The director of an online gaming company based in Malta was yesterday arraigned under arrest and charged with failing to hand over about €55,000 in winnings to punters.

Rajiv Giri, 40, an Indian national who lives in Hamburg, pleaded not guilty to defrauding a number of clients on August 4 and in the previous months by failing to pay them their winnings.

Mr Giri is director and legal representative of Stryyke Entertainment Ltd.

Police sources said action was taken after a complaint was received by the Lotteries and Gaming Authority. The sources said Mr Giri had explained that the sum in question was more like €6,000, which had not been paid because a number of people had not produced adequate identification.

Defence lawyers Josette Grech and Clinton Calleja requested bail and told the court their client had set up business in Malta about four years ago and had no issue with the police so far.

Police Inspector Maurice Curmi said he would not oppose bail because, so far, the accused had proven himself to be trustworthy. In fact, he had been granted police bail and obeyed the orders he was given.

Magistrate Gabriella Vella granted him bail against a personal guarantee of €20,000 and a deposit of €5,000. He was also granted permission to travel but cannot go beyond Europe.

The gaming authority said on its website that Stryyke Malta has had its Class 2 licence suspended. The licence allows fixed odds betting.

The regulator also said the company’s online casino operations were not being operated under a Maltese licence.