The Malta Gaming Authority (MGA), formerly the Lotteries and Gaming Authority, is Malta's primary gambling regulatory authority for both land-based and online gambling. The MGA's main responsibilities include ensuring transparency and fairness, averting corruption, crime, and money laundering, and protecting vulnerable persons. The MGA is also tasked with licensing betting operators as per the stipulated guidelines, monitoring licensee activities, ensuring compliance, protecting players' funds, and enforcing regulations.
The MGA is composed of six main entities. The main entity is the Non-Executive Board of Directors, which oversees the strategic development of MGA and ensures set strategic objectives and policies are achieved. The second entity is the CEO, responsible for the overall performance and execution of the MGA functions. The other four entities are the Executive Management Committee, Audit Committee, Supervisory Council, and Fit and Proper Committee.
Licensing
As mentioned earlier, Maltese laws require online betting operators to obtain licenses before offering their services. Getting a remote gambling license takes between four and six months. The application process entails five main stages. The MGA assesses whether the applicant is fit and proper to offer gambling services as per the rules and regulations stipulated by the laws. In addition, the MGA also must evaluate whether the applicant is financially and otherwise prepared to undertake the business as per the proposed strategy and meets all statutory requirements.
After issuing a license, the MGA will carry out several audits at random times, completed within 90 days after giving a notice. The first audit usually takes place within the first year of operation. The main purpose of the audits is to ensure compliance. The MGA reserves the right to impose fines for non-compliance to ensure licensees rectify any defaults, deter future non-compliance, and eliminate financial gains that licensees might have made through non-compliance.
Taxation
All sports betting operators licensed by the MGA are subject to the requirements of the license, which include taxation. The tax rate is 5% of the gross generated revenue per the relevant tax duration. The tax rates in Malta are relatively lower than in many other countries, which is another reason the country is the most popular among gambling operators globally.
All licensed gambling operators must pay a compliance contribution and various other applicable license fees to the MGA. The amount of compliance contribution is based on the amount of gaming revenue the licensee generates under the MGA license, calculated as per the Gaming License Fees Regulation.
Penalties
The Third Schedule to the Gaming Act outlines several criminal offenses related to all forms of gambling and the relevant penalties. The criminal offenses include the provision of services without relevant authorization, abetting such provisions, and failing to effect payments due to the relevant authorities. Guilty persons are liable to imprisonment of up to five years or a fine ranging between €10,000 and €500,000.
Match-fixing is considered an aggravated offense and has harsher penalties, especially when committed with the intention of profiting from the outcome. The law imposes a duty to any person with knowledge of match-fixing offenses to report to the Commissioner of Police.