Malta Gaming Authority CEO Q&A: A duty of care
It’s coming up to the better part of a year since your appointment as CEO. What are some of the most important changes the MGA has made since then?
The strategy recently formulated by the Malta Gaming Authority (MGA) remains both fresh and relevant – my primary objective is continuity. It’s crucial that we sustain the industry rather than introduce any abrupt changes that could unsettle it. That said, we’re always striving to improve, particularly when it comes to operational efficiency. One of the key initiatives we’ve embarked upon has been a comprehensive analysis of our core system of processes. Our aim is to uncover any redundancies, bottlenecks or inefficiencies that may be hindering performance and to address them in a systematic way.
Additionally, we have been working on bolstering our human resources capacity, ensuring we can meet the demands of the industry within reasonable timeframes. By investing in our resources and improving our operational efficiency, we can maintain the high standards that have made the Malta licence a benchmark in the industry and ensure that operators of good will continue to see Malta as their preferred jurisdiction.
You have quite a diverse career in different divisions around Malta, including the Residency Malta Agency. What unique challenges do you think the Maltese gaming industry has to deal with?
The Malta gaming industry, like any other, operates within a unique set of challenges, some of which are influenced by Malta’s specific context. Geography plays a role in both our strengths and limitations. Being a small island nation, we’re geographically well positioned in Europe, which makes us attractive as a hub for international gaming companies. However, our size also means we have limitations in terms of physical infrastructure and resources, which requires us to be particularly efficient and strategic in how we manage growth. Demographics present another aspect to consider. While we have a highly educated and skilled workforce, the demand for talent in the gaming sector continues to grow. This drives the need for continuous investment in education and training, as well as attracting foreign talent.
The MGA is keenly aware of this and carries out numerous outreach activities with education institutions and students throughout the year, focusing on how the industry can present a viable and rewarding career path. We also emphasise responsible gambling practices and social responsibility to help attract individuals who are genuinely interested in making a positive impact within the industry.
Are there any unique solutions the gaming industry can offer in return facing these challenges?
The gaming industry is well positioned to offer solutions that can help address some of these challenges. One of the most notable contributions is its role in fostering innovation and technological advancement. The sector has been a driver of digital transformation in Malta, and this can have far-reaching benefits beyond the gaming industry itself. For example, the expertise in technology, data management and cybersecurity developed within the industry can be leveraged to improve other sectors, enhancing Malta’s overall competitiveness in the global digital economy.
In terms of the demographic challenge, gaming companies can contribute to the local workforce by investing in skills development and education. We encourage as many operators as possible to enter into partnerships with educational institutions, and to provide training programmes and career development opportunities for young professionals. This not only helps to grow the local talent pool but also ensures that the gaming industry has access to the skills it needs to thrive.
The MGA has made several key changes and developments in regulations this past year. Why is it important to keep these facets of an Authority up to date, and are there any particular hurdles presented within the last year that led to any of these regulations being created?
It’s crucial for the MGA to keep its regulatory framework up to date to ensure we remain effective, responsive and aligned with industry developments. Our regulations must be flexible and forward-looking to enable the industry to thrive in a sustainable manner, while maintaining the integrity of the market. Player welfare remains one of our top priorities, which was why last year saw the introduction of five markers of harm into our Player Protection Directive. These markers are designed to help operators identify early signs of problematic gambling behaviour, enabling them to intervene in a timely and effective manner.
It’s also important to address the notion of risk-free gambling, which should never be incentivised or promoted. Gambling, by its very nature, involves risk, and framing it as ‘risk-free’ can mislead players and downplay the potential consequences. This concern has been exacerbated by recent rulings in some EU jurisdictions, some of which have mandated that MGA licensees pay back players’ losses on the basis that the contractual relationship between the player and the licensee was deemed null and void. The aggressive advertising tactics employed by certain litigation financiers across the Union have further incentivised players to claim back losses incurred from operators duly licensed in Malta. This situation not only promotes the notion of ‘risk-free gambling’ but also poses a significant risk to individuals who may already be experiencing issues related to problem gambling.
We recognise that by purchasing players’ claims, litigation financiers may operate within the legal boundaries of their respective jurisdictions. However, applying this business model within the gaming industry presents significant dangers due to the inherent risks associated with gambling. These business models create a harmful incentive for players to continue gambling beyond their means, as they are misled into believing they have a safeguard in place to recover their losses. This fosters a damaging cycle of loss chasing.
What direction do you see the Authority going in, as we enter 2025?
Our approach will continue to emphasise robust, clear and enforceable regulations. By maintaining a strong focus on player protection, transparency and the integrity of the industry, we aim to provide a trusted environment where legitimate operators can thrive. A primary focus, as mentioned above, will be on enhancing the efficiency of our internal processes and improving our interactions with external stakeholders. We have already made significant strides by restructuring our regulatory departments, but this is an ongoing effort. By streamlining our operations, we aspire to be more agile and effective in fulfilling our regulatory duties.
Another key priority will be to maintain the open channels of communication that have become a hallmark of the MGA. Engaging with our stakeholders and actively listening to their feedback is essential to ensure our policies and regulations align with the evolving needs of the market. This allows us to stay ahead of emerging trends, not play catch-up.
The MGA has always worked closely with the Financial Intelligence Analysis Unit (FIAU), and we’re starting to see other Authorities sign similar deals with their own government financial divisions. How important is it to have the support of the FIAU, and perhaps even the Malta Financial Services Authority (MFSA), as a Gaming Authority?
Close collaboration with other authorities is vital to bolster our regulatory effectiveness, as well as to reinforce our commitment to upholding high standards of governance and compliance. The MGA acts as the long hand of the FIAU in terms of the Prevention of Money Laundering Act (Cap. 373 of the Laws of Malta). Our dedicated Anti-Money Laundering (AML) Unit acts, on behalf of and together with the FIAU, as a supervisor for gaming companies to ensure they have the necessary controls and safeguards in place to detect and report any suspicious activity or transactions. Close collaboration with other authorities is vital to bolster our regulatory effectiveness, as well as to reinforce our commitment to upholding high standards of governance and compliance. We also collaborate frequently with the FIAU by organising outreach activities aimed at educating the sector and providing additional guidance to our licensees. These initiatives help reinforce the importance of compliance and ensure operators are well-equipped to meet their regulatory obligations.
Collaboration with the MFSA is equally important. Both authorities play distinct yet complementary roles within the financial ecosystem in Malta. The MFSA focuses on the broader financial services sector, while the MGA has a specific mandate within the gaming landscape. By aligning our efforts and sharing best practices, we can create a more cohesive approach to regulation that enhances the resilience and integrity of our financial systems.
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