The challenges in obtaining a remote gaming license in Malta

Malta has fast become one of the most successful jurisdictions in the remote gaming industry. Being the first EU country to have specific regulations to govern the industry has led to numerous operators deciding to set up shop in Malta. In a way, Malta has also become a victim of its own success. The Lotteries and Gaming Authority (LGA) have been struggling to cope with the new license applications as well as servicing existing operators with matters such as approving changes to systems, new games and other matters requiring their prior approval. The volumes involved have literally taken them by surprise. They are still recovering from the surge in applications that took place after the US clamped down on online gambling and after the UK enacted their Gambling Act. Let’s not forget the recent changes in management! Having said that, from statistics published by the LGA it seems that a large percentage of the delays in processing are not directly the result of LGA work overload, but also result from applicants failing to submit requested documentation or clarifications.

The LGA have just appointed a new CEO and the industry is hoping that he can help solve the current problems faced by the Authority in a relatively short time. However, the applicants must also adequately fulfil their obligations.

Our experience has shown us that many times persons applying for a remote gaming license do not get the professional service they are paying for from their consultants in Malta. The complexities of the Stage 2 requirements cannot be handled properly by persons not specialised in the fields of IT audit and/or security and very often the correct advice is not provided to them. Even when the application gets through the Stage 2 process successfully, it is often met with problems during the certification process where it becomes obvious that the applicant was not properly advised about the documentation and the LGA requirements. Obviously, the applicants then become frustrated and irritated as problems and delays arise in the whole process. Sometimes the issues require changes to software which are not always easy to carry out and could be expensive to procure. Policies and/or procedures would be deemed to be inadequate or not implemented as the applicant would not have been properly advised on the documentation and that they are expected to follow the policies and procedures submitted. This type of problem arises as often documents are created, not based on the applicant’s operational requirements, but are copied off documents with similar names freely found on the internet in such a way as to satisfy the Stage 2 requirements.

Therefore, if you have any intention of obtaining a remote gaming license in Malta, it is strongly recommended that when selecting the professionals to work with, you choose very carefully. Apart from the variances in fees charged, there is also a difference in the type and level of assistance offered. Make sure that the persons you engage are not only familiar with the remote gaming licensing process and the stringent and extensive requirements but really know what is required. If they are not familiar themselves in certain areas they should be capable of subcontracting or introducing you to the right people. There are many companies that are very capable of handling company incorporation, company secretary services and even accounting for remote gaming operations, however, there are not many that fully know and understand the complexities and details of the Stage 2 process. The right choice will greatly reduce your waiting times, problems at later stages and definitely costs.

Author: Alan Alden
Contact Advisory Services
Date: April2009