MaxBet Romania Draws Scrutiny Over Alleged Ties to Russian Oligarch

Romanian company MaxBet, one of Eastern Europe’s most prominent gambling operators, stands at the epicenter of a legal storm amid allegations that the real owner of the company is Russian-Israeli billionaire Mikhail Mirilashvili rather than the Cypriot businessman listed in official documents. Notably, this MaxBet is different than the Serbian platform of the same name acquired by Flutter Entertainment in 2024.

Sadovsky’s Involvement Could Make MaxBet a Toxic Investment

The fund that purchased MaxBet, managed by now-defunct Novalpina Capital, is facing legal action in the UK High Court as its current administrators attempt to claw back losses on the 2021 €273 million ($314 million) deal. Investors allege Novalpina’s founders, who were ousted just months after the acquisition, misled them by concealing the involvement of Mirilashvili, a longtime associate of Putin with a murky past.

According to filings, MaxBet’s ownership structure named a relatively unknown Cypriot businessman, Vladimir Sadovsky, as the ultimate beneficiary. Plaintiffs claim the filings were a front for Mirilashvili, whose prior conviction in a high-profile kidnapping and murder case and former association with the St. Petersburg gambling underworld constitute serious red flags under anti-money laundering and KYC laws.

Treo Asset Management, the company tasked with salvaging the collapsed fund’s assets, levied serious accusations, alleging that Novalpina withheld internal audit findings and edited due diligence documents to obscure Mirilashvili’s role. Treo is reportedly looking to offload MaxBet through a confidential process and escape the rising scrutiny surrounding the operator, even willing to accept a price of at least €125 million ($144 million) less than originally paid. 

Several Pension Funds Had a Stake in the Company

The fallout has crossed the Atlantic. Several UK and US pension funds are indirectly exposed to the deal, burdening them with financial losses and reputational damage. These include the Alaska Permanent Fund, the Oregon Public Employees Retirement System, and the British Gas Staff Pension Fund. They must also contend with rising legal costs as court proceedings stretch from London to the British Virgin Islands, Romania, Luxembourg, and Cyprus.

Meanwhile, Treo’s €287 million ($330 million) lawsuit seeks damages and accountability from Novalpina’s remaining management. The plaintiffs allege that knowingly concealing critical information regarding the ownership of MaxBet could expose the fund and its investors to criminal and regulatory risk. Novalpina collapsed after a scandal linked to NSO Group, the Israeli firm that developed the Pegasus surveillance software, considered an illegal spying tool and banned by US authorities.

Whether the court finds proof of deception remains to be seen. However, the case highlights the risks inherent in cross-border gambling investments, especially when they intersect with politically exposed individuals and jurisdictions with weak financial transparency. This ongoing drama should serve as a reminder that proper due diligence is critical, especially when a deal seems too good to be true.