PART II
The Lotteries and Gaming Authority is a single regulatory body that is responsible for the governance of all gaming activities in Malta, including Amusement Machines, Broadcasting Media games, Casinos, Commercial Bingo Halls, Commercial Communication games, Gaming Devices, the National lottery, Non-Profit games and Remote Gaming.
The Lotteries and Gaming Authority’s mission statement is
“To regulate competently the various sectors of the lotteries and gaming industry that fall under the Authority by ensuring gaming is fair and transparent to the players, preventing crime, corruption and money laundering and by protecting minor and vulnerable players.”
How long does it take for one to obtain a license?
It varies. Usually it takes 6 to 9 months but our target is now set to 2 to 3 months. This does not solely depend on us; it also depends on the applicant. It is important that the applicant submits all the information necessary on time since if this is not done it is very difficult for the Authority to proceed with the application. At this moment in time it is taking about 3 to 4 months for an applicant to obtain a license which we think, time wise, it is quite good.
And what are the costs?
The cost depends on the class.
Do you consider applying for a license in Malta a high cost?
I think that the cost for applying for a license in Malta is not expensive. This however depends on the scale. So for example, if you are a leading operator, there are caps on taxes and the operator does not pay more taxes if the cap is reached. So I think that for the leading operators, Malta is quite a reasonable jurisdiction.
Roughly, how many operators are licensed in Malta?
A total of 60 operators from 60 companies and about 420 licenses.
And can you split them in online and land based?
Well, mostly they are online. With regards to land based at the moment we have 3 casinos, one lottery operator, which is a private company, sub-owned by government and 4 bingo halls. I would say that we have approximately 48 land based. That includes everything: bingo, casinos, gaming parlours etc.
And how much money does the gaming industry bring to the Maltese State Budget? Could you give a percentage or an amount?
The gaming industry makes up about 11% of the GDP, an industry which is roughly worth 150 million Euros a year. Because it also brings much more to the economy, such as 52 million Euros in taxes, more employment in the sector and in the service sector which supports the gaming operators, rental of apartments and offices, it has a very important and effective part to play.
What are the main challenges that the Gaming Authority is facing right now in Malta?
I think the challenge we are facing right now is how to grow further. Malta is an established jurisdiction, and although we’re a small country, the gaming industry is a very important industry. Nowadays, many jobs depend on the industry so we cannot afford to lose it. With our precise and clear strategy we are now looking at other markets by opening up new forms of gaming such as social games and digital games of skill with prizes which is currently a niche market we would like to tap into. Apart from that there’s also the European challenge. Everyone knows what is happening with sports bets, and the national authorizations in other jurisdictions that are restricting the freedom of movement. We have always emphasized the fact that operators who have a Maltese license can use the license in any jurisdiction, including Romania and other countries within the EU area. This is not the case at the moment because member states are now issuing their own legislation. So, for Malta this is a big challenge. We need to put Malta right out there, show the positives of having a Maltese license and show how we are different from other jurisdictions whereby operators would still choose Malta despite all of these challenges. Positive aspects of having a Maltese license include consumer protection. This is compulsory in Malta and is much beheld than in other jurisdictions where the infrastructure is very strong. Malta is also becoming much more efficient in dealing with the industry, opening up to other markets, and with the introduction of new forms of games. So, we’re making the environment more attractive than it is today. This is why we strongly believe that operators will still come to Malta.
What are the near future measures that the Maltese authorities are going to take?
Measures include changes in legislation and opening up to new markets. These are the two immediate strategic actions that we are going to take.
Now some questions regarding the Romanian Gambling Industry. Are you familiar with the Romanian Gambling Industry and its problems?
