1

Fact Sheets
2 Malta Gaming Authority Fact Sheets 2023 3

“To regulate
Why an MGA licence? 4
competently the
various sectors of Gaming Licence Application Process 8

the gaming industry Licensees Information & Reporting

Requirements
18

that fall under Administrative Fees & Taxation 22

the Authority by
Prevention of Money Laundering 28
ensuring gaming is and Funding of Terrorism

fair and transparent, Sports Betting Integrity 30

preventing crime, and A voluntary ESG Code of Good Practice 32

protecting minor and

vulnerable players.”
4 Malta Gaming Authority Fact Sheets 2023 5

Why an MGA licence?

Malta was the first EU member state to specifically regulate the remote gaming
sector.

Having witnessed the growth and evolution of the remote gaming industry over the
past two decades, we have worked to incorporate the institutional experience and
expertise garnered over the years into our everyday tasks and processes.

This ensures that our regulatory framework is a robust, comprehensive and

efficient one, and addresses the various aspects inherent to gaming operations,
predominantly prioritising the player’s welfare.

Striking the right balance Adopting an open and collaborative

approach
Over the years, the MGA has worked
towards striking the right balance We place great importance on our
between robust regulation – which is collaborative partnerships to achieve
important in curbing the risks associating a thriving, safe and sustainable gaming
with gambling – and, concurrently, ecosystem.
allowing the industry to grow sustainably.
This is evidenced by the number of ‘MGA
The Maltese licence provides players Meets’ sessions that we hold with our
with the peace of mind that their funds licensees and industry stakeholders, our
are secure and that they are participating presence at numerous conferences, and
in a gambling environment that prioritises the fact that we rigorously consult about
their welfare and that actively employs regulatory developments.
robust safeguards against potential risks.
Different stakeholders bring real-
Nevertheless, our licensing regime is also world experiences and expertise,and
structured in a way that creates a level also provide valuable insights and
playing field for gaming operators of diverse perspectives, helping usmake
good will to thrive. more informed and evidenced-based
decisions.
6 Malta Gaming Authority Fact Sheets 2023 7

Embracing innovation

We have consistently embraced

innovation and made sure to stay ahead
in the field of gaming regulation.

As a result, the MGA has been

among the pioneers on a global
scale in our efforts to regulate the
use of cryptocurrencies as means
of payment, as well as the use of
innovative technology arrangements
(ITAs), including blockchain and smart
Safeguarding the industry
contracts, within gaming operations. have the necessary controls and
We are committed to protecting the safeguards in place to detect and report
This is evidenced by our Policy on the gaming industry from being exploited for any suspicious activity or transactions
use of Distributed Ledger Technology money laundering, financial crime and
(DLT), which presented our final position other illicit activities. A key aspect of any regulator’s role
with regard to the acceptance of virtual is to educate stakeholders about the
financial assets (VFAs), virtual tokens Our role as a regulator of the gaming regulations and policies they must
and the use of ITAs. sector is to ensure that the industry comply with. In expecting compliance
is adhering to the set regulations and from our licensees, we acknowledge
Prior to this, we had a sandbox policies and has adequate and reliable that it is our responsibility to be clear
framework in place, which served as safeguards in place to protect minors as to what those expectations mean in
a learning experience for us and our and vulnerable persons. practice.
licensees alike.
As a member of the European Union, This approach is crucial because
The MGA also embraces innovation Malta has implemented all EU Directives the day-to-day implementation of
in regulation in other ways, such as on the prevention of the use of the regulatory requirements can sometimes
by being the first gaming regulator financial system for the purposes of pose challenges for licensees, and
worldwide to be looking holistically money laundering or terrorist financing. we therefore aim to strike a balance
into the sustainability of the industry We act, on behalf of and together with, between helping a licensee understand
through a voluntary ESG Code of Good the FIAU as a supervisor on gaming how to be compliant while being
Practice for the remote gambling sector. companies to ensure that our licensees pragmatic in running their business.
8 Malta Gaming Authority Fact Sheets 2023 9

