1 History of and overall attitudes to gambling

1.1 How prevalent are different types of gambling in your jurisdiction? For example, does the current law reflect: (a) Religious or moral objections to gambling? (b) A permissive approach which also seeks to address the social consequences of gambling? and (c) The promotion of gambling as an ‘export' industry?

Malta is considered a pioneer in the gambling industry, as the first EU member state to enact comprehensive legislation regulating the online gambling sector back in 2004.

Malta's approach to gambling regulation has always been very proactive, which has resulted in the creation of a stable and attractive regulatory environment, allowing the sector to flourish in a regulated and stable manner.

Industry stakeholders typically consider Malta one of the foremost tried and tested gambling jurisdictions in the world, to the extent that over the years, revenue from the gambling industry has a central pillar of Malta's economy and gross domestic product.

Malta's gambling legal framework is designed to promote gambling as an export industry. It is based on an ‘open-window' concept, whereby there is no ‘numerus clausus' on the number of (online) gambling licences that can be granted by the Malta Gaming Authority (MGA).

Further, Malta's legal framework is designed to address the potential negative social consequences of gambling, with regulation in the sphere of responsible gambling and player protection having been pioneered by the MGA.

2 Legal and regulatory framework

2.1 Which legislative and regulatory provisions govern gambling in your jurisdiction?

Gambling in Malta is governed by the Gaming Act (Cap 583 of the Laws of Malta) and by subsidiary legislation issued thereunder, as well as by instruments and directives issued by the Malta Gaming Authority (MGA).

2.2 Which bodies are responsible for regulating and enforcing the applicable laws and regulations? What powers do they have?

The MGA is responsible for the governance and supervision of all gambling activities in and from Malta.

The MGA's powers can be summarised as follows:

  • regulating and supervising any activities relating to any matter under the Gaming Act;
  • promoting the protection of players and providing relevant information to the public;
  • ensuring that gaming advertisements are fair and responsible in accordance with applicable law;
  • investigating player complaints and promoting the fair resolution of player disputes;
  • monitoring the gaming sector and undertaking any research which the MGA deems necessary;
  • issuing guidelines on the interpretation of matters regulated under the Gaming Act;
  • developing the necessary strategy and action plans to achieve the objectives set by government and the MGA, including issuing directives under the Gaming Act;
  • advising the government and the respective minister responsible for gaming, including making proposals for new gaming laws which may be deemed necessary;
  • establishing the minimum requirements to be satisfied by any person to become engaged in a gaming activity;
  • inquiring on the suitability and fitness and properness of any person engaged or employed in the gaming industry;
  • granting gaming licences, approvals, recognition notices and other authorisations related to gaming;
  • preventing, detecting and ensuring the prosecution of offences against the Gaming Act (together with the police in certain criminal instances), and issuing enforcement measures, penalties and administrative actions; and
  • collecting gaming licence fees, gaming taxes, compliance contributions and gaming levies.

2.3 What is the regulators' general approach in regulating the gambling sector?

The MGA's approach in regulating the gambling sector is an objectives-based approach, designed to allow for innovation while ensuring that regulatory objectives are achieved and players' rights are observed, including embedding a strong responsible gambling framework. The local gambling regime applied by the MGA is both technology and game neutral, and thus encompasses all types of gambling offered. as well as all verticals and channels for delivery and responsible consumption. Further, the licensing framework is based on an ‘open-window' concept, whereby an operator may apply for an online gambling licence at any time without limitation.

3 Definitions and scope of gambling

3.1 How is ‘gambling' defined in your jurisdiction?

The Gaming Act uses the term ‘gaming' instead of ‘gambling'; locally, the term ‘gambling' is generally used more in connection with ‘problem gambling' matters. Thus, for consistency with the Gaming Act, reference herein is made to the definition of the term ‘gaming'.

