Explore Malta Gaming Authority (MGA) Regulations

History and Establishment

Back in 2001, the online casino industry was booming and rapidly expanding. Malta quickly became a preferred location for operators for a variety of reasons. However, the gambling laws and regulatory environment hadn’t been modernized. The need for updated regulations resulted in the creation of the Malta Gaming Authority which now regulates most forms of gambling on the island. Today, there are no fewer than 500 online gambling sites operating on the island and they are licensed and regulated by the MGA.

Regulatory Framework

If you visit the Malta Gaming Authority website, you will see a simple mission statement that focuses on fair gaming, transparency, crime prevention, and protecting minors and vulnerable players. They do this by implementing the best practices and tightly regulating a gaming sector that is responsible for about 12% of Malta’s GDP.

The MGA’s primary functions are:

Protecting minors and vulnerable people
Encouraging responsible gambling in a safe environment
Making sure operators are licensed
Protecting player funds while ensuring that all transactions are secure
Ensuring the integrity and fairness of casino games
Overseeing online casino operators to ensure they are in compliance
Protecting player rights and investigating disputes
Keeping crime out of gambling

The regulatory framework is laid out in the Lotteries and Other Games Act of 2001 as well as Chapters 400 and 438 of the Laws of Malta. The regulatory framework was updated in 2018 with the Gaming Act 2018. The main regulations include:

Gaming Authorizations Regulations
Gaming Commercial Communications Compliance
Gaming Compliance and Enforcement Regulations
Gaming Definitions Regulations
Gaming Player Protection Regulations
Gaming Premises Regulations
Gaming License Fees Regulations
Gaming Tax Regulations
Social Causes Fund Regulations
Retention of Data Regulations

While exploring all of these regulations would take days, you can check them out at the MGA’s website.

Licensing Process

The application process is quite intense. Once the application is submitted, the MGA conducts a variety of checks with other regulatory authorities and law enforcement. All key shareholders are closely scrutinized to ensure they are upstanding citizens with the proper finances and management plan. If everything checks out, then the MGA dives into the prospective operator’s incorporation documents, terms and conditions, and policies and procedures, among other things. Then there is the application fee, which ranges between €40,000 and €100,000 depending on which of the four licenses the applicant is pursuing.

If things go well, the application will be approved and the operator has to demonstrate that the casino works in a technical environment. In other words, an auditor is appointed by the MGA to test the site to make sure it operates exactly how it was described in the application. If it doesn’t, then it’s back to the drawing board for the operator. If it does, then the operator will be issued a 10-year license.

Even after a new Maltese site is up and running, the MGA keeps close tabs on it to ensure ongoing compliance. If the operator fails to meet its obligations, the MGA can levy fines, suspend the license, or revoke it entirely.

Player Protection and Responsible Gaming

Player protection and responsible gaming are among the MGA’s top priorities. The concept of player protection covers a broad range. It can involve data protection, security, and fairness. It also means protecting player funds. For instance, the MGA requires operators to keep player funds and operational funds separated. That way, players can always withdraw their account balances in full.

The MGA also requires its online casinos to offer a full suite of responsible gambling tools. This allows players to set various limits while having access to gambling support entities like Gambler’s Anonymous. Furthermore, operators must encourage players to opt into temporary or permanent self-exclusion.

Compliance and Enforcement

It’s one thing to have rules and regulations, but those things are meaningless if they aren’t backed by enforcement. This is why some places like Costa Rica became hotspots for rogue operators in the 1990s and 2000s. Not only does the Malta Gaming Authority have some of the strictest regulations on the planet, but it also does a very good job of enforcing those regulations. If you check out the Enforcement Register at the MGA website, you’ll find plenty of examples of the MGA dishing out fines, suspending licenses, and revoking licenses.

As mentioned, the MGA’s mission doesn’t end when an operator receives a license. The regulator always keeps a close eye on even the most seasoned and respected online casinos. It never ends. This strict oversight is one of the main reasons why so many online casino enthusiasts trust sites that are licensed by the MGA.

Dispute Resolution

If you enter into a dispute with an MGA-licensed online gambling site, you should first attempt to resolve the issue with the operator. Start by contacting customer service and go from there. If the dispute is not settled to your satisfaction, then you can lodge a complaint with the MGA by hitting the “Lodge a Complaint” link at the MGA website. You’ll need to provide some personal information along with your account of the incident or claim in question. Be warned that it can take some time for the MGA to investigate and reply. Also, understand that the MGA can’t force an operator to return money that you lost on a fair game. However, they can help with withheld money and rightful winnings that are not paid out.

Role in Promoting Fair Gaming

Ensuring that online casinos provide fair games is another key part of the MGA’s mission statement. They do this by having accredited third-party software testers audit the games at online casinos. Testing agencies like iTech Labs, GLI, and eCOGRA make sure that the Random Number Generators used in the games are fair and cannot be corrupted. For instance, if a slot game advertises a 97% RTP, the auditors play tens of thousands of rounds or more to make sure that the numbers jive.

Of course, fairness also extends to other areas of operations. For instance, operators must provide withdrawals within a reasonable timeframe. They must have fair terms and conditions and fair dispute resolution procedures.

Collaboration with Other International Regulators

As stated earlier in this tutorial, the MGA is so widely respected that other regulators often collaborate with it. And not just online gambling regulators. The MGA has collaborated with the Financial Intelligence Analysis Unit, eCOGRA, and many other entities. One of the MGA’s most recent collaborations was with the Alcohol and Gaming Commission of Ontario. In short, those in Ontario cannot play at Maltese online casinos and those in Malta cannot play at Ontario online casinos. This is despite the fact that over a dozen casino brands operate in both jurisdictions.

Other gambling regulators that have worked with the Malta Gaming Authority include:

United Kingdom Gambling Commission
Alderney Gambling Control Commission
Ghanian Gaming Commission
Malawi Gaming Board
Dutch Gambling Authority
Swedish Gaming Authority

Conclusion: Future Outlook and Developments

The Malta Gaming Authority has had a massive impact on the entire online gambling industry. It has been a leader in setting the standards that so many other respected regulators emulate. Of course, this is good news for online casino enthusiasts because many of the MGA’s regulations relate to fair gaming, keeping players safe, and advocating for player rights.

The MGA will continue to focus on its mission statement while working with other stakeholders to improve or fine-tune their regulations while keeping online gambling safe and fun.