Genesis Global: The Downfall of a UK Gambling Giant
There were signs that Genesis Global was in trouble, but the downfall of one of the UK's most popular gambling operators still surprised many. The timeline of events, however, makes clear that filing for bankruptcy was on the table early on.
Gambling Commission Suspends Genesis' License for
Compliance Issues
It marks 14 July 2020, when the trouble for Genesis Global began. Seemingly out of the blue, the Gambling Commission decides to suspend the operator's license for a "number of compliance issues".
Overnight, the gambling giant was forced to cease operations of flagship brand Genesis Casino and its 13 sister sites, which include household names such as Casino Joy and Sloty.
It was revealed later that Genesis Global Limited had shown significant failures in social responsibility and money laundering. For example, the operator had failed to put restrictions on a customer account that spent £245,000 in three months, even though they knew the player was an NHS nurse with an annual salary of merely £30,000 per annum.
Genesis Global had also failed to carry out an affordability check on a customer who had deposited over £1.3m and lost nearly 50% of it before requesting bank statements as a source of funds.
Players and Partners Complain About Late Payments
On 14 October 2020, in a surprise decision, the Gambling Commission lifted the suspension stating "significant compliance improvements." Still, it informed Genesis Global and the public that it would continue investigating the matter, with a final decision yet to come.
For the next year or so, things seemed to run smoothly at Genesis Global online casinos. The Commission shared no further update for 12 months, and player complaints weren't unusually high, if anything.
This changed around early 2022 when an increasing number of customers reported a delay in withdrawals to websites such as Trustpilot. While there hadn't been any evidence that players didn't receive their requested payouts at all, even small withdrawal requests would take over a week or more.
Around the same time, Genesis' marketing partners started publicly complaining about late or no payments. While some were made wholesome with a delay of six months or more, other invoices were never settled, according to our sources.
Bankruptcy Following a £3.8m Fine and License Conditions
Late payments should have been enough of a warning sign, but it still didn't put partners and players off from working with Genesis Global and playing at their casinos.
Perhaps one of the reasons was that the Gambling Commission's enforcement announced on 27 January 2022 remained somewhat under the radar.
On that day, the Commission shared through its website that it had concluded the investigation of Genesis Global and decided to fine the gambling operator a heavy £3.8m, issue a warning, and demand further auditing in the future.
For Genesis Global, it was the last straw in a two-year rollercoaster ride of trying to meet the stringent requirements of the Gambling Commission for operators of real money games in the United Kingdom.
The Impact on Online Casinos in the UK
For other online casino operators, the Genesis Global case is one to watch, as it highlights that the UKGC will use everything in its power to ensure player safety when it comes to online gambling.
Whether it's the ban on credit cards, limitations on free spin offers, or KYC checks for all new customers, the UK not only has some of the strictest laws around internet gambling, but it also properly enforces them.
As such, British online casinos don't have to live in fear, but they need to take responsible, fair, and crime-free gambling seriously to avoid another Genesis fiasco.