MGA review highlights governance gaps among licensed operators

The Malta Gaming Authority (MGA) has published the results of its latest thematic review examining governance practices among licensed gambling operators and suppliers. The assessment forms part of the regulator's supervisory strategy for 2025 and reflects its continued commitment to maintaining high regulatory standards across Malta's licensed gaming sector.

The review focused on how key governance functions operate in practice among a selected group of MGA licensed businesses. While the regulator identified numerous examples of effective governance and mature organisational structures, it also outlined several areas where further improvements would strengthen oversight, accountability and long-term regulatory compliance.

In a separate regulatory update, the Authority also warned consumers and industry stakeholders about several websites that falsely appear to claim MGA licensing despite having no connection with the regulator.

Governance review supports stronger regulatory oversight

The thematic review on Governance Assurance, focusing specifically on Key Functions, was identified as one of the MGA's principal supervisory priorities for 2025. The initiative aligns with the Authority's wider objective of maintaining a regulatory framework based on risk assessment, evidence and measurable regulatory outcomes.

Rather than serving as an enforcement exercise, the review was designed to evaluate how governance frameworks operate within licensed organisations and whether those arrangements effectively support compliance with Malta's regulatory requirements.

The MGA examined a representative sample of both business-to-business and business-to-consumer Authorised Persons operating under its licensing framework. The assessment considered organisations of different sizes and business models in order to gain a broad understanding of governance practices across the regulated sector.

Key governance functions under review

The Authority concentrated its assessment on several critical governance responsibilities that play an essential role within regulated gambling businesses.

These included the responsibilities carried out by Chief Executive Officers together with Compliance functions, Internal Audit teams and Prevention of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) functions.

Each of these governance functions contributes to ensuring that licensed operators maintain effective internal controls while complying with both Maltese legislation and applicable regulatory obligations.

The review combined information gathered during Supervisory Reviews with discussions held through Supervisory Meetings. This approach allowed the regulator to assess not only documented governance structures but also how those arrangements function in day-to-day business operations.

Positive governance practices identified

According to the findings, many Authorised Persons have established governance frameworks that demonstrate increasing levels of maturity.

The MGA observed active involvement from senior leadership across many organisations. Executive management teams were found to be engaged in governance processes while Key Function Holders generally demonstrated a strong understanding of their regulatory responsibilities.

The Authority also noted that many businesses have adopted increasingly risk-based approaches when managing compliance activities, internal audit planning and AML/CFT oversight.

These developments indicate that a growing number of licensed operators are integrating governance considerations into their broader operational decision making instead of treating regulatory compliance as a separate administrative exercise.

The review suggests that many organisations are continuing to strengthen governance standards as regulatory expectations evolve.

Areas requiring further enhancement

Although the overall findings were broadly positive, the MGA identified several recurring themes where additional improvements would benefit the sector.

One common observation involved an excessive dependence on a relatively small number of senior decision makers. Concentrating significant governance responsibilities among only a few individuals can increase operational risks and reduce organisational resilience.

The Authority also found that some businesses provided limited evidence demonstrating how strategic decisions were challenged, evaluated or assessed before implementation.

Another area highlighted involved weaknesses in maintaining comprehensive audit trails. Well documented governance records play an important role in demonstrating accountability and supporting regulatory oversight.

Rather than identifying isolated compliance failures, the review presents these observations as opportunities for continuous improvement across the licensed industry.

Characteristics of effective governance

The thematic review also highlighted the governance characteristics most commonly associated with stronger performing organisations.

Businesses demonstrating effective governance typically showed consistent engagement from senior leadership while ensuring that Key Function Holders possessed sufficient authority and independence to fulfil their responsibilities.

The MGA also observed stronger collaboration between assurance functions such as Compliance, Internal Audit and AML/CFT teams. This integrated approach helps organisations identify emerging risks more effectively while supporting informed management decisions.

Another important characteristic involved embedding governance into everyday business activities rather than treating compliance as a periodic reporting requirement.

According to the review, organisations with mature governance cultures tend to make regulatory considerations part of routine operational planning and strategic development.

