Bitcoin-related companies have been flooding the English Premier League recently. However, for Wolverhampton Wanderers FC (Wolves), their latest sponsorship deal with CryptoMillionsLotto, a lottery which pays gamblers a reward in Bitcoin, has the company’s CEO being scrutinized.
According to a report from local English news source the Mirror, the partnership may be under review based on previous business practices. It is alleged that CEO Sulim Malook does not have a UK gambling license and that his former business, Fat Cat Gaming, failed miserably.
Looking deeper into the company and its website, a few other red flags have been raised. Additionally, the business practices of Fat Cat Gaming caught the ire of angry bloggers that claimed they were encouraged to promote the game in India in exchange for shares, which were either worth very little and difficult to cash in.
English Premier League Football’s Sketchy Partnerships
The report from the Mirror outlines that Malook does not have a UK gambling license, which he confirmed to the news outlet, saying,
“I have done a contract with Wolves and signed it on behalf of our company (Ofertas365). I have paid them. A lot of people are very happy with it and I am happy with it, We don’t have a UK gambling license but we aren’t doing business in the UK.”
At the onset of the partnership, there did not seem to be much concern from Wolves as Steve Morton, head of corporate sales at Wolves, said:
“We’re delighted to partner with Crypto Millions Lotto, an ambitious company that is keen to increase its exposure with the help of Wolves’ global reach across various platforms. We’re also excited to develop our relationship, which will also see the Wolves brand reach new audiences in Eastern Europe and South America.”
Dodgy Business Practices
However, if the lack of a UK gambling license is not such an issue for Wolves or Malook, the football club may be inclined to examine concerns that were raised when Fat Cat Gaming failed.
Fat Cat Gaming was launched in 2015 by a crowd-funding platform FundedByMe with an investment of £8,500 in return for a one percent stake, according to the Mirror.
It promised users a free-to-play mobile game, called Lucky 6, but all hyperlinks to its sites have been disabled. This also ties in with a promotion plan in India, which yielded nearly no return for bloggers.
What is also of concern to those who win big through Crypto Millions Lotto, is that in the terms and conditions, it is explained that with pay-outs for ‘large winnings,’ there could be a suspension of the pay-out for up to two years dependant on its insurance partner Lloyds.
It is also being reported that officials from the club have since gone back to the outside agency, who recommended the company as a sponsor.
Images courtesy of Shutterstock.
Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!