The sanction from the gambling regulator in the country was announced Tuesday. A statement released by the MGA explains that the suspension of Genesis Global’s license is in effect as of January 16, 2023.
MGA Suspends Genesis Global’s Authorization
The Authority explained that the sanction was imposed after the company breached the regulations related to its license. In this case, Genesis Global is being wound up, which breaches Reg. 9 (1) (f) of the MGA’s regulations. Suspending the company’s authorization means that it is no longer allowed to conduct gambling operations. Genesis Global is no longer authorized to accept deposits from new customers or register new players. According to the MGA, its decision may be subject to appeal from the company.
“The Authorized Person is thus no longer authorized to carry out any gaming operations, register new players or accept new customer deposits, and must continue collaborating with the Authority,“
reads a statement released by the Malta Gaming Authority
The Company Faced Fines, Filed for Insolvency
Genesis Global’s downfall began back in 2019. At the time, the Swedish Gambling Authority, Spelinspektionen, issued a nearly $400,000 fine against the company. The sanction came after the regulator uncovered that the company failed to integrate Spelpaus, a self-exclusion tool that each Swedish operator needs to offer under the gambling regulations in the country. After a legal battle, the fine was decreased to $95,900.
Then, early in 2022, Genesis Global was hit with another fine, this time in the UK. A two-year investigation of the gambling regulator in the country, the Gambling Commission, flagged social responsibility and money laundering breaches. The Commission identified the breaches which resulted in a staggering $4.6 million fine.
After that, just before Christmas last month, Genesis Global laid off 140 employees. At the same time, the company filed for insolvency. Considering that the company discontinued its operations, all of its employees were laid off. “It is also with regret that we inform you, that the Company may not be able to pay all or any of the dues to you that are due to you in terms of law,” reads an email sent to redundant employees by Genesis Global back in December.
In December, the company explained that it is trying to find a solution to help its employees to receive the pay they are due. Considering its license suspension by the MGA, it remains unclear if Genesis Global will be able to return to business.