The Malta Independent 13 November 2026, Friday
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Fair And decisive action on gaming

Malta Independent Wednesday, 28 October 2009, 00:00 Last update: about 18 years ago

The article by Leo Brincat (Why government is to blame on the gaming regulations, TMID, 20 October), left me very confused, to say the least, how in a single article he attempted to defend the interests of those who want a free for all in the gaming industry, to sound as though he made some proposals to have a regulated sector, to put the blame on Government, whilst blatantly avoid the Opposition’s inertia on this issue. Well Leo you cannot sit on the fence.

As expected the proposed gaming regulations are proving to be a matter of strong, lengthy debate. Despite gaming’s obvious negative social repercussions, Parliament’s Social Affairs Committee, Sedqa, Caritas and other similar organisations all agree that total prohibitions would simply serve to drive the industry underground where vulnerable persons and minors would not only not be protected but rather further abused with the activity becoming susceptible to crime and money laundering.

Government has taken the approach to regulate and control, yes it has taken a tough line, through limitations, monitoring, hefty penalties for abuse and so fort. However allow me to answer some of the questions the Hon. Leo Brincat poses.

The first issue I would like to tackle is why the regulations took so long to be presented by Government.

What Leo Brincat fails to appreciate is the complexity of this industry which varies from Online Gaming to Saturday lotto. We are here not regulating a sector better but giving a legal form to what to date was an illegal activity with very serious social consequences. It is for this reason that Government has had to study this sector. The debate in the Social Affairs Committee highlighted the risks and the complexities involved and required thus attentive consultation with the stake holders with whom we wanted to ensure that the vulnerable are protected including the Church, Caritas, Sedqa and others.

An added complexity was the need to ensure that the proposed new legislation would not impinge with the international remote gaming sector, a complex issue that is difficult to simplify within a short article, however it is suffice to highlight that there are procedures and principles within the European Union which have to be followed. Furthermore to regulate effectively this sector, there were a number of scattered pieces of legislation which affected this sector which had to be scrutinised and repealed or amended accordingly.

I would like to also correct another false impression by Hon. Leo Brincat. The Parliamentary debate has not been postponed because of what he claims to be the support of the PN Parliamentary Group; to the contrary the PN Group is fully supportive of the proposed law amendments and regulations, it is rather the Labour Party Parliamentary Group that is still undecided and that has asked for the postponement of the debate to 2 November to allow the group to decide whether or not to support the bill.

On the issue of enforcement, while I am not clear whether Leo Brincat is in favour or against appropriate enforcement, to put the record straight, the Gaming outlets that sprouted all around Malta and Gozo in the past months were opening without any gaming licence and in many occasions not even a MEPA permit. Whilst in the past police had taken action against such outlets, in the last couple of years the decisions by the law courts where not always supportive of such action due to very rigid interpretations of what constituted gaming devices and amusement machines. This is why the government decided to start a project with the ultimate aim of regulating both gaming devices and amusement machines.

Without prejudice to the above, the action taken in August of this year, was a result of a detailed investigation conducted by the Lotteries and Gaming Authority, whereby the Authority’s Officials took photos, certified true copies of websites set up by the operators of these outlets and other evidence in order to build a stronger case for the police throughout their prosecution in court.

In his article, Leo Brincat builds his case by referring to the testimony given in Court by the former Chief Executive of the Authority which was refuted by the same Court Justice Magri’s decree, leading to Government winning its case against illegal gaming operators in Malta. In substance I do not understand the argument by Leo Brincat: Is he for or against a properly regulated sector? Was he happy with the state of play that sprouted out of this illegal activity? How will he and his colleagues vote in Parliament?

I encourage the Opposition to support Government in the proposed legislation, which was heavily influenced by the proposals made by the Social Affairs Committee, was drafted in a way as to assure that vulnerable persons and minors are adequately protected, gaming is kept free from crime and money laundering and that games are delivered fairly to the player. In order to achieve the above, the proposed legislation will inter alia be imposing the following requirements and obligations;

• In order to obtain a licence, operators must be fit and proper persons;

• Players entering these gaming outlets must be registered;

• Players have to be 18 years or older;

• Transactions of an amount exceeding E2000 must be recorded;

• Maximum bets and maximum wins shall be limited;

• The Minimum payout shall be established;

• Gaming devices and games must be approved in order to assure fairness of the game;

• The premises must be located at a certain distance away from certain socially sensitive establishments, including schools and youth formation centres;

• CCTV cameras covering the registration area and the entire gaming area must be in operation 24 hours a day;

• Opening hours shall be limited;

• Gaming activity cannot be visible from the streets;

• A Bank Guarantee must be in place;

• Player Barring should apply to these establishments as well;

• Employees must be approved by the Authority;

• Limitation on the number of machines per outlet;

• No beverages or food can be served in the premises;

• A percentage of the taxes collected from the gaming activity shall be transferred into a Responsible Gaming Fund.

Following the discussions at a PN Parliamentary Group level, an emphasis was also made on the need that the activity of the machines will need to be closely monitored in due course through the eventual introduction of a centralised system.

Government’s position on the gaming industry and its sub-sectors is transparent and focused and the consultations with the various stakeholders have been very clear and relevant to the entire process. Unfortunately, we cannot say the same about the Opposition. I am still trying to understand the Opposition’s official position on the matter, do they want more or less control, are they for a more liberal sector, how keen are they to protect the vulnerable? Despite their sitting on the fence or sheer inability to form a coherent position, we will proceed with our commitment to introduce regulations that maintain Malta’s excellent and professional reputation in this international industry whilst strike a balance between our economic and social requirements.

Tonio Fenech is Finance, Economy and Investment Minister

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