igamingprofiler
Registered User
- Joined
- Feb 25, 2009
- Location
- Malta
There are currently significant issues surrounding the igaming industry, not just in Malta, but globally. With the European Commission debating whether and how to regulate remote gaming within the whole of the EU and a certain member the United States government (See: Barney Frank) rebelling against the UIGEA, it is hardly an opportune time for uncertainty.
According to the report for the fiscal year ending December 31st, 2007 from the Lotteries and Gaming Authority (LGA) the revenue generated from gaming was just under 35 million. Considering that this is an increase of 2.8 million from 2006, the prospect of a significant increase in last years numbers, which typically are finalised sometime in June the following year, wouldnt be unreasonable.
As one of the pioneers of legislating remote gaming operations, Malta has been on the cutting edge of the industry for many years now. With its solid foundation as a reputable, safe locale for legitimate operators interested in customer safety and responsible gaming, the island has been a welcoming destination and, in turn, welcomed some of the biggest and best in gaming.
However, it all might be hanging by a thread. Since the resignation of the LGAs previous CEO from the post in October, Michael Gonzi has been presiding as temporary CEO until a permanent replacement is selected. To his credit, people within the industry have lauded him as an adept leader with the ability to get things done. He has issued licenses and numerous letters of intent to applicants keeping the business of remote gaming here moving. However, this cant be an enviable position for him to be in.
The interview phase, which was broadly advertised in the local media, was set to commence during the week of the International Casino Exhibition in London on the 27th of January and as of yet hasnt been resolved. Enquiries made to the LGA regarding the status of interviews, candidates, etc. were requited with a modicum of information from the communications department stating We have absolutely no idea on which stage is the selection process. Nor was an answer to the question of Who would know the answers to such questions? available.
Such communicative methodology toes a very dangerous line with regard to what gaming operators have been saying in unison a need for legislative clarity and clear communication is necessary for the machine to run smoothly. With so much at stake, i.e. tax revenue, jobs and foreign investment, this doesnt seem like an overly demanding request. With the global recession, there is zero margin for error when it comes to producing and managing a countrys wealth, especially when most experts suggest that the end is not yet in sight. Its an extraordinarily difficult task for any country, as is clear by reading any medium of international press, but more so for a small state greatly reliant on finance, ICT and emerging markets revenue.
Adding further concern in the jurisdiction is the current fervor over gambling arcades and the subsequent judicial protest that has been lodged by owners of the Casino Di Venezia, Dragonara, Oracle and the Portomaso Casinos against the Minister of Finance and LGA Chairman. The casinos claim that these arcades are unregulated, pay no tax and have no enforceable age limitations. Although schedule five of the Lotteries and Other Games Act is in direct reference to Video Lottery Terminals (VLT) and their regulation, the issue is cloudy, at best. Tonio Fenech was quoted in the Times on February 1st that If their places fall foul of the regulationswe will close them and we will issue regulations regarding gaming arcades; what, then, does schedule five exactly address? Have regulations been in place and not been enforced? Are there different types of machines in use? The mounting confusion and diffidence of key members in public office has to be quite alarming to not only those surveying the landscape of the jurisdiction, but even those who have already vested themselves in this market.
Time is of the essence to implement a rational, well thought-out solution to the key issues of an evolving worldwide marketplace. A deliberate effort is necessary to restore and enhance the international communitys view of the Maltese jurisdiction before it slips beyond our grasp entirely. Innovative measures and forward thinking have been the lynchpins to the emergence of Malta as a leader in the industry, and will also be paramount in its resurgence.
The first step, clearly, is to select permanent leadership to be at the helm of the LGA. Politics and personal feelings should be nil in this decision and LGA, although a public regulatory body, should be conducted in the manner of a private enterprise: efficiently. While government oversight is critical, it is no secret that bureaucracy expands to meet the needs of the expanding bureaucracy. Simply put, the Authority needs to exist free of hindrances from governmental red tape, while maintaining its integrity. The selection of a strong willed, high character CEO, who is unafraid to voice opinion and put business first, will expand the current scope of the business of remote gaming locally while streamlining its processes.
Also, the need for technological investment is crucial to not just gaming, but myriad sectors as well. This infrastructure is especially necessary for igaming with 50% of international bandwidth being allocated for it, and has been a negative checkmark for Malta when compared to competing jurisdictions. Amid such economic uncertainty, the time to invest in such ventures by the government would show remarkable foresight and perhaps lay the foundation for many years to come. It will be a classic example of identifying your weaknesses and making them your strengths. The addition of a more user-friendly, informative website by the LGA is also a small, but cost-effective means of satisfying your customer base and attracting new business.
Lastly, create a series of recurring open forums for gaming operators and vested parties to discuss the best way to further the industry. Good salespeople know that success comes from active listening and addressing the issues your clients have. In a competitive market such as this it is impossible to thrive by ignoring your clients and, to be clear, there is serious competition. The Ministry of Finance and LGA need to hear precisely what the concerns of its clients are in order to shore up any perceived or actual shortcomings that their customers have identified. This will, at least, restore good faith and public confidence that the government recognises a key industry and is taking the necessary steps to ensure it benefits the people of the country.
