Malta Gaming Authority introduces an ESG hub for licensees

MGA has launched a new hub on its website. The hub is meant to focus on Environmental, Social, and Governance (ESG) by providing licences with detailed information on ESG reporting. 

The hub is set to open for the first time on July 9, 2024. 

The website ESG landing page will address all concerns about the Authority’s voluntary ESG Code of Good Practice. Furthermore, it will assist online gaming companies in aligning best practices with the evolving expectations of stakeholders.

“The Code enables us to showcase our licensees’ dedication to sustainability and to continue highlighting the positive actions already being undertaken by the gaming industry,” the MGA stated.

The Code’s arrival comes as no surprise. This is because MGA has faced several regulatory actions earlier this year. Some of the actions that have prompted this move include the cancellation of Tipbet’s operating authorization and the approval of recognition notice for St8.io, allowing it to operate within MGA-regulated markets.

Additionally, the recent cancellation of authorization for Super7plus and the suspension of Rush Gaming’s authorization have also played a role in this move by the regulatory body. 

Purpose of Code of ESG Code of Good Practice

The Code focuses on the remote gaming sector. The framework is designed to enhance transparency, encourage ESG reporting, and facilitate benchmarking among companies.

Furthermore, it is an effort to support online gaming companies to adopt sustainable practices. This is done by adding value to existing industry efforts by providing a reference for companies to regularly report, assess, and improve on their ESG practices. 

How the ESG Code of Good Practice was Developed

The ESG Code was developed through a comprehensive process. The process included peer review, stakeholder interviews, interviews with licensees, and materiality assessment. 

The result of the Code was 19 ESG topics on issues concerning environmental, social, and governance categories. 

Furthermore, the Code provides a roadmap that will assist online gaming companies to streamline their reporting. The reporting consists of two tiers, which are Tier 1 for basic ESG standards and Tier 2 for more advanced goals. 

Companies will be able to access the Code and receive the ESG’s Code Approval Seal for reporting that complies with the Code’s guidelines. 

Conclusion

The ESG Code of Good Practice was developed against the backdrop of several regulatory actions faced by MGA. The main purpose of the Code is to assist online gaming companies to comply with reporting that encourages sustainable practices targeting environmental, social, and governance issues.