Genesis Gambling Group has laid off 140 employees and filed for bankruptcy.

Bail003

"Last year, the Malta-based gambling company Genesis Global delivered an unexpected Christmas gift to its local employees, informing them just two days before the holiday that they had become redundant. According to the Malta Times, about 140 employees received an email on Friday, notifying them that Genesis Global had filed for bankruptcy and they were being laid off, as the company was permanently closing its operations in Malta.

""We also regret to inform you that, under the law, the company may not be in a position to pay you all or any of the outstanding amounts due to you,"" the email further stated, which could include December salaries, 30 days' salary, and any other outstanding statutory amounts. The email also informed the workers that their last day of employment would be January 22nd of this year, regardless of their individual notice periods, as the number of affected employees was being dealt with under the Collective Redundancies (Protection of Employment) Regulations. ""We are currently making every effort to resolve this issue by raising some funds, and furthermore, we hope to engage with the relevant authorities to mitigate the situation and find alternative solutions to at least pay you some of the amounts due,"" the email concluded, advising the workers to contact the Industrial and Employment Relations Department for guidance.

Genesis Global had around 200 employees in Malta, but the company had cut 30 to 40 employees in the past few weeks to alleviate its financial troubles, but it's now clear that the layoffs were not enough. Earlier this month, Genesis Global's CEO and co-founder Ariel Reem exited the industry after spending over a decade in it. Checks with the Malta Business Registry revealed that more directors of the company, founded in 2014, have followed Reem's footsteps and resigned in recent weeks, including the company secretary.

Genesis Global's troubles began in March 2019 when the company was fined SEK 4 million (USD 383,600) by Spelinspektionen for failing to integrate the self-exclusion tool Spelpaus in accordance with the new Swedish gaming law effective from January 1, 2019. Later, the Administrative Court halved the penalty, and then the Swedish Court of Appeal ruled further violations by Spelinspektionen in the way they calculated the company's annual turnover.

In the UK, the UK Gambling Commission imposed a £3.8 million (USD 4.6 million) fine on Genesis Global earlier this year after a two-year investigation found that the company had breached social responsibility and anti-money laundering regulations."

Rishbha

A gambling company going bankrupt, this is something nobody could have expected.

Ritu77

Did they struggle all the way from 2019 until now? It's really tough. I feel sorry for those employees – losing their jobs and not getting paid. That's really unfortunate.

Niti998

They've filed for bankruptcy, what else can they do without laying off employees?

Samiksha

Gambling companies going bankrupt is quite rare, isn't it? This is the first one I've seen announcing bankruptcy.