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Isle of Man GSC cancels Metagrow’s B2B license on back of director’s criminal conviction

The Isle of Man Gambling Supervision Commission (GSC) has revoked the license of Metagrow Solutions Limited.

The cancellation, effective December 6th, 2024, comes amid broader allegations of misconduct involving Metagrow’s stakeholders and a parallel scandal impacting Malaysian software company Rexit Bhd.

Metagrow, licensed under the Isle of Man’s Online Gambling Regulation Act 2001 (OGRA) since March 2023, had its license suspended on November 12th, 2024, before being fully revoked.

Isle of Man Gambling Supervision Commission (GSC)

The GSC cited a critical failure in meeting the integrity standards required for license holders, stating it was “no longer satisfied that Metagrow was under the control of a person of integrity.” This decision aligns with the GSC’s mandate to safeguard the Isle of Man’s reputation as a globally trusted jurisdiction for online gaming operations.

The GSC emphasized its commitment to regulatory excellence, citing section 5(3)(e) of the Gambling Supervision Act 2010, which prioritizes maintaining the island’s standing as a reputable hub for regulated gaming.

Rexit Bhd

The cancellation follows a high-profile legal case in Singapore involving two prominent stakeholders linked to Metagrow. Malaysian nationals Datuk Seow Gim Shen and Kong Chien Hoi were sentenced to 14 weeks in jail on October 24th, 2024, for conspiring with Chinese national Sun Jiao to illegally obtain the personal data of 9,369 individuals. Seow and Kong were major shareholders in Rexit Bhd, a Malaysian SaaS provider, with Seow holding 23.33 percent and Kong indirectly owning 18 percent through Metaco Asset Holdings Sdn Bhd.

This scandal has cast a shadow over Rexit, whose shares slid 4 percent in the wake of the sentencing. The company has seen a total decline of over 16 percent in share value this year, with 1.1 million shares traded immediately after the news broke. The ripple effects of the scandal extend beyond financial markets, highlighting the challenges posed by cross-border data crimes and their implications for corporate governance.

The GSC’s swift action to revoke Metagrow’s license underscores the Isle of Man’s zero-tolerance approach to unethical behavior. By distancing itself from entities linked to questionable activities, the Isle of Man reinforces its standing as a gold standard in gaming regulation. For Metagrow, the license cancellation effectively halts its operations under the Isle of Man’s jurisdiction, significantly impacting its global business prospects.

Frank Schuengel
Frank Schuengel
Frank Schuengel is an online gambling industry veteran with over twenty years of experience in Europe and Asia. Equally at home in the Isle of Man and the Philippines, he started his career as a sports trader before setting up and running whole operations, and more recently focusing on the regulatory and licensing side of things in the worlds of fiat and crypto eGaming. When he is not writing about gambling topics, he can be found cycling around Manila and advocating sustainable transport solutions for a Philippines based mobility magazine.

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