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Analysis MALTA - PART II


• No payments in excess of €2,329.37 shall be made until player’s identity has been verified.


• Players’ funds must be kept separately from the licensee’s own funds.


• The licensee should display at all times gambling addiction warnings and associated links. Registered players can set limit on amount of wagers within a specified time, limit on losses or limit on time or self exclude for a definite or indefinite period of time.


• Full screen games cannot be offered unless a real time clock is displayed on the screen at all time and players are given the facility to exit the game.


• A licensee shall pay the following taxes: a fixed amount per month in case of online gaming, the total amount of bets made in case of online betting and aggregate winning bets in case of betting exchanges. See chart below for figures. In all cases the total maximum of tax payable per year by one licensee shall not exceed €466,000.


Applicants can apply for one or more types of license and licensees are expected to operate in compliance to the LOGA and adhere to anti money laundering and electronic commerce legislation.


There are three stages:


stage one: Proper Test and Business Adequacy. This is where the LGA will look at the applicant and any stake holders with five per cent or more interest and carry out a financial analysis of the business plan. An application fee of €4,600 is required together with an application form, personal declaration form followed by a preliminary meeting with the LGA.


stage two: Business and Technical Ability Assessment. This stage involves registering a Maltese company, providing a list of games and rules and regulations and details of the system, plus taking on a data centre with agreements on server hosting etc. If the applicant is successful they will receive a Letter of Intent (LOI) and they then have six months to complete the establishment of infrastructure and operations.


stage three: Compliance Audit. The applicant can use the LOI for six months and during this time they are expected to start operating and a formal license is issued when the LGA obtains approval from the compliance certification entity. Once the license is issued this will last for five years.


One problem which hovers over Malta’s head is the fear of “all your eggs in one basket”


syndrome. When the ECJ stated in 2009 (in a case


brought by Austrian gaming company BWIN against Portugal’s state


owned Santa Casa de Misericordia) that EU member states should ban


gambling websites within their territories, it


provoked a huge reaction.


When applying for a license the


applicant must present the


software used and specification of the control system to the LGA. The


operational manual must include all details such as


game description, software reporting


requirements, a list of terms and conditions and


rules of the games.


The LGA also needs procedures for


maintenance and security and storage plus


procedures for


accounting systems and how prizes are paid.


When applying for a license the applicant must present the software used and specification of the control system to the LGA. The operational manual must include all details such as game description, software reporting requirements, a list of terms and conditions and rules of the games. The LGA also needs procedures for maintenance and security and storage plus procedures for accounting systems and how prizes are paid.


Before a new gaming system is operational a licensee must confirm that the gaming system complies with all the technical specifications within the previous six months.


One of the main specifications covers player protection and the LGA maintains an open channel of communication with the players. Maltese registered casinos and poker rooms are allowed to display the eCOGRA Play it Safe seal.


oPerator’s oPinions One problem which hovers over Malta’s head is the fear of “all your eggs in one basket” syndrome. When the ECJ stated in 2009 (in a case brought by Austrian gaming company BWIN against Portugal’s state owned Santa Casa de Misericordia) that EU member states should ban gambling websites within their territories, it provoked a huge reaction.


Malta had of course set itself up as a jurisdiction for these gaming companies to use as a base to access the rest of Europe. The country’s economy would lose significantly if the gambling markets were to close. Of course the whole idea behind the online gaming Green Paper is to unify laws across Europe is something which the Maltese back wholeheartedly.


But Malta has to date proved an ideal location for software developers and there are some 25 companies which hold a Class 4 license. These include Chartwell Games, Net Entertainment and Microgaming.


International connectivity is of course vital to the remote gaming industry and today Go, Vodafone and Melita, operators of the submarine fibre optic cables, say 50 per cent of their broadband capacity is for the e-gaming industry either directly or indirectly.


Some suggest that in the future the adoption of international security, testing and other standards should be incorporated into the regulations so accredited operators are recognised for their internal systems that meet these relevant international standards.


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