- The UK Gambling Commission has suspended Genesis Global’s UK gambling licenses effective immediately as it launches an investigation into a possible violation of the 2005 Gambling Act.
- Twelve total Genesis Global gambling sites will be suspended temporarily, although players will still be able to log in to withdraw funds.
- The UK government has recently begun to emphasize stronger regulation of the gambling industry in recent months, which could be partially motivating this investigation.
TA’ XBIEX, Malta – The UK Gambling Commission (UKGC) announced Monday that it would be reviewing Genesis Global’s UK operations due to a possible breach of the 2005 Gambling Act.
The UKGC claims that it suspects Genesis of violating section 116(2)(a), which states that the Commission can launch a review if it “has reason to suspect that activities may have been carried on in purported reliance on the license, but not in accordance with [its] conditions.”
In other words, Genesis is suspected of reaping the rewards of its gambling licenses without fulfilling the obligations that license entails.
While the UKGC conducts its review, 12 Genesis Global sites will be suspended in the UK immediately, although the Commission has instructed Genesis to allow users to access their accounts to withdraw funds.
The sites affected are:
Genesis recently announced that it was developing its first online sportsbook, developed in partnership with SBTech, which operates under the same umbrella as DraftKings.
The company holds gambling licenses issued by the Malta Gaming Authority, as well as subsidiaries that are licensed in Spain and Sweden, although the latter two have run into regulatory concerns of their own.
Politically Motivated Investigation?
The UKGC’s investigation comes on the heels of a recent wave of parliamentary anti-gambling sentiment.
The House of Commons Public Accounts Committee, for example, called the UKGC “toothless” and claimed that it was in need of “radical overhaul.”
Earlier this month, the Select Committee on the Economic Impact of the Gambling Industry released a report titled “Time for Action,” which claimed that regulation of gambling operators in the UK was far too lax and that bettors were suffering as a result.
The text of the report laments the fact that gambling has become a form of common recreation throughout the UK.
It claims that legislators have failed to take proper precautions to prevent the increased prevalence of gambling from harming their constituents.
Although the Commission has not cited political backlash as the reasoning behind its recent actions, it has launched a number of license reviews similar to its Genesis investigation over the past few months. Companies affected include FSB Technology and Stakers Ltd.
Expect regulation to tighten in the coming months.
Parliament has begun emphasizing the reduction of gambling marketing, monitoring for problem gambling habits increasing requirements for VIP programs, and increasing punishments for operators who violate the law.
All these changes could have a drastic impact on the outlook of the UK gambling industry, including legal sports betting, for years to come.
News tags: 2005 Gambling Act | DraftKings | England | FSB Technology | Genesis Global | Parliament | SBTech | Select Committee on the Economic Impact of the Gambling Industry | Spain | Stakers Ltd. | Sweden | The House of Commons Public Accounts Committee | UK | UK Gambling Commission | UKGC
With a dual background in English and sports performance and business analytics, Carter aims to write stories that both engage and inform the reader. He prides himself on his ability to interweave empirical data and traditional narrative storytelling. When he isn’t keeping readers up to date on the latest sports betting legal news, he’s banging his head against a wall regretting his decision to be a Tampa Bay Buccaneers fan.