MALTA Law and Practice Contributed by: Andrew J. Zammit and Krista Hili, GVZH Advocates
4.2 Regulatory Approach The regulatory approach adopted by the MGA is risk- based and prescriptive. In August 2018, the Gaming Act and various subsidiary legislation came into force. This framework broadened the regulatory scope and increased the MGA’s oversight. It moved towards an objective-based regulatory approach, allowing for innovation and ensuring that the regulatory objectives are attained. In February 2025, the MGA issued a regulatory update, communicating that it is strengthening its regulatory oversight for 2025 by adopting a more evi- dence-driven and outcome-focused approach within its risk-based framework. This enhancement aims to improve supervision of the online gaming sector while promoting greater transparency and accountability. The MGA’s key focus areas for 2025 were compli- ance, player protection and sports betting integrity. Through this strategy, the Authority seeks to uphold high industry standards and reinforce its reputation as a trusted regulator. 4.3 Types of Licences A gaming service is defined as the provision of the opportunity for participation in a game by players as an economic activity, whether directly or indirectly, and whether alone or with others. The MGA may issue the following licences. • A gaming services licence – a business-to-con- sumer (B2C) licence to offer or carry out a gaming service. A B2C licence may constitute one or more of the following game types: (a) Type 1 gaming services – games of chance played against the house, the outcomes of which are determined by a random number generator, and which includes casino-type games; (b) Type 2 gaming services – games of chance played against the house, the outcomes of which are not generated randomly, but are determined by the result of an event or compe- tition extraneous to a game of chance, whereby the operator manages its risk by managing the odds offered to the player; (c) Type 3 gaming services – games of chance
not played against the house and wherein the operator is not exposed to gaming risk, but generates revenue by taking a commission or other charge based on the stakes or the prize (including player versus player games such as poker and bingo, betting exchanges and other commission-based games); and (d) Type 4 gaming services – controlled skill games. • A critical gaming supply licence – a business- to-business (B2B) licence to provide or carry out a critical gaming supply that is indispensable in determining the outcome of a game or games forming part of a gaming service, and/or is an indispensable component in the processing and/or management of essential regulatory data. • A corporate group licence – B2B or B2C corporate group licences may be issued to a corporate group that includes more than one company within its structure. This may be availed of where the entities concerned provide critical gaming supplies solely to other entities within the same group. In such instances, an additional B2B licence will not be required. However, if entities under the B2C corpo- rate group licence provide critical gaming supplies in or from Malta to entities outside of the group, a separate B2B licence is required. The entities that can be covered by the corporate group licence must be established in Malta or another EU/Euro- pean Economic Area (EEA) jurisdiction. In instances where a game may be categorised under one or more of the game types, the MGA has com- plete discretion to categorise the game under the spe- cific type it believes most closely reflects the nature of the game. 4.4 Availability of Licences A standard licence term, whether original or renewed, is ten years, whilst a recognition notice is valid for one year. A recognition notice is a notice issued by the MGA whereby an authorisation issued by another member state of the EU or EEA, or a state that is deemed by the MGA to offer safeguards largely equiv- alent to those offered by Maltese law, is recognised as having the same effect as an authorisation issued by the MGA for the purpose of providing a gaming service or gaming supply in or from Malta. Licences
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