Fast Growing Casino Operator Declares State of Financial Distress and Losses MGA License

An international gaming operator with a strong network of 20 online casinos, Genesis Global Limited, has been suspended by the Malta Gaming Authority.

The company is no longer authorized to carry out any gaming operations, register new clients or accept new deposits.

Breach of Regulations

As announced on January 17^th by the gaming control board of Malta, the authorisation awarded to Genesis Global Limited has been suspended.

The holder of MGA license MGA/CRP/314/2015 is accused of breaching Reg. 9 (1) (f) of the Regulations. Therefore, Genesis Global and its entire network of sites is no longer authorized to carry out any gaming operations, register new players or accept customer deposits.

Apparently, the first signs of trouble emerged in December 2022 when the company entered insolvency and laid off all staff.

It was then revealed that it may not even be able to pay December wages, just two days before Christmas.

The company sent a letter to all of its 140 employees on 23 December, informing them that their positions have been declared redundant.

Commenting on the situation, Genesis only said that it was trying its best to find a solution to the issue and find alternative ways of paying its employees.

Before the official announcement, Genesis Global started proceedings in court due to insolvency after reporting serious financial difficulties.

Some 200 workers were told that their last day of employment will be January 22.

Departure and UK Exit the Cause?

It is not unusual that the announcement about insolvency and suspension comes soon after Genesis Global chief executive Ariel Reem departed last December.

His decision came right after the company’s determination to leave the UK gamblingmarket but Reem did not disclose the reasons for his departure.

“It is time to move on to the next challenge/adventure,” said Reem on social media at the time.

Reem had led the business since its formation in 2014 and Genesis Global had its UK licence suspended in 2020, although it was reinstated after a while.

The company was fined £3.8m (€4.4m/$4.6m) by the Gambling Commission after enquiries revealed a series of social responsibility and money laundering failings.

Source:

“Suspension of Authorisation for Genesis Global Limited (C-65325)”, mga.org.mt, January 17^th, 2023.