‘Gaming' is defined as participating in a game, offering a gaming service or making a gaming supply, and will be construed depending on the context. In this respect, it should be noted that:

  • providing a ‘gaming service' means making a game available for participation by players as an economic activity (whether directly/indirectly, or alone/with others); and
  • a ‘gaming supply' is the supply (directly/indirectly) of goods or services in relation to a gaming service, which is either a material gaming supply or an ancillary gaming supply (but does not include the provision of a key function).

Only gaming supplies which amount to ‘critical gaming supplies' trigger mandatory gaming-related authorisation. A ‘critical gaming supply' is any material gaming supply which:

  • is indispensable in determining the outcome of a game forming part of a gaming service; and/or
  • is an indispensable component in the processing and/or management of essential regulatory data.

Some form of stake in money or money's worth is required for an activity to be captured as a regulated gaming activity; and similarly, some form of prize award in money or money's worth is also generally required.

3.2 What different types of activities are defined in the gambling legislation and what specific requirements apply to each? Please consider: (a) Betting (fixed odds/pool and spread)/betting on lotteries; (b) Gaming (house and ring games); (c) Lotteries/scratch cards and (d) The interface with financial products (if relevant).

Four different types of gambling activities are specified within the Gaming Act:

  • Type 1: Games of chance played against the house with the outcome determined by a random number generator. Type 1 includes the following verticals:
    • casinos;
    • slots;
    • scratch cards;
    • lotteries;
    • secondary lotteries; and
    • virtual games.
  • Type 2: Games of chance played against the house through a matchbook. This includes fixed-odds betting such as Sportsbook.
  • Type 3: Gaming services played in a peer-to-peer manner (player versus player), which includes the verticals of:
    • poker;
    • betting exchanges; and
    • bingo.
  • Type 4: Controlled skill games – at present, this type only covers one vertical, which is fantasy sports betting; although the law allows the Malta Gaming Authority (MGA) to include further verticals of the same/similar nature under this category.

The provision of any activity which amounts to a gaming service in or from Malta requires authorisation from the MGA. In terms of the different requirements applicable to each type of activity, while the Maltese framework does contain some activity-specific requirements, any activity or activities can be included under a singular MGA licence.

As regards the interface with financial products, if an activity is akin to a financial product/service, it is probable that the activity will be regulated under Malta's financial services framework falling under the purview of the Malta Financial Services Authority, rather than as a gaming activity regulated by the MGA.

3.3 What are the main mechanisms and features of the control of gambling in your jurisdiction? What are the consequences of breach of the regulations, both for operators and for players?

Gambling in Malta is deemed to be a regulated activity requiring authorisation from the MGA and necessitating compliance with both the law and the authorisation's specific conditions.

Malta's mechanisms for controlling gambling tend to be broader than those in many other regulated jurisdictions, as the whole gambling supply chain is comprehensively regulated. For example, critical gaming suppliers require a gaming licence and certain personnel require a key function certificate to take up key function positions within a licensed entity.

From a gambling operator's perspective, breach of the regulations will lead to penalties, which vary according to:

  • the specific type of infringement;
  • the counts of infringements; and
  • the regulatory history involved.

Generally, the penalties consist of an administrative fine ranging between €10,000 and €500,000 for each infringement (double in case of recidivism) and/or imprisonment for a term of up to five years. Other enforcement measures and penalties, including licence suspension or revocation, may also be imposed.

The Gaming Act also empowers the MGA in certain instances to reach a settlement agreement with the offender which extinguishes the offender's criminal liability. In such settlement scenarios, the MGA may impose:

  • a fine of €500,000 for each infringement or a sum of €5,000 for each day of infringement; and/or
  • any other administrative sanction deemed fit by the MGA.

The players themselves may also be penalised for participating in unlawful gambling activities. Such participation amounts to a criminal contravention under the Criminal Code (Chapter 9 of the Laws of Malta). Forfeiture of the moneys involved in the unlawful gaming activity is also envisaged under the Criminal Code.

