The ongoing legal saga surrounding Karel Mañasco, the disgraced former chief executive of Mansion Group, has taken another dramatic turn as Gibraltar’s Court of Appeal firmly rejected his latest attempts to overturn judicial decisions in what has become one of the territory’s most high-profile corporate fraud cases. The 44-year-old executive, who once held dual roles as CEO and CFO of the prominent Gibraltar-based iGaming operator, now faces the consequences of what authorities describe as a systematic scheme to misappropriate millions in company funds.
The Mounting Legal Pressures
Mañasco’s legal troubles have intensified significantly over the past year, with the executive facing multiple criminal and civil proceedings simultaneously. In May 2025, the Supreme Court of Gibraltar sentenced him to 12 months in custody for contempt of court, stemming from his repeated violations of a worldwide freezing order that had been imposed on his assets in March 2023. The contempt charges arose after investigators discovered that Mañasco had exceeded court-imposed spending limits, transferred funds into his wife’s bank account in Spain, and used unauthorized bank accounts while under the restrictions.
The freezing order itself was the result of allegations that Mañasco had misappropriated approximately £5 million of company funds during his tenure at Mansion Group. However, the executive’s legal challenges didn’t end with his imprisonment. Rather than appearing for his contempt sentencing in April 2025, Mañasco filed a recusal application through his legal counsel, claiming that Chief Justice Anthony Dudley had demonstrated bias throughout the proceedings and should be removed from the case.
In his application, Mañasco painted himself as “David taking on Goliath,” alleging that Mansion Group, the law firm Isolas, former minister Albert Isola, and the Gibraltar Regulatory Authority were all colluding against him. He characterized the proceedings as retaliation for his alleged whistleblowing about illegal practices at Mansion, though he provided no substantiating evidence for these serious accusations. Chief Justice Dudley rejected the recusal application, stating that while stepping down would be “the easy option,” doing so would be wrong.
The WWML Claim: Unraveling the Alleged Fraud Scheme
At the heart of the civil proceedings lies what’s known as the “WWML claim,” which has become central to understanding the alleged scope of Mañasco’s financial misconduct. This particular aspect of the case involves accusations that between 2018 and 2019, over €2.5 million and £127,000 were paid to a company called White Wizard Media Limited (WWML) for consultancy services that Mansion Group contends were entirely fictitious.
The alleged scheme worked by creating the appearance of legitimate business transactions while actually funneling money to offshore entities for Mañasco’s personal benefit. Court documents reveal that there were 14 separate invoices from WWML to Mansion totaling €2,508,035.36 during this period. Supporting this pattern of alleged fraud, KM Accountants, a firm allegedly under Mañasco’s control, invoiced an additional €112,000 during the same timeframe.
The evidence presented by Mansion Group’s legal team includes a £94,000 payment directly to Mañasco that they assert can be traced back to the transfers made to WWML, creating what prosecutors describe as a clear money trail. When the Chief Justice ordered Mañasco to provide complete and substantive answers about the €112,000 payment from KM Accountants, his eventual response was deemed dishonest and made in bad faith by the court.
The Court of Appeal’s recent decision upheld this assessment, finding no basis to overturn the lower court’s judgment in favor of Mansion Group on this crucial aspect of the case. The appeal was further compromised by procedural failings, as Mañasco failed to file required documents including a Notice of Appeal and Grounds of Appeal within the mandated timeframes.
Gibraltar’s Position in Global iGaming Regulation
The Mañasco case has unfolded against the backdrop of Gibraltar’s position as one of the world’s most respected regulatory jurisdictions for online gaming. The territory has built its reputation on stringent regulatory standards and comprehensive oversight mechanisms that have attracted numerous iGaming operators seeking credible licensing.
Gibraltar’s regulatory framework underwent significant updates with the introduction of new Gambling Act provisions that require operators to maintain a “sufficient substantive presence” in the territory. This requirement was designed to ensure that licensed operators contribute meaningfully to the local economy through job creation, tax revenue, and equipment location, rather than simply using Gibraltar as a licensing convenience.
