The secrets of Malta, the beating heart of European gaming

The Mediterranean island is not only an excellent tourist destination, but also a cutting edge place in terms of gaming regulation. We interviewed Charles Mizzi, Ceo of the Malta Gaming Authority, to better understand the mechanisms.

What are your main objectives during this mandate at the helm of Mga?

“I am committed to building on the Mga’s existing strengths to reinforce the Authority’s position as a leading regulator in the global gaming sector, ensuring that Malta remains the home of gaming operators of good will. While maintaining these high standards, a key focus will be that of streamlining the Authority’s internal processes to enhance our efficiency and our interactions with our external stakeholders. We are, in fact, actively seeking additional support to further bolster our human resources and technical systems. We have already made progress in reducing bureaucracy and restructuring our regulatory departments, but this is an ongoing effort. Additionally, we will continue with one of the key principles we are known for: maintaining an open channel of communication. This ensures that we are a regulator who truly listens and engages with our stakeholders, thus ensuring that our policies and regulations reflect the needs of an ever-evolving market.”

In your opinion, where does Malta stand in the global panorama of gaming jurisdictions?

“I believe Malta holds a strong position on the global stage. We were one of the first movers in regulating online gaming back in the early 2000s, and that established us as a frontrunner. Our unwavering commitment to regulatory excellence, demonstrated by our robust regulatory framework and highly competent team, has earned the Mga licence global recognition and respect. This enhances the reputation and credibility of Malta-licensed operators in the eyes of players and other stakeholders. It's true that there is a trend of other European jurisdictions regulating their national markets. However, the Mga’s ability to strike the right balance between allowing the industry to thrive and grow sustainably on the one hand, and protecting consumers on the other, is key to Malta’s continued success. Malta offers a business-friendly environment that attracts gaming operators from around the world. Our strategic location, extensive double taxation treaty network and skilled workforce make Malta an ideal base for gaming companies. Additionally, strong support from the government and other institutions further fosters a conducive environment for business growth.”

What are the strengths of the Maltese iGaming system?

“As I mentioned, one factor is the creation of an environment that balances economic interests with the protection of consumers and society as a whole.

A key aspect of any regulator’s role is to educate stakeholders about the regulations and policies they must adhere to. In expecting compliance from our licensees, we acknowledge that it is our responsibility to be clear as to what those expectations mean in practice.

This approach is crucial because the day-to-day implementation of regulatory requirements can sometimes pose challenges for licensees, and we therefore aim to strike a balance between helping a licensee understand how to be compliant, while being pragmatic in running their business. We have consistently embraced innovation and made sure to stay ahead in the field of gaming regulation. We have been pioneers in regulating the use of cryptocurrencies as means of payment, as well as the use of innovative technology arrangements (Its), including blockchain and smart contracts, within gaming operations.

We also embrace innovation in regulation in other ways, such as by being the first gaming regulator to be looking holistically into the sustainability of the industry through a voluntary Esg Code of Good Practice for the online gaming sector. The ecosystem we have cultivated over the years, composed of industry players, regulators, and service providers, is underpinned by a stable political outlook that supports the industry's presence in the country. This synergy allows Malta to continue playing a pivotal role as the home of the gaming industry, fostering an environment where innovation, compliance, and economic growth can coexist.”

Today there is a tendency on the part of national legislators to limit game advertising and in some cases (like Italy) even to ban it. What do you think about it?

“Banning gaming-related advertising can be counterproductive, as it does not enable regulated operators to distinguish their services from unregulated ones. Aside from undermining the investment that such operators would have made to access a market, this also risks diverting players to operators that are not subject to responsible gambling requirements. We believe that responsible advertising, coupled with robust player protection measures, contribute significantly to safer gambling. Our approach focuses on promoting responsible gambling practices, ensuring that operators comply with strict regulations, and providing resources for individuals facing gambling-related issues. Malta’s ‘Gaming Commercial Communications Regulations’ outline gaming advertising and establish several obligations and limitations that Mga-licensed operators must adhere to when publishing adverts. The main goal of these regulations is to ensure that all gaming advertising is socially responsible, especially in protecting minors and vulnerable persons from harm or exploitation.”

In Italy today we are back to talking about international liquidity for the poker sector and online gaming more generally: to date in Italy you can only play within national borders. What do you think about shared liquidity in general? In Italy there are those who talk about the risk of money laundering opening up liquidity, others respond that it is a fake problem or in any case overcome today.

“An operator offering a gaming service in terms of the Maltese legal framework, could, in terms of article 46 of the ‘Gaming Authorisations and Compliance Directive’, share liquidity with operators licensed in other jurisdictions. As with any other game type, there is a risk of money laundering. It is crucial that the Mga-licensed entity, which is also subject to the applicable Aml legislation, addresses this risk by applying a risk-based approach in accordance with its legal obligations. To respond to the discussion on international liquidity in the poker sector and in online gaming more broadly, it's essential to consider the differences in risk between operating within national borders and embracing shared liquidity across multiple jurisdictions. Shared liquidity can potentially enhance the gaming experience, as well as economic benefits; however, it also introduces complex challenges, be it Aml-related or otherwise. Therefore, for any jurisdiction considering the adoption of a shared liquidity framework, it is crucial that they conduct a thorough risk analysis. They must be fully informed of the potential risks associated with such a move, including the increased complexity of tracking cross-border activities. It is imperative that monitoring mechanisms are established to oversee the activities within this framework. Additionally, there must be effective measures in place to supervise and enforce regulations tailored to manage the nuances of an international gaming environment. This approach ensures the integrity of the gaming industry, while safeguarding against potential financial crimes.”

Still looking at Italy: what is the current level of collaboration with the Italian regulator? Do you think you can intensify it in the future?

“Here at the Mga, we place great importance on collaboration with our international counterparts, including the Italian regulator. Collaboration and knowledge-sharing results in greater efficacy in supervising a safe and responsible gaming ecosystem across the board.

The complexity of the gaming industry demands such collaborative efforts. With various stakeholders – including operators, technology providers, and government bodies – all playing critical roles, collaboration allows us to leverage diverse expertise and perspectives. This joint approach enables us to develop comprehensive and effective regulatory frameworks that address the industry's inherent complexities. We consistently advocate for increased collaboration as it allows us to address challenges more effectively and adapt to the evolving landscape of the gaming industry. By maintaining open lines of communication and working together on common goals, we can create a more robust regulatory framework that benefits everyone involved.”