CSB Group offers a "one-stop-shop" service to Online Gaming Operators by assisting Clients in setting up / re-locating their Gaming Operation to Malta. The Group has been involved in the iGaming Industry since its inception in Malta - that is since 2000 and assists clients in submitting and pursuing a Gaming Licence application to the Malta Lotteries & Gaming Authority (LGA).
The Malta Online Gaming Licence Application Procedure
Operators looking to obtain an online gaming licence in Malta are required to satisfy a rigorous application process in the course of which applicants are required to submit detailed information and documentation relating to their proposed operations for review and scrutiny by the Lotteries and Gaming Authority. The process is explained in further details below.
Online Gaming Licence - Pre-Application
Before submitting an application, applicants are advised to undergo a pre-application process with one of the LGA's Licence Relationship Executives who will ensure the application is correctly presented and all the key requirements are satisfied on the face of the record. This aids in speeding up the licensing process by ensuring the avoidance of any missing or incomplete information which generally slows down the application process.
The Malta Online Gaming Licence - A harmonised Application Process
With effect from June 2011, the application process has been harmonised into a single stage. The LGA assesses whether an applicant;
1. Is fit and proper to conduct gaming business;
2. Is correctly prepared from a business strategy perspective;
3. Has the operational and statutory requirements to meet the legal obligations expected by Maltese Law;
4. Has correctly implemented what has been applied for on a technical environment before going live.
Lotteries & Gaming Authority (LGA) Fit and Proper Test
The LGA carries out a comprehensive "Üfit and proper' test in respect of the applicant by assessing the information related to the involved persons and on the business viability of the operation. The LGA also conducts probity investigations with other national and international regulatory bodies and law enforcement agencies.
Business Planning
The LGA here conducts an in-depth financial analysis of the business plan, which must include a detailed three-year forecast of the proposed operation.
Operational and Statutory Requirements
Each of the components of the applicant's proposed business will be reviewed in the course of the application process. Thus, the incorporation documents, the games, the business processes related to conducting the remote games, the rules, terms, conditions and procedures of the games, the application architecture and system architecture of the gaming and control systems will be duly examined by the Authority. The above review is usually completed within 12 to 16 weeks, provided all information is complete and correct. Applications which are considered by the Authority to be of insufficient completeness or quality may be rejected and subject to re-application. The involvement of the CSB Group in guiding applicants through the application process is aimed towards ensuring that all documentation is duly completed and detailed, based on the Group's extensive experience in the area.
Malta Online Gaming Licence -Systems Audit
Once the said general review has been successfully completed, the LGA will require the applicant to implement onto a technical environment in preparation for go-live. The applicant is given 60 days to complete this phase, failure of which would lead to suspension or re-application. At any point within the 60 day period, the applicant may trigger a request for an external systems audit. Such an audit is performed by an independent third party contracted by the LGA.
The systems audit is aimed at testing the live environment in the light of the documentation provided in support of the relevant application. Should the LGA consider that significant changes need to be made to the applicant's gaming system, it may require the applicant to re-apply. Upon the successful completion of the systems audit, the systems are duly certified as compliant by the Authority (the "certification process") and a five year license is issued.
Compliance Audits
The LGA mandates that after go-live a Licensee shall undergo a number of compliance audits of its operation. Failure of a compliance audit could lead to suspension and even termination of a licence. Such audits are performed by independent third parties contracted by the LGA who will require the audit to take place at pre-set milestones:
1. Within the first year of operation after being licensed by the LGA;
2. On the third year of operation after being licensed by the LGA;
3. On the implementation of gross changes in the gaming system;
4. On the discretion of the LGA normally arising from suspicion of deviation to:
a) the regulations;
b) operational nature of the license;
c) misconduct.
*Source - LGA (Malta Lotteries and Gaming Authority)
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.
