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MGA’s H1 2023 Gaming Report for Malta

MGA's H1 2023 Gaming Report for Malta
by
December 20, 2023
in Finance News, iGaming News
247

The Malta Gaming Authority (MGA) has recently disclosed its Interim Performance Report for the first half of 2023, offering a comprehensive overview of its accomplishments and shedding light on the state of the Maltese gaming industry during this period. Let’s delve into the key findings and implications outlined in the report.

Compliance Audits and Regulatory Oversight

In the pursuit of ensuring fair play and adherence to regulations, the MGA conducted an impressive 14 compliance audits during H1. Additionally, the regulator performed 85 desktop reviews, demonstrating its commitment to maintaining a robust gaming environment. These audits resulted in the imposition of nine administrative penalties, totaling a substantial €124,400 (£107,697/$136,345) in financial penalties.

Collaboration with Financial Intelligence Analysis Unit (FIAU)

Collaboration with the Financial Intelligence Analysis Unit (FIAU) was a significant aspect of the MGA’s activities. Conducting 11 Compliance Examinations on behalf of the FIAU, the MGA contributed to the identification and rectification of violations. In turn, the FIAU imposed administrative penalties amounting to €599,420 on three licensees based on violations discovered in previous examinations.

Player Assistance and Responsible Gambling Measures

The MGA, true to its commitment to player welfare, provided assistance to 2,216 players who sought help during this period. Furthermore, the authority conducted 40 responsible gambling website checks, demonstrating a proactive approach to ensuring the well-being of players. In its pursuit of excellence, the MGA issued 16 observation letters, pinpointing areas for potential improvement within the gaming industry.

Licensing and Regulatory Approvals

Over the course of H1, the MGA evaluated 16 applications for gaming licenses, ultimately granting seven of them. However, eight applications faced rejection or withdrawal. This underscores the rigorous evaluation process employed by the MGA to maintain high standards within the gaming industry.

International Cooperation and Regulatory Collaboration

The MGA’s commitment to international cooperation was evident in its interactions with other regulatory authorities. Responding to 12 requests for information, the MGA engaged in 17 data exchanges that led to the receipt of 166 allegations of suspicious activity. Furthermore, the authority sent 23 requests for international cooperation and received 37 requests from other regulatory bodies, issuing 53 official replies.

Impact on the Maltese Economy

Beyond regulatory activities, the MGA’s report highlighted the positive impact of the gaming industry on the Maltese economy. The total gross added value (GAV) of the gaming industry amounted to an impressive €810.7m for H1, constituting approximately 9.5% of the economy’s GVA. When indirect effects were considered, this figure soared to 12.2%, underscoring the industry’s significant contribution.

The report also revealed a growth in GVA of 1.1% over H1 2022, indicating the industry’s stabilization in terms of economic contribution. The MGA expressed confidence in the continued pivotal role that gaming will play in the Maltese economy.

Leadership Transition and Ongoing Challenges

The release of the Interim Performance Report coincided with the appointment of Charles Mizzi as the new Chief Executive of the MGA. Scheduled to assume office on January 26, Mizzi will succeed Charles Brincat, who served as the chief executive for two years. One of Mizzi’s initial challenges may involve addressing the opposition from European entities to Malta’s Bill 55, which shields Malta-licensed operators from legal liability related to their gambling activities.

Malta’s Bill 55 and European Opposition

Malta’s Bill 55 has become a focal point of contention within Europe. Designed to protect Malta-licensed operators from legal repercussions, the bill has faced opposition from European stakeholders who argue that it conflicts with European law. The dispute gained momentum when the German gambling regulator asserted that the law contradicts the Brussels Recast Regulation, a framework governing how EU members resolve legal judgments.

FAQs

What is the purpose of the Malta Gaming Authority’s Interim Performance Report?
The report aims to provide an in-depth analysis of the MGA’s achievements and the state of the Maltese gaming industry during H1 2023.

How many compliance audits did the MGA conduct during H1, and what were the outcomes?
The MGA conducted 14 compliance audits, resulting in the imposition of nine administrative penalties totaling €124,400.

What role did the MGA play in collaboration with the Financial Intelligence Analysis Unit (FIAU)?
The MGA conducted 11 Compliance Examinations on behalf of the FIAU, contributing to the identification and rectification of regulatory violations.

How many gaming license applications were granted by the MGA during H1?
The MGA granted seven out of the 16 applications it received for gaming licenses, while eight faced rejection or withdrawal.

What is the total gross added value (GAV) of the gaming industry to the Maltese economy for H1 2023?
The GAV of the gaming industry in Malta was €810.7m, constituting approximately 9.5% of the economy’s GVA.

Who is the newly appointed Chief Executive of the MGA, and when will they assume office?
Charles Mizzi is the newly appointed Chief Executive, scheduled to assume office on January 26, succeeding Charles Brincat.

What challenges might Charles Mizzi face in his new role as Chief Executive of the MGA?
One of Charles Mizzi’s potential challenges is addressing the opposition from European entities to Malta’s Bill 55, which aims to protect Malta-licensed operators.

What is Malta’s Bill 55, and why has it faced opposition from European stakeholders?
Bill 55 is designed to protect Malta-licensed operators from legal liability, but it has faced opposition due to claims that it conflicts with European law.

How does the MGA contribute to responsible gambling measures?
The MGA conducted 40 responsible gambling website checks and issued 16 observation letters to highlight areas for potential improvement.

How many requests for international cooperation did the MGA send and receive during H1 2023?
The MGA sent 23 requests for international cooperation and received 37 requests from other regulatory bodies, issuing 53 official replies.

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