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Malta Controlled Skill Games Regulations

Malta enacts Controlled Skill Games Regulations The Malta Gaming Authority has strengthened its stronghold on the remote gaming industry through the issuance of the recently enacted Controlled Skill Games Regulations (“the Regulations”). Previously, the only games that were subject to a licence by the MGA were games of chance, albeit this was subsequently extended to games of chance and skill, insofar that the outcome of the game required an independent arbitrator i.e the outcome of the game of the game was dependant to some extent to a chance element or a sequence of events beyond the control of the player.

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Now, under the Regulations, games of skill shall include all games whose outcome is determined predominantly by the mental or physical dexterity of the player.  The MGA shall require an operator to apply for a licence for skill games, and ensure that the following parameters are adhered to at all times:

  • The licence holder must be a body corporate established in Malta or in any other EU/EEA member state;
  • The licence holder must be in a good standing – with a minimum paid up share capital of EUR 40,000 or equivalent in any other acceptable currency;
  • The licence holder must have an appointed Key Official (locally approved resident director) and an Information Security Officer;
  • Ensure a segregation between own funds and player’s funds; and
  • Ensure that regulatory data is accessible to and at the disposal of the MGA

The enactment of the Regulations are intended to set a clear and unequivocal regulatory framework to what was until lately a largely opaque and unregulated environment, often devoid of any regulatory supervision and customer safeguards.  The attainment of a MGA licence shall allow a regulated licence holder to operate largely freely within the EU, since on the strength of a multilateral recognition agreement a Maltese licence issued by the MGA is recognised through the EU, with the exception of a few jurisdictions, which have adopted a protectionist view vis-a-vis fantasy sports.

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