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Brief History of the MGA

MGA was officially founded in 2001 but as the Lotteries and Gaming Authority or LGA. This was one of the pioneers who started regulating online gambling operations all over the globe. And their first step was to control all the digital activities related to the Lotteries and Other Games Act in 2001. This Gambling Act was among the first laws to come into effect for regulating online gambling operations. In 2015, LGA changed itself to MGA and has since established itself as one of the best gambling licensing authorities.

Malta Gaming Authority in Detail

Malta regulates most of the types of gambling activities in its region. And the group of activities mainly includes the majority of casino games, video slots, and other gambling activities like virtual games or sports or poker rounds and even B2C and B2B offices. The regulatory acts of MGA aim at:

• Safeguarding underage individuals,
• Licensing of remote gambling operators,
• Keeping track of the operators that have MGA licenses,
• Making sure that all the games are fair and trustworthy, with no cases of partiality,
• Safekeeping the players and their account balances,
• Promoting responsible gambling, and
• Warranting that the gambling activities will have a positive effect on Malta and its residents.

MGA License Types

MGA licensed casinos can belong in different categories, which are as follows:

• Type 1 — This category has games that are generally available at established casinos like blackjack, baccarat, video slots and other popular casino games. It can even be skill-based games and lotteries. But in all instances, a licensee of this category will be held responsible for the chances or risks associated with the standard repetitive plays.
• Type 2 — Any betting operator planning to provide games with particular odds will come under this category. They are accountable for the dangers associated with matchbook betting.
• Type 3 — When an operator wants to offer bet exchange services, peer-to-peer and poker network games to players, they have to obtain this license. This type of operator will have a certain percentage of commission for advocating gambling games.
• Type 4 — A licensee of this class is allowed to hold and control the digital gambling operators. But they cannot be a gaming operator themselves. They are usually gaming and software providers.

MGA License Requirements

MGA’s license is often considered the safest and most trustworthy gambling licenses for its strict requirements. While applying for Malta’s gambling license, all the applicants have to submit their detailed report of work practices to MGA. They also have to give their approximate costs and gains for their gambling activity. They also have to show their full-detailed business plan to MGA.

The MGA was established with the primary concern of ensuring and safeguarding the individuals on every possible level. And, the online casinos have to observe all the rules of the authority to obtain their precious certificate. Some of the regulations might even sound severe to the players. For instance, individuals with criminal backgrounds cannot be hired for the gambling businesses’ work. Moreover, being a gambling operator, you must submit a comprehensive report of all the employees working in the company.

Here are some of the MGA license requirements that the applicants have to follow:

• Documentation that shows that the operator of the gambling business has an authentic, non-criminal background,
• Notarised duplicates of passport(s),
• Bank references from operators,
• Notarised photocopies of utility costs,
• A comprehensive report of the business plan,
• Reports of all the gaming systems and platforms used,
• And the hosting of gambling functions should remain in Malta.

MGA License Costs and Fees

All the administrative fees that have to be submitted for MGA casino sites are non-refundable. The yearly license fee and the compliance costs have to be submitted to MGA depending on the type of license obtained and the amount of revenue generated within a B2B or B2C company. All the MGA license holders have to give a fixed annual fee of 25,000 Euros per annum. And they also have to pay a certain amount of additional license fees to the authority, depending on their yearly revenue.

Trustworthiness

Malta is the first country to control online gambling activities. This happened by adopting the Lotteries and Other Games Act, as stated earlier. Being a pioneer, Malta is a natural leader in this industry, as it is at present. It still holds on to its position at the forefront of this sector. The legislative design that stands in place today was set up many years ago, when it was highly unregulated, allowing others to follow an official standard.

MGA has stern and well-structured regulations. Today, what it is known for is the rich standards of fairness, openness, and truthfulness. It prohibits corruption and crime on all levels. It takes strong measures to protect its players and their account balances against the risks of gaming.

Value of an MGA License

The digital gaming market is one of the most lucrative markets in Malta. This region itself houses about ten per cent of the globe’s total online gaming operators. And it is an incredible mark when it comes to the statistics of such a small archipelago that is almost five folds smaller than Greater London.

