By means of the publication of Legal Notice 131 of 2016,[1] the Minister for the Economy, Investment and Small Business together with the Malta Gaming Authority (“MGA”), have announced amendments to the Remote Gaming Regulations.[2]
It is expected that the introduction of these amendments, in particular, the introduction of the MGA monitoring system, further strengthens Malta as a jurisdiction of choice and excellence for remote gaming purposes.
Below is a non-exhaustive list of the major changes.
MGA Monitoring System for Malta Remote Gaming Operation
The MGA shall have the right to require a licensee to connect its systems to a monitoring system operated by the MGA and to maintain such connection at all times.[3]
Amongst others, the MGA may use said monitoring system for:
- receiving reports or statements which licensees are obliged to submit to the MGA;
- monitoring and receiving information relating to the games and gaming operation, including player, game and financial data;
- investigating whether the licensee is compliant with any law, licence conditions or AML obligations; and
- compilation of statistics, analytics and research.[4]
Any information collected by the MGA through the monitoring system may be made available to the public.[5]
Malta Remote Gaming Operator's Commission and Fees Disclosure Duty
A licensee shall be duty bound to disclose to all players any information relating to commission or fees held by the licensee or charged to the player.[6]
Malta Remote Gaming - Average Return to Player
Licensees who offer games using repetitively generated random selections for determining winning combinations, in other words, licensees using a “random number generator” (RNG), must ensure pay outs averaging 92% (or more) of the monies wagered by players.[7]
In calculating the applicable percentages, transactions which took place from the 1st January 2015 onwards shall be taken into consideration.[8]
Qualifying Shareholding in a Malta Remote Gaming Operation
The definition of “qualifying shareholding” has been expanded for Remote Gaming purposes.
Currently, a qualifying shareholding means a direct shareholding in a company which represents 5% or more of the share capital issued by such company or of the voting rights attaching to said share capital or which makes it possible to exercise a significant influence over the management of the company.[9]
On the coming into force of the amendments, a qualifying shareholding shall mean a direct or indirect shareholding in a company which represents 5% or more of the share capital issued by such company or of the voting rights attaching to such share capital or which makes it possible to exercise a significant influence over the management of a company, provided that where the rights held as to the percentage of votes, to profits available for distribution and to rights to assets available for distribution on a winding up in respect of such holding are not identical, the highest percentage figure shall be deemed to be the percentage of equity holding held.[10]
Government Gazette of Malta No. 19,561 – 22.04.2016 (hereinafter the “Legal Notice”).
Subsidiary Legislation 438.04 of the Laws of Malta (hereinafter the “Regulations”).
Legal Notice regulation 5, adding regulation 61(1) to the Regulations.
Ibid. adding regulation 62 to the Regulations.
Ibid.
Legal Notice regulation 5, adding regulation 49A to the Regulations.
Legal Notice regulation 3, adding regulation 46A to the Regulations.
Ibid.
Lotteries and Other Games Act, Chapter 438 of the Laws of Malta, article 2(1).
Legal Notice regulation 2, amending regulation 2 of the Regulations.