4 Issues of jurisdiction

4.1 What approach do the courts take to the issue of jurisdiction? Where an operator which is physically outside the jurisdiction offers services to individuals within the jurisdiction, is such gambling treated as taking place offshore and outside the control of the authorities? If not, what triggers establish when such gambling is subject to the laws and control of your jurisdiction?

The Maltese courts' approach towards the issue of jurisdiction has not yet been crystallised, in that local case law has not yet provided sufficient insight as to the courts' interpretation of jurisdiction issues in the gaming sphere. However, the Gaming Act makes it very clear that the provision of any activity which amounts to a gaming service either in Malta (including by foreign entities) or from Malta requires authorisation from the Malta Gaming Authority (MGA).

4.2 Can foreign operators provide remote gambling services in your jurisdiction without obtaining a licence? Can licensed domestic operators provide services overseas?

Foreign operators that do not hold an MGA licence can provide their gaming services in Malta, provided that a recognition notice is obtained thereby from the MGA over the (foreign) licence held by such operator. To date, recognition notices are only granted to operators holding a licence from European Economic Area (EEA) member states. It is expected that in the near future, the MGA will also issue recognition notices to non-EEA licensees, depending on the regulatory standards adopted by the relevant non-EEA country.

Domestic operators licensed by the MGA are permitted by the MGA to provide their services overseas.

5 Remote versus non-remote gambling

5.1 Does the gambling regime in your jurisdiction distinguish between remote and non-remote gambling? If so, how are these defined?

Gaming in Malta is regulated in a horizontal fashion by the Gaming Act in principle, without distinction as to the delivery channel, vertical or game type. Indeed, the respective definitions of ‘gaming services' and ‘gaming supplies' do not distinguish between remote and non-remote gaming.

That said, at a granular level, there are some specifics which are different between land-based and remote gaming. In particular, a concession from the government of Malta is required for certain land-based activities.

5.2 Are there any restrictions on the media through which gambling can be provided (eg, internet/mobile telephony)?

There are no restrictions on the media through which gambling can be provided under the Gaming Act.

6 Licensing

6.1 What types of licences are available? Please consider: (a) Operators; (b) Activities (if relevant); (c) Premises; (d) Key individuals (if relevant) and (e) Equipment (if relevant).

In terms of the licences available in Malta, a gaming licence is available from the Malta Gaming Authority (MGA) for business-to-consumer (B2C) gaming operators; while a separate licence is available for business-to-business (B2B) (critical) gaming suppliers such as games resellers, aggregators and games suppliers.

In terms of licence structure, both B2C and the B2B gaming licences can cover one or more of the following game types:

  • Type 1: Games of chance played against the house with the outcome determined by a random number generator. Type 1 includes the following verticals:
    • casinos;
    • slots;
    • scratch cards;
    • lotteries;
    • secondary lotteries; and
    • virtual games.
  • Type 2: Games of chance played against the house through a matchbook. This includes fixed-odds betting such as Sportsbook.
  • Type 3: Gaming services played in a peer-to-peer manner (player versus player), which includes the verticals of:
    • poker;
    • betting exchanges; and
    • bingo.
  • Type 4: Controlled skill games – at present, this type only covers one vertical, which is fantasy sports betting; although the law allows the Malta Gaming Authority (MGA) to include further verticals of the same/similar nature under this category.

The concept of a corporate group licence is also available within the Maltese framework.

Furthermore, the MGA is empowered to issue recognition notices over B2C and B2B gaming licences issued by other EU/EEA states, permitting the holder to carry out the gaming activity authorised under the licence, to be performed in or from Malta.

Voluntary certification of certain gaming supplies which are provided on a B2B basis and which are deemed to be ‘material' yet not critical supplies is also available. Such ‘material' gaming supplies which would fall under the voluntary B2B authorisation include:

  • disaster recovery services;
  • data centres;
  • content services;
  • odds services; and
  • risk management services.

On the other hand, the equipment use in gaming activities will require certification by a certified test laboratory in terms of the MGA's standards.