The regulatory approach in Gibraltar emphasizes five core objectives: preserving confidence in gambling markets, protecting consumers particularly vulnerable individuals, promoting fair and responsible gambling, preventing links between gambling and crime, and maintaining the public interest and reputation of Gibraltar. These objectives take on particular significance in cases like Mañasco’s, where alleged criminal activity threatens the integrity of the entire regulatory system. The Gibraltar Licensing Authority operates with rigorous standards and maintains a comprehensive approach to licensing that has earned international recognition. However, the territory’s regulatory bodies also face ongoing challenges in detecting and preventing sophisticated fraud schemes, particularly those involving senior executives who have intimate knowledge of compliance systems and procedures.
The Rise and Fall of Mansion Group
Mansion Group’s corporate history reads like a classic tale of iGaming industry evolution, making the current scandal all the more striking. The company was founded in 2003 by private investors who established operations in Gibraltar, launching their first casino brand, MansionCasino.com, in July 2004. Within a short period, the group expanded its portfolio with MansionPoker.com and began establishing itself as a significant player in the global online gaming market, which now has continued to expand and it includes online crypto gaming.
The company’s early years were marked by ambitious marketing initiatives and strategic partnerships. In 2005, Mansion partnered with Fox to produce the Emmy Award-winning Poker Dome Challenge series, which aired 26 episodes over the Fox Network in the US before expanding internationally. This high-profile television presence helped establish the brand’s credibility and reach in the competitive US market.
Mansion’s growth strategy included significant investments in sports sponsorship, becoming the official sponsor of Tottenham Hotspur F.C. in 2006. The company later expanded its sponsorship activities to include Crystal Palace F.C. and A.F.C. Bournemouth, with the latter becoming a Principal Partner relationship in 2017. These partnerships provided valuable brand exposure in the lucrative UK market while associating the Mansion name with prestigious Premier League football clubs.
The acquisition of Casino.com in 2007 marked a pivotal moment in the company’s development. Rather than simply purchasing an existing operator, Mansion converted Casino.com from an online marketing site to a fully operational gaming platform, demonstrating the company’s technical capabilities and strategic vision. This acquisition would eventually make Casino.com one of the group’s flagship brands alongside MansionCasino.
By 2018, Mansion Group was celebrating its 15th anniversary and had established itself as a provider of online gambling and entertainment with an international player base and strong market share. The company operated multiple brands catering to different market segments, with Casino.com serving as the flagship brand. At its peak, the group employed between 51-250 people and generated estimated revenue of $10-50 million annually.
However, the company’s fortunes began to decline significantly in recent years, coinciding with the period when Mañasco’s alleged fraudulent activities were taking place. In early 2023, Mansion Group announced its exit from the UK gambling market, withdrawing its full online casino portfolio including Casino.com, MansionCasino.com, and SlotsHeaven.com. This withdrawal followed the earlier termination of the flagship MansionBet sportsbook from the UK market in 2022.
The situation deteriorated further in October 2023, when Mansion Group announced the complete shutdown of its B2C operations, permanently closing both Casino.com and MansionCasino.com. In a statement to affiliates, the company described the decision as “difficult” but necessary after “careful consideration and evaluation of our business operations”. The closure was completed by October 26, 2023, with all affiliate accounts required to be closed by October 31.
Patterns of Corporate Fraud in the iGaming Industry
The Mañasco case fits into a broader pattern of corporate fraud and financial crime that has plagued the online gambling industry since its inception. The iGaming sector has proven particularly vulnerable to various forms of financial misconduct due to the large volumes of money flowing through these businesses and the complex international structures often employed.
Recent data indicates that first-party fraud alone cost online gaming operators $2.8 billion in 2024, with fraud rates surging 73 percent from 2022 to November 2024. The gambling industry faces annual losses of approximately $1 billion due to various forms of fraud, making it one of the most targeted sectors for financial crime.
Money laundering through online gambling platforms has become increasingly sophisticated, with criminals using these venues to obscure the origins of illegally obtained funds. The attraction for money launderers lies in the large amounts of money flowing in and out of gambling platforms, making suspicious transactions easier to hide among legitimate activity. Online casinos’ acceptance of multiple payment methods and facilitation of international transactions further enhances their appeal for criminal enterprises.
