Post-Acquisition of a Gaming Licence from the Malta Gaming Authority

Following acquisition of a gaming licence, operators are bound by specific compliance and regulatory obligations towards the Malta Gaming Authority (the ‘Authority’).

Gonzi & Associates, Advocates can assist you with all such obligations and requirements. This will include gathering and compiling all necessary information and documentation, including certification as well as submitting of the relevant applications through the Authority’s Licensee Relationship Management System and liaising with the Authority.

The Authority shall, following go-live, require the Licensee to undergo a number of compliance audits of its operations. These are to be performed and completed by an approved service provider, appointed by the gaming operator, within 90 days from the Authority’s notice. The Authority’s schedule to carry out the abovementioned compliance audits shall be in line with the following:

1. After the first year of operation after being licensed by the Authority; and
2. Any time thereafter, depending on the compliance plan set by the Authority.

Any failure of a compliance audit could lead to suspension and in the case of a severe infringement, it could even lead to the termination of a licence.

Once the licence has been issued, the licensee must be sure to comply with all of the Authority’s prior approval obligations, notification and reporting requirements.

There are a number of instances wherein certain activities or actions on the part of the licensee requires the Authority’s: (a) prior approval; or (b) must be notified to the Authority within a stipulated time frame. For instance, any changes to the gaming equipment, such as rules of the game or any other intended divergences from the information provided to the Authority during the application process must be submitted either for approval from the Authority or must be notified thereto, depending on the procedure required by the Authority for the change in question.

There are also yearly, half-yearly and monthly reporting obligations imposed on licensees. Different reporting obligations are of course imposed on B2C and B2B licensees.

All licensees are expected to submit the following: (a) yearly audited accounts are to be submitted within one hundred and eighty (180) days from the end of the company’s financial year; (b) management accounts are to be submitted covering the first six (6) months of a company’s financial year; and (c) an industry performance return is to be compiled by all licensees and submitted twice a year. The latter report provides key data on various aspects of the licensees’ operations.

Furthermore, B2C licensees are also obliged to submit gaming tax reports and player funds reports on a monthly basis. The latter shows whether the licensee is able to cover its liabilities towards players for the month in question. If not, the licensee is to make good for the shortfall from its own funds. On the other hand, B2B licensees are to submit monthly compliance reports which show the entities to whom they have started to provide their gaming supply within the respective month.