Any MGA gaming licence holder must have a number of key personnel holding a personal licence, termed a ‘key function holder licence'. B2C licensees must have eight key function holders, for the positions of:

  • chief executive officer;
  • chief operating officer;
  • compliance;
  • legal;
  • data privacy;
  • anti-money laundering;
  • technology; and
  • internal audit.

B2B licensees must have the same key function holders as B2C licensees, except for anti-money laundering: this function is not required for B2B licensees, since they are not deemed ‘subject persons' under local anti-money laundering legislation.

With regard to land-based gaming specifically, while there is no specific licence applicable to the premises themselves which are used for gambling purposes, there are relevant regulations. For example, such premises require the MGA's approval and land-based gambling tends to require a concession from the government of Malta, such as in the case of land-based casinos and National Lottery games.

6.2 Which bodies award and oversee such licences?

The MGA awards and oversees such licences.

6.3 What are the key features of such licences (eg, term/renewal/any limit on overall numbers/change of control)?

An MGA licence permits the holder to carry out a gambling activity in and/or from Malta.

The term of an MGA licence is 10 years and the licence can be renewed for further 10-year terms when due for renewal (without limitation). Changes in qualifying interests or shareholdings require notification to the MGA and, effectively, ex post approval.

6.4 What are the substantive requirements to obtain a licence (eg, company established in the jurisdiction/physical presence/capitalisation?)

With regard to the substantive requirements to obtain an MGA licence, any company that is established in the European Union/European Economic Area (EEA) can apply for an MGA licence. Physical presence requirements are not elaborated within the law, although a sufficient element of physical presence is ultimately required. For example, if the primary servers are not in Malta, replication to Malta will be required.

In terms of capitalisation, the MGA requires any company applying for a licence to have the following minimum issued paid-up share capital when registering the company with the competent authority:

  • B2C gaming service licence:
    • Type 1 – minimum €100,000;
    • Type 2 – minimum €100,000;
    • Type 3 – minimum €40,000; and
    • Type 4 – minimum €40,000.
  • B2B critical gaming supply licence: minimum €40,000 per game type covered.

Companies with multiple game types under the same licence must meet the above share capital requirements cumulatively up to a maximum capped requirement of €240,000.

6.5 What are the formal and documentary requirements to obtain a licence?

The formal and documentary requirements to obtain an MGA licence can be subdivided into four main broad areas:

  • a fitness and properness test, including financial and anti-money laundering due diligence;
  • technical, including the submission of all relevant technical documentation on:
    • the games;
    • the RNG;
    • hardware and software architecture;
    • information security measures; and
    • disaster and business continuity measures;
  • business and administrative, including submission of:
    • a business plan;
    • financial forecasts;
    • a human resources plan;
    • a marketing and advertising plan; and
    • anti-collusion and outsourcing procedures; and
  • regulatory, including:
    • internal gaming policies;
    • player terms and conditions;
    • data protection;
    • commercial agreements; and
    • responsible gaming measures.

Following the provision of all required documentation and information to the satisfaction of the MGA, the applicant is invited to hold a systems audit in a staged environment, whereby the actual games, devices and technical set-up will be audited by an independent auditor, approved by the MGA but selected and appointed by the applicant.

Once a positive audit report has been submitted to the MGA by the systems auditor, and provided that the MGA's probity checks do not result in any negative finding about the applicant, its shareholders and key persons, the MGA will proceed with the issuance of a licence, provided that all relevant fees are paid.

The details of the applicable formal and documentary requirements vary depending on whether the gaming activity is a B2C gaming service or a B2B gaming supply. There are also granular variances depending on the game types authorised.

Only legal entities established in Malta or the European Union/EEA may apply for a gaming licence from the MGA.

6.6 What is the typical timetable for obtaining a licence?

A timeline of circa six months typically applies for non-problematic MGA licence applications.