The industry has witnessed several high-profile cases similar to the Mañasco affair. In 2011, federal prosecutors in the United States indicted eleven individuals associated with the largest online poker sites, including PokerStars, Full Tilt Poker, and Absolute Poker, for bank fraud, money laundering, and illegal gambling offenses. The case involved allegations that company owners engaged in schemes to deceive banks and financial institutions into processing billions of dollars in payments by disguising them as transactions for non-existent online merchants.
The scale of that operation was staggering, with prosecutors obtaining restraining orders against more than 75 bank accounts in 14 countries and seeking $3 billion held by the companies through civil forfeiture proceedings. The defendants allegedly used phony websites, including fake flower delivery shops and pet supply stores, to handle credit card payments and disguise the true nature of gambling transactions.
Regulatory Response and Enforcement Trends
The regulatory response to corporate fraud in the iGaming industry has intensified significantly in recent years, with authorities worldwide implementing stricter oversight mechanisms and enhanced penalties. The UK Gambling Commission, for example, has taken increasingly aggressive enforcement action against operators who fail to implement adequate anti-money laundering and social responsibility procedures.
A notable case involved White Hat Gaming, which was required to pay a £1.3 million regulatory settlement after inadequate procedures led to failures including not establishing the source of funds for customers who lost substantial amounts in short periods. The case highlighted systemic weaknesses in how operators identify and manage customers at higher risk of money laundering and problem gambling.
Gibraltar’s regulatory authorities have also strengthened their enforcement capabilities, introducing Unexplained Wealth Orders (UWOs) in October 2024 as an additional tool for investigating suspected financial crimes. These court-issued orders compel individuals or entities to provide detailed accounts of how they obtained assets worth more than £50,000, with failure to provide satisfactory explanations potentially leading to civil forfeiture proceedings.
The introduction of UWOs represents a significant enhancement to Gibraltar’s anti-money laundering toolkit, allowing various enforcement authorities including the Royal Gibraltar Police, HM Customs, and the Attorney General to request explanations when legitimate income sources appear insufficient to justify an individual’s wealth. This proactive approach to financial investigation reflects the territory’s commitment to maintaining its reputation as a credible regulatory jurisdiction.
The Broader Impact on Gibraltar’s Financial Services Sector
The Mañasco case has implications that extend far beyond Mansion Group, potentially affecting Gibraltar’s broader reputation as a financial services center. The territory has worked hard to establish itself as a credible jurisdiction that adheres to international standards for transparency and anti-money laundering compliance.
Similar cases in other jurisdictions have demonstrated the long-term reputational damage that can result from high-profile fraud cases. The prosecution of Gibraltar Private Bank and Trust Company in 2016, which resulted in a $4 million penalty for willfully violating federal anti-money laundering laws, showed how individual institutional failures can impact broader perceptions of jurisdictional oversight.
In that case, Gibraltar Private Bank’s substantial AML program deficiencies led to its failure to monitor and detect suspicious activity, ultimately causing the bank to fail to file at least 120 suspicious activity reports involving nearly $558 million in transactions. These deficiencies also unreasonably delayed the bank’s reporting regarding accounts related to a $1.2 billion Ponzi scheme, demonstrating how institutional failures can have far-reaching consequences.
The current challenges facing the iGaming industry, combined with high-profile cases like Mañasco’s, have prompted regulators worldwide to reassess their oversight approaches and strengthen their enforcement capabilities. The surge in online gambling fraud, including bonus abuse, affiliate fraud, and first-party chargeback fraud, has made effective regulation more critical than ever.
As the legal proceedings against Mañasco continue to unfold, they serve as a stark reminder of the ongoing challenges facing both the iGaming industry and its regulators in maintaining the integrity of what has become a global entertainment sector worth hundreds of billions of dollars annually.
Related Pages
- Gaming Giants Clash: How a £51 Million Deal Turned Into a Legal Nightmare
- Private Equity Giant Blackstone Explores Strategic Exit from Clarion Events Portfolio
- Evoke Shifts Its Focus to Europe with Plans for Michigan iCasino Shutdown by 2025
- Blackstone Billionaire CEO Highlights Bitcoin’s Consistent Use by Criminals