Gaming Licence
Application Process The Application Process
Applicants must submit all the required information at one go electronically through
Applicants wishing to obtain a gaming licence from the Malta Gaming Authority the online portal. The MGA commits itself to the analysis of all information through
(MGA) are advised to refer to the System Documentation Checklist and the multiple internal process streams.
applicable Enclosure lists. Before submitting the gaming licence application,
applicants must ensure that all the required information, documents and
procedures are available to be used and submitted with the application. Should
the applicant still have any queries related to the gaming licence application, it is
advisable to get in touch with one of the MGA’s Senior Executives on [Link]@
[Link] to clarify and/or obtain further information prior to submission, as
missing information will result in the application being reverted to ‘Incomplete’,
slowing down the application review process. Applicants are reminded that ‘Draft’
applications in the Licensee Relationship Management System (PORTAL) are
automatically rejected by the system after 90 days of inactivity.

At the application stage, the MGA assesses

whether an applicant:
1. Is fit and proper to conduct gaming business.
2. Is correctly prepared from a business strategy
perspective.
3. Satisfies statutory requirements and has
the operational capacity needed to meet the
obligations prescribed by law and policy.
4. Has correctly implemented what has been
applied for, on a technical environment before
going live.

Any incomplete applications will be reset to a one

time ‹Incomplete› status, and applicants have 60
days to complete the application. Failure to do so will
result in the application being automatically rejected.
10 Malta Gaming Authority Fact Sheets 2023 11

Critical Gaming Supply Licence holders 04 System Audit

are required to retain a minimum share
capital of €40,000. Companies with Once all three areas are successfully
multiple types are required to meet completed the MGA will inform the
the above share capital requirements applicant that the application was
cumulatively up to a minimum capping successful and will invite the applicant to
of €240,000. implement onto a technical environment
in preparation to going live. The applicant
The aforementioned components will be allowed 60 days to complete this
01 Fit and Proper 03 Operational & Statutory constitute the desk-based review of the operation after which the application
Requirements application requirements. Inconsistent will be considered as cancelled and
The MGA conducts a fitness and and low quality applications will be subject to re-application. At any point
propriety test on the applicant by The applicant is examined on the rejected and the applicant will be within those 60 days the applicant may
assessing all information related to instruments required to conduct subject to re-application. trigger a request for an external System
its shareholders, UBOs, relevant key the business. This process includes Audit (performed by an independent
persons. The MGA conducts probity examining incorporation documents, 3rd party from the pre-approved list of
investigations with other national and the operational policies and procedures, Service Providers). The System Audit will
international regulatory bodies and law the games and the gaming and control review the staged environment against
enforcement agencies. systems, and the technical setup the submitted policies and procedures,
documents. The latter includes system, as well as the relevant legislation and
02 Business Planning network and application architecture, the regulations.
rules, terms, conditions and procedures
The MGA conducts a detailed analysis of the games, and other additional At this stage the MGA expects minimal
on the proposed business operations, documents which might be required. deviation from the application.
its viability, funding and an in-depth Significant changes to the gaming
financial analysis of the applicant’s Furthermore, the applicant is subject system will require the applicant to re-
forecast financials. The applicant’s to minimum issued and paid-up share apply through a new application.
business plan is expected to have a capital requirements. Gaming Service
detailed forecast of the operation, Licence with a Type 1 and 2 approvals On successful completion of the
inclusive of marketing and distribution are required to retain a minimum share certification process, the Authority
strategies, HR plan and growth targets. capital of €100,000 whilst Gaming issues a ten-year licence.
Service Licence with a Type 3 and
Type 4 approvals are required to retain
a minimum share capital of €40,000.
12 Malta Gaming Authority Fact Sheets 2023 13

These are the game verticals split as per Type for compliance contribution
purposes. For regulatory purposes reference should always be made to the
verticals in the Gaming Authorisations and Compliance Directive.

