Resilience, regulations and controversy: a look at the iGaming industry in Malta
During a recent speech at SIGMA Europe, the Prime Minister Hon. Robert Abela praised the iGaming sector as “critical to mitigate the negative impact of the pandemic on the economy”. He spoke about how despite all the recent economic challenges that Malta had faced, iGaming did not decline but instead showed its resilience by contributing to “one tenth of all economic growth for the year” and adding €712 million in -economy per year. first half of 2022 only.
The Prime Minister continued to promote Malta’s iGaming sector and its “enormous resilience” compared to elsewhere in Europe. Abela told the delegates in Malta that the gaming industry has grown three times since before the pandemic, while in the rest of Europe, the industry has remained the same size as it was before the pandemic’. For Abela, this shows the value of the iGaming industry to the country, and demonstrates its enduring strength.
Abela spoke about the “positive energy and optimism” of Malta’s iGaming industry and how proud the country is of it. He went on to pledge his commitment to support and strengthen iGaming on the island, praising the “large and robust iGaming ecosystem” and its role in job creation.
“Malta is the chosen home for more than 300 gaming companies that provide more than 10,000 gaming-related job opportunities,” said Abela. “Many of the companies are listed on the major stock exchanges, and have a superior level of governance.”
Instead of being afraid of the controversy regarding Malta being placed on the ‘grey list’ of the Financial Action Task Force (FATF) last year, Abela used this as an example of how Malta was able to create and implement a plan of action within twelve months only. . This, he said, showed that Malta can respond quickly by implementing any necessary reforms to continue economic growth. He also assured the crowds that “through the Malta Gaming Foundation, the iGaming Council will invite the operators to give advice to the government, and to the main interested parties, on policies that directly affect their business”. He goes on to explain that the Maltese Government promises to reduce barriers to entry into the iGaming sector and hopes to be able to establish access to basic accounts for everyone.
The Prime Minister claims that the iGaming sector is the key to “building a productive, sustainable and inclusive economy”, and that the industry is helping to create new skills and improve the adoption of new technology. This strength, he says, has made this sector an integral part of the government’s plan for the future of the Maltese economy and which will continue to “transform risk and challenges into new opportunities”.
Abela’s speech at SIGMA can be seen in its entirety on youtube. But, for all his positivity and encouragement, Abela’s words will be enough to counteract the increase in restrictions, regulations and controversies that the iGaming sector has experienced recently, and that it is expected to face in the future?
Since 2001 and the establishment of the Malta Gaming Authority, the country has worked to provide a fair and transparent iGaming sector – one that is widely recognized as informed, efficient and authoritative. And while Malta has clearly established itself as a prominent gaming hub in Europe, it seems that there are several factors that could potentially remove Malta from its position.
While Malta was innovative in the regulation of remote gaming in 2004, several other markets have recently been opened, or should be opened in the coming months. Ontario, Canada launched its iGaming industry in April 2022. Following sports betting being legalized in 2018, New Jersey, Michigan and West Virginia have also recently moved to issue iGaming licenses, and they opened the North American market.
In September 2021, the Netherlands also regulated gambling in the country, with the Dutch Remote Gambling Act (KOA) resulting in a large number of successful applications from operators and game providers. And there is a lot of hype and expectation across the LATAM market. Indeed, according Global News Wirehe online gambling and betting market was recently valued at $58.2 billion and is expected to reach $145.6 billion by 2030, so it comes as no surprise that everyone wants a slice of the pie.
New markets opening up in the United States and other countries represent great opportunities for gaming companies based in Malta. The question is whether Malta will be able to maintain its status as the pre-eminent hub for operators and suppliers in the long term, especially as the North American market gains momentum.
Market movements affect not only game designers and operators, but also affiliates. It means that companies like casinos.win must work hard to ensure that their knowledge base is fully up to date, are aware of the markets in which the providers operate, and ensure compliance with the many rules and regulations that vary between the jurisdictions.
Speaking of developing markets, and the company’s dedication to promoting only legitimate sites, Chris Evans of casinos.win says:
“We strive to ensure that all our pages have relevant sites. User satisfaction is of utmost importance. The ratings we give to casinos are objectively established based on specific criteria. We can make more money by highlighting some of the realities of the casino industry, but we strongly believe in presenting the facts and letting the casino players make up their own minds.”
In light of all the new market opportunities it is also worth considering that the pandemic has shown that the shift towards remote work was both viable and productive. While Malta’s sunny climate and picturesque backdrop have added to its appeal, the lower cost of living and the convenience of not having to relocate may mean fewer companies choose to relocate their workforce. – their work to the island. Malta has obviously worked hard to build an infrastructure of support services around the iGaming industry, with accountants, payment processors, consultants, software developers, and blockchain DLT, AI and cryptocurrency businesses already in the took place to support new businesses coming to the island. But, as is the nature of online business, all of these can be accessed remotely with ease.
There was also a sharp increase in companies that recently had their licenses revoked. According to the Report of the Maltese Gaming Authority 2021 published in September 2022, seven gaming licenses were canceled and 64 warnings were issued. Over €863,000 in enforcement and administrative penalties were also awarded last year.
More recently, a study commissioned by the European Parliament revealed that almost €4 billion of illegal funds associated with the Italian mafia had been laundered through Malta’s online gaming industry. This obviously raises several questions about how effective the regulations are in preventing money laundering through online casinos, and indeed through Malta itself, especially since the investigation is being described as the “tip of -iceberg”.
While Malta fights to defend its position as representing the “gold standard” in iGaming licences, it seems that the global expansion of iGaming creates as much risk for the archipelago as it does opportunity. In order to survive and thrive in 2023, the words of the Prime Minister Hon. Robert Abela speaks loud and clear: “the future belongs to those who prepare for it and to those who are ready to embrace its challenges… We need to keep reinventing ourselves.” Something we have seen Malta do many times in its history.
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