INTERNET GAMBLING GOOD FOR MALTA

31 August 2007

EU location and real regulation make this island a popular jurisdiction


Malta is riding the crest of a wave in the internet gambling sector with no less than 27 international companies shifting their online operations to the island by the end of this month, reports the Malta Times.

In an article on the recent arrival of major online gambling companies in the jurisdiction, the newspaper names Intercasino, William Hill, Littlewoods, Playboy Casino and Virgin Games among those that will start operating from Malta this week.

There are already 84 internet gambling operators licensed on the island. A letter of intent has been issued to 76 others and the applications of 36 companies to operate on the Mediterranean island are still pending.

"Malta's becoming the natural hub of online gaming," Mario Galea, chief executive of the Lotteries Gaming Authority, told reporters.

The article goes on to identify the UK Gambling Commission advertising white list (see previous InfoPowa reports) as one of the motivations for the impressive influx of new licensees.

The British government will only permit gambling companies based in the European Economic Area or licensed in jurisdictions accepted on the Gambling Commission's White List as acceptable regulators to advertise in the UK.

The White List contains jurisdictions that have been shown to operate properly regulated licences. Currently, Alderney and the Isle of Man are the only non-EEA jurisdictions on the list, whilst Curacao, Kahnawake and Antigua have said they are in communication with the Commission and are striving to be accepted. Malta and Gibraltar are within the EEA.

Galea said that the Malta government stands to raise substantial revenue in taxation and license fees. But the real benefits will be derived once the betting companies actually transfer their physical operations to Malta.

"Our regulations are very much in line with the EU's, and we have shown that we are capable of protecting operators - so it won't be long before the physical operations move to Malta," he said.

Malta's share of the internet betting industry has shot up dramatically in recent months with the effective closure of the American market after online gambling financial transactions were banned.

Online Casino News courtesy of InfoPowa