Malta Announces New Regulations

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February 12th, 2017
Back Malta Announces New Regulations

It has been disclosed by Malta Gaming Authority (MGA) SKILL games and fantasy sports now have new regulations. According to the terms, the Authority has legitimized to regulate the sector under the division of “controlled skill games”.

Obtaining controlled skill games license is now available which will provide a service for the intention of business with end consumers and a license to provide a supply in a business-to-business scope. Licenses are validated for a period of five years. Requirements for approval include a procedure to ensure that the individuals behind the business are according to Authority are:

“fit and proper, financial and system auditing to ensure that the operation is fair, sound and secure, and other measures to prevent fraud and money-laundering, a consumer-centric approach to the business, a high level of information security and segregation of player funds.

Licence holders are also subject to administrative fees, licence fees, and a 5% tax over gaming revenue. A three-month transitory period is in effect.”

The first licensee DraftKings said to Legal Sports Report it will use the new license to offer DFS in Germany. The European Union treaties guarantee free market for goods and services and the license from MGA permits any countries providing it hasn’t fallen under the current DFS gambling legislation.

Chief International Officer Jeffrey Haas of the DraftKings stated the license would mean an “increase our addressable audience by at least 100 million people.”

MGA originally proposed in 2015 the “Position Paper on Digital Games of Skill”:

“Games in which skill plays a more predominant role than chance, although a considerable amount of chance still exists in the game (e.g. certain board games, certain card games)”.

Suggesting that skill games could be risky to consumer and “should be subject to additional regulatory supervision.”

Any operating wishing to obtain the new license must first prove that they meet skill game requirements and that is not a game intended for a gambling license.

The position paper also included:

“Games which are based on a random number generator at the start of the game, such as cards or dice, but which rely on skill as the game progresses, such as is in the case of games such as belote, tarot, rummy or backgammon, should be licensed, but in such a way as to be deemed different to gambling.

A specific licence for such games of mixed skill and chance should help consumers differentiate between such games and gambling. A test that could be implemented is that if a skilled player is able to win more than 56% of his matches, then the game is one of skill, rather than chance.”

Sources:

“Skill Games Regulations & Fantasy Sports Ruling”,mga.org.mt,  January 30, 2017.

“Malta Gaming Authority creates new regulations for skill based games”, yogonet.com, February 10, 2017.

“SKILL games and fantasy sports now have new regulations”

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