6.7 What costs are typically incurred in obtaining a licence?

The main costs typically incurred in obtaining an MGA licence are as follows:

  • a one-off, non-refundable licence application fee amounting to €5,000, payable to the MGA;
  • an annual licence fee amounting to €25,000, payable to the MGA. For B2B licensees, this fee can increase up to €35,000 depending on annual revenue;
  • a fee of €50 per key function necessary;
  • a fee due to the engaged systems auditor, which typically varies depending on the selected systems auditor and the nature and place of work required;
  • injection of the required shareholding, depending on the applicable MGA licence and the game types covered, as set out in section 6.4;
  • company incorporation and maintenance costs, if the applicant chooses to incorporate a Maltese company; and
  • other costs depending on the applicant's specifics, such as:
    • whether the applicant wishes to outsource any key function officials or directorships;
    • costs relating to legal advisory and representation;
    • costs relating to the IT infrastructure, including those relating to the data centre; and
    • hosting and costs relating to the certifications by approved test laboratories.

7 Ongoing compliance

7.1 What are the operator's rights and obligations under the licence?

The list of obligations is quite long and overarching. However, some of the obligations worth highlighting include that an operator licensed by the Malta Gaming Authority (MGA) has the right to carry out gaming services in and/or from Malta in terms of its licence conditions, and the obligations deriving from the Gaming Act, as well as any other laws which may be applicable from time to time. These include the following obligations:

  • to pay gaming tax, compliance contributions and licence fees to the MGA;
  • to ensure that all required submissions are made to the MGA;
  • to display on its website the MGA's dynamic seal of authorisation; and
  • to exercise due care in selecting the markets in which to pursue its activities and the advertising thereof.

Moreover, an operator has numerous responsible gaming-related obligations to follow and the MGA adopts a strict enforcement approach to an operator's failure to properly adopt responsible gaming measures. A key obligation for business-to-consumer operators is to comply with anti-money laundering/counter-terrorist financing legal and procedural requirements.

7.2 Can licences be transferred? If so, how? What restrictions apply?

Licences and other authorisations granted by the MGA cannot be assigned or transferred in terms of the Gaming Authorisations Regulations (Subsidiary Legislation 538.05 of the Laws of Malta). However, intra-group transfers are possible, provided that the MGA's prior approval is obtained.

7.3 What requirements and restrictions apply to the different types of gambling facilities in your jurisdiction?

Gambling facilities must be approved for such purpose by the MGA and regulations, standards and certifications will apply to the activities carried out within the facilities. Further, licensees must make available within such facilities leaflets and other information regarding at least one organisation that aids persons experiencing problem gambling issues. Responsible gaming messages must be placed in visible locations within these facilities.

There are also restrictions in place with regard to the permitted location of such facilities. For example, a facility used for gaming purposes must be at least a distance of 75 metres from:

  • educational establishments;
  • senior citizens' care facilities;
  • playgrounds;
  • playing fields;
  • places of worship; and
  • certain other venues and infrastructure.

There is also a requirement that there be a walking distance of at least 50 metres from other such facilities.

8 Penalties and sanctions

8.1 What penalties and sanctions are available to the authorities for breach of the gambling legislation?

The penalties and sanctions available to the authorities generally consist of:

  • administrative fines ranging from €10,000 to €500,000 for each infringement (double in case of recidivism); and/or
  • imprisonment for a term of up to five years.

The Gaming Act also empowers the MGA in certain instances to reach a settlement agreement with the offender, which extinguishes the offender's criminal liability. In such settlement scenarios, the MGA may impose:

  • a fine of €500,000 for each infringement or a sum of €5,000 for each day of infringement; and/or
  • any other administrative sanction deemed fit by the MGA.

Other enforcement measures and penalties are available, including:

  • suspending or revoking a licence; and
  • banning a person from any future involvement in licensees.

The MGA also has the power to issue any lawful directions it deems fit to a licensee.

9 Advertising and marketing of gambling

9.1 What requirements and restrictions apply to the advertising and marketing of physical and remote gambling in your jurisdiction? Do these vary depending on the type or location of the activity, or the medium through which it is carried out?

