MGA suspends Genesis Global’s gaming license
The Malta Gaming Authority (MGA) has issued a suspension of license to gaming operator Genesis Global Limited for a breach in the nation’s gambling law. This suspension took effect on Monday, January 16, 2023.
In December of last year, the gaming operator declared bankruptcy and informed the public that it was shutting down as a company. Genesis Global Limited was found to have violated a law that pertains to Malta’s licensing system.
The breach is against Reg. 9(1)(f) of the MGA’s regulations, which states that an operator is not allowed to hold a license if it is “bankrupt, insolvent, or being wound up”. This means that the operator’s activities in Malta will cease immediately, they will not be allowed to register new players nor have players make any deposits either.
“Since the authorized party is in the process of liquidation. The authorized party is therefore no longer authorized to carry out any gaming operation, to register new players or to accept new customer deposits, and must continue to cooperate with the Authority. This decision may be appealed under section 43 of the Gaming Act (Chapter 583 of the Laws of Malta),” a note from the gaming regulator read.
Following the announcement of its cessation of gaming operations in early December, Genesis Global Limited laid off over 130 staff just before Christmas. It also sent a letter to all its employees, stating that the firm might not be able to pay up all of their salaries.
“The company may not be able to pay all or any of the dues that are due to you in terms of law. This, it said, included December salaries as well as notice pay,” the letter read.
“We are currently trying our best to find a solution to this issue by trying to raise some funds and in addition, we hope to liaise with the authorities concerned in order to ease the burden and find alternative solutions in order for you to be paid at least some of the money due to you.”
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In December of last year, a press release from the Ministry of Economy, European Funds, and Lands stated that there are about 700 vacancies for gaming staff to fill in the nation’s gaming industry.
“As earlier today, an iGaming company in our country, Genesis Global, opened an insolvency procedure for the company, the Minister for the Economy, European Funds and Lands Silvio Schembri commissioned Gaming Malta with immediate work in order to find alternative employment for the affected workers,” the press release read.
“In fact, a number of workers have already found employment in the sector. The Ministry through Gaming Malta is in contact with the directors of the company, to pass on the details of the workers whose work has been terminated, so that contact can be made with them. The iGaming Council which was established earlier this month, has also been informed and as a Council work is being done to provide the necessary help to the affected workers.”
Genesis Global is within its rights to appeal the suspension in court. It is unknown if the gaming tycoon will consider this option.
This is not the first time Genesis Global will face severe penalties for breaching gaming regulations. In 2019, the Swedish Gambling Authority (Spelinspektionen) fined the company the sum of about $400,000 for failing to include the self-exclusion registry. In 2022, it was fined $4.6 million and had its license suspended by the UK Gambling Commission for anti money laundering violations.