Malta Gaming Authority
The Malta Gaming Authority (MGA) is one of the most well-regarded and reputable regulatory bodies in today’s gaming industry. Launched at the helm of the millennium in 2001, the MGA has spent several decades refining laws related to ensuring gaming safety and preventing crime. The entity stands as the golden standard of how to regulate competently in the current fast-paced market. Here, we analyse the Malta Gaming Authority and its strategic objectives. From player protection to operator regulations – you’ll catch the full lowdown on Europe’s top gambling body.
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What Is the Malta Gaming Authority?
The MGA oversees all gaming activities undertaken by operators based in the nation and worldwide. Its primary goals are to improve transparency between bettors and site operators, enhance platform security, and regulate online gambling facilities. The Malta Gaming Authority burst onto the scene as one of the first regulators in the gaming industry. Software providers and gambling operators are both subject to unbiased scrutiny; all organisations licensed by the authority must uphold the board’s current mandates to avoid punishment.
To achieve goals of unwavering fairness for all players, the MGA is divided into several departments:
- CEO
- Non-Executive Board of Directors
- Executive Management Committee
- Audit Committee
- Supervisory Council
- Fit and Proper Committee
Each department houses specialised teams with specific skills, as required by the regulators. As such, the MGA is as efficient as possible.
Key Objectives of the Malta Gaming Authority
Regulating gaming services and activities is no easy feat. The team at the Malta Gaming Commission seeks to cover all bases when evaluating the industry – with the end result being a scene brimming with top-tier casino games.
Let’s look at the main objectives targeted by the Maltese Gaming Authority below.
- Player Protection: Ensuring that minor and vulnerable players are protected from potential harm is imperative to the Malta Gaming Authority. In addition, the body demands that online betting platforms implant encryption and security measures to barricade users from losing crucial data.
- Gaming Integrity: Random Number Generators (RNGs) are central to the fairness of the gaming industry. The Malta Gaming Authority regularly examines operator’s games to determine whether or not they are fit for purpose.
- Criminal Prevention: Avoiding fraud stands as a key measure in the gaming industry. By regulating online gaming services and their respective safety features, the Malta Gaming Authority can ascertain which sites support solid criminal prevention features.
- Industry Maintenance: The Malta Gaming Authority is not just a body that revokes and punishes operators – it guides platforms towards earning casino licenses, too. Maintaining the industry by retaining top talent is vital.
Types of Licenses Issued by the MGA
Operators seeking to work with this authority have two options. Which license-type gaming services to opt for depends on the proposed facilities the entity wants to offer, as outlined below.
| License Type | Purpose | Key Features |
|---|---|---|
| Gaming Service License (B2C): | Operators providing online casino games directly to players will need to obtain a Gaming Service License from the Malta Gaming Authority. Failure to earn a valid license will see players who use that platform left unprotected by law should malpractice arise. | Only for businesses that service customers. |
| Gaming Supply License (B2B): | Gaming Supply Licenses are split into several sub-types – but here’s the most important element to understand: businesses that provide gaming activities and facilities to online casino operators must get a Gaming Supply License from the Malta Gaming Authority. For example, software developers whose games are published on online casino sites are required to apply for this license. | Catered to businesses that collaborate with other businesses and not customers. |
| GSL Type 1 | A license to publish games of chance played against the house. | Examples include baccarat, roulette, and blackjack. |
| GSL Type 2 | A separate license type for businesses operating games played against the house and where the result is determined by a separate event. | Operators offering fixed-odds events and similar competitions are eligible for this license. |
| GSL Type 3 | A unique license from the Malta Gaming Authority (MGA) where the game of chance is not played against the house. | Poker game providers need to take this route. |
| GSL Type 4 | For fantasy sports and similar “controlled” games of skill. | Although bettors make choices, it is up to athletes and other individuals to attain a winning result. |
Benefits of the Malta Gaming License
For operators who want to contribute to a vibrant online betting community, obtaining a license from the Malta Gaming Authority should be viewed as pivotal. Earning a valid certificate to operate in the nation has countless benefits, as outlined in the table within this section.
