In the past years the MRGC has played an important back seat role in the industry working on various matters arising and providing important feedback to the LGA. Now that there has been an upheaval at the LGA, how will the MRGC continue to perform this role and what does the new regime have in mind? This discussion gives us an insight into what lies ahead.

You have recently been appointed and have occupied the post of Acting CEO for 30 days. How has this first month been for you?

I would summarise it as a “baptism of fire!” The position brings with it a lot of responsibility and challenges. People say that time flies when you are having fun. I can hardly believe that more than a month has already gone by, and although it’s not a long period, I believe that I have achieved quite a bit within the limited time frame we are talking about.

What have you achieved so far?

Together with the Ministry of Finance, we are currently engaged in an exercise where, together with external consultants, we are examining the present legal framework which I think needs to be revised, excluding certain regulations that have stood the test of time. We are also studying other areas of interest such as the possibility of introducing new classes or subclasses in licences.

Internally, the Authority is going through a process of change. The workforce is being augmented to cater for the workload the Authority is facing. We have recruited additional personnel in the Legal & Enforcement Department, in the monitoring section of the Compliance Department, in the Finance department, as well as other supporting staff. We are now trying to finalise the additional recruitment of further employees in the Compliance Department. This line of action will enable us to address certain bottleneck issues that are present in the Authority. We are also instigating a culture of teamwork and communication amongst staff, which would provide more consistency and efficiency between the departments for the benefit of the LGA and the operators.

In the past month the Authority has issued 36 letters of intent and three licences with another four licences to be issued shortly. We have continued to grant permission to operators to offer new games in line with their company strategy and target launch dates.

One of the problems we have is the number of pending applications waiting to be processed. Work is underway to fast track applications that have all the necessary documentation in place.

I have attended a gaming conference in the USA, where I had the pleasure of not only meeting with a number of suppliers and consultants working in this industry but also compatriots who have their business in gaming.

I have held more than an average of 35 meetings per week with various operators and have learned to understand their main concerns, the problems they are encountering in their day-to-day business, and how the Authority can assist in alleviating some of their concerns.

I am currently initiating a process whereby all policies and procedures implemented by the Authority are documented to be made available to all.

These are just a few of the initiatives I have undertaken at the Authority, please appreciate that the organisation is an Authority and, more often than not, our internal priorities have to be put aside to address the priorities of the operators as the need arises.

Where do you see the LGA in the next six months?

The tasks I have set myself for the next six months are various. These include:

Transforming the Authority into a regulator who is reachable, sensitive to the industry requirements, open to suggestions and most of all open to constructive criticism.

Documenting and publishing all the policies and procedures the Authority has or made reference to in the past. I want to strengthen the transparency of the Authority and enhance consistency in its services.

Investing in our staff

I want to start a training programme. Most of the staff is qualified; however, regular attendance of conferences and training programmes is one way of motivating the staff to bring in fresh ideas on how to improve our services. Better Compliance monitoring.

I want to ensure that all operators adhere to the policies and procedures.

Having more frequent dialogue with various stakeholders in the industry, especially with the MRGC, which not only have a direct link with its members but also have a pulse on what the industry wants and where it is going and where it wants to be.

Improved offices

I would like to move the Authority to more suitable premises for the staff to be able to work in a more comfortable environment.

These are just a few of the main thoughts; listing all my ideas would take up a whole day. There is so much work that can and needs to be done, that the biggest challenge is prioritising the work.

How do you intend to influence the industry?

I believe that by having a sound regulatory framework, which by and large is there, together with the initiatives in line, the Authority and Malta will strengthen their position as a prominent, transparent, efficient and effective jurisdiction. I strongly believe that having an Authority reflecting these objectives will project the image of a sound regulator. This is what serious operators want to be part of. They want a jurisdiction that is seriously regulated, which means no ‘ifs’ or ‘buts’, no short cuts, and a consistent one weight one measure approach for all. This reputation will automatically attract investment from serious operators.

It is being said that the Authority has become a paper pushing government department. Do you agree?