Type 1 Casino
Live casino
Lotteries
Secondary lotteries

Type 2 Fixed odds betting, including live betting

Applicants may apply for either a

Pool betting, including betting exchange
Gaming Service Licence or a Critical Type 3 Peer-to-peer poker

Gaming Supply Licence: Peer-to-peer bingo

other peer-to-peer games
Lottery messenger services
A gaming service licence is a business-to-consumer licence (B2C) to offer or carry
out a gaming service. A critical gaming supply licence is a business-to-business
(B2B) licence to provide or carry out a critical gaming supply. Type 4 Controlled skill games

The following services shall each The following services shall each
constitute a gaming service: constitute a critical gaming supply: Any company that shall be providing or carrying out a gaming service, or that shall
be providing a critical gaming supply from Malta or to any person in Malta, or
a. offering, provision or operation of a a. supply and management of material through a Maltese legal entity, requires the relevant authorisation. Furthermore,
gaming service; elements of a game; any company that shall be offering a licensable game, whether as part of a gaming
b. hosting by a person in his premises b. supply and management of software, service, critical gaming supply or otherwise, also requires the relevant authorisation.
accessible to the public, the to generate, capture, control or
operation or making available for use process essential regulatory record
a gaming device or gaming system. and/or supply and management of
the control system itself on which
the software resides.
 14 Malta Gaming Authority Fact Sheets 2023 15

Gaming Licence Application Personal Portfolio

UBOs/Directors/KFs
Key Function
Certificates Authorised Persons are required to
Recognition Notice designate the persons responsible for
Involvements carrying out the Key Functions. Such
A Recognition Notice is a certificate
persons, are referred to as Key Functions
issued by the Authority to any person
holders, meaning that they hold an
offering licensable games in or from Malta
important function, role or task that is
without a Maltese licence, but having an
Incomplete carried out by a person in connection
Preliminary Review authorisation issued by another Member
with a gaming service or a gaming supply.
State of the EU or the EEA, or a State
These Key Functions need to apply for
which is deemed by the Authority to offer
a Key Function certificate, and are, in
safeguards largely equivalent to those
turn, required to undergo scrutiny for
offered by Maltese law.
Amendments the Authority to assess their fitness and
Required Such companies can apply for a
Accepted propriety.
recognition notice certificate, which
Key Persons are required to have full
certificate shall have the same effect as
knowledge, understanding and access to
an authorisation issued by the Authority
Clarifications or the Authorised Person’s operations, as
for the purpose of providing a gaming
Application requests for further may be necessary for them to carry out
Review service or gaming supply in or from Malta.
information their respective Key Function/s.
The recognition notice certificate would
Key Persons are required to be fit
undergo annual maintenance before the
and proper in order to carry out their
recognition certificate issuance date,
respective Key Functions, not only at
for which a certificate holder would
the time of their application for a Key
need to submit an annual maintenance
Fit & Proper Review Funding Review Business Plan Technical set-up Function Certificate, but also on an
application in accordance with the
& Operating Policies Review & System ongoing basis thereafter. Key functions
applicable requirements via the Portal.
& Procedures Review Audit may only be provided by natural persons.
The Authority may revoke any such Persons who provide a key function to
recognition notice, and the recognition a licensee shall be required to hold a
notice applicant shall be subject to certificate of approval issued by the
administrative fees as per the fees Authority. Moreover, each licensee shall
schedule. notify the Authority, the key persons who
perform one or more key functions for
Licence Approved or Rejected
such licensee.
16 Malta Gaming Authority Fact Sheets 2023 17

A number of roles are considered to be incompatible with one another by their very The exhaustive list of roles that are considered incompatible by nature to the extent
nature and, as such, a given individual will not be authorised to fulfil such conflicting that an individual would not be authorised to exercise them simultaneously is
roles simultaneously. comprehensively illustrated below.

Gaming
CEO Legal Affairs Data Protection Compliance Technology AML & CFT Internal Audit
Operations

CEO

Gaming Operations

Legal Affairs

Data Protection

Compliance

Technology

AML & CFT

Internal Audit
 19

Licensee’s Information
and Reporting This timeline outlines key reports required by the Authority to monitor the overall
gaming activity are listed hereunder.

