By means of the publication of Legal Notice 131 of 2016,[1] the Minister for the Economy, Investment and Small Business together with the Malta Gaming Authority (“MGA”), have announced amendments to the Remote Gaming Regulations.[2]
It is expected that the introduction of these amendments, in particular, the introduction of the MGA monitoring system, further strengthens Malta as a jurisdiction of choice and excellence for remote gaming purposes.
Below is a non-exhaustive list of the major changes.
MGA Monitoring System for Malta Remote Gaming Operation
The MGA shall have the right to require a licensee to connect its systems to a monitoring system operated by the MGA and to maintain such connection at all times.[3]
Amongst others, the MGA may use said monitoring system for:
- receiving reports or statements which licensees are obliged to submit to the MGA;
- monitoring and receiving information relating to the games and gaming operation, including player, game and financial data;
- investigating whether the licensee is compliant with any law, licence conditions or AML obligations; and
- compilation of statistics, analytics and research.[4]
Any information collected by the MGA through the monitoring system may be made available to the public.[5]
Malta Remote Gaming Operator's Commission and Fees Disclosure Duty
A licensee shall be duty bound to disclose to all players any information relating to commission or fees held by the licensee or charged to the player.[6]
Malta Remote Gaming - Average Return to Player
Licensees who offer games using repetitively generated random selections for determining winning combinations, in other words, licensees using a “random number generator” (RNG), must ensure pay outs averaging 92% (or more) of the monies wagered by players.[7]
In calculating the applicable percentages, transactions which took place from the 1st January 2015 onwards shall be taken into consideration.[8]
Qualifying Shareholding in a Malta Remote Gaming Operation
The definition of “qualifying shareholding” has been expanded for Remote Gaming purposes.
Currently, a qualifying shareholding means a direct shareholding in a company which represents 5% or more of the share capital issued by such company or of the voting rights attaching to said share capital or which makes it possible to exercise a significant influence over the management of the company.[9]
On the coming into force of the amendments, a qualifying shareholding shall mean a direct or indirect shareholding in a company which represents 5% or more of the share capital issued by such company or of the voting rights attaching to such share capital or which makes it possible to exercise a significant influence over the management of a company, provided that where the rights held as to the percentage of votes, to profits available for distribution and to rights to assets available for distribution on a winding up in respect of such holding are not identical, the highest percentage figure shall be deemed to be the percentage of equity holding held.[10]
[1]
Government Gazette of Malta No. 19,561 – 22.04.2016 (hereinafter the “Legal Notice”).
[2]
Subsidiary Legislation 438.04 of the Laws of Malta (hereinafter the “Regulations”).
[3]
Legal Notice regulation 5, adding regulation 61(1) to the Regulations.
[4]
Ibid. adding regulation 62 to the Regulations.
[6]
Legal Notice regulation 5, adding regulation 49A to the Regulations.
[7]
Legal Notice regulation 3, adding regulation 46A to the Regulations.
[9]
Lotteries and Other Games Act, Chapter 438 of the Laws of Malta, article 2(1).
[10]
Legal Notice regulation 2, amending regulation 2 of the Regulations.