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Gaming Contributed €1.56bn to the Economy of Malta

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The economy of mga  received €1.56bn from gaming in 2019, which represents a 9.6% year-on-year growth according to data from the 2019 report of the Malta Gaming Authority AKA the MGA.

According to the report, there’s been an ongoing enforcement drive by the MGA, during which it has succeeded in cancelling 14 casino licenses in 2019 alone. There’s also been a 3.9% increase in the number of casino firms and sites in operation – on which you can do things like play online blackjack and crowd favourite slots on – taking the total number to 294, which is still below what it was in 2017.

A look at the €1.56bn additional profit and the total value of the goods/services that the casino industry produces, minus the total consumed value, placed the gaming sector at the third position in the list of the private sectors that contributed highest to the economy of Malta. It stands just behind the retail, food, and accommodation industry at number one and professional services at number two.

Talking about this, the MGA also proposed that gaming also helps in the generation of added value through other ancillary and affiliate services to other main sectors like the real estate, distributive trades, catering services and hospitality, ICT activities, financial sector and professional services sector.

In 2019, the gaming industry provided up to 7,417 jobs, which is a 9.2% year-on-year increase. Out of the total number of jobs mentioned above, the online gaming industry had 6,593. Now, the MGA did not announce the total gaming revenue for the industry, but it went ahead to announce the revenues gained by different types of games.

The first set is made up of the ‘player versus house casino games,’ and this accounts for more than 56% of the total revenue, against the 55.4% of the previous year. In this category, the games that took the centre stage were slots, and they accounted for more than 74.4% of the revenue made by this category. The table games stood at a distant 21.5%.

The second category is made up of sports betting, and this raked in 36.3% of the total revenue, signalling a drop in the 39.0% that it generated the year before. The most prevalent game in this sector is the game of football, which brought in 76.4% of the total revenue, while the contribution by tennis stood at 7.7%, and basketball contributed 5.9%.

For the third category, we have ‘player versus player,’ games and this raked in 7.7% of the total revenue. Poker contributed 81.9% to this, and betting exchanges brought in 10.3%.

The body also has another category of games that it gives licenses for, and this type 4 license is given for controlled skill games. But because the revenue that came through this was very minimal in the scheme of things, it wasn’t added.

There was also a 12.7% growth in the number of active player profiles in online casinos operating with a license from Malta, with the number standing at 20.4m at the moment.

14 casinos were cancelled while the MGA was enforcing its regulations in 2019. This is an increase from the 8 that were cancelled in 2018 and 3 that received the same treatment in 2017. Also, the regulatory body sent 11 licensed casinos into suspension, the same number they did in 2018.

They placed great emphasis on ensuring that the increase in enforcement and compliance they are embarking on reflects its structure and governance. According to the chief executive of the MGA, Heathcliff Faruggia, they committed more money to compliance, to ensure that the risk-based approach to enforcement and regulation is implemented.

There was an increase in the total number of companies operating with licenses in Malta as well, going from 283 in 2018 to 294 in 2019. But this is still not up to what was the case in 2017 when they had 296 companies. There was also an increase in the total number of active licenses from 286 to 298.

They issued new licenses to 53 out of 89 applicants. This is below the 93 that were handed licenses in 2018, and the explanation given by MGA about this is that it was because of the alterations they made in their licensing system from August 2018. The new provision holds that there wouldn’t be any need for new licenses for operators who already possess the critical gaming supply or gaming service license when they want to start offering products that are captured by a different class of license.

The MGA also delved into ad hoc responsible gambling audits in 2019.

For Faruggia, through these audits, the firm has been able to ensure that the lawful safeguards that each license enforces are effective and that they keep relaying information to the authority on how best to protect the vulnerable in the sector.

In 2019, the regulator gained €81.7m, which is an 8.6% increase. Most of the funds were from levies and compliance contributions, and it had an 8.1% increase. Also, €8.1m was made in license fees, which is a 16.1% growth, while fees for license application brought in €477,605 revenue, which is a 16.6% growth. The other sources capped this up with €817,276, which is a 14.9% drop.

When it comes to expenses, the MGA spent €13.2m – with staff costs totalling €7.2m, while depreciation and amortization, plus general and administrative costs stood at €1.2m.

In order to be ready for the future, the MGA did a survey of the licenses in April 2020, to study the impact of the current health crisis on the gaming sector. From a poll conducted for 151 B2C operators, there would be a drop of 12% in gaming revenue in 2020, and this is because of the drop in sports betting revenue. The revenue is predicted to experience a 40% decline. Also, 64 B2Bs were surveyed, and they also pointed to an expected 20% decline in revenue.

According to Faruggia, there has been an increased emphasis on the need to protect vulnerable players, especially now that our daily lives and finances have been heavily disrupted, and many are in the dark about their financial future. But then, the industry is also experiencing huge pressure through operational costs, and they have to consider this in line with the new reality.

The body is making efforts to ensure that operators with licenses adhere to the guidelines, while those without licenses, who are out there to make illegal money and put the public in danger are stopped.

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ComplianceOne Group joins forces with EM Group for full scope compliance services

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ComplianceOne Group and EM Group have announced a new strategic partnership to provide end-to-end support for all iGaming compliance needs. Through this collaboration, the two experts will be able to offer their clients a complete suite of tailored technical and corporate solutions.

Both partners have an excellent and longstanding reputation when it comes to offering security and innovation. ComplianceOne Group has shown themselves to be unbeatable on the technical aspects of regulatory compliance, whereas EM Group has over 15 years of global success in providing corporate and licensing services. As a team, they are dedicated to empower their clients by providing a one-stop-shop solution for all their compliance necessities.