Requirements
1st January
January
(Assuming that 1st January start to the financial year)

20th January*
On successful completion of a gaming licence application process, the applicant, Alternative Dispute Resolution Report
now a Licensee, is granted a ten (10) year Licence. Gaming Tax Report and Compliance Contribution Fees
(if applicable)
New licensees are required to go live with their operations within 90 days from the Player Funds Report (if applicable)
Original License date, by submitting a Go-Live Declaration form on the portal. B2B Compliance Report (if applicable)

February 28th February

The Compliance Department within the Authority is responsible for ensuring that Industry Performance Report covering the period 1st July to
Licensees operate in accordance with the Gaming Act and subsidiary Regulations 31st December of the previous year
and Directives. Through prudential and on-going monitoring of Licensees, the
June 30th June
Compliance Department aims to identify any issues which prevent Licensees from
Submission of the Audited Financial Statements
staying complaint throughout the duration of the Licence.
Auditor Player Funds & Gaming Revenue Declarations Form

August 30th August

Submission of the Interim Financial Statements for
the period January to June

September 7th September

Industry Performance Return covering the period 1st
January to 30th June of the current year
Auditor’s Management Letter

December 31st December

End of financial year

N.B. The non-refundable fixed annual licence fee is payable in advance for the twelve
(12) running months following the issue of the licence and every anniversary thereof,
throughout the duration of the licence.

* These are the monthly submissions to be carried out by not later than the 20th
day of the following month.
20 Malta Gaming Authority Fact Sheets 2023 21

Compliance Audits & Ongoing

Monitoring
The MGA mandates that after going In addition to Audits, the authority
live, a Licensee may be subject to a also conducts ongoing monitoring of
compliance audit of its operations Licensees through various processes.
01 Yearly Reports 02 Half-Yearly Reports performed by an approved Service Such processes include:
Provider appointed by the Licensee.
An audited set of financial statements, Management Accounts covering the Such audits need to be completed by a. Compliance Reviews aimed at
inclusiveof a Directors’ Report, prepared first 6 months of a company’s financial the Service Provider within 3 months serving as an efficient and effective
in accordance with the International year are to be submitted by the end from the MGA’s notice. tool to conduct checks on Licensees,
Financial Reporting Standards and of the 8th month of its financial year. carried on a risk-based approach;
audited in accordance with International Industry performance returns, with the The MGA will require the audit to adhere b. Review of Incident Reports submitted
Standards on Auditing. These are to be aim of collecting industry performance to the following schedule: by Licensees; and
submitted within 6 months from the data are to be submitted to the MGA c. On-site Audits conducted to review
end of the company’s financial year. An for the period January to June and 1. A System Review after the first year Licensees’ live studio operations.
auditor’s management letter prepared January to December each year. of operation following issuance of
by the company’s statutory auditors the MGA licence;
following the completion of the audited 03 Monthly Reports 2. Any other audit depending on the
financial statements shall be submitted compliance plan set by the MGA.
within 9 months from the end of its A B2C licensee is required to report the
financial year. Moreover, agreed-upon following on a monthly basis: Failure of a compliance audit could lead
procedure reports on player funds and to the suspension or termination of
gaming revenue shall be submitted 1. Player Funds report a licence.
within 6 months from the end of its 2. Gaming Tax report
financial year. 3. Alternative Dispute Resolution report

A B2B licensee is required to report the

following on a monthly basis:
1. B2B report
2. Player Funds report (only if the
licensee offers pooled jackpots)
22 23

Administrative Fees
Malta Gaming Authority Fact Sheets 2023

& Taxation Administrative Fees

Fee €

1. Application Fee for New Licence 5,000 Paid upon application

for a Gaming Licence
2. Application Fee for Renewal of Licence 5,000 Paid upon application
for renewal of Licence
3. Key Function Certificate 50 Applicable per role. Paid
upon application for a Key
Function Certificate or
changes thereto
4. Transfer of a Qualifying Interest 1,500 Paid upon the request
in a Licensee for the transfer
5. Conversion to a Corporate Licence 1,500 Paid upon application
or changes to any of the Corporate for such changes
Entities
6. Annual maintenance fee for 5,000 Paid yearly in advance
a Recognition Notice

Other administrative fees apply.

Licence and Compliance Dues

Any person in possession of a licence issued by the MGA shall pay the Authority the
appropriate non-refundable fixed annual licence fee. Licensees shall also pay the
compliance contribution depending on the type of approval issued by the Authority.

