The Malta Gaming Authority (MGA) is intent on making structural changes to Malta’s legal framework. The public will have approximately five weeks to consult on the proposals outlined in the White Paper. The paper calls for a major overhaul of the legal framework with an overarching act known as the Gaming Act.
The MGA has published a White Paper making the case for structural changes to the online gaming industry. The paper was presented by MGA Executive Chairman, Cuschieri and Financial Services Secretary, Schembri.
Both the Executive Chairman of the Malta Gaming Authority (MGA), Joseph Cuschieri, and the Parliamentary Secretary of Financial Services, Silvio Schembri presented the document. The White Paper essentially proposes to modify the existing systems with a 2-tier license framework. It will feature a Business to Business licence (B2B), and a Business to Consumer licence (B2C). These will streamline operations to make it easy to regulate and monitor activities.
Streamlining Online Gaming Regulations
The current system is complex. Many licensed and regulated businesses have up to 13 different licenses with many types of verticals. These include online casino, online poker, online poker, sports betting, etc. The paperwork that this creates is extraordinary, and unnecessary in the new framework proposed by the MGA.
Under the new proposals, just two licenses will be issued. These include B2C and B2B. The latter will be 100% exempt from gaming taxation. Various AML (Anti Money Laundering), and anti-terrorism initiatives will be enhanced under the new measures as the MGA will strengthen its hand to achieve regulatory goals.
MGA Consultation Paper Part of Government Manifesto
The player support unit of the MGA will be bolstered, and greater efficiency of processes for administrative justice and criminal justice will be fostered. The new proposals will go a long way towards helping gaming organizations in distress by protecting player funds, and jobs. An independent administrator will be appointed to manage all assets of licensed companies – much the same as what is currently being done in financial services.
These proposals will allow the MGA to act in the best interests of sports betting, by stamping out corruption and manipulation. All proposals will be future oriented and are geared towards addressing exigencies as they crop up. These new consultation initiatives are part of the government’s electoral manifesto and will include things like digital currency compatibility. Special attention has been focused on developing a framework for cryptocurrency use in iGaming.