Studioworks, a live casino studio in Tallinn, Estonia, has ceased operations for now, leaving its employees unpaid and uncertain about their future.
Apparently, the studio’s turnover and profits recently fell sharply. It is reported to owe €1.47m ($1.64m) in taxes.
The Board Member and the registered beneficial owner, Craig Hilton, claims the company is profitable and that the problems stem from banking restrictions linked to a change in banking service providers. He previously promised that the studio would reopen and that he would settle all debts to the employees.
Employees, meanwhile, said they fear the company might be liquidated. Workers also complained about poor communication with management, difficult working conditions, night shifts, equipment issues and pressure while working at the Duel online casino tables.
The Estonian Tax and Customs Board reported that Studioworks employed 154 people during the second quarter of this year. So far, more than 30 unpaid employees have contacted the Labour Inspectorate.
This comes as an interesting development, with the industry touting live casino as a high-growth vertical, especially in Europe. Estonia is a major hub for these studios so competition may be intense; on the other hand, this could be an isolated case of a poorly managed company.
In our September magazine issue, Global Gaming Insider Editor Tim Poole spoke to live casino suppliers from across the industry. Expert contributors all agreed that live casino is growing quickly, and they universally agreed that Europe is the main, most-regulated hub of live casino.
Germany, Greece and Portugal are among the European markets where new or proposed frameworks could create opportunities for further live casino investment and expansion
