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MGA Cancels Genesis Global’s License

MGA Cancels Genesis Global's License
by
January 15, 2024
in iGaming News, Licenses & Payments
270

The Malta Gaming Authority (MGA) has taken decisive action by canceling the B2C gaming license of Genesis Global, effective immediately. This move comes after the operator’s license was initially suspended in January of the preceding year, and now, with the full cancellation, Genesis Global is barred from offering gambling services under the permit.

Background

Genesis Global, a prominent player in the online gaming sector, had been operating 23 websites utilizing the suspended license. Some of the well-known platforms affected include Vegasoo.com, Sloty.com, Casinojoy.com, Spinit.com, and Genesiscasino.com. The cancellation not only puts a halt to their operations but also imposes certain obligations on Genesis Global.

Immediate Actions Required

Following the cancellation, the Malta Gaming Authority has instructed Genesis Global to settle all outstanding fees owed to the regulator within a seven-day period from the notice of cancellation (issued on January 11). Additionally, the operator must provide documentation to the MGA, confirming the return of funds to all players across its network of websites within the same seven-day timeframe.

Furthermore, as a part of the regulatory directive, Genesis Global is required to promptly remove any reference to the Malta license from all its affiliated websites.

Company's Financial Turmoil

The cancellation of the license aligns with Genesis Global’s winding up process initiated in December 2022. The company faced financial distress, resulting in the layoff of all its employees just two days before Christmas. Insolvency proceedings began as the company indicated its inability to fulfill its financial obligations to the staff, including December salaries and notice pay.

The situation escalated after CEO Ariel Reem left the company, coinciding with Genesis Global’s exit from the UK gambling market. The reasons for Reem’s departure were not disclosed at the time.

Regulatory Collaboration

In response to the license cancellation, the Malta Gaming Authority is actively collaborating with the appointed liquidator at Genesis Global. The primary focus of this collaboration is to ensure that players recover any funds that may be held by Genesis Global. It is noteworthy that the cancellation decision is open to potential appeal, indicating a possibility of legal challenges to the regulatory action.

Industry Trends

Genesis Global becomes the third entity in the current year to face the cancellation or suspension of its Malta gaming license. The preceding week saw the suspension of the license of Rush Gaming, an online operator managing Fansbet.com and Onebet.com websites. The MGA, while not providing detailed reasons, emphasized that licenses can be suspended if operators breach gambling-specific regulations or laws in Malta.

Simultaneously, Betago also witnessed the cancellation of its license last week, with the MGA directing the operator to return all funds to players and eliminate any reference to the permit from its websites.

Conclusion

The recent events surrounding Genesis Global’s license cancellation underscore the dynamic and stringent regulatory environment in the online gaming industry. It raises questions about the financial stability of operators and the measures regulators take to protect players and maintain the integrity of the gaming ecosystem.

FAQs

What led to the cancellation of Genesis Global’s Malta gaming license?
The Malta Gaming Authority canceled Genesis Global’s license due to financial distress, which led to the winding up of the company and subsequent suspension of operations.

How many websites were operated by Genesis Global under the suspended license?
Genesis Global operated 23 websites using the suspended Malta gaming license.

What actions are required of Genesis Global following the license cancellation?
Genesis Global is required to settle outstanding fees, return funds to players, and remove any reference to the Malta license from its websites within seven days of the cancellation notice.

Is the cancellation of the license subject to appeal?
Yes, the Malta Gaming Authority mentioned that the cancellation could be subject to appeal, indicating a potential legal recourse for Genesis Global.

Why did Genesis Global lay off its employees in December 2022?
Genesis Global faced financial turmoil, leading to the layoff of all employees. The company warned of its inability to pay wages, including December salaries and notice pay.

Who is overseeing the collaboration between the MGA and Genesis Global’s liquidator?
The Malta Gaming Authority is actively collaborating with the appointed liquidator at Genesis Global to ensure the recovery of funds for players.

How many entities have faced license cancellations or suspensions in the current year?
Genesis Global is the third entity in the current year to face the cancellation or suspension of its Malta gaming license.

What websites were operated by Rush Gaming, whose license was suspended recently?
Rush Gaming operated both Fansbet.com and Onebet.com websites.

Why was Rush Gaming’s license suspended?
The Malta Gaming Authority did not provide detailed reasons but stated that licenses can be suspended if operators breach gambling-specific regulations or laws in Malta.

What obligations were imposed on Betago following the cancellation of its license?
Betago was directed by the MGA to return all funds to players and remove any reference to the permit from its websites.

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