The Parliamentary Secretary for Financial Service, digital Economy & Innovation, Hon. Silvio Schembri, tabled the New Gaming Bill which was published for public consultation in July 2017.
The key points which the Gaming Bill amends from the current licensing and regulatory regime are as follows:
Simpler licensing system
The Bill replaces the current multi-licence system with a simpler licensing system whereby only two licenses are offered: a licence for operators who offer Business-To-Business services and a licence for Business-To-Consumer gaming activities. This change in licensing regime is necessary as operators who wish to aggressively infiltrate the market and generate more economy are at time hindered by the necessity of obtaining 4 or more licences even though they are operating through the same website and under the same names different licences are required.
Extension and flexibility on the license timeframe
Extending the license validity period from 5 years to 10 years will result in an increase of stability for those seeking to obtain a Maltese gaming licence. The licensees will also benefit of a reduction in administrative burdens and a leaner management of their own business. Furthermore, The Gaming Act Bill provides the possibility for the Authority to issue a limited duration license in the number of not more than four in any calendar year to anyone person.
Tax rate
Exempting B2B licensees from gaming tax, thus increasing Malta’s competitiveness as a hub for these services providers, this is especially useful for start-ups which are offering platforms to other businesses whereby the negotiations which operators may exceed the current 6-month exemption period and strangle start up platforms which would not survive unless agreements are reached with third parties to operate using their platform.
Roles of the Key Official
Dividing the role of the Key Official into various key functions which would require the approval of the Malta Gaming Authority resulting in direct scrutiny and targeted supervisory controls of the persons responsible within the gaming operations.
