The single licence differentiates between B2B activities and business-to-consumer (B2C) activities in a more corporate fashion. A second tier of approvals will address the systems, game types, and channels used under one proposed corporate licence. Prior approval shall be required only when the change or addition significantly changes the operation, such as the addition of a new game vertical given that this may affect the operational structure and/or the risk posed by the gaming operation.

A licence shall constitute any one or more the following game types:

Type 1 gaming services

Games of chance played against the house, the outcome of which is determined by a random generator, and shall include casino type games, including roulette, blackjack, baccarat, poker played against the house, lotteries, secondary lotteries and virtual sports games

Type 2 gaming services

Games of chance played against the house, the outcome of which is not generated randomly, but is determined by the result of an event or competition extraneous to a game of chance, and whereby the operator manages his or her own risk by managing the odds offered to the player

Type 3 gaming services

Games of chance not played against the house and wherein the operator is not exposed to gaming risk, but generates revenue by taking a commission or other charge based on the stakes or the prize, and shall include player versus player games such as poker, bingo, betting exchange, and other commission based games

Type 4 gaming services

Controlled skill games, including fantasy sports

The licence term is of up to 10 years, subject to certain games offered under a Government concession which could have a shorter term. The Regulations also provide for a licence with limited duration, leaving the term open for the Malta Gaming Authority to establish, provided that no more than four of these limited duration licences may be issued in any one calendar year.

Any person in possession of a licence issued by the Malta Gaming Authority, shall pay to the Authority a licence fee which shall be constituted of:

• the compliance contribution, payable for each and every licence period; and
• the non-refundable fixed annual licence fee, payable in advance for the twelve (12) running months following the issue of the licence and every anniversary thereof, throughout the duration of the licence:

Further details on the amounts of fees due can be found here.

The application process has been harmonised and today applicants can submit all the required information at application stage and the MGA binds itself to evaluate all information through multiple internal process streams.

At application stage, the MGA assesses whether an applicant:

• Is fit and proper to conduct gaming business.
• Is correctly prepared from a business strategy perspective.
• Has the operational and statutory requirements to meet the obligations prescribed by law and policy.
• Has correctly implemented and tested, on a technical environment, what has been applied for, before going live.

i)  The Fit and Proper Test

The MGA conducts a fit and proper exercise on the applicant by assessing all information related to persons involved in finance and management and on the business viability of the operation. As part of this process, the MGA conducts probity investigations with other national and international regulatory bodies and law enforcement agencies.

ii)  Business Planning

The MGA conducts an in-depth financial analysis of the applicant’s business plan. This plan is expected to have a detailed forecast of the operation, inclusive of marketing and distribution strategies, HR plan and growth targets.

iii)  Operational and Statutory Compliance

The applicant is examined on the instruments required to conduct the business. This process includes examining 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.

iv)   System Review

Once all three previous stages are successfully completed, the MGA will inform the applicant that the application was successful and will invite the applicant to implement the operation onto a technical environment in preparation to go live. The applicant will be allowed 60 days to complete this technical roll-out, after which the application will be considered as suspended and subject to re- application. At any stage within those 60 days, the applicant may request an external systems audit (performed by an independent third party contracted by the MGA against a fixed market price). The systems audit will audit the live environment against the proposed application.

At this stage the MGA expects minimal deviation from the application. If there are significant changes to the gaming system, the applicant will have to re-apply by filing a new application.

The desk-based audit of the application is normally completed within 12 to 16 weeks, assuming that all the necessary documentation and information provided to the MGA is complete and compliant.

Before any such transfer may take place, the MGA’s approval in writing must be obtained. The MGA may request that it is presented with any document which it deems necessary for it to decide whether to approve or otherwise the request being made by the licensee.

One of the main roles of the MGA is to assure the protection of minors and vulnerable persons and therefore, in line with this, the MGA has set certain limits on advertising, in particular advertising cannot:

• encourage anyone to contravene a gaming law;
• show people under eighteen (18) years in the gambling advert;
• encourage or target people under eighteen (18) years old to gamble;
• suggest that gambling is a form of financial investment;
• promote smoking and, or the abuse of the consumption of alcohol while gambling;
• tarnish the goodwill and privilege that is associated or related in any manner whatsoever with being a licensee, or tarnish the image or reputation of another licensee.

The complete restrictions are established in the Requirements as to Advertisements, Methods of Advertising and Directions Applicable to Gambling Advertisements.

Employees enjoying positions of responsibility must be approved by the MGA.

Position of responsibility shall include:

• Directors
• Key Officials
• Chief Executive Officers and all C-Level Executives
• Heads, Managers or equivalent
• MLRO Officer

An application form is filled in, attaching all the relevant documentation, and submitted to the MGA whereby such application is processed to confirm that the proposed employee is fit and proper. If all the requirements are satisfied the MGA approves such employee.

The licensee who is licensed by the MGA is to set-up a Player’s Account as established by the Regulations, with all the necessary safeguards, and subsequently always ensure that the amount in such an account is equal or greater than the licensee’s client liabilities.

Yes. Each deviation from the approved framework needs to be notified to the MGA, and depending on the nature of the change, a process of approval is required. The Licensee is mandated to inform the MGA prior to such changes.

If the change is required to rectify a technical problem, the licensee needs to file an incident report through the MGA portal.

Yes. The Regulations are technology neutral, thus various delivery channels by means of distance communications can be approved by the MGA.