Responsible Gaming

Our Objectives The Authority aims to put in place the necessary checks and balances to prevent the abuse of gambling and the proliferation of compulsive gambling. It also supports agencies and organisations which engage in research and programs for prevention and education. Where possible the LGA ensures: Awareness of pathological gambling to the general public; Adequate protection for minors and vulnerable persons; That gambling is conducted in accordance with regulation to prevent crime and prevent players from being exploited. Measures taken by the LGA The social perspective is of outmost priority to the LGA. Measures to combat gambling addiction and protect vulnerable players are enshrined in all gaming legislation. Protecting the Minors Part III of the ‘Lotteries and Other Games Act, 2001’ states that any person selling any game to person under the age of eighteen years shall be guilty of an offence.  In the case of the current national lottery license persons under the age of sixteen cannot be sold National Lottery Games. Also, according to article 26 of the ‘Gaming Act, 1998’; a Maltese citizen under the age of 25 is prohibited to enter a casino. Self-barring Casinos must offer a self-barring opportunity to players who feel that for a stipulated time (6months-1year) he/she will not be allowed to enter any casino. (Article 26 of the Gaming Act,1998). The Commercial Bingo (Tombola) Regulations and the Gaming Devices regulations also contain similar provisions. This helps the gambler to recover from his addiction and recoup his losses. Alcohol/Drugs Any person who appears to be under the influence of alcohol or a drug or is acting in a disorderly manner will not be allowed to enter a casino, bingo hall and refrained from buying any lottery tickets. Any person who is subject to any means of gaming should be in a good state of mind and mental condition. Limited Advertising The Authority gives maximum attention to all advertising of any means of gaming and lotteries. Licensees have to abide by the provisions of the Code of Conduct on Advertising, Promotions and Inducements. Credit Any form of loan or credit for gaming is prohibited. Warnings Literature provided by the LGA has to be made available to players by all licensees. The LGA encourages players who are at risk to sign a self-barring agreement.

Malta Online Gambling Law

Malta is a member of the British Commonwealth and an independent. It is also a member state of the European Union (EU), it was the first within the EU to introduce regulation of online gambling. It is now one of the largest online gambling jurisdictions and a popular location for gambling sites to seek licensing.

A notable benefit of being licensed in Malta is that the jurisdiction is on the “white-list” issued by the United Kingdom Gambling Commission. This means operators with a Maltese gaming license are able to advertise their services to UK residents. Other benefits include competitive licensing fees and appealing tax rates.

We have provided more information about the gambling jurisdiction of Malta below.

Gambling Legislation in Malta

When Malta began licensing online gambling sites, it did so under the Public Lotto Ordinance. The legislation was subsequently overhauled and regulation is now in accordance with the Lotteries and Other Games Act of 2001. An addition to this act in 2004 created the Remote Gaming Regulations. Under the terms of this legislation there are four licenses that operators can apply for. These are as follows.

• Class 1, covering casino-type games, skill games and online lotteries.
• Class 2, covering fixed odds betting, pool betting and spread betting.
• Class 3, covering peer to peer gaming and betting exchanges.
• Class 4, which is for software vendors.

Operators may apply for multiple licenses, which are issued for five years at a time. There are a number of requirements and conditions that must be met before a license is awarded. For the most part, these relate to the proper operation of interactive games, the protection of players and the prevention of money laundering. One specific requirement is that a significant part of operations must be physically located in Malta.

Once awarded a license, licensees have to adhere to a number of additional conditions. Among other things, they have to maintain proper financial records, have data protection procedures and have policies covering responsible gambling. Licenses can be revoked at any time and certain actions by licensees require written approval.

Lotteries & Gaming Authority

The Lotteries & Gaming Authority (LGA) is the organization responsible for regulating all gambling activity in Malta, including the issuing of licenses to online gambling operators. The LGA carries out a thorough investigation and due diligence before awarding such licenses. There are currently over 500 gambling sites that are licensed by the organization.

While the LGA is considered stringent in its licensing activities, it has come under criticism for not being active enough in relation to customer complaints. Any customer of an LGA licensed gambling site may submit complaints directly to the LGA, but the organization does not have a great reputation for taking much interest. It is hoped that the licensing authority will improve in this respect in the future.

Visit the Lotteries & Gaming Authority Control website.

Malta Remote Gaming Council

The Malta Remote Gaming Council (MRGC) was launched in 2005, and is made up of stakeholders from all parts of the online gambling industry. It was an initiative of the LGA with the main objective being to provide a forum for the discussion of industry developments. By receiving feedback on such developments, the LGA is able to stay abreast of what is happening in the industry.

Malta is Europe’s gambling hub – Brussels

A spotlight was cast yesterday on Malta’s burgeoning online gaming industry, the biggest in the EU by number of firms, as the European Commission launched its much-awaited Green Paper on the sector.

The official position in Brussels is that the paper is intended for consultation purposes and aims merely to “gather information”. However, many in the multi-billion euro industry fear this may be the first step towards the harmonisation of rules across the 27 member states.

This would not be in the interest of Malta, described by EU officials during a briefing yesterday as “Europe’s gambling hub” which had managed to attract hundreds of online gambling companies due to its “favourable taxation regime”.

The island disagrees with the majority of member states, which want specific and harmonised regulation. Both Malta and the UK, the two main players in the EU’s gambling industry, prefer a liberal approach where the common EU internal market rules on cross-border services prevail.

During the briefing, several journalists repeatedly quizzed the Commission on how it was possible that the smallest member had the biggest register of online gambling companies.

The reply from a Commission official was that Malta was not the right example when making comparisons as “it is a specific case and not a normal country” in this sector.

Dismissing suggestions that Malta did not have any rules in this sector or turned a blind eye on certain regulations, the Commission official said: “Malta has managed to attract a big number of online companies due to its favourable tax incentives. However, Malta has a good functioning regulatory system.”

Figures in the Green Paper show Malta’s growing economic interests in the sector. With 500 registered online gaming companies by 2008, its share of revenue from gambling, technically known as Gross Gaming Revenue (GGR), amounted to 7.82 per cent of its GDP for that year. This was 11 times more than the EU average, which stood at just 0.68 per cent of GDP in the same year.

According to the Commission’s officials, despite the fact that some member states, like Germany, prohibit online gambling, it is almost impossible to prevent citizens from accessing online websites and trying their luck. “In this context it is obvious that some of the German money is ending up in other countries.”

The Green Paper states that online gambling is a fast developing business in Europe, with almost 15,000 websites already identified and total annual revenues exceeding €6 billion in 2008. It is expected to double in size by 2013.

National legal frameworks vary enormously across the EU, with different rules applying to licensing, related online services, payments, public interest objectives and the fight against fraud.

The EU executive said that in order to ensure legal certainty and effective protection of EU citizens in this fast-growing cross-border service activity, it was important to evaluate how possibly differing models could co-exist within the Internal Market.

“The primary aim of the Green Paper consultation is therefore to obtain a facts-based picture of the existing situation in the EU online gambling market and of the different national regulatory models,” the paper states.

Internal Market and Services Commissioner Michel Barnier emphasised that the Commission had “no pre-determined views” on the possible follow-up.

“The online gambling market in the EU continues to grow rapidly and generates important revenues that are sometimes channelled into good causes.

Its expansion must go hand in hand with a determination to protect our citizens, especially minors, and to ensure that offers of these types of services within the EU are sound and well-regulated.”