MALTA Law and Practice Contributed by: Karl Tanti and Christine Borg Millo, AE Legal
7.3 Registration and Approval Requirements In Malta, games of chance and contests of skill are subject to distinct approval and registration require - ments, depending on their classification under the Gaming Act. All games of chance that are not specifically exempt under the Gaming Act must be registered and approved by the MGA. Operating such games without authorisation is illegal. The level of regulation depends on the type of game: • Low-Risk Games: Defined under the Gaming Authorisations Regulations (S.L. 583.05) and Gam - ing Definitions Regulations (S.L. 583.04). These require a Low-Risk Games Permit, which is valid for a single event and must be applied for at least seven working days before commencement. • Non-Profit Games: These are licensable games where stakes cannot exceed EUR5 per player and at least 90% of net proceeds are allocated to a charitable, sporting, cultural, religious, educational, or similar purpose. Permits are valid for one event (eg, tombola, bingo, lotteries) and are subject to strict conditions. Commercial operators offering games of chance require a full licence from the MGA. The licensing pro - cess is extensive, averaging six months, and includes: • a “fit and proper” assessment of key individuals (competence, integrity, financial standing, AML/ CTF compliance); • a business plan with financial projections and operational policies; • a system audit and test run of the game prior to launch; and • an additional audit after one year of operation to ensure ongoing compliance. Failure to obtain or maintain approval may result in significant penalties, licence revocation, or criminal liability. Generally, games of skill do not require registration or approval. However, if they involve stakes for participa - tion or the awarding of a monetary prize or equivalent, they are categorised as Controlled Skill Games and
fall under MGA licensing. The burden is on the opera - tor to demonstrate that the activity qualifies as a game of skill exempt from the broader gaming regime. 7.4 Free and Reduced-Price Offers Free or reduced-price offers are regulated mainly by the Consumer Affairs Act and by rules imple - menting the EU Unfair Commercial Practices Direc - tive (2005/29/EC). These laws prohibit traders from misleading consumers by falsely presenting goods or services as “free” or “without charge” when the consumer must pay more than the unavoidable cost of responding to the offer, such as delivery. Any con - ditions attached to a free offer, such as mandatory purchases, must be clearly disclosed. Similarly, reduced-price offers, such as discounts or “special prices”, are subject to transparency require - ments. Price reductions must be genuine, not fabri - cated, and should not mislead consumers as to the original price or the level of savings. The law also prohibits aggressive practices, such as creating false urgency around a “limited time” offer. Breaches may be investigated by the MCCAA, which has enforcement powers to impose administrative fines, order corrective measures, and take court action where necessary. 7.5 Automatic Renewal/Continuous Service Offers In Malta, automatic renewal or continuous service offers, where marketers ship and bill products or ser - vices on a recurring basis until the consumer cancels, are subject to specific legal requirements to protect consumers. Such agreements require explicit consent from the consumer, ensuring they are fully aware of and agree to the ongoing nature of the service. These contracts are governed by the principle of pac - ta sunt servanda, meaning that legally valid agree - ments are binding on all parties. Under Article 992 (2) of the Civil Code (Chapter 16 of the Laws of Malta), contracts may be revoked only by mutual consent or as otherwise prescribed by law. Additionally, contracts must comply with the principle of good faith, which obliges parties to honour not only their explicit obliga -
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