During a recent speech at SIGMA Europe, Prime Minister Hon. Robert Abela hailed the iGaming sector as “critical in mitigating the pandemic’s negative impact on the economy”. He spoke of how despite all the recent economic challenges that Malta had faced, iGaming had not slowed down but had instead proved its resilience by contributing to “one tenth of all economic growth for the year” and added €712 million to the economy in the first half of 2022 alone. 

The prime minister went on to champion Malta’s iGaming sector and its “huge resilience” in comparison to elsewhere in Europe. Abela told delegates in Malta that the gaming industry grew three-fold since before the pandemic, whereas in the rest of Europe, the industry remained the same size as it was pre-pandemic’. To Abela, this proves the worth of the iGaming industry to the country, showing its enduring strength. 

Abela talked about the “positive energy and optimism” of Malta’s iGaming industry and how proud the country is of it. He continued by pledging his commitment to sustain and bolster iGaming on the island, praising the “large and robust iGaming ecosystem” and its role in job creation. 

“Malta is the home of choice for over 300 gaming firms providing over 10,000 gaming-related opportunities for jobs,” Abela said. “Many of the companies are listed on the major stock exchanges, boasting a superior level of governance.” 

Rather than shy away from the controversy surrounding Malta having been placed on the Financial Action Task Force’s (FATF) ‘grey list’ last year, Abela used this as an example of how Malta was able to create and implement an action plan within just twelve months. This, he said, showed that Malta can respond quickly by implementing any reforms needed to continue economic growth. He also assured the crowds that “through the Malta Gaming Foundation, the iGaming Council will invite operators to advise government, and key stakeholders, on policies that directly affect their business”. Going on to explain that the Maltese Government pledges to reduce barriers to entry into the iGaming sector and hopes to be able to set up access to basic accounts for all. 

The prime minister claims that the iGaming sector is the key to “building a productive, sustainable and inclusive economy”, and that the industry is helping to create new skills and enhance the adoption of new technology. This strength, he says, has made this sector an integral part of the government's plan for the future of the Maltese economy and that he would continue to “transform risk and challenges into fresh opportunities”. 

Abela’s speech at SIGMA can be viewed in its entirety on youtube. But, for all his positivity and encouragement, will Abela’s words be enough to counteract the surge in restrictions, regulations and controversy that the iGaming sector has experienced of late, and is expected to face in the future? 

Since 2001 and the establishment of the Malta Gaming Authority, the country has worked to provide a fair and transparent iGaming sector - one that is widely recognised as knowledgeable, efficient and authoritative. And whilst Malta has clearly established itself as a prominent gaming hub in Europe, there seem to be several factors that could potentially unseat Malta from its position. 

Whilst Malta was groundbreaking in regulating remote gaming in 2004, several other markets have recently opened up, or are due to open up in the coming months. Ontario, in Canada launched its iGaming industry in April 2022. Off the back of sports betting being legalised in 2018, New Jersey, Michigan and West Virginia have also recently moved to issue iGaming licences, opening up the North American market. 

In September 2021, the Netherlands also regulated gambling in the country, with the Dutch Remote Gambling Act (KOA) resulting in a flurry of successful applications from gaming operators and suppliers. And there is much hype and  expectation surrounding the LATAM market. Indeed, according to Global News Wire, the online gambling and betting market was recently valued at $58.2 billion and is expected to reach $145.6 billion by 2030, making it no surprise that everyone wants to get a slice of the pie. 

New markets opening up in the US and other countries represent huge opportunities for Malta-based gaming companies. The question is whether Malta will be able to hold on to its status as the pre-eminent hub for operators and suppliers in the long term, especially as the North American market gains momentum. 

Market movements affect not only game designers and operators, but also affiliates. It means companies such as casinos.win have to work hard to ensure that their knowledge base is completely up to date, they are aware of the markets in which providers operate, and they ensure compliance with the many varying rules and regulations across jurisdictions. 

Speaking of the developing markets, and the company’s dedication to promoting only legitimate sites, Chris Evans of casinos.win says: 

“We go to great lengths to ensure all our pages have relevant sites. User satisfaction is of paramount importance. The ratings we give casinos are objectively set based on specific criteria. We could make more money by glossing over some of the casino industry realities, but we firmly believe in presenting the facts and letting casino players make their own minds up.” 

In light of all the new market opportunities it is also worth considering that the pandemic demonstrated that the shift towards remote working was both viable and productive. Whilst Malta’s sunny climate and picturesque backdrop have no doubt added to its appeal, a lower cost of living and the convenience of not having to relocate could mean fewer companies choosing to move their workforce to the island. Malta has of course worked hard to build an infrastructure of support services around the iGaming industry, with accountants, payment processors, consultants, software developers, and blockchain DLT, AI and cryptocurrency businesses already in place to support new businesses coming to the island. But, as is the nature of online business, all of these can be accessed remotely with ease. 

There has also been a surge in companies that have had their licences revoked recently. According to the Malta Gaming Authority 2021 report published in September 2022, seven gaming licences were cancelled and 64 warnings were issued. The year also saw over €863,000 in enforcement and administrative penalties handed out. 

More recently, a study commissioned by the European Parliament revealed that almost €4 billion worth of illegal funds associated with the Italian mafia had been laundered through Malta’s online gaming industry. This obviously raises several questions regarding how effective regulations are in preventing money laundering through online casinos, and indeed through Malta itself, especially as the investigation is being described as the “tip of the iceberg”. 

Whilst Malta fights to defend its position as representing the ‘gold standard’ in iGaming licences, it would seem that iGaming’s global expansion poses as much risk to the archipelago as it does opportunity. In order to survive and thrive in 2023, the words of Prime Minister Hon. Robert Abela ring out loud and clear: “the future belongs to those who prepare for it and those who are willing to embrace its challenges... We need to keep reinventing ourselves.” Something we have seen Malta do many times in its history.

This article is brought to you by casinos.win