You Got your license... Now what ?

Being granted a license might seem to many as the end of a long, complex and possibly expensive process. In terms of compliance however, this is just the beginning. Very few operators and indeed key officials, as custodians of the license, are aware of their obligations and responsibilities. All the systems, procedures and controls that were documented and submitted for approval during the license process were merely promises of an operation that existed solely on paper. Now is time to put those promises to practice. A license is awarded on the basis of the requirements being met and on a thorough assessment of the potential risks involved. Deviating from the original submissions could potentially compromise your chances of obtaining your full license. Whilst changes are inherent to such a dynamic industry, one needs to be aware that since prior authorisation is required, planning for such changes is key to reducing eventual delays.

What about supporting business functions? From the employment perspective, prospective employers need to register and obtain what is referred to as a PE Number. This is the proof that you are registered as an employer and is used in all future correspondence and matters relating to employees with the relevant authorities. All employees working in Malta need to be approved to the office by the Lotteries and Gaming Authority. Where expatriates are being employed, an Employment License is also required. This is even more important when NON EU nationals seek employment in Malta.

The Lotteries and Gaming Authority expects monthly reports and the payment of the gaming tax due. Reporting depends on the class of license. Making sure that the gaming system can produce such reports is imperative to meet your obligations under the license.

Internet banking facilitates your financial monitoring and allows efficient payment to service providers and employees alike.

For all Malta registered companies, financial statements need to be prepared and audited on an annual basis. There are no size exemptions. Besides this obligation, the Lotteries & Gaming Authority also requires the production of six-monthly accounts within two months from period end. We suggest proper accounts are updated on a regular basis so as to enable you to meet the various obligations imposed.

Registering your business for VAT is also another important requirement which takes special relevance as of 1st January 2010, where new rules are applicable for cross border business to business transactions. Certain categories of expenditure may be exempt from VAT when incurred in a business environment. To qualify as a ‘business’, organisations need to be registered with the VAT authorities. Making sure you are registered on time and that you meet all the obligations as and when they fall due means that you will not be liable to penalties and charges.

In accordance with the data protection legislation you are obliged to annually notify the commissioner on the nature of the data you process and to which countries it is transmitted.

These are a few of the matters that need to be handled once the license is granted and the operation kicks off. A license is an ongoing responsibility not only from a compliance point of view but also from an operational stand point.

Author: Trevor Axiak
Contact Advisory Services
Date: Nov2009