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MGA License Introduction

Malta Gaming AuthorityRegulated gambling and businesses became a big source of income for wealthy merchants and this also resulted in illegal stuff. To bring things under control different bodies and countries set up their regulatory authorities, such as the MGA. This is a gambling regulatory authority from Malta because this has become the biggest hub for casinos and gambling site operators, including content creators and software providers in the iGaming market today. They offer a lot of licenses and different types of licenses to allow businesses to legally set up their offices and operate from their jurisdictions. Because of this, they have a lot of privileges too in distant markets that do not have such regulatory bodies to control gambling.

The Organization

Malta Gaming Authority of MGA is the board of governors appointed by the Parliamentary Secretary for Financial Services & Digital Economy in the country. Their primary and sole responsibility is to oversee the strategic development of the authority or body and develop its core principles. It must ensure that the developments are in order of the preamble and they must also develop policies that will manage the overall risk and profit to the government. Currently, Ryan Pace is the chairperson of this body, and together with 8 other board of directors, they manage the complete functionality and operations. The CEO of the board is Cari Brincat. The whole board or MGA has a specific structure and hierarchy to govern the associated policies.

Structure of MGA

The executive structure of the body maintains that it can make things possible for businesses to do well in a controlled setting. There is the Executive Committee which is responsible for the execution of the authority’s overall policies and strategic vision of maintaining good regulation. The Board of Governors maintains strict discipline and vigor in the words. They are also responsible for the day-to-day activities of the body and implement the programs and events of the authority. They also have their separate members and a group of eight people to manage the services. Then, in the following hierarchy, the license is managed by an Audit Committee. Because of this, they are always at the forefront of the operations most of the time.

The Audit Committee consists of chairperson Deal Hili and a group of 4 other members and this is a small board of members to take care of small works. Their role is important because they assist the Board of Governors of the MGA to ensure good governance in the corporation and maintain fairness in the structure. They oversee management, finance, and accounting, and so on to maintain goodness. Then, the internal controls depend on them too. The process and accounting department and report the financial gains and losses. The internal audits also make a good mark on them. The audit committee is authorized to process everything from internal responsibility to the preparation of their annual agenda. There is also a Supervisory Council for similar works and then a Compliance and Enforcement Committee. They all help govern the basic principles and strategies of the Authority and manage their operations worldwide.

Advantages of MGA License

The gaming regulatory body, MGA has a number of incentives for the businesses which make it a good contender. The complete framework developed by the Malta Government provides new and innovative features for any type of gambling business. We shall begin with the benefits for the companies that get MGA licenses.

MGA Casinos Benefits

First and foremost, the employees of the companies and remote gaming businesses that are licensed by MGA get a ton of incentives across a wide variety of facets. They include reduced income tax rates on their income, exemptions from patents that are derived from collaborating businesses, different types of refunds from dividends, and double taxation reliefs too. Now, these are benefits besides the usual advantages related to the movement of goods and services within the European Union or the EU. Similarly, the non-residents of Malta are also eligible for these benefits if they have a license and enjoy a lot of tax planning opportunities to enjoy their life. Other benefits include a wide array of services under the Company re-domiciliation Act from Malta. This favors a very appealing Participation Holding Exemption regime to the company. Also, Malta’s tax rates are the most competitive in the world and because of this despite them varying with the type of license, most gaming businesses and casinos set up their offices here and in the past decades, it has become the major hub for the iGaming boom.

Malta Igaming Industry is Growing

There is a track record in Malta that shows that the ease of doing business is easy and steers clear of bureaucracy. And, because of this, the iGaming industry is growing in Malta on a successful trajectory upwards. In the next five years, they plan to expand even more. They are introducing new schemes and regulations to welcome even a broader range of businesses because it is important for sustained growth. If we just compare, the number of licenses for both local and overseas offered and granted by MGA is growing at a fast pace. The Maltese legislation is granting more than ever and is increasing the quote year after year. This has led to an influx of gaming operators, studios, and software providers in the past 5 years. But, their technical advancement and capability is the main reason they attract businesses worldwide. Also, the low cost of the local workforce is a big advantage too.

Conclusion

As a founding body and pioneer in gambling regulation, the brand is a reputed one in the world today. Because of this, Responsible Gaming Foundation like initiates started in 2014, and the Lotteries and Other Games Act (Cap.438 of the Laws of Malta) has become a major trademark for the brand too. Similarly with the launch of Gaming Malta and the Gaming Academy is a way to incorporate excellence in their offerings and commitment for iGaming developers. They are consistently creating new environments for the gaming operators to feel safe together with the Maltese government for expanding their jurisdictions.

