Malta Gaming Authority introduces new Capital Requirements Policy
The policy is intended to ensure the financial sustainability of Maltese gambling operators.
Malta.- The Malta Gaming Authority (MGA) has published a new Capital Requirements Policy with the aim of reinforcing the financial solidity of companies that hold MGA licences to offer a remote gaming service and/or critical gaming supply. The regulator said the policy is intended to safeguard the integrity and financial sustainability of the gaming industry by ensuring that sufficient capital resources are available to support licensees’ continued operation and growth.
In addition to existing minimum nominal share capital requirements, the policy introduces a new requirement for licensees to maintain a positive equity position. The new requirement to restore a negative equity position is intended to serve as an objective early warning mechanism, enabling the MGA to ensure that licensees remedy the situation at an early stage.
The regulator said the new framework will enhance its ability to proactively address potential financial instability, and to monitor and resolve issues of non-compliance more effectively. The policy comes into force with immediate effect. However, a transitional period is being granted to both new and existing licensees.
The MGA said the policy had been informed by an extensive consultation process to ensure that it strikes a balance between the objective of enhancing sector-wide financial stability and the practical considerations of licensees’ business operations. The policy has already been formally notified to the EU’s Technical Regulation Information System (TRIS), in accordance with Directive (EU) 2015/1535.
MoU with Malta Financial Services Authority
Meanwhile, the MGA has signed a Memorandum of Understanding (MoU) with the Malta Financial Services Authority (MFSA)aimed at enhancing collaboration and reinforcing the relationship between the two regulatory bodies.
The regulator said the agreement complements an existing multi-party MoU between the Sanctions Monitoring Board (SMB), the Financial Intelligence Analysis Unit (FIAU), the MFSA, and the MGA, which remains in force and governs cooperation in areas related to anti-money laundering, the financing of terrorism and the proliferation of weapons of mass destruction.
“While the multi-party MoU continues to provide a robust basis for coordination in these specific areas, the MGA and the MFSA identified the need for a separate bilateral agreement to govern their broader relationship,” it said. “The newly signed MoU sets out a structure for closer cooperation in areas of mutual regulatory interest, with the aim of supporting each authority in the effective discharge of its respective functions.”
The new MoU includes provisions relating to training and education, with the aim of equipping the authorities with the necessary skills and knowledge in areas where there may be regulatory overlap. This commitment to capacity building is intended to strengthen institutional competencies and support the overall effectiveness of the respective regulatory frameworks, the MGA said.
MGA CEO Charles Mizzi said: “This agreement marks another step forward in our commitment to strengthening inter-agency collaboration. The relationship between the MGA and the MFSA is an important one, and through this MoU we are not only enhancing the exchange of information but also fostering a shared commitment to high regulatory standards and professional development.”
MFSA CEO Kenneth Farrugia said: “The MoU that the MFSA entered into with the MGA is a reflection of our commitment and dedicated efforts to strengthen ties with other local authorities, as we continue to recognise the value of inter-institutional collaboration. This agreement enhances our mutual cooperation on due diligence and enforcement, which is essential in view of the similar players in the respective industries that we regulate and serve. The MoU itself goes beyond the exchange of good practice and intelligence, as it also focuses on the upskilling of our supervisors who are instrumental to the daily operations of both authorities.”
The MGA is maintaining its stance in its dispute with the EU over enforcement action against Maltese gaming operators. In its response to the European Commission’s Letter of Formal Notice issued in relation to Article 56A of the Gaming Act (Chapter 583 of the Laws of Malta), it denies that the article imposes a blanket ban on enforcing European judgments against Malta-licensed gaming companies or shields them from legal action in other EU courts.
It says Article 56A does not introduce new or separate grounds for refusing to recognise or enforce judgments beyond those already set out in Regulation (EU) 1215/2012. Rather, it codifies into law Malta’s long-standing public policy on gaming matters, the MGA says.
In other developments, the MGA has clarified that it has no connection with the gambling website https://phlove.org/. It said that any reference to the MGA or a Maltese gambling licence is false and misleading.
