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Gaming License Application

The Gaming License Application process currently takes about 6-8 weeks after submission of documentation. The application process has been harmonised and today applicants can submit all the required information at application stage and the MGA binds itself to evaluate all information through multiple internal process streams.

The MGA conducts a fit and proper exercise on the applicant by assessing all information related to persons involved in finance and management and on the business viability of the operation. As part of this process, the MGA conducts probity investigations with other national and international regulatory bodies and law enforcement agencies. The MGA conducts an in-depth financial analysis of the applicant’s business plan. 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.

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. Furthermore, a remote gaming licensee is subject to minimum issued and paid-up share capital requirements. Class 1 and Class 2 licence holders are required to retain a minimum share capital of €100,000 whilst Class3 and Class 4 licensees are required to retain a minimum share capital of €40,000. Companies with multiple licences are required to meet the above share capital requirements cumulatively up to a minimum capping of €240,000. The above three components constitute the desk-based audit of the application requirements and is completed within 12 to 16 weeks, assuming all information is complete and correct. Inconsistent and low quality applications are dropped and the respective applicant will have to re-apply. Once all three previous stages are successfully completed, the MGA will inform the applicant that the application was successful and will invite the applicant to implement the operation onto a technical environment in preparation to go live. The applicant will be allowed 60 days to complete this technical roll-out, after which the application will be considered as suspended and subject to re- application.

At any stage within those 60 days, the applicant may request an external systems audit (performed by an independent third party contracted by the MGA against a fixed market price). The systems audit will audit the live environment against the proposed application. At this stage the MGA expects minimal deviation from the application. If there are significant changes to the gaming system, the applicant will have to re-apply by filing a new application. On successful completion of the certification process, the Authority issues a five-year licence.

process

License Application

The license application should be concluded within 12-14 weeks after the submission of all the documentation to the Malta Gaming Authority.

The application process has been harmonised and today applicants can submit all the required information at application stage and the MGA binds itself to evaluate all information through multiple internal process streams.

At application stage, the MGA assesses whether an applicant:

  1. Is fit and proper to conduct gaming business.
  2. Is correctly prepared from a business strategy perspective.
  3. Has the operational and statutory requirements to meet the obligations prescribed by law and policy.
  4. Has correctly implemented and tested, on a technical environment, what has been applied for, before going live.

System Review

Once all three previous stages are successfully completed, the MGA will inform the applicant that the application was successful and will invite the applicant to implement the operation onto a technical environment in preparation to go live. The applicant will be allowed 60 days to complete this technical roll-out, after which the application will be considered as suspended and subject to re- application. At any stage within those 60 days, the applicant may request an external systems audit (performed by an independent third party contracted by the MGA against a fixed market price). The systems audit will audit the live environment against the proposed application.

At this stage the MGA expects minimal deviation from the application. If there are significant changes to the gaming system, the applicant will have to re-apply by filing a new application.

On successful completion of the certification process, the Authority issues a five-year licence.

Compliance Review

The MGA mandates that after going live a Licensee shall undergo a number of compliance audits of its operation, performed by an independent third party contracted by the MGA against a fixed market price.

The MGA will require the audit to adhere to the following schedule:

  1. After the first year of operation after being licensed by the MGA.
  2. On the third year of operation after being licensed by the MGA.
  3. On the implementation of considerable changes in the gaming system, or after changes to the ownership of the operation.
  4. At the discretion of the MGA normally arising from suspicion of deviation from
    1. the regulations
    2. operational nature of the licence
    3. misconduct

Failure of a compliance audit could lead to suspension or termination of a licence.

Licensing Process

Remote-Gaming-Application-Process-Diagram-white

(Source: www.mga.org.mt)

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