Malta Passes I-Gaming Regulations

The Malta Lotteries and Gaming Authority announced today it is formulating a new licensing regime for online gambling in Malta.

The legislative framework, expected to be completed by the end of the year, will provide regulations for online casinos, casino-style games, sports betting, betting exchanges and lotteries. The attempt to regulate betting exchanges would be a first.

The I-gaming regulations come in the wake of sweeping changes made last year to Malta's gaming legislation, a revamping through which the government consolidated its many gaming laws into one all-encompassing law. Last year's legislation also created the Malta Lotteries and Gaming Authority, which oversees all types of gambling in Malta.

Parliamentarian Dr. Michael Frendo, who made the announcement at the Small Jurisdictions I-Gaming Seminar in Barcelona, said the new laws will be up to the standards of top-notch, highly regulated gaming jurisdictions.

Particular attention is being given to anti-money laundering controls. The recently passed Prevention of Money Laundering Act, Frendo said, is applicable to all gaming activity passed in Malta. Violations could result in fines of up to EU2.5 million and up to 14 years in prison. Those brought up on charges of money laundering in Malta are guilty until proven innocent.

Frendo added that Malta's minister of finance has the authority, if necessary, to create additional money laundering policies that apply specifically to gambling activity.

Online gambling businesses in Malta will pay a monthly 0.5 percent tax on all bets received and accepted.

The Lotteries and Gaming Authority expects to begin issuing licenses in the first quarter of 2003.

The topic is expected to be discussed further Tuesday and Wednesday during the European I-Gaming Congress & Expo, also in Barcelona.