Fixed Annual Licence Fee (B2C Only)

Fee Fixed Annual Licence Fee

Non-refundable Fixed Annual Licence Fee €25,000

Non-refundable Fixed Annual Licence Fee for €10,000

operators providing solely Type 4 gaming services
24 Malta Gaming Authority Fact Sheets 2023 25

Compliance Contribution
Gaming Service Licence – B2C

B2C – Type 1 Gaming Services B2C – Type 3 Gaming Services

(Minimum* €15,000; Maximum €375,000) (Minimum* €25,000; Maximum €500,000)
Compliance Contribution for the Financial Year** Rate Compliance Contribution for the Financial Year** Rate

For every euro of the first €3,000,000 1.25% For every euro of the first €2,000,000 4.00%
For every euro of the next €4,500,000 1.00% For every euro of the next €3,000,000 3.00%
For every euro of the next €5,000,000 0.85% For every euro of the next €5,000,000 2.00%
For every euro of the next €7,500,000 0.70% For every euro of the next €5,000,000 1.00%
For every euro of the next €10,000,000 0.55% For every euro of the next €5,000,000 0.80%
For every euro of the remainder 0.40% For every euro of the next €10,000,000 0.60%
For every euro of the remainder 0.40%

B2C – Type 2 Gaming Services B2C – Type 4 Gaming Services

(Minimum* €25,000; Maximum €600,000) (Minimum* €5,000; Maximum €500,000)
Compliance Contribution for the Financial Year** Rate Compliance Contribution for the Financial Year** Rate

For every euro of the first €3,000,000 4.00% For every euro of the first €2,000,000 0.50%
For every euro of the next €4,500,000 3.00% For every euro of the next €3,000,000 0.75%
For every euro of the next €5,000,000 2.00% For every euro of the next €5,000,000 1.00%
For every euro of the next €7,500,000 1.00% For every euro of the next €5,000,000 1.25%
For every euro of the next €10,000,000 0.80% For every euro of the next €5,000,000 1.50%
For every euro of the next €10,000,000 0.60% For every euro of the next €10,000,000 1.75%
For every euro of the remainder 0.40% For every euro of the remainder 2.00%
26 Malta Gaming Authority Fact Sheets 2023 27

Critical Gaming
Supply Licence – B2B

B2B – Critical Gaming Supply | Annual Licences fees used

(supply & manage material elements of the game)
Licence Fees on Annual Revenue Fee

Where annual revenue does not exceed €5,000,000 €25,000

Where annual revenue exceeds €5,000,000
but does not exceed €10,000,000 €30,000
Where annual revenue exceeds €10,000,000 €35,000
Licence Fee for Providers supplying solely Type 4 gaming supplies €10,000

5% Gaming Tax
5% Gaming Tax is applied on Gaming Revenue generated from Malta based players.
Determination of taxability is whether the player is established, has his permanent
address and/or usually resides in Malta.

B2B – Critical Gaming Supply | Annual Licences fees used

(supply & management of software)
Licence Fees on Annual Revenue Fee

Where annual revenue does not exceed €1,000,000 €3,000

Where annual revenue in excess of €1,000,000 €5,000

* Minimum compliance contribution for new operators shall not be due to the
Authority until a full licence period elapses.

** Start-Ups who qualify under the Directive on Start-Up Undertakings will benefit
from a moratorium period of 12 months during which they are exempt from paying
compliance contribution.
28 Malta Gaming Authority Fact Sheets 2023 29

