Important changes to Malta gambling law

By Brian Cullingworth, Last updated Mar 14, 2018

MALTA TABLES NEW GAMING BILL IN PARLIAMENT

Wide-ranging overhaul on the cards.

A new gaming bill was tabled by the Parliamentary Secretary for Financial Services, Digital Economy & InnovationHon. Silvio Schembri before the Maltese Parliament Tuesday.

The new gaming bill seeks to repeal existing legislation and replace it with a singular primary Act of Parliament, together with subsidiary legislation covering horizontally the main thrusts of gaming regulation as well as a series of technical directives and guidelines currently being consulted on by the Malta Gaming Authority (MGA) for eventual publication and rollout by the regulator once the Act comes into force.

This Bill marks a major step in streamlining and encompassing the governance of all gaming services offered in and from Malta and across all channels under the competence of the MGA’ Schembri said.

The Government wants to ensure that the gaming industry continues to be run responsibly, fairly and free from criminal activity, so that the Maltese jurisdiction provides a safe and well regulated environment where the industry can also develop and innovate.”

Key proposals in new Gaming Act include:

  • Replacing the current multi-licence system with a system for Business-to-Consumer (B2C) licenses and for Business-to-Business (B2B) licenses – covering different types of activities across multiple distribution channels;
  • Moving towards an objective-based rather than excessively prescriptive regulatory approach, to allow for innovation whilst ensuring that the regulatory objectives are attained;
    Broadening the regulatory scope to increase MGA oversight and allow for intervention where necessary and in a proportionate manner;
  • Widening the MGA’s powers under the compliance and enforcement functions to better achieve the regulatory objectives, in line with concurrent developments on anti-money laundering and funding of terrorism obligations;
  • Segmenting the Key Official role into various key functions within a licensed activity, requiring approval, for direct scrutiny and targeted supervisory controls, which would raise the bar for persons of responsibility within a gaming operation;
  • Strengthening the player protection framework by formalising the mediatory role of the MGA’s Player Support Unit, enshrining segregation of player funds at law and moving towards a unified self-exclusion database across both remote and land-based delivery channels;
  • Introducing new and more effective processes for criminal and administrative justice, including the allocation of appeals from decisions of the Authority to the Administrative Review Tribunal and the introduction of a distinction between administrative and criminal offences;
  • Introducing the concept of administration to protect an operation in distress and, if necessary, to assist the winding down of an operation, thereby protecting jobs and player funds;
  • Moving towards automated reporting, facilitating adherence to regulatory obligations and strengthening the Authority’s oversight;
  • Bolstering the Authority’s role in the fight against manipulation of sports competitions by introducing new obligations on operators to monitor sports betting and report suspicious bets, in line with the efforts being made by the National Anti-Corruption Task Force in which the Authority also actively participates;
  • Exempting B2B licensees from gaming tax, thus increasing Malta’s competitiveness as a hub for B2B activities.

Joseph Cuschieri, Executive Chairman of the Malta Gaming Authority (MGA), said at the press briefing:

This is an important milestone and we welcome this major step forward by the Maltese Government. This Bill contains draft proposals which aim to bridge the regulatory gap between various gaming verticals and channels, including new technologies serving as a platform to future proof gaming regulation, whilst ensuring that consumers enjoy a consistent level of protection.

Other important areas of focus proposed in the bill include responsible gaming measures.

Brian Cullingworth

Infopowa news was a staple of Casinomeister’s news from 2000 until 2019. Brian Cullingworth was the main writer, contributor, and was one of the most knowledgeable persons I have ever known involved in the online casino industry.

We first met in January 2001 at the ICE in London where I observed him going booth to booth interviewing online casino, software, and licensing jurisdiction representatives. Brian was also heavily involved with our forum as “Jetset“, he was involved as an informal consultant to eCOGRA, the OPA, and was a player advocate who assisted countless aggrieved players with his connections to industry folks. He also published “Casino Cautions” via Infopowa news for quite a number of years. These can be found in our news archives.

His passing in February 2019 was a dark day for us. He will be forever missed.


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