Remote Gaming License Application
WDM International’s qualified staff of lawyers and members of our licensing team, regularly assist and provide operators with the necessary consultancy in obtaining remote gaming licenses across all classes.
All operators of remote gaming in or from Malta ought to possess a valid license in relation to the pertinent class as set out in the First Schedule of the Malta Remote Gaming Regulations.
Applicants must satisfy a number of requirements so as to obtain a gaming license in Malta. Including:
- the registration of a Malta company;
- applicants must satisfy the “fit and proper persons” test which involves rigorous due diligence checks on all persons (individual or corporate) having a substantial stake in the Malta gaming enterprise;
- be able to demonstrate suitable business, financial and technical ability to carry out the gaming operation in Malta; and
- Be able to demonstrate the operation’s solvency in order to ensure player winnings and deposit returns, are adequately safeguarded.
With effect from June 2011, the Gaming License application process has been harmonised into a singular stage. To this end, applicants can submit all the required information at once. The pertinent authority would then analyse all the information through multiple internal process streams.
At application stage the pertinent Authority assesses whether an applicant:
- Is fit and proper to conduct gaming business.
- Is correctly prepared for a business strategy perspective.
- Has the operational and statutory requirements to meet the legal obligations expected by Maltese Law.
- Has correctly implemented what has been applied for, on a technical environment before going live.
1. Fit and Proper Test
The Authority conducts a fit and proper exercise in relation to the applicant by assessing all information related to persons involved in finance and management and on the business viability of the operation. Probity investigations with other national and international regulatory bodies and law enforcement agencies are also held.
2. Business Planning Analysis
Subsequent to the fit and proper test being carried out, an in-depth financial analysis of the applicant’s business plan is undergone. The applicant’s business plan is expected to have a detailed forecast of the operation, inclusive of marketing and distribution strategies, HR plan and growth targets.
3. Operational & Statutory Requirements
The applicant is examined on the instruments required to conduct the business. This process includes examining incorporation documents, the games, the business processes related to conducting the remote games, the rules, terms, conditions and procedures of the games, the application architecture and system architecture of the gaming and control systems.
4. System Audit
Once all three areas are successfully completed the LGA will inform the applicant that the application was successful and will invite the applicant to implement onto a technical environment in preparation for going live.
The applicant will be allowed 60 days to complete this operation after which the application will be considered as suspended and subject to reapplication.
At any point within those 60 days the applicant may trigger a request for an external systems audit (performed by an independent 3rd party contracted by the pertinent authority against a fixed market price). The systems audit will audit the live environment against the proposed application.
At this stage the LGA expects minimal deviation from the application.
Significant changes to the gaming system will require the applicant to re-apply through a new application.
On successful completion of the certification process, the Authority issues a five year license.
5. Compliance Audits
The Authority mandates that after going live a Licensee shall undergo a number of compliance audits of its operation, performed by an independent 3rd party contracted by the LGA against a fixed market price.
The audit ought to take place on the following schedule:
- After the first year of operation after being licensed by the LGA;
- On the third year of operation after being licensed by the LGA;
- On the implementation of gross changes in the gaming system;
- On the discretion of the pertinent Authority normally arising from suspicion of deviation to:
- the regulations;
- operational nature of the license;
Failure of a compliance audit could lead to suspension and even termination of a licence.
On successful completion of the remote gaming application process, the applicant, now a Licensee is awarded with a five year Licence. The Licensee will be notified that he/she has to submit the “Go Live Date” and prior to this date the gaming equipment has to be sealed by the Authority’s representatives in the presence of the Licensee Key Official. Once the gaming equipment is sealed, any changes to the gaming equipment, like rules of the game or any other intended changes from the original Licence application have to be submitted to the Authority for approval.
Maltese Gaming Licenses
There are four types of remote gaming license, as outlined hereunder.
|Class 1||Casino||Pertains to operators managing their own risk on repetitive games, coving casino-type games, skill games and online lotteries.|
|Class 2||Sports-book||License pertinent to operators managing their own risk on events based on a sports-book. This class includes pool betting fixed odds betting and spread betting.|
|Class 3||Poker||This license is for operators taking a commission from promoting betting games. This class includes poker networks and betting exchanges.|
|Class 4||Software Platforms||Used by host and manage remote gaming operators, excluding the licensee himself. This is intended for software platforms.|
For information on Gaming Taxes click here.