Several requirements and restrictions are imposed on different forms of advertising, including through sponsorships, social media, bonuses and promotions.

Advertisements cannot be based on the gaining of personal prestige or on alleged success stories; nor can they be used to exploit the vulnerable or a vulnerable situation.

All key regulatory matters in relation to advertising and marketing requirements and restrictions are contained within the Gaming Commercial Communications Regulations (Subsidiary Legislation 583.09 of the Laws of Malta), including matters relating to:

  • general obligations and limitations;
  • responsible gaming;
  • protection of minors and vulnerable persons;
  • sponsorships; and
  • misleading and unfair promotional schemes.

In 2019, the Malta Gaming Authority also issued the Commercial Communications Committee Guidelines, which further elaborate and explain the details of the requirements contained within the Gaming Commercial Communications Regulations.

Differences with regard to the medium through which advertising is carried out do exist. For example, in social media marketing, there is a requirement to specifically utilise age-gating functionalities of the social media used to market, in order to ensure that the advertising is not displayed to minors using the respective social media.

10 Consumer protection

10.1 What social responsibility obligations apply to land-based and remote gambling operators in your jurisdiction? Do these vary depending on the type or location of the activity, or the medium through which it is carried out?

Several social responsibility obligations apply to land-based and remote gambling operators, principally contained within the Gaming Player Protection Regulations (Subsidiary Legislation 583.08 of the Laws of Malta), and the Player Protection Directive of 2018 issued by the Malta Gaming Authority (MGA) under such regulations.

Social responsibility obligations include that a player must have the ability to:

  • set deposit limits, play-time limits and loss/wager limits; or
  • exclude themselves from playing for a specific amount of time or indefinitely.

These requirements also include the disclosure of certain information, such as:

  • the licensee details;
  • signage which denotes the prohibition of underage gaming; and
  • messages which uphold ‘responsible gaming'.

Websites must also contain the MGA's dynamic seal of approval to show to players that they are playing on a website licensed by the MGA.

While the principles are the same, there are some granular variances between the specific social responsibility requirements imposed on remote and land-based operators, such as differences on where and how to place the respective social gaming messages.

10.2 What other general consumer protection requirements are of relevance for gambling operators in your jurisdiction?

Apart from the gambling-specific regulation under the Gaming Act, gambling operators are also subject to compliance with legislation in the generic consumer domain, which locally is contained within the Consumer Affairs Act (Cap 378 of the Laws of Malta) and subsidiary legislation and regulations applicable thereunder. Consumer privacy is also applicable in terms of the Data Protection Act (Cap 586 of the Laws of Malta).

Since Malta is an EU member state, consumer legislation issued at the EU level is also applicable in Malta. Specifically with regard to consumer privacy matters, the General Data Protection Regulation is also applicable in Malta.

11 Financial crime

11.1 How does the gambling regime interface with money laundering/terrorist financing/proceeds of crime legislation in your jurisdiction?

Only entities holding a business-to-consumer (B2C) licence from the Malta Gaming Authority are deemed to be ‘subject persons' for the purposes of local legislation on anti-money laundering and counter-terrorist financing.

Among other applicable obligations in this domain, such B2C licensees must undertake customer due diligence measures when carrying out any single or multiple transactions that cumulatively amount to €2,000.

12 Non-gambling activities/social gambling

12.1 What specific activities, if any, are exempted from the gambling regime in your jurisdiction (eg, prize contests/sweepstakes/free prize draws/e-sports)?