I met Madame Nestor, and from my understanding the Romanian market is still restricted with a lot of government control and ownership especially on the lottery front. With a population of 22 million, I think that Romania is a market full of potential. The Romanian Authority has an opportunity, the market can become innovative and start to investment in areas such as casinos, lotteries and online. In my opinion, Romania has a market for both land-based and online which so far isn’t being tapped. Younger generations love to play online and the reality is that these generations, who are already playing online, are probably playing on illegal sites where they are not protected. I think this should be the opportunity here. We know that people are going to play just the same, whether irregular or not. So why not create a regime which really minimizes the illegal activity that is going on online, and have a regime which really protects the players and which puts into the equation integrity, a process, information on how to protect player funds, how to regulate, how to ensure that there is a proper approach and instructions in place. I think that such an approach would be instrumental to achieve innovation, investment and growth, because ultimately it’s a sector where government can collect taxes and create more jobs. I think there are a lot of opportunities in the Romanian market and if you don’t think about these opportunities, others will.
Use a few words to describe the Romanian Gaming Market.
For me it’s currently a potential market. I would like to see our operators operating in the Romanian Market since I believe it has lots of potential, which is not being exploited at this moment in time.
Let’s say that you are now going to be appointed the President of the national office for gambling in Romania. What action would you take first?
I would meet with all the stakeholders to understand exactly the challenges that they think they are facing and try to convince them that if the market is liberalized and regulated well, everyone can prosper. Probably I would spend a lot of my time with the stakeholders trying to explain how the sector can be developed and become more innovative, how you can attract more investment.
What do you expect from this visit and what should we expect?
We consider Romania as an ally and Madame Nestor as my personal friend and we have agreed to help each other out. Madame Nestor is very keen to learn how we managed to prosper our gaming industry in Malta for the last 11years and how we have been successful in the way we manage the Gaming Industry. I will generously share our best practices and look forward for a close collaboration with the Romanian Authorities.
Should we expect co-operation from the Maltese Authority?
These visits serve as a platform to continue strengthening the collaboration between Malta and Romania. One of the ideas we are exploring is for the Romanian Authority to come and visit us in Malta to learn how we perform our compliance checks and how we process applications. There are other areas where we can collaborate. This is just the start. This is the second time we’re meeting after the first meeting was held in Malta when we had the pleasure of hosting Madame Nestor. This meeting served as a follow up and hopefully we’ll have a proper signed memorandum of understanding and a formal agreement.
What is your advice for the Romanian Gaming Authority?
Be courageous and learn from what happened in other markets. At this stage in time, where everyone is focusing on technology and online gaming, I think that it is an opportunity where you can really take a leap of faith and create an innovative market. I think there is an opportunity for innovation, which shouldn’t be missed.
What is the advice you would give to the Minister of Finance?
If the market is regulated and you have good legislation the government will be able to collect much more money through taxes.
Do you gamble?
No, I don’t.
You don’t like gambling…
No, I don’t…
How come you can manage the gambling industry if you don’t gamble?
Maybe that’s why I’m the right person for it….
What is your opinion on gambling?
Gambling is a form of entertainment. There are people who would spend their money on a boat or buy expensive cars, and there are people who like to gamble. I like to compare gambling to alcohol, alcohol is nice when you enjoy it with friends over a meal, but when you drink two bottles of wine every day you’re going to get drunk and you’re going to feel sick and this is the same with gambling. Gambling can be an experience, entertainment. There are people who like to go to Casinos and spend an evening with friends. I think there has to be a limit in everything and it is important for people to be responsible when gambling. In every jurisdiction there needs to be structures in place. For example, in Malta we have recently set up a Responsable Gaming Foundation, an independent entity, with the main purpose that of promoting responsible gaming, to educate people on how to play responsibly. These are things to keep in mind.
Anything else that you would like to add?
Some advice to those people who play – play responsibly, know your limits, and make sure that there are self-barring structures or mechanisms which help you stop gambling or go through it. And to the authorities- make sure that you have structures in place that make sure that citizens are well informed about the dangers of gambling. I really think that the best way to control gambling or the risks of gambling is through education. It’s not solely by enforcement. Society needs to be educated on limits and knows how to play responsibly.
Thank you very much!
