Star Investor Carsten Maschmeyer's Lawsuit Financier Entangles in Gambling Lawsuits?
From the Ashes: The Rise and Fall (and Potential Rise Again) of Gambling Claims Startup, RightNow
By Timm Schaffner, Edited by Angela Burke - Republished on: May 03, 2025
In a twist of fate, the entrepreneurial journey of RightNow, a startup specializing in investing in gambling-related claims, has taken a dramatic turn. Last month, on February 25, 2025, the company was forced to file for bankruptcy.
Cash advance for potential winnings
The business model behind RightNow found favor among customers who had suffered losses, hinging on their ability to buy claims from customers that held a genuine chance of winning a lawsuit. This could encompass data breaches, delayed flights, excessive health insurance contributions, and gambling-related losses.
RightNow offered these customers the tantalizing prospect of cash in advance for their disputes, considering the probability of winning and calculating a discount accordingly.
In the wake of insolvency, the startup still displays a promise of "Immediate Refund for Your Gambling Losses" on its homepage - a tempting offer that experts believe may have contributed to the demise of RightNow. The reason? Numerous gambling lawsuits are currently on standby.
ECJ in the Spotlight
The European Court of Justice (ECJ) has found itself at the heart of a significant controversy, with various courts, including the Bundesgerichtshof (BGH), referring questions to the ECJ for ruling on gambling law issues. The most prominent case concerns the proceedings between sports betting provider Tipico and process financier Gamesright - a direct competitor of RightNow.
At the crux of this case lies the question of whether the license of the Malta Gaming Authority granted before the State Treaty on Gambling 2021 provided a legal basis for gambling in Germany. Historically, such disputes have been resolved through out-of-court settlements. However, the pending decision by the ECJ has seemingly dampened the interest of casino and sports betting providers in reaching such settlements, leading to a wave of paused proceedings.
Barriers to Enforcement
The protection offered to gambling providers based in Malta by Bill No. 55 further complicates the enforcement of penalties from Germany. The law is highly controversial and is currently under investigation by the EU Commission, since it infringes on Union law. This impediment, combined with the limited identification of actors and recovery of funds from online casinos operating as shell companies ("The Casino Papers" leak), presents a formidable hurdle for plaintiffs seeking redress.
Future Prospects for RightNow
As RightNow appears to be on the brink of disappearing from the market, the founders have already set their sights on a new venture - RN Inkasso GmbH. This new enterprise will focus on debt collection, signaling a shift away from litigation financing.
While all customers have reportedly been paid, ongoing lawsuits present an opportunity for regaining liquidity. The outcome of these proceedings, however, remains uncertain given the lack of funds to continue pursuing them. In a positive light, the founders express their confidence in the model's future, stating, "We firmly believe in the future of the business model!"
With new investors potentially on the horizon, the story of RightNow may yet take another unexpected twist. Stay tuned as this saga unfolds.
Enrichment Data:
Overall:
The European Court of Justice (ECJ) is currently reviewing a significant case (Case C-440/23) involving the compatibility of German gambling laws with EU law, particularly focusing on the licenses issued by the Malta Gaming Authority (MGA) and their impact on legal gambling in Germany.
*hidden info: repo_title: From the Ashes: The Rise and Fall (and Potential Rise Again) of Gambling Claims Startup, RightNow dataset_version: 1 article_version: 2 publish_date: 2025-05-03T00:00:00 update_date: 2025-05-03T00:00:00 author: Timm Schaffner editor: Angela Burke license: CC BY-SA 3.0 source: GitHub - iFixit/news-articles section: - technology - gambling - business
Background and Current Status
- Case Origin: The case began with a lawsuit filed by a German player against Lottoland, a Malta-licensed operator, alleging that the company offered services in Germany without a necessary German license. The case was later expanded to include more German consumers and other Malta-based operators operating in Germany without local licenses[3][5].
- ECJ Hearing: On April 9, 2025, the ECJ heard pleadings from the parties and Member States regarding the German rules on online casinos and betting. This case is crucial as it assesses whether Germany's Interstate Treaty on Gambling complies with EU law, specifically the free movement of services under the Treaty on the Functioning of the European Union (TFEU)[1][3].
- Advocate General's Opinion: The Advocate General's opinion is scheduled for July 10, 2025, which will provide a significant insight into the potential ruling[2][3].
- Potential Impact: The outcome of this case could have profound implications for the European gambling market. If the ECJ rules in favor of Malta-licensed operators, it could allow them to operate freely across the EU, potentially undermining local gambling regulations in countries like Germany and Austria[2][3]. This could also affect the business model of litigation financing companies that manage player loss cases[2].
Broader Implications
The case is part of a broader discussion on cross-border gambling in the EU, where there are no unified regulations, leading to legal challenges across member states. Recent developments, such as a Maltese court ruling refusing to enforce Austrian judgments against Malta-licensed operators, have added complexity to the issue[2].
*What about the legal implications for Gamesright, the competitor of RightNow, in the Tipico case?The ECJ's decision in the Tipico case could potentially impact Gamesright, as the court's ruling on the license of the Malta Gaming Authority may have broader implications for similar companies.
*Is there a likelihood of future lawsuits against RightNow's founders due to the bankruptcy and questionable business practices?The numerous gambling lawsuits currently on standby may increase the likelihood of future lawsuits against RightNow's founders, given the concerns surrounding their business model and practices.
*What role did financing from a financier like Carsten play in RightNow's business model?Financiers like Carsten may have played a significant role in RightNow's business model by providing funds for the purchase of gaming claims based on the likelihood of winning a lawsuit.
*How will the ongoing lawsuits affect RN Inkasso GmbH, RightNow's new venture focused on debt collection?The ongoing lawsuits may affect RN Inkasso GmbH by presenting obstacles to regaining liquidity, which is necessary for successful debt collection.
*What is the impact of the ECJ's review of the case on the European gambling market and litigation financing companies?The ECJ's review of the case could have profound implications for the European gambling market and litigation financing companies, potentially undermining local gambling regulations and affecting the business models of such companies.
*Given the controversies surrounding the protection offered to gambling providers based in Malta and the ongoing EU Commission investigation, what is the likelihood of successful enforcement of penalties from Germany in the future?The ongoing controversies and investigations make it uncertain whether there is a high likelihood of successful enforcement of penalties from Germany in the future, given the hurdles presented by barriers like Bill No. 55 and the difficulty in identifying and recovering funds from online casinos operating as shell companies.
