Changes bring innovations and challenges. This is true of the new Malta Gaming Act that came in force on the 1st August 2018. The new legislation facilitates procedures for operators and provides for stricter regulations within the industry in order to promote responsible gaming and compliance.
The new Malta Gaming Act seeks to monitor gaming operators in order to narrow in on doubtful activity, reduce risk and eliminate illegalities within the gaming industry and has been specifically formulated to protect the consumer via the Player Support Unit. The act also saw the restructuring of operating procedures by streamlining the operating process and facilitating licensing principally by consolidating the types of licenses that can be applied for, and by doubling the duration of each license.
The Act further solidifies the recent legislation regulating innovative technology and virtual financial assets by being drafted in such a manner that it allows the future adoption of the use of Distributed Ledger Technologies (DLT) and cryptocurrencies by gaming operators.
How is the New Malta Gaming Law impacting the industry?
Partner within Gaming, ICT & Fintech department, Dr Silvana Zammit has stated that, by enforcing stricter regulations, the Act has not only seen licensees seeking new ways of operation in order to maintain compliance but also has seen them launch new products to remain competitive. “Through our experience with operators since the inception of this new law, we have noticed that the removal of the previous classes of licences and the introduction of two categories of licences, the B2B and to B2C licences, is resulting in operators launching new type of games on their systems faster and therefore gaining precious time in the highly competitive gaming market. Operators feel that this is also resulting in operational consolidation.”
What does the New Malta Gaming Law mean for Malta?
Dr Zammit believes that the new gaming legislation has allowed Malta to maintain its reputation as a compliant and adhering gaming operator providing legal certainty for gaming companies as well as strengthen confidence in the island’s legal framework in the industry. As a result, the law is attracting serious gaming operators to the island.
The Act comes after a series of acts that Malta has created in order to prepare for an innovative future framework and to promote Malta as a fully compliant operator within the industry. The new legislation reinforces Malta as a leader not only within this ever-growing industry in gaming but also in Fintech as the law has set the groundwork for the use of cryptocurrencies and other virtual financial assets within the industry.
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