“We are excited to join forces with EM Group to enrich our offerings in the iGaming sector,” said Antonio Zanghi, CEO of ComplianceOne Group. “Their dedication to client success and expertise perfectly aligns with our goal of providing innovative compliance solutions tailored to the specific needs of iGaming companies. Together, we are committed to delivering unmatched value and end-to-end support to our clients.”

Stefan Sluijter, Global Co-Head at EM Group, expressed his enthusiasm for the collaboration by stating that EM Group is thrilled to collaborate with ComplianceOne Group in this strategic partnership. “We see this as the next step in our compliance services. By combining our expertise and resources, we can offer our clients even more comprehensive solutions to help them navigate the iGaming regulatory landscape,” asserted Sluijter. “Together with the ComplianceOne Group team we are committed to support our clients’ success and the industry’s growth.”

 

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ZEAL Ventures leads financing round of prize draw platform DAYMADE

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  • Ventures division of the ZEAL Group leads 1 million Euro investment round of British prize draw start-up
  • Existing angel investors are also participating in the financing round

 

ZEAL has led a financing round in the successful UK prize gaming platform DAYMADE at a valuation of 12 million Euro via its Ventures division. In addition to ZEAL Ventures, other existing investors – several business angels with decades of experience in the gaming industry – are also participating in the round. DAYMADE will use the new funds to further scale its UK business.

ZEAL Ventures has been invested in DAYMADE since 2019 and has supported the successful British start-up in recent years not only financially, but also through ongoing advisory in areas such as strategy, regulation, marketing and organization.

DAYMADE: A British Success Story

DAYMADE was founded in 2019 with the aim of revolutionizing prize draws. The British start-up offers players the chance to win holidays, unforgettable experiences, and lifestyle prizes, while supporting a good cause.  Through a partnership with Eden Reforestation Projects, a tree is planted with every purchase. With this innovative concept, the company’s offering appeals particularly to a younger generation of adults. Its success is also reflected in the financials: DAYMADE has increased its revenue by nearly 10x in the last four years. This growth has been achieved at sustainable, attractive unit economics (revenue and costs per player). The company also achieved profitability in 2023.

Cooperation with potential

“We are delighted to once again support the DAYMADE team with a significant investment,” says Juliane Gutsmiedl, Investment Manager at ZEAL Ventures. “For several years now, we have been observing a trend towards prize games, which are particularly popular with younger target groups such as millennials and adults in Generation Z. Companies like DAYMADE are therefore significantly contributing to shaping the future of the gaming industry. For this reason, we are delighted to continue our collaboration with DAYMADE and to continue exchanging ideas on a new gaming and entertainment experience.”

“We are thrilled to have ZEAL Ventures on board again”, says Andrew Broekelmann, CEO of DAYMADE. “Their continued support is a huge vote of confidence in our mission to re-imagine prize-based draws for a new generation of players. This funding will fuel our growth and product innovation in the UK. And it doesn’t stop there – as DAYMADE grows, so does our ability to make a real difference. With over 1.3 million trees planted through our charity partners, we’re just as committed to our planet as we are to our players. We look forward to making a greater impact, together.”

 

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ESL FACEIT Group Launches FACEIT League, an Overwatch® Team League Featuring Non-Stop Action for Players of All Skill Levels

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All-new open and inclusive multi-divisional team league offers players more opportunities to compete, with USD $170,000 prize pool and a chance to qualify for the inaugural Esports World Cup

ESL FACEIT Group (EFG), the leading esports and video game entertainment company, today announced the launch of FACEIT League, an Overwatch® team League operated by FACEIT, the world’s leading online platform for competitive gaming. The all-new open circuit invites players of all skill levels across six regions to compete for their chance to win a share of the $170,000 prize pool and secure a seat at top regional slots in the inaugural Esports World Cup (EWC) taking place this summer.

FACEIT League builds on the success of the platform’s long-running Counter-Strike model, which fosters gaming communities through always-on, consistent, and rewarding structured competition and an emphasis on teamwork. An extension of ESL FACEIT Group’s multi-year agreement with Blizzard Entertainment to drive the growth of Overwatch Esports, the new community platform offers players opportunities to go from grassroots play to the world stage.

The response from Overwatch players on FACEIT has exceeded our expectations and illustrates the need for the robust, sustainable structure that we’re building with FACEIT League,” said Warren Leigh, Senior Vice President of Product, Digital Platforms, ESL FACEIT Group. “With over 50 seasons of Counter-Strike experience building some of the most successful grassroots esports ecosystems, having the opportunity to support the Overwatch community with a bespoke program is incredibly exciting.”

FACEIT League will offer multiple seven-week seasons each year, maximizing the number of opportunities for players in North America; EMEA (Europe, the Middle East, North Africa), Oceania, and South America to compete. The circuit caters to all levels of players, from fledgeling first-timers to experienced teams, presenting more opportunities to showcase raw talent and help them practice, improve, and qualify for in-person events with substantial prize pools. The Regular Season 1 takes place from April 29 to June 9, with the winning teams progressing to the Playoffs happening from June 10-23. Teams will then compete for a coveted $170,000 FACEIT League cash prize, as well as higher division promotion and a seat across EMEA, North America, Oceania and South America slots at the Esports World Cup taking place this Summer 2024.

Divisions for each region will be split into Master: Road to Esports World Cup; Expert, Advanced, and Open, with an Advanced division available for players from EMEA and North America. Expert and Advanced divisions will only be accessible via invitation to the top players based on their Elo rating, which starts based on players’ in-game ranks.

Registration for the FACEIT League Season 1 opened on Monday, March 25 at 5PM CET/4PM GMT, and ends on Thursday, April 25 at 5pm CET/4pm GMT. For more details on the FACEIT League structure and prize pool distribution, visit: faceit.com/en/league-pass/ow2

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