MALTA Law and Practice Contributed by: Andrew J. Zammit and Krista Hili, GVZH Advocates
3.3 Definition of Land-Based Gambling The general definition of “gaming” applies to all gam- bling/gaming, regardless of the channel of distribu- tion adopted by the operator to reach its consumers. There is no distinction between online and land-based gaming, and the general definition thus covers both types of gaming. 3.4 Definition of Online Gambling See 3.3 Definition of Land-Based Gambling . 3.5 Key Offences The major offences under the Gaming Act are out- lined in the Third Schedule of the Act and include the provision of a service or supply without the neces- sary authorisation, aiding or abetting such provision, and failing to effect payments to the MGA. Other key offences arising under other applicable laws include money laundering offences and data protection offences, both of which are directly relevant for gam- ing operators. Sanctions also apply to lesser offences such as the breach of, or non-compliance with, other areas of applicable legislation, including a breach of advertis- ing regulations or compliance breaches. 3.6 Penalties for Unlawful Gambling Any person found guilty of undertaking unlawful gam- ing activity as per the Third Schedule of the Gam- ing Act is liable to a fine of between EUR10,000 and EUR500,000, imprisonment for up to five years, or to both a fine and imprisonment. As an alternative to criminal court proceedings, the MGA may, by way of agreement with the offender and subject to rectifica- tion of the breach, impose a penalty of EUR500,000 for each infringement, or a sum of EUR5,000 for each day of infringement or non-compliance, or any other administrative sanctions. Once such agreement is concluded, the offender’s criminal liability under the Gaming Act will be extinguished. The agreement will only be effective if it is accompanied by the payment of the sum due or the provision of sufficient security for its payment. Any machine or other device, and any money used in the commission of the offence, will be seized and forfeited in favour of the MGA and may be appropri-
ated in favour of the Malta Gaming Fund. In the case of a breach of any other regulatory instrument that is not outlined in the Third Schedule, the MGA may impose an administrative penalty of up to EUR25,000 for every breach or non-compliance, or an administra- tive penalty of up to EUR500 for each day on which such breach persists. The MGA may impose fines for non-compliance in the following three main scenarios: • to ensure that the licensee rectifies any default; • to deter future non-compliance and thus ensure that Maltese licensees uphold high standards of behaviour consistent with regulatory requirements; and • for the purpose of ensuring that any financial gain that the licensee may have made through non- compliance is eliminated. On 26 November 2019, the MGA published an explan- atory note on “Guiding Principles for the Application of Enforcement Measures”, setting out the princi- ples that should guide the MGA in its application of enforcement measures when a breach occurs. This explanatory note lays down the aims that the MGA should be guided by in deciding the appropriate form of enforcement action – ie, in determining whether it should offer regulatory settlement or proceed with the commencement of criminal proceedings. It also lays down principles for the quantification of penalties. The Gaming Act established the main regulatory body responsible for the governance of all gaming activities (including land-based and remote gaming sectors) in Malta, the MGA. The MGA’s main functions include the issuance of licences, approvals, certificates and recognition notic- es, as well as monitoring the conduct of operators in the field. The MGA is also responsible for preventing, detecting and combatting criminal activity in the gam- ing sector, and for ensuring that games are operated and advertised fairly and responsibly. 4. Licensing and Regulatory Framework 4.1 Regulatory Authority
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