Despite only being announced yesterday, Danish esports organisation Astralis has terminated its partnership with online casino platform Roobet.
In a statement by the organisation, Astralis admitted it hadn’t performed due diligence well enough around ‘local legal matters’.
A day prior, the two entities had announced a two-year deal. The partnership included Roobet’s logo being featured on the jerseys of its CS:GO roster and digital platforms. On top of the jersey sponsorship, Astralis and Roobet were to collaborate on a number of activations.
Anders Hørsholt, CEO of Astralis, commented on the matter: “We have today advised Roobet that with immediate effect, we wish to terminate the contract we presented on Thursday. In this incident, we did not perform our due diligence well enough around local legal matters, and when you make a mistake, you must correct it. This is what we do now.”
Exact details as to the legal matters were not confirmed in the statement.
According to legal guide ICLG, any company that is interested in setting up an online gambling platform in Denmark must be established within the EU/EEA or have an appointed representative within the country.
Roobet, which is the brand name of Raw Entertainment B.V., is licensed and authorised through and by the Government of Curaçao, a Dutch Caribbean island, and operates under its jurisdiction.
Moreover, a gaming provider must obtain a license from the Danish Gaming Authority to be able to offer online casinos and/or betting in Denmark, as seen on its website. It is not yet clear whether Roobet obtained an online casino license, however the company is not listed under ‘License Holders’.
Roobet has yet to issue a statement regarding its partnership termination with Astralis.
Esports Insider says: It is good to see Astralis taking action quickly after its misstep. The esports organisation has taken accountability for this mistake, however, it’ll be interesting to see what public statement Roobet will make, or even if the platform plans to make one.