I have been working in the public sector for over 20 years and I have held various directorships. The way the government operates is based on a tried and tested procedural based system dictated by the size and importance of the organisation (i.e. Government). The Authority, which falls under the auspices of the Ministry of Finance, has adopted this same methodology in order to perform its regulatory role in the manner expected of it. In the last three years I have gained valuable experience working for another Ministry, which experience I intend to transpose to the Authority. I am anticipating that the largest part of the application process, the exchange of documentation between the operators and the Authority, will be carried out electronically. This in itself would streamline the application process, which is the major cause of concern for the operators at the moment. But to get there I definitely need to carry out a review of the process currently adopted and question its entirety. This, in itself is an iterative process that would take time, but for now this is not a priority as I think that I need to address other aspects first before getting here.

There are a lot of complaints about the LGA, what is being done to resolve these issues?

Can you name some please?

To name a few: excessive delays in application processing; excessive compliance requests to operators hosted on Class 4 platforms; inconsistencies in handling of operators; lack of communication; lack of timely responses from LGA; excessive delays in issuing licenses; and so on.

In my various meetings with operators, I was informed of a number of shortfalls by the Authority. I assure you that these are currently being addressed by me and the staff concerned. Please appreciate that there is a lot being done to address and solve these issues. There are a number of pending items which I assure you are being given their due attention and we should shortly start informing the industry about them. As I have already mentioned, we have already processed a number of licences and we are recruiting more staff, and reviewing processing procedures, to further speed up our processing capabilities. The issues you mentioned, I think are being handled in one way or another. There is still a lot to be done and in time they will all be addressed and resolved.

Are there any projects in the pipeline where the MRGC can participate and provide assistance?

What initiatives do your members want? What are their requirements?

Well, your previous answers address most of the concerns that have been escalated to the MRGC Board by its members. We also want to have a say in, for example, the new regulations as these might affect existing operators; any issues relating to Guidance Notes published by the LGA, possibly also feedback on policies and procedures to be implemented as these can also negatively affect some operators. Our main project for next year is to promote responsible gaming in a professional manner with our operators.

These are projects that are definitely in the pipeline. However, we must not forget or put aside the government’s direction and other such matters, so these all have to be taken into consideration. But yes, not only will MRGC be involved but I think that even all stakeholders should participate in such issues. I am glad that the MRGC is taking the issue of responsible gaming seriously and the LGA will provide any assistance required to support this initiative. There are other areas that also need to be addressed such as money laundering.

Does the LGA intend to continue involving the MRGC in matters affecting their members?

The Malta Remote Gaming Council is an initiative taken by the Lotteries and Gaming Authority in 2005 as part of its strategic plan to create a dynamic regulatory environment for Remote Gaming. The MRGC encapsulates all those in some way or another who carry out their business in the remote gaming environment. This includes the operators themselves, consultants, lawyers, accountants, ICT specialists, hosting companies – the list goes on. In other words, a representation of all stakeholders in the industry. The objective of creating the MRGC was to create a common front for addressing any issues pertaining to this particular industry. I compare it to a marriage between two parties where both have to give for the common goal. It is not a question of one taking more than the other. So yes, we have to continue to work closely together, probably more than ever due to the crisis the world is currently facing.

How can LGA help promote MRGC?

This is a marriage where a separation or divorce, if you permit me to adopt these words, is not even a consideration. We have to work hand in hand not head to head for this industry to flourish. We both have common goals and common interests – that of making Malta a sound and secure hub for the remote gaming investor. It is in our, and your interest to increase membership of the MRGC but the LGA cannot get directly involved in this matter.

Thank you Mr Gonzi for your time and your co-operation. We assure you that the MRGC will give you its full backing to implement your action points. We look forward to working with you and your team in the future.

Michael Gonzi graduated B.Sc. from the University of Malta and read for an M.Sc at Sheffield Hallam University.

He is 41, married with two children.

Previous working experience: Directorship – Kalaxlokk, Gozo Channel; Quality Shoes, Malta University Services, Medigrain, Malpro, Gozo Heliport.