Examples of good governance practices

The Authority identified several examples of governance arrangements that contribute to stronger organisational oversight.

These include clearly documented escalation procedures that enable significant risks and regulatory issues to be communicated efficiently to senior management.

Risk-based monitoring programmes were also recognised as effective tools for allocating compliance resources according to identified operational risks.

Independent assurance functions were highlighted as another important governance component. Maintaining sufficient independence allows internal review functions to provide objective assessments of organisational controls.

The MGA also noted the value of governance committees that bring together senior decision makers and assurance functions to oversee regulatory responsibilities.

In addition, businesses demonstrating proactive assessment of regulatory implications before entering new markets or introducing significant operational changes were identified as examples of good governance practice.

Supporting continuous improvement across the sector

The Authority expects the review to serve as practical guidance for licensed operators seeking to evaluate their existing governance arrangements.

By identifying both strengths and common improvement areas, the report provides organisations with useful benchmarks that can assist internal governance reviews and future compliance planning.

The findings also reinforce the importance of accountability throughout licensed organisations while encouraging stronger oversight across key governance functions.

For businesses operating within Malta's regulated gaming market, continuous governance improvement remains essential as regulatory expectations continue to develop alongside industry growth.

MGA warns against false licensing claims

Alongside publishing the governance review, the Malta Gaming Authority also issued a public warning concerning several websites that appear to make false or misleading claims regarding MGA licensing.

The Authority confirmed that it has no connection with the following websites:

• spinlander.nu
• coldfootball.com
• wtboxers.com
• smartsportsdaily.com
• blackjack.com
• duelgp.com
• 56pkcasino.com

The regulator reminded consumers that they should always verify whether an operator holds a valid licence by consulting the official MGA licence register before engaging with any gambling website.

False claims regarding regulatory authorisation may create confusion for consumers and undermine confidence in regulated markets. The Authority continues to encourage players to rely only on verified information published through official regulatory channels.

Conclusion

The latest governance review demonstrates the Malta Gaming Authority's continued focus on strengthening regulatory standards through proactive supervision rather than solely relying on enforcement measures. The findings indicate that many licensed operators have developed increasingly sophisticated governance frameworks supported by engaged leadership and effective assurance functions.

At the same time, the review identifies practical opportunities for improvement that can help businesses further strengthen accountability, decision making and regulatory compliance. Combined with the Authority's warning regarding false licensing claims, the latest announcements reinforce the MGA's commitment to maintaining the integrity of Malta's regulated gaming sector while promoting transparency, responsible governance and consumer confidence.

FAQs

What is the purpose of the MGA governance review?
The review evaluates how key governance functions operate within MGA licensed businesses and identifies both strengths and opportunities for improvement.

Which companies were included in the review?
The review examined a sample of B2B and B2C Authorised Persons licensed by the Malta Gaming Authority.

Which governance functions were assessed?
The assessment covered Chief Executive Officer responsibilities along with Compliance, Internal Audit and AML/CFT functions.

What positive findings did the MGA identify?
Many organisations demonstrated mature governance frameworks, active leadership involvement, effective compliance functions and risk-based governance approaches.

What areas require improvement?
The MGA highlighted excessive reliance on a limited number of senior decision makers, insufficient documentation of strategic decision making and weaknesses in audit trails.

Why are governance frameworks important for gambling operators?
Strong governance supports regulatory compliance, accountability, operational resilience and effective risk management.

How can operators improve governance?
Businesses can strengthen governance by empowering Key Function Holders, improving documentation, enhancing collaboration between assurance teams and embedding governance into daily operations.

Why did the MGA issue a warning about certain gambling websites?
The Authority stated that several websites falsely appear to claim MGA licensing despite having no connection with the regulator.

How can consumers verify an MGA licence?
Consumers should check the official licence register available through the Malta Gaming Authority's website before using any gambling operator.

What is the MGA's long-term objective?
The Authority aims to maintain a risk-based, evidence-led and outcomes-focused regulatory framework that promotes integrity, compliance and consumer protection.