Cashbet ICO deal turns sour

California-based Mobile Gambling Technologies Inc., is facing litigation following an investor filing earlier this week which claims that the company misled investors who acquired CashBet Coins through the company’s April initial coin offering.

The plaintiff alleges that Mobile Gaming Technologies Inc. told investors they could use CashBet Coins in virtual casinos with over 4 million players per month, but the coins “still cannot be used to access a single online gaming site”.

Earlier this year in a media statement, CashBet founder and CEO Dr. Mike Reaves said: “The introduction of CashBet Coin will enable operators to solve the biggest problems facing crypto casinos today: speed, trust, and cost. Integrating blockchain technology into the CashBet core iGaming stack will open new markets by democratizing access to world-class entertainment for a new group of players currently underserved by the centralized banking establishment.

“Additionally, the associated technology initiative will be far more scalable and cost-efficient on a per transaction basis than current blockchain-based casino software.”

CashBet was founded in 2012 and claims it is the only mobile-first platform currently in the market for real-money, social, lottery, and skill-based gaming. The team has previous experience successfully building and selling online gaming platforms for CyberArts (Ultimate Gaming) and US Digital Gaming.  CashBet is licensed by the Alderney Gambling Control Commission and the UK Gambling Commission.

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