To say Malta has been on a real iGaming recruitment drive in recent years would be an understatement, with the island nation bolstering the number of gambling companies almost beyond count in recent years. That number is believed to be beyond the 300 mark, with over 500 licences issued, all thanks to an over 8,000 multi-national workforce.
In recent times, Malta has been keeping itself busy with various different challenges, led largely by the Malta Gaming Authority (MGA. In September, for example, the body conducted a review of the island nation’s VAT or Fiscal Receipts Lottery, as well as joining forces with Financial Intelligence Analysis Unit (FIAU) to host a number of workshops, intended to disseminate industry-specific knowledge and promote a “general understanding of the sector at large.” It comes after Malta was removed from the Financial Action Task Force’s (FATF) so-called “grey list” – a group of jurisdictions under “increased monitoring” – in June.
Also significant was the MGA’s 2021 report, in which it revealed it had pursued less regulatory action, issuing fewer warnings and suspending or cancelling fewer licences. This continues a trend that has been active since 2019, with licence cancellations having halved between then and last year, from 14 to seven. Five of these were online gaming licences.
Focusing briefly on land-based gaming, however, the most recent statistics from the MGA show that total casino gaming revenue for the first seven months of 2022 amounted to €26.1m ($25.1m). With no statistics available from April and May of 2021 due to the pandemic, it makes more sense to compare the current results to a fully functioning 2019, when casino gaming revenue reached €27.6m in the first seven months.
In the grand scheme of things, the €1.5m revenue difference between 2019 and 2022 is minuscule, showing that revenue has largely been unchanged despite the island getting busier with more and more companies. More importantly, it proves how insignificant land-based is to online in the country. The island’s online gaming scene is much more prevalent and important to the many companies that are based there.
It’s clear that attracting new companies to the island has been a priority in recent years, but is this still the case, or has Malta now turned its efforts onto retaining existing firms?
The bigger picture
For LeoVegas’ Nelson, Malta is doing well from an iGaming perspective: “The island is business-friendly and authorities understand the opportunities, but also the challenges, that the industry is facing. We have access to iGaming talent and expertise, while having atech infrastructure that supports further growth – a very important topic for us, seeing as we’re about to embark on a global journey together with MGM Resorts International (which acquired LeoVegas).”
Nelson added that the removal from the FATF grey list has provided the “light at the end of the tunnel,” explaining that getting off the grey list was “vital for the iGaming sector, the Maltese businesses and ultimately the Maltese economy in general.”
Play’n Go’s De Giorgio explained that the island remains a top-tier jurisdiction for regulated gaming, even as the global regulatory landscape continues to evolve at pace. Its success over the years, he noted, “is in no small part down to its willingness to listen and adapt to stakeholders from across the industry.”
De Giorgio believes the MGA has been resolute in protecting the sector’s reputation, at a time when “country-by-country legislation in Europe can make it a challenge to find a common approach.”
He continued: “As more dot country regimes are introduced, Malta still has a critical role as an international leader in the establishment of sound regulation. By working closely with licensees to deliver sensible and well-balanced regulation, its influence on and importance to our industry stretches well beyond its shores, and that isn’t going to change in the foreseeable future.
Play’n Go’s Head of Compliance added that the MGA has always tried to promote the proper regulatory environment for participants and stakeholders in the gaming sector, which has fostered the necessary conditions for a “gaming ecosystem to grow and flourish in Malta.”
For Pariplay’s Bradamante, Malta is more than holding its own on a global scale, a position the country is privileged to be in. Despite external factors such as the pandemic, the war in Ukraine and financial instability, he believes Malta is faring healthily in comparison to other jurisdictions.
“As a small island in the middle of the Mediterranean, Malta is unique,” he told Gambling Insider. “Currently, our biggest problem as an industry is recruitment and having enough people to achieve all the things we want to do. That is a very privileged position to be in. We have a critical mass of 8,000 qualified staff in the industry and at the moment there are an additional 1,000 open vacancies on the island.”
Pariplay’s CCO also alluded to the country’s success from a regulatory perspective, noting that, despite the diminishing importance of having a B2C licence as more jurisdictions introduce their own licensing system, Malta has raised the bar and is still very much an important B2B hub. It’s a trend he sees continuing as the island nation has “built up a fantastic infrastructure for the industry to prosper.”
Attraction or retention?
The overall situation is certainly benefiting LeoVegas, with the group’s Malta office its largest in Europe. As noted by Nelson, the office will continue to grow as the company expands globally, with Malta’s status as an iGaming hub proving hugely beneficial.
He stated: “There is iGaming expertise and know-how everywhere, important factors when developing our brands, innovating and generating new ideas. Having said this, it’s important that authorities understand the challenges the industry faces, and ensure Malta continues to be a leading and competitive iGaming hub.”
When asked by Gambling Insider if Malta is currently focusing on attracting more iGaming companies to the region, or if it is focusing on retaining the ones that are currently there, Nelson replied: “Our impression is that Malta is still actively attracting iGaming and tech companies. A few examples that support this thesis are the fact there are initiatives surrounding esports, and that Malta continues to invest in education that is relevant to the iGaming and tech industries.”
Nelson concluded: “Access to talent is a constant challenge, so it’s important that initiatives continue, to attract more talent to the island and the industry.”
While Play’n Go’s De Giorgio cannot speak on behalf of the regulator in this regard, he noted that he has witnessed authorities working to create the necessary conditions for the sector to “prosper in a safe and sustainable manner.”
He explained: “This requires maintaining a delicate balance between the need to nourish existing companies, but also fostering the right environment for new companies and start-ups to establish themselves in Malta.”
He added that Malta’s licensing regime is important for the group and indeed for its partners, stating: “We’re now active across more than 25 regulated jurisdictions worldwide, and Malta was one of the very first experiences we had of operating within such a framework.” Working in the country has laid the foundations for the company to grow, with the island representing not just strategic importance for Play’n Go, but also a home. De Giorgio concluded: “We’ll continue to invest in operations in Malta and work closely with the MGA, as we have been doing for the best part of 15 years already.”
Meanwhile, Bradamante believes the current focus is very much on retention, with the CCO dividing the island’s recent actions into two: “In the 10 years I have been in Malta, the first phase was certainly to grow the number of licensees. Malta was open for business. The second phase has seen a consolidation as the bar was raised and the MGA started doing audits, and revoking licences for non-compliant companies.”
Bradamante also touched on the FATF grey list issue, praising the Government and other authorities for “taking quick action and implementing new stringent rules” that saw Malta removed from the list after just one year. The situation did, however, leave a mark, with Bradamante noting: “Although no major companies left the island as a result of the listing, it did damage Malta’s reputation and other unfortunate events in recent years have also abetted this notoriety. This is a social issue that Malta is working on improving; but in the meantime, the gambling industry continues to thrive on the island.”