As a Supervisory Authority under the Throughout this process, the MGA further
Prevention of Money Laundering PMLFTR, the MGA is bound to monitor assesses the measures, controls and

and Funding of Terrorism the operations of all its licensees and

to report to the FIAU any knowledge
procedures that the applicant company
undertakes to adopt, in order to prevent
or suspicion of money laundering or its business from being exploited for
As a member of the European Union, Malta has implemented all EU Directives terrorist funding activities. Furthermore, money laundering or terrorist financing
on the prevention of the use of the financial system for the purposes of money under the Authorisations Regulations activities.
laundering or terrorist financing. In addition, Malta is a member of MONEYVAL (the (S.L. 583.05), the MGA is entrusted
Select Committee of Experts on the Evaluation of Anti-Money Laundering Measures with the responsibility of ascertaining Gaming licensees are considered subject
(formerly PC-R-EV), established in September 1997 by the Committee of Ministers that all persons involved in an applicant persons under the PMLFTR. Hence,
of the Council of Europe to conduct self- and mutual- assessment exercises of the company for a Maltese gaming licence or they are obliged to ensure abidance
anti-money laundering measures implemented in Council of Europe countries. for its renewal are fit and proper. with the provision of the PMLA and
any Regulations issued thereunder, as
Maltese Casinos have ever since 1989 The Maltese primary legislations on Throughout this process, the MGA further well as with the AML/CFT requirements
started to introduce anti- money money laundering as a criminal activity assesses how the applicant undertakes stemming from the aforementioned
laundering procedures. Furthermore, and the prevention thereof are the to set policies and controls in place Implementing Procedures. In particular,
throughout the years, there has been a Prevention of Money Laundering Act in order to prevent its business from gaming licensees shall:
continued evolution on the prevention (Cap. 373 of the Laws of Malta), and being exploited for money laundering or
of money laundering, particularly in view the Criminal Code (Cap. 9 of the Laws terrorist financing activities. • conduct an AML/CFT Business Risk
of the continuous advancements to of Malta). The former Act is further Assessment;
the Maltese AML framework with the supplemented by the Prevention of Consequently, the applicant is required • draw up a Customer Acceptance
transposition of the Directives of the Money Laundering and Funding of to provide the MGA with the necessary Policy;
European Union. Terrorism Regulations, (S.L. 373.01 of the due diligence documents in respect • have AML/CFT Policies and
Laws of Malta) (PMLFTR). Furthermore, of its relevant key functions, directors Procedures in place;
Malta is not listed in any international subject persons are also required and shareholders. The due diligence • carry out customer due diligence
blacklist of countries which are likely to to comply with the Implementing exercise ensures the suitability of all procedures on a risk- sensitive basis
be used for money laundering activities. Procedures Part I, applicable to all persons involved in the conduct of once the relative threshold is reached;
Malta actively participates in initiatives subject persons and Part II, specifically gaming operations in and from Malta. An • develop a risk profile on the basis of a
adopted at international levels such as by addressing the land-based and remote applicant for the key AML/CFT function, customer risk assessment;
the EU Committee on the Prevention of gaming sector, published by the also appointed by the company to hold • report suspicious transactions to the
Money Laundering and Terrorist Financing, Financial Intelligence Analysis Unit (FIAU) the money laundering reporting officer FIAU via STRs;
the MONEYVAL Committee of the Council in conjunction with the Malta Gaming (MLRO) role, would also need to undergo • provide AML/CFT training to
of Europe, the Financial Action Task Force Authority (MGA). an appraisal by the MGA which is aimed employees on an ongoing basis;
against money laundering and the OECD. at assessing the applicant’s competence • retain all the relevant documentation
and knowledge to occupy such a role. for record keeping purposes.
30 31

