The UK Gambling Commission has announced that the license of Addison Global, the company that owns the sports betting brand MoPlay, is being suspended until a review of the operator is completed, with the license suspension coming into effect immediately.
Suspicion Of License Breach
The news of the actions from the British gambling regulator, carrying a review of the betting company under Sections 116 and 118 of the Gambling Act, where Section 120(1)(b) allows it to suspend or revoke a license on suspicions of licensing conditions breach, comes a day after Gibraltar Government, on the advice of the Gambling Licensing Authority, suspended the license of Addison Global Limited after it was unable to provide a solution to its solvency issues.
Addison Global allegedly has serious financial difficulties relating to money owed to affiliate companies, with one unnamed affiliate partner waiting for a payment in excess of £500,000, and it the MoPlay brand operator has been failing to honour these liabilities since May 2019.
Gibraltar Lit The Fuse
The Gambling Commissioner has been working in close cooperation with the main shareholder of Addison Global on proposals for restructuring, but the responsibility in terms of financial support from the shareholder has not been met, forcing the hand of the regulator to impose the drastic measure.
“It is most disappointing that the promised financial support from the shareholder has failed to materialise as the firm has not received the financial support it was projected to receive when first licensed. Whilst the Directors will have to address the solvency issues, a decision has been made to suspend the relevant licenses to protect consumers from any further detriment”, Andrew Lyman, Commissioner, Gambling Licensing Authority.
Customer Money Most Important
The statement of the regulatory body in Gibraltar did not refer to the subject of the status regarding clients’ funds, but the UK Gambling Commission is adamant that suspension of license does not prevent Addison Global from returning the outstanding customer accounts’ balances, warning that the commission expects customers to be informed duly about the situation with no ambiguity in the messages.
A legal advisor to the director of the company reiterates that the company is cooperating with both UK and Gibraltar regulatory bodies, and in regards to operations, the company is no longer taking bets, registrations or deposits, but the players can withdraw their funds if they deem necessary to do so.
The Gibraltar-based Addison Global that was founded in 2017 as an alternative mobile sports book seeking to challenge the established brands in the industry, has a history of financial troubles, despite the solid investments it received, with the most interesting cases being the September 2019 Manchester United and Watford lawsuit against the company, with the former seeking the amount of £9 million in outstanding funds.