The Second Schedule of the Gaming Authorisations Regulations sets out an exhaustive list of activities which are exempt from the requirement for authorisation from the Malta Gaming Authority (MGA), as follows:

  • games of skill which do not require a stake to enable participation and/or do not envisage the possibility of a prize;
  • games of skill which require a stake to enable participation and offer the possibility of a prize, unless the MGA issues a ruling determining that such a game of skill is a ‘controlled skill game';
  • games of chance which do not require a stake to enable participation and/or do not envisage the possibility of a prize, unless otherwise determined by the MGA in a binding instrument;
  • de minimis games, defined as independent games which consist solely of a lottery or raffle-type game, where the value of the stake does not exceed €1 and the prize does not exceed €100; and
  • licensable games organised on board any vessel flying or entitled to fly the flag of Malta, or registered in Malta, while that vessel is navigating outside the territorial waters of Malta.

12.2 How is ‘social gambling' defined in your jurisdiction and how is it regulated (if at all)?

‘Social gambling' is not explicitly defined within Malta's legislation. That said, generally, social gaming tends to be covered through the exemptions from the requirement for authorisation from the MGA in terms of the Second Schedule of the Gaming Authorisations Regulations.

13 Disputes and legal enforceability

13.1 Are gambling contracts enforceable as a matter of law?

Lawful gambling contracts emanating from gaming activities authorised by the Malta Gaming Authority (MGA) are enforceable in Malta. However, offering games on credit to players is not allowed.

Otherwise, in terms of the Civil Code (Cap 16 of the Laws of Malta), the law grants no action for a gaming debt or for payment of a bet. Nor does the law grant the right of recovery of any sum lent by any person who knew that such sum was intended for gaming or for the recovery of any sum lent by any person interested in the game, for the payment of money lost at such game.

13.2 In which forums are gambling disputes typically heard in your jurisdiction? What issues do such disputes typically involve?

Most gambling disputes in Malta tend to be heard and determined through alternative dispute resolution (ADR) (enabling free access to the services of an ADR provider is one of the requirements for MGA-licensed business-to-consumer gaming operators).

The most common issues which disputes tend to involve concern an operator's duty or otherwise to honour payment of winnings to a player, often cancelled on grounds relating to an alleged breach of terms and conditions by the player.

13.3 Have there been any recent cases of note?

Most significant gaming litigation during the past few years has revolved around anti-money laundering (AML) breaches, with various gaming operators facing AML breach-related fines.

Other recent noteworthy litigation concerned a financial penalty of €2.34 million imposed on Black Rock Media Limited for operating a gaming service through a Maltese legal entity without possessing the necessary authorisation, as the company was processing payments to and from players as part of a gaming service that was not duly authorised.

14 Trends and predictions

14.1 How would you describe the current gambling landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

As a global hub for remote gaming, Malta's gambling landscape is expanding through a recent increase in mergers and acquisitions involving gaming operators and suppliers. This is becoming an increasing global trend for achieving growth – especially given that licences/registrations are becoming available in various countries, including most notably North America and Ontario.

In terms of local legislative developments, towards the end of 2021, the Malta Gaming Authority (MGA) published a series of amendments to the Gaming Authorisations and Compliance Directive (3/2018), in parallel with a new Policy on the Eligibility and Ongoing Competency Criteria for Key Persons. These have led to various changes with regard to the key persons that are required by an MGA licensee, including:

  • specific roles and the number of key persons necessary;
  • the experience and/or qualifications criteria necessary to fulfil a role; and
  • an annual requirement to perform continuous professional development (CPD) hours to be able to renew their key function certificate.

The changes also result in a re-approval process for existing key persons occurring during 2022 and ending by March 2023 – the date by when the MGA will rule on the approval of an existing MGA licensee's designation of its key roles.

15 Tips and traps

15.1 What are your top tips for gambling operators in your jurisdiction and what potential sticking points would you highlight?

Our top tips for gaming operators in Malta are as follows:

  • Focus on compliance and embed compliance staff in technology teams.
  • Have a strong governance framework.
  • Test your controls, especially in light of the recent increase in fines in the anti-money laundering domain and in the responsible advertising domain. In particular, during the COVID-19 pandemic, the Malta Gaming Authority (MGA) took various enforcement actions against licensees that were running COVID-19 related advertisements on the basis that the MGA deemed these advertisements to be socially irresponsible.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.