Financial backer of prominent investor Carsten Maschmeyer, RightNow, embroiled in gambling-related legal disputes?
Fun Finances and Fallout: The Downfall of Process Financer, RightNow
Written by Timm Schaffner and edited by Angela BurkePublished on: Feb 27, 2025. Updated on: Apr 29, 2025
The startup RightNow now finds itself in hot water, as the process financier declared bankruptcy on February 25, 2025. Founded by entrepreneur Carsten Maschmeyer, RightNow specialized in funding gambling lawsuits alongside claims for data protection violations, delayed flights, and excessive health insurance costs.
During its run, RightNow would buy customers' claims that showed a promising chance of winning damage compensation. Instead of waiting for the results, the startup would pay customers upfront, adjusting the payout based on the claim's likelihood of success. Even after insolvency, the startup's homepage still boasts a promise of "Immediate Refund for Your Gambling Losses."
A Delayed Decision by the ECJ
The European Court of Justice (ECJ) faces a pivotal decision regarding gambling law issues, as several German courts, including the Bundesgerichtshof (BGH), have submitted questions seeking clarification[1][3][5]. The most notable case involves a dispute between the sports betting provider Tipico and process financer Gamesright. The ECJ must determine whether a Malta Gaming Authority license before the 2021 State Treaty on Gambling represented a legal basis for gambling in Germany[1][3][5].
Past decisions in similar cases typically resulted from out-of-court settlements, but it appearsthat many casino and sports betting providers are reluctant to settle now, as a fundamental ruling is imminent[1]. The ECJ's ruling will directly impact any gaming lawsuits, putting numerous proceedings on hold.
Bill No. 55: A Hurdle for German Plaintiffs
In the meantime, Malta-based gaming providers are protected from penalties by the controversial Bill No. 55[2]. European Commission investigations continue into whether the bill infringes upon Union law. If an EU decision is not reached soon, the bill remains in effect, making it more difficult for German claimants to enforce confirmed judgments against offshore operators.
The Casino Papers leak highlights the additional challenge of identifying and recovering funds from shell companies operating online casinos[1].
Last Chances for the Founders
While RightNow GmbH may face insolvency, the founders have already created another company: RN Inkasso GmbH[2]. The focus of the new company is debt collection, not process financing[2]. Despite paying out all customers, the founders have indicated that ongoing proceedings may lead to additional revenue[2]. Whether RightNow will remain in the market or vanish completely in the upcoming weeks remains uncertain. They remain optimistic about the business model's future[2].
[1] European Court of Justice – Case C-440/23[2] The Rheinische Post[3] JURIDIUS[4] Recht career[5] Online Casino Deutschland[6] Casino Papers leak
What are the implications of the European Court of Justice's (ECJ) decision regarding gambling law issues for the future of RightNow and other businesses in the casino-and-gambling sector?
The damages RightNow sustained due to insolvency may not necessarily be the end of their involvement in the business world, as entrepreneur Carsten Maschmeyer is already involving himself in a new venture called RN Inkasso GmbH, focusing on debt collection instead of process financing.
The ECJ's ruling on the case involving Tipico and Gamesright will directly impact every gaming lawsuit, potentially putting numerous proceedings on hold. Meanwhile, Malta-based gaming providers are protected from penalties by Bill No. 55, a controversial piece of legislation that European Commission investigations continue to scrutinize for potential Union law infringements.
In the face of these regulatory challenges, it is important for investors to stay informed about the general news and business trends in the technology sector, especially in relation to financing, to make sound investing decisions in 2025 and beyond.
