Galaxy Racer, a Dubai-headquartered esports and gaming organization, recently entered Pakistan and held its flagship event, Gamers Galaxy, in early January 2022 while promising investment worth millions of dollars. Reports have now surfaced online claiming that the company failed to keep its end of the bargain and owes over $110,000 in outstanding payments to the participants.
Professional CS: GO commentator, interviewer, and former coach, Mamoon “TeaTime” Sabri, took to Twitter to highlight the issue. He informed that the company owes over $110,000 to Pakistani esports players.
Galaxy Racer, a company self valued at 1.5 billion dollars entered Pakistan under @Falamb3.
They pledged to invest several mn. dollars into the Pakistani ecosystem.
Uptil now they've held one event, and have outstanding payments of OVER $110,000 to Pakistani esport players.
🧵
— Mamoon 'TeaTime' Sabri – #FreelanceBtw (@ggTeaTime) May 5, 2022
Delays began with the PUBG tournament that ended on the 23rd of January. GXR committed to pay the prize money by the 13th of April, 10 days before the standard payment time, yet failed to do so.
Valued at $1.5 billion, the organization had previously announced a partnership with entrepreneur Fakhr-e-Alam, with him taking a $40 million stake in the company. GXR is now set to hold the Supreme Galactic League in August.
Galaxy Racer’s Response
In a statement made exclusively to ProPakistani, Galaxy Racer said that “We are aware of claims made by certain individuals on social media and we wanted to make it clear that these claims are false. It is important to note that standard prize pool payments can take as little as 90 days and up to 180 days as per global standards. As a responsible global corporate entity, we cannot undertake any measure that is not compliant with local regulations and laws. We are a Special Technology Zone authority licensed direct foreign investment entity and are working through govt compliances.”
“We are constantly in touch with all our players and winners. All the winners have been extremely cooperative and though we recognize that it can be frustrating at times, we appreciate that they have been very patient and are aware that they will receive their winning prize pool. Please note, we will always comply with local government regulations and laws. We have a clear rule book which all players agreed to before the tournament commenced,” the statement added.
“Please do bring to our attention if any player or team, that has posted any material claiming through their official or verified social media account or emailed, that Galaxy Racer has violated any law or regulation or committed any violations and we would be happy to address the issue directly. We are committed to the Esports ecosystem of Pakistan and are looking forward to major tournaments and events later this year,” the company said further.
The statement issued by the company added, “Our commitment to Pakistan’s Esports and youth remains firm. We will continue to work to improve the entire Esports ecosystem in Pakistan and hold more major tournaments in the days ahead. We are also very hopeful that after the teething problems of government compliances will be settled, things will be processed much faster in the future.”