License Relationship Management System: Applying for License

There are several bodies that take care of managing the license procurement process. But, with the specific objective to simplify the license management system, MGA came up with this committee. They help in procuring big licenses from various jurisdictions, new businesses and offer them legal permission to operate in their country. As the gaming sector, casinos and gambling, even lotteries are a big venture in Malta, it is prosperous in many ways. They work under the Gaming Act (Cap. 583 of the Laws of Malta) and other applicable laws in place. Because of this, we refer to them as Regulations. The regime adopted by MGA is neutral to technology and games and is therefore applicable irrespective of the gambling business you are in. So, any game that you can securely offer through their compliant Regulations, MGA will consider it for granting permissions, licenses, and other legal proceedings.

MGA Casinos Application Process

The complete process involves a lot of steps starting from filling the online form to receiving the final certificate. It eventually makes a big difference because it is the bigger picture and allows companies to establish a thorough audit process. Because of this the big and small B2B players get a different format for their specific license type, and they don’t need to compete on the same level. This is a good thing for small and medium companies, like start-ups. For example, for them to get the license, they have to provide different documents, required information, and so on. This is a list of instructions that you will find on the page. They usually do 4 checks to figure out the best candidate.

  • Correct implementation and testing, in a technical environment. This checks for what type of application is presented before the license goes live.
  • Operational and statutory requirements to meet the obligations prescribed by law and policy.
  • Correct business strategy from the applicant.
  • Verification that the applicant is fit and proper to conduct gambling business.

Application stages include the below process. MGA or Malta Gaming Authority conducts a proper verification process of all the information it receives starting from persons involved in the company, financing, management, and their records. Also, they check for the viability of the business to operate in their environment. Secondly, a part of this is that MGA conducts a probity investigation with other national and international regulatory bodies to learn about the applicant, as well as use enforcement agencies to conduct investigations. Because of this, they maintain strict checks. And, getting a license can be tough too.

The MGA also carries an in-depth financial analysis of the applicant’s business plan and invokes records. Therefore, it is mandatory that every applicant’s business plan must include a detailed forecast of their profits and gains during the operation. It must also involve cash flow, profit, and loss, balance sheet, distribution, and marketing along with other details if necessary. Because of this, MGA is a sought-after agency for licensing.

Operational Services

The applicant is examined based on its capability to conduct the gambling business in an ever-competitive market, because of which growth targets are important too. The Government takes charge and fees as profits from allowing these ventures to use their locations. Now, the process even includes examining the records like documents related to the incorporation of the company, their rules and policies, terms and conditions, games offered by them, controls, and technical documentation of their processes. A lot of details go into the services. Below are the different types of licenses from MGA.

Gaming Service Licence

This is the most common type of license with various categories that businesses apply for.

·       Type 1 – Minimum €100,000

The companies that offer “Games of chance” played against the house. Here the result is determined by a random number generator or RNG machine or algorithm, and they include all types of casino games, such as roulette, blackjack, baccarat, poker, and also, lotteries, secondary lotteries, and virtual sports games.

·       Type 2 – Minimum €100,000

The companies that offer “Games of chance” played against the house, same as above. But, here the outcome is not generated randomly from an RNG but is determined by the result of an event or competition outside the main game of chance and the operator manages their risk by managing the odds offered to the player. It is more of a skill-based outcome than pure randomness and probability.

·       Type 3 – Minimum €40,000

These are also “Games of chance: but not played against the house and the dealer or operator is not at risk of loss. Because it generates revenue by taking a commission or other fees based on the stakes or the prize money, it is a more flexible and easy-going gambling game. And they include player versus player or P2P games such as poker, bingo, real money betting exchange, and other commission-based games.

·       Type 4 – Minimum €40,000

Critical Gaming Supply Licence is another form of gaming license offered by MGA in the below category, with a Minimum €40,000 investment.

Systems Review at MGA

Systems Review is an important step because this involves a lot of verification too. After all, businesses and applications must meet the following requirements as well. They have minimal deviation criteria too because MGA expects them not to be 100% compliant. But, if significant changes are available, then they cannot pass. Hence, MGA proposes a test where once the applicant has passed the above stages, they are invited to present their business operation in a technical environment in preparation to go live. And, this is like a final test. This involves a 60-day test including they must complete their technical roll-out and if unsuccessful the application will be cancelled automatically. But, they can re-apply and go through the whole process without any problems. In addition, during those 60 days, the applicant can also take the help of a Service Provider from MGA to carry out an internal system audit free of charge. This allows them to verify their business model against a live environment and check its feasibility.