As well as being a splendid destination to which sun-seekers flock for a holiday, Malta is renowned for its authority as a regulator in the online gaming space. The island is home to several hundreds of online gaming operators. Thanks to an attractive tax regime that allows them to retain a large amount of their profits, Malta is appealing to anyone wishing to establish this kind of business here.
Of the regulators in Malta, the Malta Gaming Authority (MGA) is the flagship regulator. As a leader in the world of online gaming, the regulator and Malta itself have been able to teach operators such as Virgin Games and other businesses in online gaming, and the countries in which they provide their services, the importance of online gaming regulation. Below is a look at how the MGA came to become a leader and benchmark in industry regulation and the industry and at what other countries have learned from the island about gaming.
Developing into an industry leader
As a regulator, the MGA has a highly responsible job on its hands. As part of its operation, this esteemed body conducts a variety of activities. These include:
· Carrying out research on different aspects of gaming
· Awarding licenses related to gaming
· Monitoring licensed gaming
· Collecting taxes from gaming on behalf of the Government
· Ensuring the gaming sector makes a contribution to Malta’s development
· Supporting good causes.
As its aims, the organisation looks to protect vulnerable people, safeguard people’s rights, encourage responsible gaming in a safe environment, keep criminal activity out of the gaming space and to ensure the integrity of gaming and games.
Regulation of gaming in Malta is relatively new. It all started with regulation of the lottery in the early 1920s. When the lottery began running, the Government became quick to realise the opportunities gaming created to raise tax revenue, but it wasn’t until 2001 that the MGA came about.
The MGA was created in the same spirit of turning a form of entertainment into business for the state and provided a major focus on the regulation of the remote gaming market. The introduction of a body that could oversee gaming activities in the state and ensure it was legal had become important to decrease criminal operations and to protect legitimate gaming.
The development of legislation around this aspect of gaming is one of the moves that catapulted Malta way out in front of all the other countries in the EU when it came to gaming regulation. Today, the MGA license is one of the most widely respected in the online gaming industry and is recognised around the world. Holding one carries with it a certain amount of prestige, not to mention provide anyone playing on the holder’s site a major level of reassurance that they’re gaming on a reliable, trustworthy site.
Lessons for the rest of the world
Anyone who is familiar with the world of online gaming will be aware just how huge this industry is. Malta, through the MGA, has created operator accountability and taught nations and the businesses operating their gaming services in them a variety of lessons. What have they learned from this industry leader?
The value of protecting players
If an operator wants to the MGA to grant them a licence, they must prove they can protect players. The MGA not only checks an operator is complying with data protection laws, but will also confirm whether the operator can sufficiently protect the data of players. Failure to meet this requirement will see the operator miss out on the prestigious MGA licence.
Fair gaming
Operators who wish to successfully apply for an MGA licence must be able to offer a fair gaming experience. This is another major area on which the regulatory body will focus. Neither software providers nor casinos must be able to tamper with the results of the random number generator software. Casinos must also state the chances of winning clearly. Many offer this transparency in the form of the return to player (RTP) percentage. Again, operators that refuse to be sufficiently transparent won’t be granted a licence.
Accountability of operators
Operators that receive an MGA licence become accountable to the regulator. If they conduct any illegal activity or irresponsible activity, the MGA will act. The existence of the MGA creates a lot of security for players, who aren’t at the complete mercy of operators when they play.
Creating accountability is one of the key purposes of the existence of the MGA. Any player who feels the operator who is providing their gaming has breached terms and conditions or regulations can contact the regulator and inform them of the incident so that the MGA will step in if the circumstances make it appropriate.
Separation of player funds
A licensed online casino must separate the player funds from its operating funds. To not do so is a serious breach of regulations. Should an operator go bankrupt, the money in the players’ accounts must not be affected by this. The bankruptcy must only affect the business assets, which is why operators must separate funds.
The MGS is a major authority in the online gaming industry. Anyone who sees an operator has obtained a licence from the Malta-based body can be sure they’re playing on the site of a legitimate and trustworthy operator who meets the MGA’s very high standards for providing gaming.
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