Genesis Global Ceases Operations & MGA Suspends Licensing
In a shocking revelation coming out of the iGaming newswires, Genesis Global Limited has announced that it has officially closed its Maltese operations and declared insolvency with the local courts.
The operator owns a handful of online casino brands running under the Malta Gaming Authority (MGA) license. However, due to the company filing for insolvency, its MGA license is now suspended, and as a result, all Genesis Global Limited online casinos are no longer accepting new players.
Genesis Global Limited holds its MGA licensing under company number C-65325 which is registered on the Malta Business Registry (MBR). However, on 17 January 2023, the MGA announced on its official news feed that it has suspended the Genesis Global Limited MGA license MGA/CRP/314/2015 effective 16 January 2023. The reason given for the suspension was because of a violation of Reg. 9 (1) (f).
This rule effectively states that companies filing for insolvency cannot continue to offer gambling/gaming services under the MGA licensing. The decision is subject to appeal, but the chances of any such proceeding going forward seem highly unlikely.
Upon further investigation, it seems there is some lag between the MGA’s decision to suspend the license and the operator’s filing for insolvency. According to local Maltese news sources, Genesis Global Limited wound up its operations in Malta on 23 December 2022 after laying off 140+ staff. On the same day, employees received an internal communication that declared all positions redundant. In that letter, employees also learned that the company might not pay all or any of them their December salary or statutory payments due.
For unknown reasons, it then took twenty-four days for the MGA to decide to suspend the Genesis Global Limited license.
What Happens to Members’ Casino Balances?
Players who are members of any Genesis Global Limited online casinos need not worry. Under the MGA licensing rules, the operator must keep all casino members’ balances in a separate bank account from its day-to-day operations, i.e., separate from its cash flow and balance sheet, so auditors cannot designate these funds to pay off debtors, which includes the salaries owed to employees.
Thanks to this MGA rule, members of the casinos outlined in the list below can still withdraw. If the closure of these casinos has affected you, and you are having problems getting your money back, contact the MGA directly for assistance.
Casinos affected by the Genesis Global Limited MGA license suspension:
- Genesis Casino
- Casino Cruise
- Spinit Casino
- VegasHero Casino
- Sloty Casino
- Spela Casino
- Casino Joy
- Pelaa Casino
- Casino Gods
- Kassu Casino
- Casoola Casino
- Casino Planet
- Casino Lab
- Playerz Casino
- Casino Masters
- Casino Dome
- Vegasoo Casino
Previous UKGC Market Exit
Genesis Global Limited took a huge financial hit in January 2022 when the UK Gambling Commission (UKGC) fined the company £3.8m and suspended its license, which led to the operator’s eventual exit from the UKGC market.
After an extensive investigation, the UKGC found that the operator was in breach of social responsibility and money laundering regulations.
One of the highlights of the investigation was the story of an NHS nurse spending £245,000 in three months despite earning a £30,000 per year salary. In another case highlighted by the UKGC, a request for a member’s source of funds was initiated only after the customer had spent £209,000. This was after Genesis Global Limited had already estimated the player’s earnings to be £111,000 per year.
The 7-figure fine likely was one of the initial causes of the operator’s current financial woes. Ultimately, this could have been the reason behind its decision to file for insolvency with the Maltese courts.
James is a casino games expert on the Playcasino.com editorial team. With many years of professional experience at a leading casino game development company and a passion for playing casino games, James has become a true expert in slots, blackjack, roulette, baccarat, and other games.
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