Clean Growth

Malta has garnered a reputation as the capital of the global iGaming industry. The presence of over 275 iGaming companies is proving a unique draw for platform providers, game developers, payment services, support firms, start-ups and tech investors, who are joining Malta’s thriving iGaming ecosystem. To meet the future needs of this evolving industry, the Malta Gaming Authority (MGA) has launched a brand new and comprehensive suite of regulation and legislation that better responds to emerging technologies and new forms of gaming.

Cryptocurrencies, blockchain applications and Distributed Ledger Technologies all form part of this new business model. While the MGA has long been a protagonist of innovation, rigorous regulatory oversight, including measures to combat money laundering, as well as the prevention of crime and gambling addiction, remain at the top of the authority’s agenda.

Home of Gaming

The island is the birthplace of regulated online gaming being the first EU country to license iGaming in the early 2000s and introducing a dedicated regulatory framework for the industry. Today, Malta serves as the backbone of the industry, attracting the largest gaming operators and suppliers, as well as some of the most innovative start-ups. Some of the most instantly recognisable brands in the gaming world have set up in Malta: Betsson, Paddy Power Betfair, Interwetten, Unibet, Mr Green, Tipico, LeoVegas and Videoslots are just a few of the companies that have a strong presence on the island. But it is not just the major gaming companies that have been beating a path to Malta, following in their footsteps have been all the leading B2B suppliers and service providers. Today, Malta offers a thriving gaming ecosystem, where gaming companies can find everything and everyone they need to do business with.

“We don’t look at the size of the sector as a measure of success. We look at our effectiveness in ensuring that players are protected and that the sector is kept free from crime, without jeopardising innovation and technological advancements.”

Heathcliff Farrugia, CEO of the Malta Gaming Authority

Innovation and Regulation

Despite all the success, Malta realised that it would need to continue to evolve if it wants to remain relevant as a jurisdiction. The iGaming industry is today facing technological disruption and change like never before. The maturing industry demanded smoother processes, as well as regulation for new activities. Hence, the MGA initiated a process to develop next generation legislation. The new Gaming Act is widely seen as having raised the industry’s standards to a whole new level. The framework empowers the Authority to be more agile in its decision-making, enhances consumer protection standards and responsible gaming measures, while promoting a risk-based approach towards regulation. It also provides the MGA with wider powers in the fields of compliance and enforcement, in line with Anti-Money Laundering and funding of terrorism obligations, which are on top of the MGA’s priority list. According to Heathcliff Farrugia, CEO of the MGA, the regulator has embarked on a major outreach campaign to its fellow regulators and law enforcement agencies around the world in order to collaborate closer and share best practice on how to approach some of the global threats and risks in the areas of anti-money laundering, know your customer (KYC), fraud, tax and business due diligence. In its work, the MGA has adopted a very transparent approach and is sending a very clear message that if you have something to hide,  do not come to Malta.

Driving Forward

The MGA believes that regulators should not be afraid of disruptive technologies, such as blockchain and cryptocurrencies, but rather see them as an opportunity to improve regulatory efficiency. The MGA joined Malta’s drive to regulate disruptive innovations and launched a sandbox framework for cryptocurrency usage within the gaming industry. Armed with new regulations, the MGA will continue to work with thought-leaders and global innovators to  create the right conditions for gaming companies to flourish, while advocating open communication between stakeholders to drive the industry forward.