MALTA Law and Practice Contributed by: Karl Tanti and Christine Borg Millo, AE Legal
tising can only be placed on a consumer’s device with their prior informed consent, except where cookies are strictly necessary for providing the service requested by the user. 6.5 Marketing to Children Advertising to children is addressed in most regula - tions pertaining to advertising in Malta. The Broad - casting Act and the Broadcasting Code for the Pro - tection of Minors (S.L. 350.05) ensure the protection of minors from any harmful audio-visual commercial communications. Please see 3.2 Children for more information. The collection and use of children’s personal data is governed by the GDPR, as implemented locally by the Data Protection Act, together with the Processing of Personal Data (Electronic Communications Sector) Regulations (S.L. 586.01). These establish special pro - tections because children are considered a vulnerable group in the digital environment. Liability for violating such rules is determined on a case-by-case basis, considering the specific circum - stances involved. Fines for such violations are deline - ated within the framework of the GDPR and the Data Protection Act. 6.6 Other Rules No further rules are applicable. 7. Sweepstakes and Other Consumer Promotions 7.1 Sweepstakes and Contests A sweepstake is a type of promotional competition where winners are chosen purely by chance rather than by skill. Sweepstakes and contests are primarily regulated under the Gaming Act (Chapter 583 of the Laws of Malta), with the level of regulation depending on whether the competition involves an element of chance or risk. Sweepstakes that qualify as “games of chance” generally require a licence from the Malta Gaming Authority (MGA), while free prize draws, where no payment is required for entry, are exempt. The De
Minimis Games Directive (Directive 3 of 2019) further exempts certain small-scale games from licensing if they meet strict conditions. Additional standards apply under the Requirements as to Standards and Practice, Award of Prizes, Con - duct of Competitions Regulations (S.L. 350.22), which govern competitions conducted via broadcasting media. From a consumer protection perspective, the Consumer Affairs Act prohibits misleading practices in prize promotions, including fabricating “winning” claims, failing to deliver promised prizes, or requiring consumers to pay hidden fees to claim a prize. Such behaviour is considered an aggressive commercial practice and can lead to enforcement action by the MCCAA. 7.2 Contests of Skill and Games of Chance Maltese law clearly distinguishes between games of skill and games of chance, with each falling under distinct regulatory frameworks under the Gaming Act (Chapter 583 of the Laws of Malta). A game of skill is defined as an activity where the out - come is primarily or predominantly influenced by the skill level of the participant. However, sporting events are explicitly excluded from this definition, unless oth - erwise specified by law. Generally, games of skill do not require a licence. That said, where such games involve a stake for participation or the awarding of a monetary prize or its equivalent, they are classified as controlled skill games and do require licensing. In such cases, the operator or promoter bears the bur - den of proving that the activity qualifies as a skill game exempt from the wider gambling licensing regime. On the other hand, a game of chance is one where the outcome is predominantly determined by chance rather than the skill of the participants. This category includes games that rely on luck or random events, and it extends to activities based on uncertain future events. Such games are subject to stricter regulatory oversight and licensing requirements from the MGA, unless they qualify for specific exemptions, such as the De Minimis Games Directive.
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