Operators highly value Malta Gambling Authority (MGA) licenses, but they are very difficult to obtain. The Malta license is well known as a guarantee of quality and legality.
In 2004, Malta adopted the Remote Gaming Regulations, making it the first country in the European Union to fully recognize the legality of online gambling. Furthermore, after the Lotteries and Gaming Authority was renamed the Malta Gambling Authority (MGA) in 2015, its governing body has quickly emerged as the leading licensor for online gambling.
There are four categories of business-to-consumer (B2C) licenses:
Class 1: operators are allowed to conduct gambling where the outcome is determined by a random number generator (RNG)
Class 2: operators are allowed to conduct gambling where the outcome is determined by the outcome of an event, such as a sportsbook.
Class 3: operators can organize games of chance in which their commissions from bets or winnings generate revenue (e.g., poker)
Class 4: operators can organize games of skill in which the outcome can be determined through the collection of statistics.
Since the new Gaming Act was passed in 2018, operators no longer need to apply for different types of licenses. Instead, they just need to add a new type of game and go through the license process again. In addition, the validity of licenses has been increased from five to ten years.
The decision to issue licenses is made by the Malta Gambling Regulatory Commission very carefully. The scrutiny process leads players from all over the world to trust: the Maltese regulator’s assertion that an operator is reliable comes at a price.
The application process consists of several steps:
- Checking the Business Viability
In the first stage, the MGA Commission verifies everything the customer reports about the company’s finances and management. Relevant transactions are conducted by the Commission in conjunction with legal agencies and international bodies. The history of the shareholders and key persons of the company is reviewed and confirmed.
- Business Plan Verification
Once the verification of the long-term viability of the business is completed, the Commission proceeds to scrutinize the business plan, which includes forecasts, financial prospects, marketing, and recruitment.
- Regulatory Compliance Review
Once the MGA has confirmed that the business is transparent, the Commission reviews the company’s incorporation documentation as well as its verticals, terms and conditions, policies, and procedures.
