Compliance Updates

MGA- Key Functions

Published

6 years ago

July 27, 2018

Reading Time: 3 minutes

One of the salient changes which shall be brought about by the new Gaming Act, as of 1^st July 2018, is that licensees are required to identify the persons responsible for the key functions as defined at law. Such persons are, in turn, required to undergo the MGA’s scrutiny in order for the Authority to assess their fitness and propriety. The persons who fulfil the necessary criteria shall then be issued with a key function certificate for the relevant function or functions.

The implementation of such change shall be as follows:

1) Licensees are invited to inform the Authority at the earliest of any key functions which shall be fulfilled by one or more persons that have already been assessed and approved by the MGA, either in their capacity as employees of the licensee or due to the fact that under the Remote Gaming Regulations (S.L. 438.04) they provide the services of Key Official to the licensee. This will allow the Authority to commence preparations for the relevant key function certificate to be issued in due course

2) Persons not already known to and approved by the MGA, who have been earmarked to provide key functions, shall be notified to the MGA between the 1^st August 2018 and the 30^th September 2018 and shall, during such timeframe, submit all the required documentation.

3) Until such time as all key persons are notified to, and assessed by, the Authority, the responsibility for the vacant key functions shall vest temporarily in the Key Official appointed under the Remote Gaming Regulations.

In terms of article 9 of the Gaming Authorisations and Compliance Directive, the following conflicts in key functions have been identified by the Authority:

1) Compliance-based roles are incompatible with roles centred around the growth of the business. In particular, the Chief Executive role, responsibility for the licensee’s finances (except responsibility for the payment of tax and fees due in terms of law) and responsibility for marketing and advertising are incompatible with the following roles:

(i) Compliance with the licensee’s obligations emanating from the MGA licence/s;
(ii) Player support;
(iii) Responsible gaming.

2) Without prejudice to the above:

a) The person responsible for the prevention of money laundering and financing of terrorism is also expected to refrain from taking on other responsibilities which may conflict with his functions in such role, or which otherwise conflicts with such function or prejudices the person’s effectiveness and independence in such role, including but not limited to the Data Protection Officer;

b) The Data Protection Officer role is incompatible with any other role that manages or otherwise controls personal data, or which otherwise conflicts with such function or prejudices the person’s effectiveness in such role, including but not limited to the Money Laundering Reporting Officer;

c) The person responsible for internal audit is normally expected not to hold any other function.

For the avoidance of doubt, the above is meant as prima facie guidance and is without prejudice to requirements stemming from other applicable legislation regarding certain functions, including but not limited to requirements relating to the Money Laundering Reporting Officer and the Data Protection Officer. The operational structure of each licensee is different, and therefore it is the responsibility of each licensee to ensure that conflicting functions are not exercised by the same person.

Notwithstanding the above, in light of the fact that this segregation of roles is necessarily burdensome from a resources perspective, start-up undertakings as defined in the Gaming Licence Fees Regulations, and recognised as such by the Authority in line with the Start-Up Undertakings Directive, may be allowed to have a single person conduct roles which may prima facie appear conflicting, during the first year of operation, if the Authority is satisfied that the integrity of the licensed operation will not be negatively affected.

Furthermore, such undertaking shall not be required to have a person responsible for the key function of internal audit, during such first year of operation. This is without prejudice to requirements stemming from other applicable laws.

Compliance Updates

IAGR confirms new Board members

Published

4 days ago

November 14, 2024

George Miller

Reading Time: < 1 minute

The International Association of Gaming Regulators (IAGR) has announced the appointment of four new trustees to its Board, each bringing unique expertise and leadership to strengthen IAGR’s global regulatory efforts:

Anders Dorph, Danish Gambling Authority (Europe)
Peter Kesitilwe Emolemo, Gambling Authority of Botswana (Africa)
Kevin Mullally, General Commercial Gaming Regulatory Authority (Asia/Oceania)
Louis Rogacki, New Jersey Division of Gaming Enforcement (North America)

IAGR President Ben Haden said, ‘I’m delighted to welcome our four new trustees to the IAGR Board. Their diverse expertise and leadership across different jurisdictions will bring fresh perspectives to our work, further strengthening our global approach to gaming regulation.

‘I look forward to collaborating with Peter, Louis, Kevin and Anders as we continue to foster innovation and drive forward effective, responsible regulation for the benefit of the global gaming community.

‘We also extend a big thank you to Trude Høgseth Felde and Mabutho Zwane for their dedicated service as they complete their terms on the Board, and I’m pleased to announce that Jason Lane will continue for another term as a Trustee.’

As a leading forum for gaming regulators worldwide, IAGR enables members to meet, share information, discuss legislative developments, exchange views and learn best practices in gaming regulation.

In recent news, IAGR has also confirmed that its 2025 annual conference will be held in Toronto, Canada, from 20 to 23 October 2025, with registrations opening in early 2025.

Compliance Updates

MGA Issues First ESG Code Approval Seals to Licensees

Published

7 days ago

November 11, 2024

Niji Narayan

Reading Time: < 1 minute

The Malta Gaming Authority (MGA) has awarded its first-ever ESG (Environmental, Social and Governance) Code Approval Seals to licensees in the online gaming sector, marking a milestone in the Authority’s commitment to promoting responsible and sustainable industry practices.

This initiative follows the launch of the voluntary ESG Code of Good Practice last year, which invited licensees to submit their ESG disclosure returns. The Code, which covers 19 topics categorised under Environmental, Social and Governance pillars, offers a strategic roadmap for online gaming companies to streamline their reporting efforts.

Following the first annual reporting cycle, 14 gaming operators have been awarded the ESG Code Approval Seal. The Code supports two levels of reporting: Tier 1, which establishes foundational ESG standards, and Tier 2, which represents a more aspirational approach.

Seals are valid for one year, with flexibility for renewal in the subsequent reporting period, allowing operators to advance or adapt their reporting tier year by year.

“We believe this initiative will significantly enhance the industry’s reputation and sustainability credentials,” MGA CEO Charles Mizzi said.

“By integrating ESG considerations into their operations, gaming companies not only contribute to the wellbeing of society and the environment but also strengthen the trust and confidence that consumers, investors, and regulators have in the industry. This initiative sends a clear message: sustainability, in the broadest sense of the word, is integral to the future of the gaming sector.”

Compliance Updates

Turkish Football Federation to Penalise Clubs Promoting Illegal Betting

Published

7 days ago

November 11, 2024

Niji Narayan

Reading Time: < 1 minute

The Turkish Football Federation (TFF) has introduced new regulations to crack down on illegal betting advertisements in professional football.

According to the TFF, clubs found violating the new rules will face fines and, in case of repeated offenses, the deduction of points.

Under the updated guidelines, any club in the Turkish Super League involved in unauthorised betting promotions will face a tiered penalty system.

The first violation will result in a fine of 2 million Turkish Liras (around $58,000), and the second offense will incur a 5 million lira fine and a third violation will see the fine increased to 10 million liras. For subsequent breaches, clubs will be fined 10 million liras for each offense, along with a three-point deduction from their league standings.

“It is forbidden to promote or advertise betting organizations not licensed by competent authorities. This includes any media, billboards and other equipment used within stadium,” the TFF stated.

The TFF emphasised that the ban also applies to entities affiliated with these betting organisations, including those involved in promoting and advertising activities in a way that suggests endorsement of illegal betting.

The global scale of the illegal betting market is staggering, with the United Nations Office on Drugs and Crime estimating its worth at $1.8 trillion. In Türkiye alone, the sector is projected to exceed 100 billion liras, according to the Financial Crimes Investigation Board.