In a significant blow to Genesis, the company’s recent announcement of insolvency and cessation of operations has been compounded by the removal of its operating license by the MGA (Malta Gaming Authority). Citing regulation Reg. 9 (1) (f), the MGA has deemed Genesis ineligible to continue its business activities in the country due to its inability to conduct gaming operations, register new players, or accept customer deposits. While an appeal option exists, it is unlikely that Genesis will pursue it, given the company’s cessation of operations.
Genesis’ Regulatory Breaches:
In 2022, the Gambling Commission imposed a £3.8 million ($5 million) fine on Genesis and suspended its license due to severe shortcomings in terms of social responsibility and money laundering. The regulatory body discovered numerous instances where the company failed to fulfill its obligations.
Social Responsibility Failures:
Genesis neglected to engage in meaningful responsible gambling interactions with a customer who astonishingly spent £245,000 within a mere three months. This lack of intervention raises concerns about the company’s commitment to identifying and addressing potential gambling addiction or harm.
Additionally, two other customers were found to have spent £197,000 over a six-month period and £234,000 within just six weeks, respectively. Genesis’ failure to initiate responsible gambling measures or intervene in these cases underscores a disregard for its duty of care towards vulnerable customers.
Money Laundering Failures:
The investigation conducted by the Gambling Commission exposed significant deficiencies in Genesis’ anti-money laundering practices. The company issued a request for funding source verification only after a customer had already lost £209,000. Such delayed due diligence raises questions about the company’s commitment to preventing money laundering activities.
Moreover, another customer was permitted to deposit over £1.3 million and lose nearly half of the funds before Genesis carried out a proper source of funds check. This lax approach to verifying the origin of substantial deposits raises serious concerns regarding Genesis’ compliance with anti-money laundering regulations.
Regulatory Implications and Consumer Safety:
Helen Venn, Executive Director of the Gambling Commission, emphasized the significance of the Genesis case as a warning to all gambling businesses. The Commission is committed to utilizing all available tools to ensure consumer safety, even if it necessitates halting a business from operating altogether. By revoking Genesis’ license, the MGA has taken a resolute stance against non-compliance and demonstrated the seriousness with which regulatory bodies approach gambling operators’ responsibilities.
Genesis’ journey from facing a substantial fine and license suspension to ultimately being rendered insolvent and having its operating license revoked highlights the critical importance of social responsibility and anti-money laundering measures in the gambling industry. The failure to fulfill these obligations not only carries severe financial penalties but can also lead to a complete halt in business operations. As regulatory bodies continue to prioritize consumer safety, gambling operators must rigorously adhere to established regulations to maintain their licenses and safeguard their reputation.