There has been an animated discussion going on in the gaming business as to whether the time for gaming licenses from the Malta Gaming Authority has come to a close. 

There is a growing feeling that more European countries will follow the lead taken by the UK in regulating its gaming market, rendering the licenses by Malta unnecessary.

While these arguments have some validity, MGA licenses are still considered to be of the top order in markets that are not regulated by their respective governments at the country level or show no signs of changing their regulations any time soon.  

Country-Level Regulations & Their Impact

The UK has put in place a country-level regulatory body -- United Kingdom Gambling Commission (UKGC) – to oversee, regulate and tax the gambling business, both online and offline, in the country. 

This move by the UK alone does not do much damage to the preeminent position enjoyed by MGA licenses but if more countries decide to follow the example of the UK, MGA licenses will effectively remain good only for its casino services in Malta. 

For example, Norway has been tightening its gaming license of late and in 2019 it demanded L&L Europe Players Ltd licensed by MGA to stop operations in the country. Norway had introduced regulations against operators without valid licenses from the Norwegian Gaming Authority (NGA) in 2019. 

With NGA taking full control of the gambling operations, an MGA license virtually carries no weight in the country.

Why MGA License is So Popular? 

While European countries are taking measures to introduce country-level regulation for the gambling business, many jurisdictions around the world are not and in these markets, MGA license still enjoys a preeminent position. 

When compared to licenses from alternative sources such as Kahnawake and Curacao, the MGA license enjoys a very high degree of respect.

Many of the operators may not find MGA licenses as their first choice because of the higher taxes and more stringent standards for the players’ protection than what competing licensing authorities are prescribing.  

However, it is these features that prioritize player protection, anti-money-laundering practices, and a stable regulatory framework for the gambling industry that keeps MGA licenses head and shoulder above the rest. 

Generally, players display a high degree of acceptance for MGA-licensed casinos, knowing that the MGA’s stamp of legitimacy and approval does not come easily. They know that the operator must have gone through the process of due diligence. 

On their part, MGA is working hard to live by its reputation. They are not slackening their regulatory practices to win more operators. They are extremely wary of country-level regulations that are increasingly seeking to change the gambling landscape. 

MGA slapped Euro 2.34-million penalty against Blackrock Media Limited in January 2020, the highest penalty it has ever dished out. Blackrock Media was penalized for running an e-gaming service without a valid license.  

It seems the time has come when MGA will have to back down from its strict approach to regulatory practices to remain popular in unregulated markets.

MGA in Canada

For average Canadians, gambling is a favorite hobby. However, for a long time, the government has strictly regulated all land-based gambling businesses and brick-and-mortar casinos. 

However, online gambling has not seen such a strict regulatory environment. The most remarkable aspect of the online gambling market in Canada is the lack of a regulatory framework for overseas operators. 

While no law applies to overseas operators providing online gambling services in Canada, running online gambling websites or mobile apps by Canada-based operators without express permission from the government is banned. 

This means there is no regulation applicable to international gambling operators in Canada. This leaves the operators to rely solely on their reputation and that of the licenses they carry. 

International gambling operators, therefore, seek licenses from the Kahnawake Gaming Commission while MGA remains the most trustworthy regulator in the Canadian market.

On the other side of the spectrum, Curacao-licensed sites outnumber those from MGA or Kahnawake and target Canadian players. But most of these sites are very small entities and offer very elementary services. 

In the absence of country-level regulation for online gaming, any license can allow overseas operators to operate in the Canadian market. But that makes the player more cautious and careful as to whom they trust. 

By far, MGA is the most trusted regulator in the Canadian market, though many operators carry licenses from both Curacao and Malta. However, a simple MGA license carries enough respect and recognition in the Canadian market. 

The Future

In the fast-changing milieu of iGaming, nothing can be said about its future with certainty. All one can do is to make an educated conjecture of the things to come. With a rapid change in the regulatory and legal framework, the industry is moving very fast. 

This is more accentuated by the technological evolution that’s transforming the gaming world beyond recognition in a very short time. 

However, what looks certain is that European countries have started looking to put in place country-level regulation for the gaming industry and this will have an impact on MGA. 

Though there is nothing to suggest that Canada too will start looking at this option in the short-term, the country may bring in legislation to regulate overseas operators in its market. However, there is nothing to suggest the country level regulation will take the shape of an international movement in the gaming industry.

In this light, it is expected that there will always be jurisdictions where there would be no country-level regulation. That there are well-respected international regulators to give licenses to operators makes this choice a viable one for these jurisdictions to have no country-level regulation of their own. 

This leaves MGA in an enviable position that as long as it maintains its strict regulatory practices and trustworthiness operators will keep flocking to it for its licenses so that they can expand their businesses globally. MGA’s stamp of approval will carry its legitimacy and respect among the players regardless of jurisdiction and time.

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