Malta Gaming Authority MGA 01 September 2023

The Malta Gaming Authority (MGA) was founded in 2001. Its responsibility is the regulation of the entire gambling industry, internet and land-based, which guarantees fairness, transparency, and protection of the players. It was among the first gambling authorities that regulated online gambling, and it is this that has made the company an outstanding world leader. Here, you can read about the licenses the MGA provides and the advantages they give.

What Is Malta Gaming Authority?

The MGA has several activities. The main function of it is to safeguard gamblers and guarantee them that they are getting good service. To do this, the Malta Gaming Authority uses a lot of methods.

First of all, it certifies that gambling operators are fair and honest. This means that it will support the non-rigged game reality, that operators are equipped with the resources that they will pay players, that operators will bank on the fiveable funds only as well as to minimize both the funds and the identity of the clients thus avoiding the exploitation of those who are in danger from problem gambling. The authority is constantly monitoring licensees to ensure that the highest standards are kept and complaints from clients are investigated if needed.

Another obligation of the Malta Gaming Authority is to avert criminals from abusing the betting sites for purposes like money laundering. In case it is proven after an investigation carried out by the MGA that an operator has failed to carry out its duties, then it may impose sanctions by imposing fines or it may terminate the owner's permissions.

How to Obtain an MGA License

Obtaining an MGA license requires the applicant to provide all necessary information, and the application goes through various phases. There are various forms to submit, including:

• Financial Management Information
• Entity Declaration
• Personal Declaration
• Source of Wealth Declaration
• Statement of Affairs
• Criminal Conviction Sheet Authorisation Form
• MLRO Eligibility Form

First, we need to do a “Fit and Proper” check. The Malta Gaming Authority follows that the applicants’ finances and business management practices are also acceptable and worthy. Furthermore, the MGA will interview other international regulators and law enforcement agencies on the subject of the applicant’s background check. To add to the picture, other key people involved in the application will also be investigated.

The second stage is the “Business Plan” check. This is a full financial appraisal of the business plan that has been provided. A detailed analytical submission of the financial projections, including Cash Flow, Profit and Loss, Balance Sheet, marketing and distribution strategies, human resources plans, growth targets, and so forth, is expected from candidates.

The third stage is the “Operational & Statutory Requirements” check. This includes verification of the incorporation documents, checking out the games that are made available, business processes related to the games, the rules, terms, conditions, policies, procedures, technical documentation of the gaming platform, and back end.

In addition to other requirements, the Malta Gaming Authority will also evaluate the applicant's finances. The minimum amount necessary for functioning depends on the kind of license which is being requested.

The required minimum amounts for those applying for an MGA Gaming Service License are the following:

• Type 1 — €100,000
• Type 2 — €100,000
• Type 3 — €40,000
• Type 4 — €40,000

A minimum amount of €40,000 is required to apply for a Critical Gaming Supply License.

After three stages have been successfully completed the applicant will be notified and then invited to start preparations to go live. The applicants are expected to complete the technical preparations in 60 days; afterwards, a system audit must be carried out by an MGA-approved service provider. The reason for the audit is to examine whether the live system reflects the ones proposed in the application. Thus, when the audit has been passed, the MGA would then issue a license valid for 10 years.

Last but not least, the licensee has to accept the fact that following the commencement of operations regular compliance audits of its activity will be done by an MGA-approved auditor.

Moreover, as there are some expenses implied in the application process, they are subject to and are dependent on the type of the license applied for.

The license fees of the MGA:

• New license application fee – €5000
• Renewal application fee - €5000
• Key function certificate – €50
• Transfer of a qualifying interest in a license - €1500
• Application fee for a material supply certification – €1000
• Maintenance fee for a material supply certificate – €500.

You also have to pay an annual fee for the license. License types 1, 2, and 3 cost you €25,000 when you acquire them. But for also type 4 one of them, you should pay €10,000're, live now.

And there are many other costs that a license holder incurs, such as an annual compliance fee and a special fee for the B2B license that depends on the revenue.

Submitting a Complaint to the MGA

In case you are having trouble with a casino that has a license from the MGA, the advice of the MGA is that “It is strongly recommended that you actively seek to resolve your dispute directly with the operator’s support and management prior to lodging your complaint with the Malta Gaming Authority.”

When it is necessary to report the matter to the MGA, it can be done by using the complaints form on its website, which can be found here. You need to give some information, such as your name, and the MGA will let you know if they want to do an ID check to determine the effectiveness of your complaint.

Thanks to the gathering of your personal information, you will be required to fill in some fields such as:

• The gaming operator you are complaining about.
• Your username at the site.
• The game you were playing.
• The disputed amount.
• The date of the incident.
• The time of the incident.
• A short description of the claim.

If there are any supplementary files, they can be included with the complaint, which could be useful if you have any evidence. It is also a good idea to tick the “Send a copy to my email” box because it guarantees that the complaint is submitted correctly.