Investor Carsten Maschmeyer's lawsuit financier allegedly ensnared in gambling lawsuits?
Kaput: The Fall and Hang-up of Gambling Claims Processor RightNow
Gambling finance startup RightNow, co-founded by entrepreneur Carsten Maschmeyer, is bankrupt. On February 25, 2025, the company shut its doors due to the stall of numerous gambling lawsuits.
Buying Your Winnings Upfront
RightNow's business model revolved around purchasing claims from its customers with real potential for compensation, as reported by the Rheinische Post.
Whether you're battling over data privacy infringements, flight delays, or exorbitant health insurance costs, RightNow would take on your fight, paying you in advance. The payout amount was determined by the likelihood of the court decision, which ranked from favorable to unfavorable.
Even after its bankruptcy, RightNow's homepage still flaunts the "Instant Cashback for Your Gambling Losses". This eye-catching offer might have played a part in the startup's downfall, as many ongoing gambling lawsuits are on ice at the moment.
ECJ's Decision on the Line
Several courts, including the Bundesgerichtshof (BGH), have posed questions to the European Court of Justice (ECJ) regarding gambling law matters.
The most significant case is likely the quarrel between sports betting provider Tipico and process financer Gamesright, one of RightNow's competitors. The ECJ must ultimately rule on whether the Malta Gaming Authority license allowed for legal gambling in Germany before the 2021 State Treaty on Gambling.
Previously, these cases were usually resolved through an out-of-court settlement. Some experts suggested that gambling companies preferred to steer clear of a definitive ruling by the BGH or ECJ to avoid a swell of lawsuits.
Regrettably, with the ECJ decision imminent, the willingness of casino and sports betting providers to opt for settlements seems to dwindle. A groundbreaking ruling is inevitable until the ECJ hands down its decision, and all similar cases will remain dormant in the meantime.
Bill No. 55: A Shield for International Gambling Providers
Providers operating in Malta enjoy a layer of protection from overseas enforcement of penalties, courtesy of the controversial law known as Bill No. 55. Although the EU Commission is currently looking into whether this law conflicts with Union law, it remains in effect until a decision is made.
Claimants from Germany face an additional hurdle when trying to recover winnings, even if they manage to win their cases. Sometimes, reclaiming what rightfully belongs to them becomes a challenge, especially since many online casinos are operated by shell companies.
This issue was underscored by the Casino Papers leak, revealing the difficulty of identifying the players and retrieving the funds.
Can RightNow Make a Comeback?
Despite the apparent insolvent state of RightNow GmbH, the founders have already established a new company - RN Inkasso GmbH. True to its name, the focus is on debt collection, not process financing.
The founders have stated that all customers have been paid out. Additionally, there are ongoing proceedings in which RightNow could emerge victorious, potentially restoring the company's financial stability. However, the chances of these proceedings succeeding are uncertain due to resource constraints.
The future of the company remains uncertain as it navigates these proceedings. It remains to be seen if RightNow will vanish from the market in the coming weeks or if a new investor comes to the rescue. The founders told the Rheinische Post, "We are firmly confident in the future of the business model!"
- What about the possibility of RightNow venturing into debt collection instead of process financing with their new company, RN Inkasso GmbH?
- As the European Court of Justice (ECJ) is about to deliver a decision on the line between legal gambling and infringements of gambling laws, will the general news await this ruling with bated breath?
- Considering the ongoing gambling lawsuits, the controversial Bill No. 55, and the difficulty in identifying players and retrieving funds, will international gambling providers continue to be shielded from adversity?
