Former employees of Genesis Global have expressed anger and disappointment over the company’s recent insolvency announcement, insisting the company had the financial resources to at least partially pay outstanding salaries.
Last Friday, Genesis Global informed all employees that insolvency proceedings had been initiated in Malta and that December salaries would not be paid.
This news affected around 150 employees, who were left without a job one day before Christmas.
iGaming NEXT first reported financial difficulties at Genesis Global last week when employees said they were left in the dark about the company’s future amid rumours it was set to shut down.
iGaming NEXT has since been approached by several employees who all said they felt devastated after discovering they would not receive their wage since nobody had been warned ahead of time.
Moreover, according to sources who have spoken to iGaming NEXT on the condition of anonymity, Genesis allegedly had enough funds to pay some outstanding salaries. However, the company’s sole investor is understood to have rejected a proposal that would have allowed for the payment of some outstanding wages, and instead opted to file for bankruptcy.
Genesis Holdings Ltd is the main shareholding company behind Genesis Global, a portfolio company of the Australian Meydan Group, which describes itself as a diversified high-net-worth family investment group.
Public records list Yaniv Meydan as the director, legal and judicial representative of Genesis Global.
According to various sources, he is Genesis’ beneficial owner, who ultimately decided to close the business.
One other ex-Genesis employee told iGaming NEXT that staff had simply been told to file a complaint with Malta’s Department for Industrial and Employment Relations (DIER) or to seek private legal advice.
Many within the iGaming industry have taken to social media to express their sympathy at the situation occurring so close to Christmas.
On a more positive note, however, one former Genesis employee told iGaming NEXT: “So many good people contacted us to offer a job and we are grateful for that.”
While many ex-Genesis staff have already found new roles, the Government of Malta (via Gaming Malta) has also offered assistance in finding alternative employment for those affected by the insolvency proceedings.
Genesis Global was founded in 2014 by Ariel Reem, Yoav Dotan, Dan Segev and Gal Thein. Dotan took over as CEO following the departure of Reem in early December.
iGaming NEXT has learned the company is planning to sell its gaming platform via its Polish development subsidiary Genesis BlueBird.
iGaming NEXT has contacted Genesis for comment on several occasions.
Genesis Global employees are being left in the dark about the company’s future amid rumours that the firm is set to shut down its operations.
iGaming NEXT understands that the operator, which had a 200-strong workforce in Malta, has already laid off around 30 to 40 people in recent weeks.
The news comes just a matter of weeks after co-founder and CEO Ariel Reem announced on LinkedIn that he had left the business on 6 December.
Staff still employed with the company now fear that they won’t be paid at the end of December after they have been ordered to take all outstanding vacation leave.
According to one source who spoke to iGaming NEXT on the condition of anonymity, there is “consensus among employees that there will be no Genesis going forward”.
“Genesis always had a great company culture; however, in recent weeks there has been a complete lack of direction and communication,” the source told iGaming NEXT.
While the company has yet to make an official statement, Genesis’ corporate website is no longer available and its Malta office is also up for rent.
Upon Reem’s departure, Genesis said it had decided to exit the UK market as a cost-saving measure. However, the company appears to be in greater distress than initially suggested.
Employees first realised that Genesis had financial difficulties around six to seven months ago when the company was not able to pay some affiliates.
The trouble started, however, when Genesis was slapped with a £3.8m fine by the UK Gambling Commission after enquiries revealed significant social responsibility and money laundering failures at the firm.
In addition, iGaming NEXT has been informed that certain business ventures did not pan out as planned.
In January 2020 Genesis, which operates a portfolio of online casino brands, launched its first sportsbook service in partnership with sports betting technology provider SBTech.
However, the sportsbook did not take off as envisioned due to the onset of the Covid-19 pandemic and the related cancellation of most sports events.
Moreover, the operator decided to enter the Latin American market in partnership with TV Azteca. However, “business didn’t go well”, and Latam support specialists who had just been hired were among the first employees to be made redundant.
While several ex-Genesis employees announced on Linkedin that they are open for work, LeoVegas’ chief commercial officer Chris Welch was quick to highlight his company’s vacancies.
Genesis Global was co-founded in 2014 by Ariel Reem, Yoav Dotan, Dan Segev and Gal Thein.
iGaming NEXT understands that there have been internal company plans to bring Genesis back on track. As of the time of writing, however, its future continues to hang in the balance.
iGaming NEXT reached out to Genesis Global for comment before publishing this article.
CEO Ariel Reem has left Genesis Global Limited after more than eight years in charge of the company.
Reem co-founded Genesis Global in 2014, along with a group of other entrepreneurs, including Yoav Dotan, Dan Segev and Gal Thein.
The Malta-headquartered operator initially owned just one site known as Casino Cruise, but grew its portfolio to 20 online casino brands in the years that followed.
However, iGaming NEXT understands growth has stagnated recently, and Genesis decided to exit the UK market as a cost-saving measure, although the company has yet to communicate this decision.
This process has already resulted in several redundancies, while a new CEO or interim chief executive has not yet been announced to staff.
Genesis Global is regulated and licensed in Britain, Malta, Sweden and Spain.
Ariel Reem: “One of the most rewarding aspects of my role has been witnessing people develop themselves and many times breaking through their own perceived boundaries.”
While its portfolio of UK casino sites appear to still be live, the operator’s corporate website is no longer accessible.
Earlier this year, the UK Gambling Commission imposed a £3.8m fine on Genesis Global for social responsibility and anti-money laundering failures.
Yesterday, Reem announced his departure via Linkedin. He wrote the time had come to “move on to the next challenge”, although he did not reveal his plans for the future.
“Over the years I saw how ideas were turned into reality and how impossible or extremely hard tasks were overcome with perseverance and passion,” Reem wrote.
“One of the most rewarding aspects of my role has been witnessing people develop themselves and many times breaking through their own perceived boundaries. To this end I was and still am inspired by all of you,” he added.
Prior to Genesis Global, Reem served as the CEO of online marketing firm ExtractNet in Tel Aviv.
Between 2008 and 2013, he worked for Gibraltar-based operator Mansion Group. He first joined as head of retention and internal marketing and was later promoted to director of marketing operations.