Improved brand credibility within the gaming industry
Access crucial European markets
Consistent regulatory compliance is rewarded with ongoing licenses
Participate in a stable economic scene with full regulation
The license fee must be paid annually
One-time application fee
Lengthy approval process
Market saturation
Mandatory Requirements for Obtaining an MGA License
In addition to the licensing fee and admission cost, organisations hoping to earn a certificate from the authority should meet a handful of other requirements, with the full catalogue of details described in this table.
| Requirement | Description |
|---|---|
| Corporate Setup & Location | To earn a license from the MGA, all operators must hold offices in Malta and host solid corporate infrastructures. |
| Financial & Operational Audits | The business must be willing to be audited by the authority when necessary. Moreover, the platform must prove that it is capable of providing sufficient services to bettors by holding adequate capital. |
| Anti-fraud Compliance | The license applicants are required to comply with strict anti-fraud measures and enforce rules against money laundering |
| Historical Reports | Operators with a vague, unclear, or negative criminal history will not be considered during the application process. |
The Application Process
Applicants need to undergo the same process to ensure that each entity is treated fairly. This step-by-step plan also prevents the Malta Gaming Authority from missing crucial points of interest, so each operator is painted with the same brush upon submitting an application.
- Phase 1: The operator submits its business plan and relevant documents to the authority for review. The documents may include information described in the above section, such as financial history.
- Phase 2: The authority undertakes a thorough operational evaluation. Following a specific set of criteria, the MGA determines whether or not the operator is capable of complying with the full set of relevant rules. This is determined by examining the company’s recent history and expected future revenue, as well as the viability of its previously disclosed business plan.
- Phase 3: If the above checks show that the platform is ready to collaborate with the MGA, a new process begins. This is a technical system audit; the MGA will investigate whether the operator can handle an influx of players, cash, games, security systems, and more.
- Phase 4: The vital moment – if everything is fit for purpose as per the previous phases, the operator will receive a license. From this point on, the business can deliver online casino games across a spectrum of genres to users.
Costs and Fees Associated with MGA Licensing
toc Costs and Fees
Licenses do not come for free. Regulating gaming is a costly endeavour – that’s why entities hoping to provide services to consumers under a Malta Gaming Authority (MGA) license must pay various fees. The same applies to UK Gambling Commission-licensed casinos and operators working throughout the world, so Malta is far from the only nation where businesses pay for legal certification. Check out a breakdown of the most relevant fees below.
B2C License Fees:
- Application Fee: €5,000
- Annual Fee (B2C Type 1 – 3): €25,000
- Annual Fee (B2C Type 4): €10,000
- Ongoing Compliance Fees: 0.4% – 4%
B2B License Fees:
- Application & Annual Fee (B2B Type 1 – 3): €5,000
- Application & Annual Fee (B2B Type 4): €10,000
- Ongoing Compliance Fees: €3,000 – €35,000
Challenges and Considerations
Maintaining the state of gambling in Malta is far from easy. Multiple operational and financial challenges lie ahead for operators and the MGA, with in-depth details penned below.
- Meeting Operational Requirements: Constantly staying up to date on the latest technical and operational necessities is difficult for even the most popular online casino operators. Retaining enough staff, managing fiscal obligations, and continuing to uphold the secure management of systems are some of the major challenges faced by Maltese license holders.
- Costs: Every cent earned places the operator slightly closer to hitting a new threshold for licensing fees. Each site must ensure that it holds the right amount of capital to continue operating under its current license.
- Lengthy Approval: The authority runs the full gamut of tests on proposed gambling operators. This results in long approval times – which can leave the operator short of expected revenue if their timeline had been estimated differently.
- Information Sharing: The MGA and the Danish Gambling Authority signed an agreement to share information in an attempt to enhance the current state of safer gambling measures. A misstep in this agreement could spell danger in the future – so maintaining accurate records is absolutely vital.
