In 2024, Malta’s gaming sector, mainly the iGaming industry, proved to be resilient and grew during a global pandemic, contributing profoundly to the nation’s economy. Prime Minister Robert Abela noted that the sector had grown threefold pre-pandemic compared to the rest of Europe, which had stagnated. Malta has become a prominent gaming hub in Europe thanks to expanding the robust iGaming ecosystem that presents over 10,000 gaming-related jobs and more than 300 gaming firms. The sector has endured issues such as Malta’s addition to the Financial Action Task Force’s “grey list”. Despite these aspects, the government has taken the initiative of implementing corrections and strengthening the regulatory framework in the sector to improve economic growth and retain its competitive position.
Background: Regulatory Changes and Their Impact
The regulatory field in Malta is enshrined in the Gaming Act, and subsequently, subsidiary legislation. Games services are categorized into four types. They range from those considered as a game of chance and are contested between players with a house. Alternatively, it can be a game of controlled skill, such as fantasy sports betting. The Act further provides mechanisms, such as voluntary certification of specific B2B gaming supplies and ‘Recognition Notice’ for games services by jurisdiction entities that are holders of a license from jurisdictions declared as equivalent by the Malta Gaming Authority. Licensing, done through a strict process, is also facilitated. It assures the fitness and the property of the applicant. Detailed checks, including financial, anti-money laundering checks, technical setups, as well as adherence to administration and regulation requirements, are facilitated. Special restrictions such as the requirement of key function holder’s licenses, as well as share capital of a certain minimum, are also applied.
There are several laws have been brought up to cover gaming activities licensed by the MGA. These include directives regulating areas such as player protection, compliance, and regulation, among others. The regulatory environment is not static. It is a constant change to meet new challenges and demands. This ensures that Malta is open, fair, and conducive for its gaming sector; hence competitive. Therefore, Malta’s approach to the gaming sector regulation ensures not only the sector’s significant contribution to the national economy but also makes Malta a leading European gaming hub. Its adaptive regulatory frame also shows a forward perspective. It aims to ensure the industry’s growth and sustainability, based on the current and future competitive gaming industry.
Success Stories of Strategic Investments in Malta
The country, on the other hand, reflects a strategic investment into the gaming sector, especially in iGaming facilities, and, recently, blockchain technologies. Therefore, these assets over just several years have transformed Malta into one of the most remarkable sites in the global gaming industry.
The subsequent list of success stories confirms Malta’s specialization in gaming and iGaming sectors is full of innovations revolutionizing the sector. Another signal about the innovative factor in the country is related to the regulatory framework, which attracted businesses from the finance, technology, and iGaming industries. Moreover, Malta’s ability to adjust business possibilities rapidly compared with high economic growth measured via GDP and low unemployment rates positively impacts new businesses. For example, Malta is called “Blockchain Island” because of its desire to welcome cryptocurrency and blockchain businesses. Finally, Malta’s support of new businesses starts with the BStart 2021 program, designed to help start a new company via financial support for up to €200,000.
The Maltese experience with iGaming, in particular, testifies to the success of the Malta Gaming Authority, its strict legal framework on responsible gambling, and the secured market. Malta’s policy since 2004 has helped create a fair and transparent market for the iGaming sector, and Malta has become the leading authority in the field. The secure conditions of living and working in the country along with the high qualification of employees and closing the gap in the foreign players’ share within the country demonstrate the benefits of these policies in creating a business-friendly environment. The fact that the iGaming industry continues to expand in need also reminds one not only about the sector’s resistance but also about its assistance in economic growth.
JWJ Investments Group Holdings, another example, has proven the breadth and depth of industries investing in Malta. From transportation and iGaming to oil & gas, service companies, and hospitality, the group’s ventures showed that independence in a partnership may ensure companies’ autonomy while operating within a structurally and financially secure system. These examples are powerful lessons for those looking for the greatest potential for their business development in Malta. The iGaming sector’s success heralds that of Malta’s gaming sector renewal and smart investments.
In July, Malta was removed from the FATF grey list, an outcome that received a mix of responses from the sector. The country’s greylisting resulted from concerns over its enforcement of crime finance laws, such as money laundering and corruption. The FATF highlighted that Malta had failed to maintain accurate records of beneficial ownership, among other issues. However, Malta made progress in addressing these issues, resulting in a reduced score on the FATF list.
The relocation of some operators in the gaming sector, which contributed 12% of the GDP during the pandemic, was a blow to the sector. The action to remove the country from the grey list was primarily considered a testament that Malta would not condone illicit behavior and was committed to enforcing its laws and working on its regulatory framework.
Investigations into the mafia’s infiltration attempts on the island gaming sector, including probes by, the Italians, emphasize the sector’s susceptibility. The Italian prosecutors investigated persons involved in using the island’s gaming sector to set up shop and launder money for mafia families. Although Malta will continue to face challenges in ensuring that the sector is not used for crime, the probes and Malta’s actions are steps towards maintaining its reputation as the hub leader.
Conclusion
Malta’s gaming sector is torn between growth and innovation and controversies. The efforts made by the government to support the regeneration of the sector and its strategic importance outline the critical aspect of iGaming in its new economy.
