Investor Carsten Maschmeyer's lawsuit financier, reportedly named RightNow, has found itself embroiled in gambling-related lawsuits.
Title: The Insolvent Gambling Claim Financer: RightNow - What's Next?
Author: Timm Schaffner (Edited by Angela Burke)
Published: 27.02.2025. Updated on: 29.04.2025.
Bye-Bye, RightNow:
The process financer RightNow, notorious for handling gambling-related lawsuits, is on the rocks. Just a few days ago, the company plunged into insolvency, possibly due to a influx of doubtable gambling lawsuits. RightNow specialized in financing lawsuits, promising immediate compensation for possible damages in exchange for a share of the potential winnings. Even after the insolvency declaration, their homepage still boldly advertises, "Immediate Refund for Your Gambling Losses".
Direct Payment of (Possible) Damages:
RightNow entered into agreements with customers, purchasing claims that had a promising chance of being enforced in courts, as explained by the Rheinische Post. Be it data breach claims, delayed flights, or exorbitant health insurance prices - RightNow aimed to help customers enforce their rights, while receiving their payout in advance. The advance amount was determined by the likelihood of winning the lawsuit.
ECJ's Decision Pending:
Several courts, including the Bundesgerichtshof (BGH), have petitioned the European Court of Justice (ECJ) to provide guidance on gambling-related issues. One of the most notable cases is the ongoing legal battle between sports betting provider Tipico and the competitor of RightNow, Gamesright. The ECJ must soon decide whether a Malta gaming license, issued prior to the passing of the State Treaty on Gambling 2021, constitutes a valid basis for legal gambling in Germany.
Previously, such disputes were typically resolved out of court. Academics hypothesized that gambling service providers wanted to escape high court rulings by the BGH or ECJ that could spark waves of lawsuits. Now, with the hearing at the ECJ on the horizon, it appears that these providers are less inclined to reach settlements out of court, leading to a potential landmark ruling. Until the ECJ makes a ruling, however, all other gambling-related proceedings are on hiatus.
Roadblocks and Challenges:
Online casinos based in Malta enjoy a degree of protection from penalties abroad due to the controversial law, Bill No. 55. This law remains in effect while its infringement of Union law is being investigated by the EU Commission. Enforcing any winnings in Germany remains a challenge due to this, and a recent "Casino Papers" leak has further highlighted the difficulties in identifying and recovering funds from online casinos operated by shell companies.
A New Start for RightNow?
RightNow's financial troubles seem inevitable, but the founders have already embarked on a new venture, RN Inkasso GmbH. The focus of this new firm is not on litigation financing, but on debt collection. The founders have ensured all customers have been paid, and there are ongoing lawsuits with the potential to restore liquidity. However, the outcome of these lawsuits remains uncertain, as the funds required to pursue them have run dry.
The future of RightNow remains unclear. Time will tell whether this visualizes vanishes from the market over the coming weeks, or if it finds a new lease of life through the entry of a new investor. According to the Rheinische Post, the founders remain committed to their mission. "We firmly believe in the future of the business model!" they stated.
Several ongoing cases before the European Court of Justice could have significant implications for process financing businesses in the gambling sector. A ruling in favor of Malta-licensed operators having the freedom to operate across the EU would disrupt existing litigation financing models. This could lead to uncertainty for companies like RightNow and RN Inkasso GmbH, forcing them to adapt to the new landscape or face potential closure.
- What is the likelihood of RightNow, a financer known for handling gambling-related lawsuits, regaining its finance and continuing business operations, given its recent insolvency and the upcoming European Court of Justice (ECJ) decision related to gambling-related issues?
- Could lawsuits regarding delayed finances with the new venture, RN Inkasso GmbH, started by the RightNow founders, potentially help the company to regain its finance and secure a stable future for the business?
- As RN Inkasso GmbH focuses on debt collection instead of litigation financing, will this new direction enable the company to avoid the potential disruptions caused by a ruling in favor of Malta-licensed operators in the ongoing cases before the ECJ?
- Given the ongoing lawsuits and the uncertain outcome, what is the likelihood of RightNow making a comeback and establishing itself as a significant player in the process financing business for the gambling sector, especially if the ECJ rules against Malta-licensed operators having the freedom to operate across the EU?
