MGA Proposes Complete Overhaul Of Regulatory System

By Brian Cullingworth, Last updated Jul 14, 2017

Replace existing legislation with new Gaming Act

The Malta Gaming Authority (MGA) is proposing major reforms to Malta‘s Gaming Legal Framework in a White Paper published today (Wednesday).

The White Paper proposes the repeal of existing legislation and replacement with a singular primary Act of Parliament entitled the Gaming Act, together with subsidiary legislation covering the main areas of regulation, as well as a series of directives and guidelines issued by the Malta Gaming Authority as the single regulator of the sector.

The authority said the proposal empowers it “to be more agile in its decision-making and decreases unnecessary regulatory burdens that are not conducive to the regulatory objectives, while concurrently strengthening supervision and focusing the regulator’s efforts on the areas that present a higher risk profile.”

In addition, heightened consumer protection standards, responsible gaming measures, a risk-based approach towards regulation and wider powers for the MGA would ensure strengthened compliance and enforcement muscle.

The legal overhaul establishes objective-orientated standards to encourage innovation and development underpinned by a number of pre-proposal initiatives that include public consultations, technical studies and economic and financial impact assessments.

Key highlights of the proposed changes include:

– Streamlining the current multi-license system to a two category licensing system i.e. a Business-to-Consumer (B2C) license and a Business-to-Business (B2B) license – which would cover different types of activities across multiple distribution channels.

– Moving towards an objective-based rather than excessively prescriptive regulatory approach to allow for innovation while 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, thereby raising 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 as 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 participates actively.

– Streamlining taxation into one flow with two main layers.

– Exempting B2B licensees from gaming tax, thus increasing Malta’s competitiveness as a hub for these services providers.

The white paper can be downloaded from the Malta Gaming Authority website at

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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