Betting and player registrations on Luckbox have been suspended with immediate effect, while a notice on the website states: “We’re closed, sorry.”
Luckbox customers are still able to withdraw funds, which are segregated from the company’s operational balance.
The B2C arm has provided all of Real Luck Group’s revenue to date, but a restructure will now see the company focus on launching a B2B platform.
In a note to investors, the operator said pursuing B2B activities would prove more cost effective in the long run, as sustaining B2C would require significantly more capital.
Real Luck Group had expected to attract significant investment to the business after signing a letter of intent over a potential merger or acquisition at the beginning of September.However, the company ultimately decided the proposed transaction was “unviable” and not in the best interest of shareholders.
It has since failed to secure an alternative cash injection, citing “persistently challenging” conditions in the financial capital markets.
As a result, the business has also opted to wind up Real Time Game Services, an Isle of Man-based subsidiary that services the group’s B2C provisions, contractors and employees.
Insolvency practitioners have now been engaged in the Isle of Man and the winding up process has been initiated.
Real Luck Group said the restructuring is expected to be completed by the end of the year and will result in a new corporate structure with no debt and minimal cash burn.
The company will also continue to explore other strategic alternatives, including potential M&A and a capital raise to either grow the B2B business or restart the B2C business.
Finally, chief operating officer Benn Timbury and company secretary Jo-Anne Archibald both resigned from the business in September 2023.