Malta Readies New I-Gaming Regs

2 April 2004

Malta's Lotteries and Gaming Authority has completed new remote gaming regulations that are expected to come into effect very shortly, perhaps as early as next week. The new laws will replace Malta's current licensing system and will create four different classes of five-year licenses, allowing casino gaming, sports-betting, betting exchanges and lotteries.

The first class of gaming licenses will be distributed to companies that provide online casino-style games, games of chance and games that use a random number generator. Class Two licenses will be administered to operators of online sports betting offices and betting exchanges. Companies that promote and advertise for gaming companies from Malta may apply for a Class Three license, and any company that hosts or manages an online gaming operator may apply for a class Four License. An applicant may apply for one, all, or a combination of the four licenses.

The Authority will charge a license fee of $2,900 (1,000 Maltese liri) for each of the four different licenses, all of which are granted for five-year periods. Licensed companies are then required to pay an annual fee of $8,700 (3,000 Maltese liri). The cost of renewal is $1,450 (Maltese liri).

The regulations will come into effect in three phases to ensure that the transition from the old gaming laws to the new ones is easier for companies that are currently licensed under Malta's old regulations. Although the new regulations have not yet been officially published by the Lotteries and Gaming Authority, insiders are certain that the most recent document (attached below) will go into effect without changes.

Dr. Olga Caruana-Finkel, an I-gaming specialist with Gatt Frendo Tufigno Advocates in Malta, says that as early as next week the regulations should be published, and the Authority can then begin issuing licenses.

"There was public consultation about them," Caruana-Finkel said. "There were lots of proposals and counter-proposals with regards to handling players' money and advertisement groups. All of these things have been taken into consideration with the later draft.

"More or less, I think it should be okay. It's going to be much safer for people to put their money in the hands of the gaming agencies now because there are quite strict rules about handling players' money and protection of players' money."

Click here to view the new Malta regulations.