is different in Germany, because there is a treaty between the Kingdom of the Netherlands and the Federal Republic of Germany “on the mutual recognition and enforcement of judgments and other enforcement orders in civil matters”. As a result, the recognition is not contrary to the public order of Curaçao.
The court concludes from this that both foreign claims can simply be executed. It is also clear that there are several creditors. During the appeal hearing, the judge established that Araxio no longer has any assets and no longer undertakes any activities. Araxio’s shareholder is also not prepared to make money available to pay both debts. All things considered, it appears that Araxio can no longer pay.
Based on this, the conditions for declaring Araxio bankrupt have been met, according to the Court of Curaçao. The previous ruling also stands on appeal. Araxio was also ordered to pay the legal costs incurred during the appeal. However, the Court sees no reason to also order Araxio’s agent to pay the costs of the proceedings. Something that was requested by the creditor.