Addison Global licence suspended by Gibraltar government
Operator failed to raise the funding it had initially projected and has not met licensing conditions
Gibraltar-based operator Addison Global, the company behind the MoPlay gambling brand, has had its licence suspended by the Gibraltar Gambling Licensing Authority.
A statement released by the Gibraltar Government today said the firm had failed to raised the funds it had initially projected back in 2017.
“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,” the statement said.
“Whilst the directors will have to address the solvency issues, a decision has been made to suspend the relevant licences to protect consumers from any further detriment.”
EGR understands that Addison’s executive members of staff walked on the business yesterday, while the status of its remaining employees remains unknown.
The World Trade Center-based operator failed to meet licensing conditions despite having worked with gambling commissioner Andrew Lyman on a proposal to restructure the business.
EGR understands that the restructuring was due to difficulties regarding the level of investment. The proposed restructuring guaranteed long-term support through to profitability of the business.
However, it was revealed this week that future investment support required would not be available within the timescales envisaged initially, leading to the decision to suspend the licence.
“These proposals, which included honouring all outstanding liabilities, have not materialised and the Gambling Commissioner is no longer able to accept that the firm is able to meet its licensing conditions,” the Gibraltar Government said.
The start-up was established in 2017 by former William Hill executive Juergen Reutter who hired a selected handful of gambling industry veterans to help kickstart the business.
Addison was not licensed in Gibraltar until significant investment commitment had been made by US investors to support the business through to profitability.
The operator’s two operating entities, Addison Global and Addison Global 2, were granted a total of four licences: two for sports betting and two for egaming.
EGR understands that as a start-up, the prudential standing and business plan of the operation has been under periodic review by the Gibraltar gambling commissioner.
It is believed that the decision to license was fully tested and robust and the reason for what appears to be a business failure is a combination of factors; including the reduction in investment commitment and failure to achieve elements of the initial business strategy.
“We have been very supportive of this business and are very disappointed that the investors have not been able to reciprocate in terms of their level of commitment,” Lyman commented.
Addison Global launched a UK-facing sportsbook under its MoPLay brand in June 2018, subsequently sealing sponsorship deals with Premier League teams Watford FC and Manchester United.
Lyman confirmed that the Gibraltarian authorities are in dialogue with the UK Gambling Commission following the suspension.