Parent company license suspended
The online sports betting brand MoPlay has declared itself insolvent and is currently refusing to allow players to cash out. This came after its parent company, Addison Global, had its license suspended by the Gibraltar Licensing Authority, a move that was swiftly enforced by the UK Gambling Commission.
Now, the company is refusing to pay its customers due to financial difficulties.
Conditions breached, betting and withdrawals stopped
Last week, the Gibraltar regulator suspended Addison Global’s operating license as the company could not pay all of its liabilities. This was echoed by the UKGC the next day, citing: “Addison Global Limited has breached a condition of the license (section 120(1)(b) and is unsuitable to carry on the licensed activities (section 120(1)(d) of the Act).”
we cannot take any further bets or accept any other gambling activity”
While the MoPlay site is still available in the UK, all online betting and withdrawals have been stopped. The website carries a disclaimer for customers, warning them that no money withdrawals will be forthcoming.
The full notice reads:
“Please note that MoPlay’s license has been suspended and we cannot take any further bets or accept any other gambling activity. Due to financial difficulties, we are unable to process withdrawals.
We draw your attention to clause 9 of our terms and conditions which refers to the status of funds in the event of insolvency.”
No legal protection for customers
Clause 9 describes the way funds are held in the company. Although these are supposedly separate from company funds and reserves, the clause states that, should the business become insolvent, “your funds would not be considered separate to the other company assets and you may not receive all your funds back.”
Understandably, MoPlay customers are upset. Complaints on Twitter came from customers with thousands of pounds stored in their accounts, which they believe is now lost. Others claim they expected the brand to offer better player protection.
MoPlay stopped replying on its social media accounts on February 19.
Addison Global to determine course forward
As Addison Global is a private company, there is no way of examining its accounts to see if any of the money can be saved.
The emphasis is now on the company itself to determine its course forward and decide whether liquidators will be called in. Board members are thought to have resigned shortly before the insolvency announcement.