Sweden’s Stillfront Group is planning to close the Indian subsidiary Moonfrog Labs’ Bangladeshi operations run by Ulka Games after the Rapid Action Battalion (RAB) arrested six men on October 30 on charges of smuggling “tens of millions of taka” out of Bangladesh through gambling apps, such as “Teen Patti Gold”. Among the arrestees was Ulka Games founder and CEO Jamilur Rashid who was identified as the main suspect in the money laundering case.
Stillfront shares in Sweden fell by 13 percent on Thursday, plunging to a three-year low due to the aftermath of the incident. On the positive note, Stillfront has been monitoring the process closely together with their local legal advisors despite no charges were imposed against the parent company.
Ulka, who had been given licence by the government to develop games, send their huge amount of salary money to abroad for online gambling apps which is banned in Bangladesh. Also, chips were given at free of cost in the online games at the start and later were charged for it. Stillfront has now claimed that no regulation in Bangladesh states use of virtual chips in online game as illegal.
“Currently the law enforcement agencies of Bangladesh are considering the use of virtual chips in online gaming as an act of illegal online gambling though no regulation in this regard has yet entered into force,” Stillfront told as quoted by bdnews 24.com.
Stillfront mentioned in a statement that the laws of Bangladesh are unviable to conduct online gaming business and hence, they would like to close Moonfrog Labs’ operations in Bangladesh.
“Due to the measures taken by Bangladeshi authorities, including the new interpretation of what constitutes online gaming as opposed to online gambling under the laws of Bangladesh, Stillfront finds it unviable to conduct online gaming business in Bangladesh under these circumstances,” Stillfront told in a statement.
“Through its subsidiary Moonfrog Labs, Stillfront has therefore decided to evaluate a potential process to close Moonfrog Labs’ operations in Bangladesh,” it added.