SBC News Voice of the Sports Betting Industry
The Malta Gaming Authority (MGA) has launched a ‘closed consultation’ to gather input from relevant stakeholders on proposed amendments to the financial reporting and disclosure of licensees.
The proposed amendments have been documented under the Gaming Authorisations and Compliance Directive (Directive 3 of 2018).
Feedback is required for the MGA to continue to strengthen its risk-based approach to regulating the financial conduct of licensees and to address uncertainties faced by the industry. The consultation will be open until 25 April 2025 as part of an initiative to enhance the MGA’s efficiency and regulatory effectiveness.
The Gaming Authorisations and Compliance Directive has proposed “enhanced reporting requirements” for licensees, who will be required to submit new monthly reports on ‘player funds’ and ‘managed accounts’ to the MGA.
Regarding financial reporting, the MGA seeks to apply a standardised framework requiring all licensees to submit their interim and annual statements in accordance with the International Financial Reporting Standard (IFRS). Audited statements must reference the total player fund balance under “cash and cash equivalents” and include a declaration confirming “compliance with the Gaming Tax and Licence Fee Regulations.”
The MGA seeks to apply new obligations on financial disclosures, requiring licensees to notify the MGA within 30 days of any external investments in the business other than share subscriptions. Financial disclosures must also be submitted to the MGA for any loan taken from a non-EU/EEA licensed institution.
In addition, licensees must immediately notify the MGA of adverse financial impacts, such as the threat of bankruptcy, failure to meet debt obligations, and the loss of a foreign gaming licence.
New rules will require licensees to obtain direct authorisation from the MGA to change the funds of customer accounts. Furthermore, the MGA must be notified of licensees adding new gaming verticals or making essential changes to the components of gaming systems.
On a yearly basis, licensees must document with the MGA the duties undertaken to enhance financial risk management, which the MGA recommends be reviewed and submitted by third-party agencies.
The compliance directive ends with the MGA establishing new rules for reporting on ‘dormant accounts.’ The MGA specifies that after three months of inactivity, an account can be classified as dormant. Dormant accounts must be maintained for five years of inactivity before funds may be appropriated by the licensee for responsible gaming initiatives.
The MGA ensures that its review of the Gaming Authorisations and Compliance Directive is consistent with its regulatory approach to enhance customer protections, prevent illegal activity, and support sustainable market growth and innovation.
For 2025, the MGA has prioritised its supervisory focus on improving risk-based resource allocation, strengthening cooperative alliances with international authorities, and ensuring licensees undertake proactive risk management.
