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Wirecard bankruptcy could affect online casinos

In the last few weeks and days, the negative news about Wirecard has increased . Contrary to the initial report that the corona crisis was to blame for the financial difficulties, it has now emerged that it is probably a cover for bankruptcy .

Allegedly, this company has been in the red for several years . This fact was covered up in the balance sheet by making fictitious bookings. Only in this way was it possible for Wirecard to enjoy price increases on the stock exchange.

But how did it come about that such a global company suddenly got into trouble? Basically, there have been problems for years . In retrospect, it is hardly possible to determine why this is really the case. The fact is that another manager who ran the branch in Dubai has been arrested in the past few days. This manager is charged with serious fraud and aiding and abetting in other criminal offenses . In Germany, imprisonment can be imposed for such behavior.

Thus, at least three suspects have now been determined. One of them was released on bail while a manager was able to go into hiding. The third, however, is still in custody.

What consequences could bankruptcy have for online casinos?

Wirecard was one of the pioneers in terms of mobile payment , primarily on the Internet. In the further course of this, this company had set itself the task of creating prepaid credit cards . These prepaid cards could be used to pay online - many online casinos, among others, have accepted these cards. Now, of course, this is over.

Fortunately, there are other prepaid credit cards that are accepted by online casinos. With these you can easily make a real money deposit , for example to receive a bonus. However, prepaid cards also meant that a payment was booked immediately - compared to a bank transfer or instant transfer. Thus, the prepaid credit card also made sense if a player had tested a casino game for free and then wanted to switch to real money immediately if there was a chance of a possible win.

Anyone who previously used a prepaid card that was behind Wirecard now has to look for an alternative card or generally use a different payment method. Then the fun of playing roulette, poker or a slot can continue.

Nobody has to worry about the disbursement of a possibly generated profit, since a payout on prepaid cards is generally not possible. This statement means that from this point of view no one suffers any damage.

How to proceed with any existing credit on the prepaid card, either the online casino or even a lawyer can answer.

This is how Wirecard developed into a large company

The company Wirecard AG was founded in 1999 , which at that time was not yet listed on the stock exchange. There is also a subsidiary that has a banking license and is called Wirecard Bank AG. The extent to which this is involved in the bankruptcy process has not yet been publicly announced.

In 2005 the time had come: InfoGenie merged with Wirecard , with InfoGenie bringing in extremely high assets. This merger led to a listing on the stock exchange and InfoGenie dropped its previous name. Up to this point in time, Wirecard had been dealing with online real-time transfers. It was not until 2008 that Wirecard introduced the first prepaid credit card that could be used online .

The expansion to several continents took place from 2007 . First, Wirecard opened a branch in Singapore - followed by New Zealand, Australia, South Africa and Turkey . Wirecard only appeared in North America in 2016 after Wirecard purchased the prepaid card service from Citigroup. Three years later the time had come and Wirecard was also founded in China .

This little company history actually suggests that Wirecard enjoyed great success and made a steep climb. Unfortunately, appearances are deceptive and Wirecard has been mentioned repeatedly in the news since 2008 - in a negative way . Over the past few years, the company has repeatedly been accused of illegal activities, and many negative reports have led to the stock market falling at regular intervals. Wirecard resisted some of these reports and, in turn, arranged for advertisements. For example, a complaint was once filed against a fund manager who was supposed to be responsible for the decline in the share price. Similar incidents occurred in 2010 and 2016. In these years too, Wirecard AG's rate fell for incomprehensible reasons.

2018 was the year in which an audit was carried out for the first time because the balance sheet could not seem to be correct. In the last balance sheet, 1.9 million euros were missing - this fact ultimately led to the filing for bankruptcy in June 2020 . The actions of the public prosecutor and the setting of a bail of 5 million euros against a manager make clear not only the extent of the financial damage but also the severity of the crimes committed.