Genesis Global Files for Bankruptcy in Malta

Posted on: December 27, 2022, 07:03h. 

Last updated on: December 27, 2022, 12:15h.

The writing was on the wall months ago. But that doesn’t make it any easier for the employees left jobless just before Christmas. Genesis Global, the gaming operator that has had difficulty in several jurisdictions, has filed for bankruptcy and is shutting down its headquarters in Malta.

The flag of Malta watches over the Mediterranean island nation that’s home to many iGaming operators. Genesis Global will soon exit the territory following its bankruptcy. (Image: Shutterstock)

Genesis had to battle a $4-million fine in the UK, a $5-million fine in Belgium, and a $418K fine in Sweden. All were due to the operator’s inability to properly comply with anti-money laundering (AML) rules and other violations.

The company shut off 14 sites from the UK market, the largest gaming market in Europe, and parted ways with CEO Ariel Reem earlier this month. Many saw it as a foreshadowing of what was to come. Just a couple of days before Christmas, when everyone should have been spreading the holiday cheer, Genesis was spreading pink slips to its 140 employees in Malta.

No Money Left

Times Malta reported about the situation, adding that Genesis had to file for bankruptcy as it prepares to permanently shut down its operations in the Mediterranean island nation. Management, including former CEO Reem, wasn’t able to right the ship after almost a decade of trying.

As a result, December 23 became the last day of work for the employees in Malta, most of whom are on “leave” until the official last day of work on January 22. Making the situation more devastating was the company’s admission that it most likely wouldn’t be able to make payroll for the month.

Genesis, whose motto, according to its LinkedIn page, is “keep it real,” couldn’t keep it real enough for its employees. The executive arm said it would try to “ease the burden” and find a way for employees to receive “at least some of the money” the company owed them.

In addition to its troubles in different European jurisdictions, it was apparent that the company was having difficulty staying afloat. At one point, it had around 200 employees in Malta. But over the course of the past few weeks, it began letting some of its workforce go. As many as 40 people lost their jobs before the final announcement ahead of Christmas.

Maltese Government Tries to Assist

Malta will try to help the displaced workers. It said the government is working with its gaming industry in order to try to find jobs for those expelled because of Genesis’ negligence.

Times Malta added that some of the workers have already been able to find new jobs. Others, as indicated by the “#OpenToWork” badges on their LinkedIn profiles, are still hoping something will come through.

The Economy Ministry reported that there are around 700 vacancies in Malta’s iGaming market. As a major hub for operators, there’s movement constantly taking place in the country. That’s good news for some of the other employees that Genesis let go, as they shouldn’t have to wait too long to find new positions.