Why Online Casinos Shut Down and Stop Accepting Players?

Why some online casinos shut down and stop accepting players?

Why do some online casinos shut down and stop accepting players? This question came to us from an Australian punter who was a regular player at Jackpot city casino earlier in 2016. He told us that he was a hardcore fan of Jackpot city casino but now as the casino doesn’t accept Aussie players he has no choice to play pokies in real-time.

So answering to him and other players who want to know why some online casinos shut down and stop accepting players here’s as to why the online casinos shut down.

There are many reasons why online casinos shut down. Here are a few of the common factors to find as to why this happens.

Common Causes Why Online Casinos Shut Down

1. Casinos can be Bankrupt

Casinos can be bankrupt
Casinos can be Bankrupt

The casinos are a commercial gambling business and not all casinos bring profits. Like any business, there is tough competition among casinos and even old casinos face problems trying to maintain their position because they get competition by new portals that attract customers with crazy bonuses and promotions. Many operators leave the race, unable to withstand the pressure of competitors.

Also, it’s not enough just to launch an attractive site with several hundred pokies machines, welcome bonuses, and a loyalty program in order to succeed. But to stay and survive in it, it is necessary to have a team of specialists from different fields. Even very promising projects often fail because of just one weak link.  So even the best online casino without a single flaw can go bankrupt due to many such factors.

2. Casinos can merge

Casinos can merge

If you do not know that you will be surprised to find that many big casinos acquire small gambling operators and they purchase an established business to remove their competitor. In such situations, they often close acquired casinos, and their customers are transferred to another gambling house on favorable terms. Similar things happen when two companies join forces and launch a joint gambling portal instead of the two former ones.

In such situations, players usually do not lose anything. Moreover, they can receive additional benefits. It is only necessary to carefully study the new rules and conditions because they can differ significantly from the old user agreement.

3. Casinos Rebrand


Sometimes online casinos completely change the title, design, a set of games, bonuses, and a range of other services. This may be due to the changed owners or an intention to start everything from scratch. This casino rebranding makes them shut their previous site. This is similar to the above point like the casino merger.

Many casinos rebrand because they might have a bad name or they have been accused of a long time of fraud, refusal to provide bonuses or cheating with bonuses. Under such circumstances, many casinos try to cover tracks by rebranding.

4. Law forces them to shut down

Law forces them to shut down
Law forces them to shut down

Many casinos also are shut down by force. Like recently almost all the Microgaming-powered casinos like Jackpot City,  Spin Palace, Royal Vegas have shut down due to change in Australian gambling laws. These casinos now do not accept Australian punters to play real money pokies.

Generally, this happens if gambling houses run with some violations of local laws or when the government tightened the legislation. Reputable gambling portals always return customers their funds in such cases.

5. Casino plays fraud

Casino plays fraud
Casino plays fraud

If any casino is involved in fraudulent activities it has to shut down.  The number of fraudulent online casinos has been significantly increased in the last ten years. Licensing and controlling authorities are trying to put things right in the industry. Regulators are more scrupulous in issuing permits, and governments of different countries pass laws that regulate the activities of online gambling portals.

Many commissions are dedicated to helping fight unscrupulous gambling operators. Always read the casino reviews and play on casinos that are reliable. Casinos that do not pay out winnings, cheat with bonuses, send spam, offer pirated software, or are involved in any other kind of fraudulent activities have to shut their business.  Such activities cause considerable problems to scammers. They lose the credibility of potential and real gamblers, remain without players, and have to shut down compromised casinos. Of course, most of such operators run several gambling sites at once and make rebranding without any problems in order to cover up the tracks, but sooner or later the truth comes out.

Other factors that make casinos shut down are:

Changes in the licensing conditions as gambling regulators often increase fees charged for licensing. If the fee for licenses rises sharply, gambling operators may find it unreasonable to keep casinos operating.

Casinos that are unsafe can become a victim of fraudsters. Negative reviews on all the leading forums, low rates, and other tricks of black PR can tarnish even the best reputation. As a result, the casino remains without customers and its owners have to shut it down.

Casinos had small capital to invest and high rollers take away the casino’s profit by playing less and winning more thus casinos need to shut down.

What you should do if an online casino where you were playing shuts down

First and foremost take away all your wins from that casino. Reliable operators return customers their funds available on their accounts, but it is quite difficult to withdraw the money left on the account. Contact the managing company directly and threaten to file a lawsuit. Write to the gambling regulator. Contact the organizations that act as independent intermediaries to solve problems. If you fail to get your money, address the lawyers who are specialists in this issue.

Second, find the best alternative. There are many other well legit casinos to play with real AUD or BTC and enjoy the same status as a punter.

Third always keep your eyes and ears open. Don’t gamble at unreliable casinos. Avoid portals that are blacklisted. Always play with legit and licensed online casinos. Follow the customers’ feedback; pay attention to the delay in payouts and other unfavorable signs. Be skeptical concerning too generous bonuses for newcomers.  Also, contact the representatives of the support service, ask inconvenient questions, and pay attention to their reaction.

The best way to avoid being deceived and to feel protected from risks is to gamble at brand online casinos with a long history, perfect reputation, and high levels of service. They don’t offer the most favorable conditions, but you can be sure that they are not fraudulent.

About the author

Kamal Kaur