Sports Betting Integrity

Malta Gaming Authority Fact Sheets 2023

endeavors, underlining specific and clear

The threats of match-fixing and malicious sports betting continue to be a processes and initiatives undertaken to
challenge for sports and the regulated betting sector alike. To this end, the MGA ensure compliance with the Suspicious
is committed to taking a proactive approach in managing sports betting integrity. Betting Reporting Requirements.
The MGA works closely with international partners and other stakeholders in
the betting and sports industries, and with local and foreign supervisory / law The MGA is subject to numerous
enforcement authorities. This allows the MGA to identify vulnerabilities, encourage requests for information, submitted
precautionary measures, and strengthen the deterrents to corruption in betting by enforcement agencies, sports
and sports in general. In addition, it also enables it to better identify the longer- governing bodies, integrity units, and
term threats and implement policies that prevent the threats that pose the other regulatory bodies from across
greatest risk. the globe. Some of the requests require
the MGA to check whether it held any
information on specific sporting events
being investigated by the entity making
The MGA enacted the provisions at the request. However, other requests
law relating to the Suspicious Betting for information require the department
Reporting Requirements, as noted in to reach out to the betting industry in
article 43 of the Gaming Authorisations order to identify which operators beheld
and Compliance Directive (Directive 3 betting activity pertinent to a sporting
of 2018). With the intention of facilitating event which is deemed of interest by the
suspicious betting reporting to the MGA, requestor. Such requests are handled
a reporting instrument, the Suspicious in accordance with its regulatory virtue
Betting Reporting Mechanism, is set out in article 7(2)(d) of the Gaming
available to all MGA licensees that offer Act (Cap. 583 of the Laws of Malta).
a gaming service and/or a critical gaming As a result, the MGA may share any
supply relating to betting on sports relevant data, including personal data, in
events, accessible via LRMS. As a result, its possession with local and/or foreign
the MGA receives reports of suspicious bodies entrusted with the governance
activity from its licensees which allows and regulation of a particular sector.
the MGA to better monitor the industry. The MGA is empowered to do so in
Furthermore, when applying for a Type accordance with article 8(2) of the
2 licence with the MGA, an operator Gaming Act (Cap. 583 of the Laws
is to submit policies and procedures of Malta).
pertinent to their sports betting integrity
32 33

A voluntary ESG Code

Malta Gaming Authority Fact Sheets 2023

of Good Practice

Across all industries, a clear and Embracing ESG (environmental, social,

undeniable trend has emerged towards governance) within business strategies
greater transparency, accountability in a timely manner permits businesses
and active engagement in addressing to have a net-positive effect on society
the pressing social and environmental and provides an opportunity to stand
issues of our time. And the gaming out as an entity that cares about the
industry is no exception. human and natural environment it
operates in.
The Malta Gaming Authority is proud
to be the first gambling regulator to be
looking holistically into the sustainability
of the gaming industry, by introducing a
voluntary ESG Code of Good Practice of
the remote gaming industry.
34 Malta Gaming Authority Fact Sheets 2023 35

The ESG code aims to provide remote

gaming companies with guidance on
ESG reporting, in turn facilitating the
process of benchmarking amongst
companies and enabling smaller and
medium-sized entities to confidently
begin establishing an ESG reporting
strategy. Although the Code is not
intended as guidance under the EU’s
Corporate Sustainability Reporting
Directive (CSRD), it nevertheless aims
to help increase the preparedness
The “E” in “Environment” considers The “S” of ESG focuses on how a of remote gaming companies for
the impact that a business’s business interacts with and impacts upcoming regulatory requirements,
operations can have on the wider its employees, customers, and whether they are large/listed
environment, both through its direct society at large. The social dimension companies, or smaller entities in the
operations and across supply chains. of ESG is especially relevant to remote value chain that are indirectly impacted
gaming due to the industry’s unique by the CSRD.
At face value, the environmental characteristics and potential challenges.
footprint of the remote gaming industry Moreover, the Code also aims to
may not appear substantial. However, Lastly, the “G” refers to the set of complement and build on existing
certain aspects of a remote gaming principles, policies, and procedures efforts by the industry, as well as acts
company’s value chain, such as the use that guide the decision-making and as a reference point for operators to
of data centres and business travel, operations of any business. The remote regularly assess, report on, and improve
may have a significant carbon footprint. gaming industry operates within a their ESG practices.
As the remote gaming industry rapidly complex regulatory framework, and may
grows and facilitates further research be exposed to various risks. By upholding The Code is voluntary, but the
and innovation in the digital domain, good governance practices, remote performance indicators within it should
it becomes imperative to understand gaming businesses can safeguard their serve as guidance for operators of the
where carbon reduction opportunities economic performance and financial direction the MGA would like to see
can be harnessed. stability, protect the interests of their them move towards.
stakeholders, manage risks more
effectively and build a resilient business
in a continually evolving industry.
36 Malta Gaming Authority Fact Sheets 2023

Building SCM 02-03, Level 4,

SmartCity Malta,
Ricasoli SCM1001,
Malta

[Link]