Malta may not arrange and host great sports events. But it surely houses the best known digital gaming sector called the Summit of iGaming, also known as SiGMA. This is a special conference that calls in guest speakers from all over the map and welcomes numerous exhibitors, showcasing their latest technology, ideas, and games, including Ladbrokes, ComeOn! and so on.

How to Apply for an MGA License

The applicants can submit all the necessary documentation at a single time. During the assessment tenure, MGA will thoroughly check if the applicant:

• Is eligible and fit for conducting a gambling business properly,
• Has an actual strategy for the business,
• Has all the functional and statutory to meet all the criteria as stated by the law.
• Has a well planned, implemented and tested plot for going live.

Here is the complete application procedure:

1. MGA Fit and Proper Test. The authorities carefully analyse all the details and documents submitted by the applicants. The documents will contain all the information related to shareholders, UBOs and individuals associated with the financial department. The MGA also conducts authentication tests with the help of other partner bodies for checking.
2. Business Planning Check. MGA conducts in-depth scrutiny on the financial reports submitted by the applicants. The business plan submitted by the applicant must have a proper detailed plan of the operation, along with the advertising and the distribution techniques, growth targets and HR plan.
3. Operational and Statutory Requirements Analysis. MGA will also access the software and instruments that will be used for conducting the business. It will also include analysing the incorporation documentation, the operational policies, the games and all the system controls, the technical set-up, rules and conditions, among many other things.

Along with that, the licensee will also be responsible for the least issued and paid out share capital necessities.

• Class 1 — Least €100,000
• Class 2 — Least €100,000
• Class 3 — Least €40,000
• Class 4 — Least €40,000

To the least, the businesses with multiple approvals will have to meet the already mentioned share capital necessities, capping €240,000. Any inconsistent and inferior application will be rejected, and the applicant may have to re-apply for obtaining the license. Your application matters the most, so it should be rich and up to the mark.

MGA Casino Sites Compliance Review

Once the above-mentioned steps are cleared out, MGA will inform the applicant that its application was successful and will ask the applicant to show the technical arrangements and mannerism of going live. Sixty days will be given to the applicant to complete this activity. Suppose the applicant fails to carry out the operation. In that case, it will be taken as suspended, and the individual has to re-apply again.

• The activity has to be performed within those sixty days, and the applicant has to trigger a request for the external System Review. The review will be carried out by a third party, who will be a partner of MGA. The System Review will analyse the whole live performance against the submitted proposition.
• During this, MGA will surely expect the applicant to deviate from the previously stated plan. Suppose any discrepancies or noticeable changes in the system are found. In that case, that present application will be rejected, and the applicant will have to re-apply. But on the triumphant completion of the certification process, you will be awarded a five-year gaming license by MGA.

After obtaining the license, the licensee has to undergo several compliance reviews during its functioning. And this is also performed by the third parties of MGA, contracted against a determined market value.

For the reviews, there is a certain schedule that you have to follow:

1. Perform it after a year of functioning as an MGA licensed operator.
2. Again, do it as the compliance plan gets planned by the MGA.

In case you fail to perform the compliance review, it will lead to your license suspension or even termination.

Bottom Line on MGA Licenses

Having the Malta Gaming Authority license can give you a range of benefits. You get a highly trained and experienced workforce for making an operation successful. Moreover, Malta has a pretty good financial condition. And the main credit for it goes to Malta’s tax authorities. The lower tax rates with a stable economy will help the businesses to flourish there. MGA is a renowned licensing body. So, its license for a casino will surely have a far-reaching positive impact on any gambling business. Players look up to this as the trademark of authenticity, honesty and fair play that will help them to play responsibly and safely. Being the pioneer of gambling license authorities, MGA sets a perfect tone for promoting games while staying safe.

MGA Online Casinos – FAQs

Written by: Petricia Everly petricia@newcasinouk.com newcasinouk.com

Petricia Everly is an online writer who writes about the world of online gambling exclusively for NewCasinoUK.com. She is particularly interested in online slots, exploring the themes of identity, justice, and the power of luck in her work. Her writing style is unique, combining elements of realism, fantasy, and humour.