This Casinoplusbonus EN guide walks you through why online casinos close, dispels myths, and helps you withdraw money from closed casinos. (All images courtesy of icetrayimages794410 on Vecteezy)
The online casino you have been searching for has closed. If any of our reviews show a casino has closed, you can search for alternative online casinos here.
But, what happens if you were a member of this platform with a balance?
Don’t worry because in most cases, you can get your money back. It is unusual for an online casino to close before giving you the chance to withdraw.
Sudden closures generally only occur with iGaming platforms with no licensing. One day, the casino is online; the next, the website no longer exists.
So, first off, you should always play at an online casino with a certified iGaming license.
Under the MGA, Curacao, iGO, KGC, or UKGC licenses, operators must follow financial rules. If the casino is closing, players have a grace period to withdraw funds.
We have seen it here on Casinoplusbonus EN many times. An online casino announces the date it will close date, and players withdraw before that time.
If an operator fails to provide a fair warning, the owners leave themselves open for a civil lawsuit. Many are not willing to take this risk due to legal implications. It is easy to find out operator information these days. To find out how easy it is, you can read our guide to finding casino operator company information.
How do I get my money back? Read our guide, online casino bankruptcy – how to get my money back.
Why Do Online Casinos Close?
There could be any number of reasons the casino has closed. Casinos are not immune to the same struggles any real-world business could have.
Some of the reasons a casino may close include the following:
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Most likely, the operator liquidated due to a lack of profits. Of course, this is usually because of a lack of players.
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The operator could not compete in an already saturated iGaming industry. New casinos especially have a tough time breaking into the industry.
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Ransom hacks can also send an operator into bankruptcy. If you consider the BetMGM hack to cost $100 million, a hack can be costly.
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Regulatory changes can cost the operators tens of thousands to setup compliance software. Regulatory changes in the UK have resulted in operators leaving the market.
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The casino may lose a customer base from a specific country due to regulation changes. This is something that could affect New Zealand in the future.
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Takeovers are common in iGaming. Quite often, competitors buy out the competition and grandfather members to their platform. They then close the old brand name.
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The operator received a fine that it could not recover from. Genesis Global liquidated after the UKGC fined the operator £ 3.8 million.
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High-roller players win big, and the casino cannot recover, which is rare. Most casinos have a monthly withdrawal limit to delay paying big wins in a lump sum.
Dispelling Myths Why Online Casinos Close
There are also some myths behind casino closures that are untrue. We’ll make you aware of some of these myths so you can brush them aside when here them on the BS grapevine.
| Myth | Truth |
|---|---|
| A player bankrupted the operator with a progressive jackpot win. | This is untrue, as the software providers pay the jackpot win and not the casino’s operator. |
| A casino closing means you will lose your money. | This is untrue as long as you play on a platform that operates under a reputable licensing authority. There is a grace period to withdraw or the casino will reimburse you via the original deposit method. |
| Casino closures are a scam. | Not all closures are due to fraudulent behaviour. Some close for legitimate reasons, as per the ‘Why Do Online Casinos Close?’ section above. |
What Happens if You Miss the Grace Period?
If you missed the grace period to withdraw your funds, then your situation is more complex. The operator will likely have attempted to pay your balance back to the original deposit method.
However, if this has not worked, and you didn’t withdraw, there is little chance of getting your money back as the operator is likely insolvent and the business closed. This is why it is important to make sure that at any online casino you still have an active balance, you can still read messages from that platform.
However, that does not mean to say it is impossible to retrieve your funds.
- Licensing Authority Assistance: If the casino operated under a reputable license, you can contact the licensing authority. They often have procedures in place to protect players and may be able to help recover your funds.
- Alternative Dispute Resolution: Some licensing bodies, like the UKGC, provide access to independent dispute resolution services. You can file a complaint with these services to escalate the issue.
- Payment Processor: If you used a credit card or other payment services, you could dispute the transaction. There is no guarantee this will work because there has been no fraudulent activity and the bank may not be able to recover the loss.
- Legal Action: As a last resort, you could file a legal claim. This is only worthwhile if the sum of money in question is significant.
The key is speed: You need to pursue any claims as quickly as possible because the longer you leave it, the more unlikely you’ll be able to retrieve funds.
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