Malta will soon have "the best iGaming structure in the EU," which will include an action plan to tackle gaming addiction, a new agency to promote Malta as a gaming jurisdiction and a Gaming Academy.
The proposals were announced at a press conference during which a four-year action plan and a report drafted by the Responsible Gaming Foundation, was presented to the Parliamentary Secretary for Parliamentary Secretary for Competitiveness and Economic Growth, Jose Herrera.
Government MP Silvio Schembri, the Chairman of the Foundation, said the report found that there are no studies about gambling and its effects in Malta whereas several countries have conducted in-depth studies and surveys on the topic. At EU level it is estimated that between 0.5% to 2% of those who make use of gaming services end up with some sort of addiction. Mr Schembri said, however, that these figures may not reflect the true picture due to lack of research.
The report says gambling can affect a person's health, employment, finances and interpersonal relationships. Gambling prevalence among adolescents is at least four to five times higher than the adult population. Problem gamblers are most likely to be using electronic gaming machines.
It also found that Maltese people tend to play digital and video games about once a day for an average of one hour. The people who tend to play several times in a day also play for greater amounts of hours. Players tend to play alone or online with friends rather than with family and the lack of interaction that results from obsessive gaming could have long-term social consequences, like a lack of social skills. The social awkwardness created by the isolation of gaming addiction, unfortunately feeds this addiction.
The government MP said the foundation had studied best in class practices from several countries, including the UK, Australia and Canada before drawing up its own business plan. There are several objectives, including carrying out an in-depth study, the promotion of responsible marketing of gaming activities, research on responsible and problem gaming, educational campaigns for youngsters, gaming addicts and their families and support services, including a support line and rehabilitation services.
PN MP Kristy Debono said the gaming industry has been a big success because there was always a balance between the economic benefits of the industry and the social aspect. The Opposition fully supports the Responsible Gaming Foundation, which had been a proposal of its own. It has also presented a number of proposals to be included in the action plan, including the introduction of a responsible gaming code of ethics and the segregation of rehabilitation patients. Mrs Debono noted that, currently, drug, alcohol and gambling addicts are all treated together. The MP also said Malta has always been a leader in the iGaming sector and should also be a leader in promoting responsible gaming.
Lotteries and Gaming Authority CEO Joseph Cuschieri said the idea is to have the authority as a regulator and several other separate entities that can focus on certain sectors. They Responsible Gaming Foundation will work hand in hand with the authority to promote responsible gaming. In the coming months a new entity, called Gaming Malta, will be set up. Its role will be to promote Malta as an iGaming jurisdiction. A Gaming Academy will also be set up and the LGA will be rebranded. The proposal will be presented to cabinet in the coming weeks.
Mr Cuschieri said the problem is that the sector is not finding enough Maltese to take up its vacancies. In fact, only a third of iGaming employees in Malta are actually Maltese. While a number of jobs, including foreign language speakers at call centres, will always be taken up by foreigners, there are a significant amount of jobs that can be taken up by the Maltese if properly trained.
Parliamentary Secretary Jose Herrera thanked the Opposition for showing maturity and cooperating fully on the responsible gaming work plan. He noted that the gaming industry makes up 12% of the Maltese economy and employees some 9,000 people. It is the second largest sector in Malta. "We want this industry to flourish but at the same time to be responsible. Only a small percentage of players are addicts but we have to act, however small the number," he said.
Dr Herrera said the government is handling the sector "very well" and noted that the time for hearing complaints was halved to 45 days and the time taken to process new licences decreased from six months to less than two months.
"Our gaming economy has grown despite the added competition and regulations from the EU."
The LGA CEO added that new licences have increased by 25% from January to November over the same period last year and new companies increased by 17%. There are currently some 260 companies and 430 licences issued by the LGA.
Mr Cuschieri noted that, apart from direct jobs, the gaming sector also has a spill over effect on several other sectors, including property, IT, lawyers and accountants.