The question is, is anybody listening?
By Thomas Flash
According to the report for the fiscal year ending December 31st, 2007 from the Lotteries and Gaming Authority (LGA) the revenue generated from gaming was just under 35 million. Considering that this is an increase of 2.8 million from 2006, the prospect of a significant increase in last years numbers, which typically are finalised sometime in June the following year, wouldnt be unreasonable.
As one of the pioneers of legislating remote gaming operations, Malta has been on the cutting edge of the industry for many years now. With its solid foundation as a reputable, safe locale for legitimate operators interested in customer safety and responsible gaming, the island has been a welcoming destination and, in turn, welcomed some of the biggest and best in gaming.
However, it all might be hanging by a thread. Since the resignation of the LGAs previous CEO from the post in October, Michael Gonzi has been presiding as temporary CEO until a permanent replacement is selected. To his credit, people within the industry have lauded him as an adept leader with the ability to get things done. He has issued licenses and numerous letters of intent to applicants keeping the business of remote gaming here moving. However, this cant be an enviable position for him to be in.
The interview phase, which was broadly advertised in the local media, was set to commence during the week of the International Casino Exhibition in London on the 27th of January and as of yet hasnt been resolved. Enquiries made to the LGA regarding the status of interviews, candidates, etc. were requited with a modicum of information from the communications department stating We have absolutely no idea on which stage is the selection process. Nor was an answer to the question of Who would know the answers to such questions? available.
Such communicative methodology toes a very dangerous line with regard to what gaming operators have been saying in unison a need for legislative clarity and clear communication is necessary for the machine to run smoothly. With so much at stake, i.e. tax revenue, jobs and foreign investment, this doesnt seem like an overly demanding request. With the global recession, there is zero margin for error when it comes to producing and managing a countrys wealth, especially when most experts suggest that the end is not yet in sight. Its an extraordinarily difficult task for any country, as is clear by reading any medium of international press, but more so for a small state greatly reliant on finance, ICT and emerging markets revenue.
Adding further concern in the jurisdiction is the current fervor over gambling arcades and the subsequent judicial protest that has been lodged by owners of the Casino Di Venezia, Dragonara, Oracle and the Portomaso Casinos against the Minister of Finance and LGA Chairman. The casinos claim that these arcades are unregulated, pay no tax and have no enforceable age limitations. Although schedule five of the Lotteries and Other Games Act is in direct reference to Video Lottery Terminals (VLT) and their regulation, the issue is cloudy, at best. Tonio Fenech was quoted in the Times on February 1st that If their places fall foul of the regulationswe will close them and we will issue regulations regarding gaming arcades; what, then, does schedule five exactly address? Have regulations been in place and not been enforced? Are there different types of machines in use? The mounting confusion and diffidence of key members in public office has to be quite alarming to not only those surveying the landscape of the jurisdiction, but even those who have already vested themselves in this market.
Time is of the essence to implement a rational, well thought-out solution to the key issues of an evolving worldwide marketplace. A deliberate effort is necessary to restore and enhance the international communitys view of the Maltese jurisdiction before it slips beyond our grasp entirely. Innovative measures and forward thinking have been the lynchpins to the emergence of Malta as a leader in the industry, and will also be paramount in its resurgence.
The first step, clearly, is to select permanent leadership to be at the helm of the LGA. Politics and personal feelings should be nil in this decision and LGA, although a public regulatory body, should be conducted in the manner of a private enterprise: efficiently. While government oversight is critical, it is no secret that bureaucracy expands to meet the needs of the expanding bureaucracy. Simply put, the Authority needs to exist free of hindrances from governmental red tape, while maintaining its integrity. The selection of a strong willed, high character CEO, who is unafraid to voice opinion and put business first, will expand the current scope of the business of remote gaming locally while streamlining its processes.
Also, the need for technological investment is crucial to not just gaming, but myriad sectors as well. This infrastructure is especially necessary for igaming with 50% of international bandwidth being allocated for it, and has been a negative checkmark for Malta when compared to competing jurisdictions. Amid such economic uncertainty, the time to invest in such ventures by the government would show remarkable foresight and perhaps lay the foundation for many years to come. It will be a classic example of identifying your weaknesses and making them your strengths. The addition of a more user-friendly, informative website by the LGA is also a small, but cost-effective means of satisfying your customer base and attracting new business.
Lastly, create a series of recurring open forums for gaming operators and vested parties to discuss the best way to further the industry. Good salespeople know that success comes from active listening and addressing the issues your clients have. In a competitive market such as this it is impossible to thrive by ignoring your clients and, to be clear, there is serious competition. The Ministry of Finance and LGA need to hear precisely what the concerns of its clients are in order to shore up any perceived or actual shortcomings that their customers have identified. This will, at least, restore good faith and public confidence that the government recognises a key industry and is taking the necessary steps to ensure it benefits the people of the country.
The question is, is anybody listening?
By Thomas Flash
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