Operator News
Malta – Malta’s gaming industry grows by 15.3 per cent in 2020
By Phil - 5 July 2021
Malta’s gaming sector generated one of the highest growth rates of all businesses in Malta over the last year, with revenues increasing by 15.3 per cent, according to a report by The Malta Gaming Authority.
The gaming industry generated Gross Value Added (GVA) revenues during 2020 of €924m, representing around eight per cent of the economy’s total.
During 2020, 62.3 per cent of the total revenue of the B2C licensees operating in the online industry was generated through gambling classified under the Type 1 group, up by six per cent when compared with the corresponding period of 2019. Slot machines accounted for 78.2 per cent of the revenue whilst 17.4 per cent was generated through table games. The remaining 4.4 per cent of the GR for the Type 1 group was generated through other games, the most popular of which were live casinos, virtual sports games, and secondary lotteries.
MGA CEO, Dr Carl Brincat said: “The year 2020 will undoubtedly be remembered for the challenges the pandemic presented us with, and I am proud of the Authority’s employees who worked tirelessly to ensure that we continued to perform the functions required of us at law. Keeping the ship steady during a challenging year serves as a strong foundation for us to look ahead with renewed commitment to keep building on the positives and improve on our shortcomings, to reach new heights in our regulatory approach.”
In its Annual Report and audited Financial Statements for the financial year ending 31 December 2020, the MGA report also provides an overview of the work performed throughout the year and highlights major projects undertaken by the Authority throughout the same period. In addition, the report also outlines the performance of the Maltese gaming industry during 2020 as well as a medium-term outlook into the future, followed by a detailed report explaining key statistics for the land-based and online gaming sectors in the context of the COVID-19 pandemic.
Between January and December 2020, following information which emerged from compliance audits, compliance reviews, and formal investigations, the Authority issued 69 warnings, suspended three licences, and cancelled another 12. In addition, the MGA issued a total of 24 administrative penalties.
In 2020, eight individuals and companies were deemed not to be up to the Authority’s probity standards by the Fit & Proper Committee, mainly on the basis of mitigating the risks of money laundering or funding of terrorism.
During the 12-month period of 2020, a total of 1,475 criminal probity screening checks were undertaken, an increase of 13.5 per cent when compared to the year 2019.
In terms of AML/CFT, during the twelve-month period of 2020, a total of 27 supervisory examinations on online gaming licensees were conducted by the MGA, of which 10 were full scope examinations, three were targeted examinations, eight were thematic examinations, and six were supervisory meetings.
In 2020, the MGA conducted a total of 65 interviews with prospective MLROs and key persons carrying out the AML/CFT function to determine the knowledge and suitability of each candidate, out of which 40 were approved, 17 were conditionally approved and eight were rejected.
The Commercial Communication Committee of the MGA took action against 10 adverts or promotions that, in the opinion of the Committee, inappropriately exploited the COVID-19 pandemic. The Player Support Unit received a total of 5,625 requests for assistance, a 58% increase over 2019, potentially stemming at least partly from the impact of the COVID-19 pandemic on player behaviour.
In its efforts to boost knowledge sharing and cooperation with international counterparts, the MGA hosted a delegation of members of the Lotteries and Gaming Board and the Ministry of Home Affairs and Cultural Heritage of the Republic of Zimbabwe.
The Authority received 67 international cooperation requests from other regulators and sent 47 such requests, with the majority referring to requests for background checks as part of an authorisation process. It had a total of 168 requests for information specifically relating to the manipulation of sports competitions or breaches in sports rules were submitted by enforcement agencies, sport governing bodies, integrity units, and other regulatory bodies. Additionally, a total of 288 suspicious betting reports from licensees and other concerned parties were received.
With the aim of increasing cooperation with our international counterparts, an MoU was agreed to by the MGA and the Dutch Kansspelautoriteit (the Dutch Gambling Authority) on the basis that the two authorities will support each other by sharing best practices and information in support of their responsibilities at law, whilst also engaging in discussions on policy matters of interest.
The MGA also enhanced its collaboration with the Commissioner for Voluntary Organisations by creating a process whereby any entity that applies for a non-profit game is only issued with a permit if such an entity is a registered and compliant voluntary organisation.
Recognising the importance of regular dialogue with stakeholders, throughout 2020, over 55 external communications were sent, providing a synopsis of various updates and developments within the Authority and industry.
