Malta - Casino Gaming Licensing and Regulatory Landscape
Introduction
Malta is a small island located around the centre of the Mediterranean Sea, just south of Italy.
The Malta Gaming Authority (MGA) was formed in 2001 after the government passed the Lotteries and Other Games Act. It was originally called the Malta Lottery and Gaming Authority (LGA). They re-branded in 2015 and became known as the MGA. They offer operators four different gambling licenses. The primary license requested by businesses is for regulated online gambling.
The MGA has a solid reputation with both its operators and players. They actively intervene and resolve issues. Especially, when they feel the operator has acted unfairly. Many gambling operators offer this prestigious license throughout the EU and the world. The reasons are clear to see. The criteria laid out include running a secure and safe business.
The United Kingdom Gambling Commission has whitelisted the MGA. It allows license holders to offer its services in the UK. Lastly, their role is to ensure the games offered are fair and to keep all gaming activities free from criminals.
Role of the Malta Gaming Authority
The MGA's main aims include:
The protection of all minors and vulnerable persons.
The licensing and regulation of all its gaming business.
Guidance and help throughout the application process.
The security of its player funds with secure payment methods.
Testing and audits of the games across the platforms to ensure fairness.
Constant monitoring to ensure compliance with the licensee's activities.
The safeguarding of its player rights via thorough investigations of any complaints received.
Ensure the gaming is free from any criminal activities.
The iGaming industry massively helps Malta's economy on the island. Workers in the sector account for more than 4.5% of the island's workforce. In addition, the Maltese government is agreeable to the gambling industry. It, therefore, actively encourages new start-ups in the country. Malta also hosts SIGMA. It is the world's biggest iGaming festival and is held annually on the island. It is an important event for everyone in the industry. And the expo continues to grow in popularity year on year.
Gaming licenses
There are two types of licenses operators will apply for:
B2C Gaming license: This license is offered Business to Customer. The operator must offer a gaming service. This license covers both land-based and online casinos.
B2B Gaming license: This license is offered from Business to Business. It applies to operators who supply, manage and control the games and their processes.
Games License Types
Type 1: This includes any risk-based games against the house and where outcomes are generated by Random Number Generators (RNG). Games include Roulette, Lotteries, and Blackjack.
Type 2: This also involves risk-based games. However, this license is for operations where the outcome is not random. Instead, it would be for events, competitions, or even a game of chance where you are offered odds on a result.
Type 3: The game types included in Type 3 are Betting Exchanges, Bingo, and Player vs. Player games. Operators carry no risk with this license but instead receive a commission on the stake or prizes.
Type 4 - Regulation 8 of the Gaming Authorization Regulations relates to controlled skill games.
Requirements to obtain a Malta Gambling License
Firstly, the operator must first have a registered address in Malta to take advantage of a Malta Gambling license. There also needs to be a minimum of two shareholders who will get subjected to stringent testing. It will also include a police check. Bank statements not older than three months and notarised copies of passports are also required. Next, a detailed business plan needs to get drafted. It must include all the key staff members that will be involved in obtaining one. Staff are also required and the operator needs to have a marketing department, human resources, and more. All the gaming software the operator will use in the games needs to be detailed, and any third-party agreements included. Lastly, the MGA will ensure that operations and gaming servers are located in Malta.
Businesses can only use a Malta Gaming license in countries without restrictions or prohibitions on the sale of remote gambling. Some of the countries that take advantage of an MGA license include:
Canada
New Zealand
Japan
Australia
Russia
Norway
Poland
India
Portugal
UK
Advantages of a Malta Gaming License
Tax Benefits: There is a 15% tax payable on any income generated from licensed premises with income over 75,000 euros. Businesses that generate more than 5 million euros are not subject to this tax. In addition, players who reside in Malta are also subject to a 5% gaming tax on any revenue generated.
Robust Business environment: The iGaming industry is a big part of the economy in Malta. Firstly, the workforce of Malta is highly skilled in the industry. Next, there are software providers, marketing and advertising companies, and other gaming service operators who operate from within the island.
Players Trust: Businesses that operate with an MGA gaming license have strict guidelines and regulations to follow. Players get offered a very high level of protection, and robust anti-money laundering procedures are also in place. Lastly, they are hot on responsible gaming and therefore have ensured there are helpful tools in place for the players.
Disadvantages of a license
Long and complicated application process: Obtaining a gaming license can take up to a year. In addition, operators are scrutinized and must fulfill many requirements to be accepted.
Costly - The Malta Gaming license does not come cheap. The starting price for a license begins at €40,000. In addition, there are material supply certificate application fees and non-refundable application and renewal fees.
Compliance
Licensees undergo compliance audits. An approved Service Provider does these. After holding a license and operating for a year the operator will get audited and others audits the MGA deems necessary. Suppose the operator does not comply with the compliance audit. In that case, it will lead to a suspension or possible termination of the business.
Conclusion
To obtain a Malta gambling license is no easy feat. The licenses are expensive, complicated, and take a long time to get. The paperwork is immense. In addition, the operator must attend face-to-face meetings with regulators. There's no doubt that it's worth it, however! The license gets sought by large gaming companies or well-established brands looking for a respectable and trusted license.