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The MGA publishes its 2022 Annual Report and Financial Statements

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The MGA publishes its 2022 Annual Report and Financial Statements
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The Malta Gaming Authority (MGA/Authority) is publishing its Annual Report and audited Financial Statements for the financial year ending 31 December 2022. In addition to outlining the performance of the Maltese gaming business in 2022, the report gives a broad summary of the Authority’s accomplishments during the year under review and offers a medium-term outlook for the future. A thorough report outlining key statistics for the land-based and online gaming industries is then presented.

Supervisory Activities

  • 28 compliance audits were conducted and 228 desktop reviews were carried out during 2022, accompanied by additional AML/CFT compliance examinations that are carried out by the FIAU, or by the MGA on its behalf. Following information which emerged from compliance audits, compliance reviews and formal investigations, the Authority issued 10 warnings and cancelled six (6) licences. In addition, the MGA issued a total of 16 administrative penalties as well as three (3) regulatory settlements, with a collective total financial penalty of €179,150.
  • A total of 25 licensees were subject to remediation and/or administrative measures by the FIAU, ranging from written reprimands to administrative penalties, based on the breaches identified during examinations carried out in previous years, including by the MGA. In total, these amounted to just over €738,000.
  • Six (6) individuals and companies were deemed by the Fit & Proper Committee to not be up to the Authority’s probity standards due to various factors, including due to the risks of money laundering or funding of terrorism.
  • Forty-one (41) gaming licence applications were received during 2022. Thirty-one (31) licences were issued, while twenty-one (21) were unsuccessful.
  • Over 1,500 criminal probity screening checks were undertaken on individuals, shareholders and ultimate beneficial owners, key persons and other employees, and companies from both the land-based and online gaming sectors.
  • The Authority conducted 48 interviews with prospective MLROs and key persons carrying out the AML/CFT function to determine the knowledge and suitability of each candidate.
  • The Commercial Communication Committee of the MGA issued a total of nine (9) Letters of Breach following breaches of the Commercial Communications Regulations (S.L. 583.09).
  • In its efforts to protect players and encourage responsible gambling, the Authority supported a total of 5,280 players who requested assistance, covering most of the cases received during 2022 and the spill-over from 2021.
  • The MGA conducted 85 responsible gaming-themed website checks, through which 38 URLs were found to have misleading information. This led to 17 notices being published on the MGA website, and 30 observation letters that were sent out reflecting responsible gaming issues.

Improvements in Efficiency and Effectiveness

  • The Authority commissioned a sectorial skills strategy to address the gaming industry’s challenges with respect to the ongoing demand for qualified and skilled human capital, which increased significantly as the economy grew and diversified into numerous sectors.
  • Consultation exercises were conducted with industry stakeholders regarding the bets offered by licensees – with a focus on sports integrity and player protection considerations – on the proposed amendments to the Player Protection Directive (Directive 2 of 2018), and on the proposed policy on the use of Innovative Technology Arrangements (ITAs) and the acceptance of Virtual Financial Assets (VFAs) and Virtual Tokens, which led to amendments and a finalised Policy, respectively.
  • The Authority streamlined the approval process of appointing an MLRO in collaboration with the FIAU while, at the same time, ensuring that the industry is kept updated on any changes affecting this process and on any best practices that are intrinsic to the role of the MLRO.
  • The concept of Agreed-Upon Procedures (AUPs) Reports was introduced, covering player funds and Gaming Revenue. Audit firms are drawing up these reports in compliance with the ‘International Standard on Related Services (ISRS) 4400 (Revised) Agreed-Upon Procedures Engagements’.
  • The MGA kickstarted a process for possibly implementing a voluntary Environmental, Social and Governance (ESG) Code of Good Practice for the industry to showcase and increase the positive social and environmental impacts of the gambling sector.

National and International Cooperation

  • Throughout 2022, the Authority issued 43 news items on its website and 26 external communications, providing a synopsis of various updates and developments at the Authority and across the industry.
  • A total of 224 alerts were sent to the industry, 167 of which were also sent to the appropriate Sports Governing Bodies.
  • A total of 44 requests for information specifically relating to the manipulation of sports competitions or breaches in sports rules were submitted by enforcement agencies, sport governing bodies, integrity units, and other regulatory bodies. As a result of such requests, data was exchanged in 25 instances. Additionally, a total of 475 suspicious betting reports from licensees and other concerned parties were received.
  • During the period under review, the Authority was a direct participant in 15 different investigations across the globe relating to the manipulation of sports competitions or breaches in sports rules, as well as an indirect participant in 3 such investigations.
  • The Authority received a total of 83 international cooperation requests from other regulators and sent 97 such requests, with the majority referring to requests for background checks as part of an authorisation process.
  • A total of 177 official replies were issued providing feedback on the regulatory good standing of our licensed operators to the relevant authorities asking for this information.
  • The MGA works together with other local regulating authorities and governing bodies. This is reflected through responses furnished by the MGA to requests for information made by the Asset Recovery Bureau (ARB), the FIAU, as well as the MPF on the gaming sector. Additionally, the relevant information is provided to the Sanctions Monitoring Board (SMB) to assist in issuing penalties in instances of non-compliance with sanctions screening obligations.

In publishing this report, the CEO, Dr Carl Brincat said: “This report is testament to our collective efforts in promoting a fair and sustainable gaming ecosystem. Through proactive measures and leaner regulation processes, we strive to ensure a level playing field that nurtures innovation while safeguarding against any potential risks.

“As the global gaming landscape evolves, our role becomes even more critical. We embrace this responsibility with utmost determination, working tirelessly to stay ahead of emerging trends, technologies, and challenges.  We remain steadfast in our pursuit of robust frameworks that inspire confidence, protect vulnerable individuals and render Malta the home for gaming operators of good will.”

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Vibra Gaming to celebrate Betsul success at SBC Lisbon 2024

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Go-to LatAm provider will showcase how its technology and content is powering one of Brazil’s fastest growing betting and gaming brand

Vibra Gaming and its Vibra Solutions platform division will celebrate its success in Brazil at SBC Lisbon on 24th to 26th September by showcasing its partnership with Betsul, one of the country’s fastest-growing brands.

The LatAm region’s ‘go-to’ content and platform developer has partnered with the operator since 2022, just two years after it was founded, including developing a bespoke platform, powering its entire offering, and providing it with localized game-changing content.

The long-standing Vibra-Betsul partnership began when Betsul chose Vibra to develop an advanced platform technology to power its brand. The Vibra Solutions team worked in close partnership with Betsul to assess its needs and began work on a dedicated, flexible and customisable platform that continues to deliver outstanding results today, much of which will be on show at SBC Lisbon.

This was followed by Vibra’s design of a pioneering product for the Brazilian brand entitled ‘Scratch-a-Lot’, a unique instant-win game that was adapted to Federal Government lottery regulations where only certain game types could be offered to players.

Vibra Gaming will also celebrate its recent licensing success at the show following the news that it is set to become one of the first providers to gain certification for its casino platform and sportsbook technology in Brazil.

Vibra has already secured GLI certification needed to meet Brazil’s regulatory standards and is currently working with certifying laboratories to complete additional requirements.

Fernando Garita, CEO, Betsul, said: “Working with Vibra has been a success and we’re delighted with the progress we’ve made since we started. The team is always responsive, speaks our language in more ways than one, is highly experienced, and knows precisely what our players want. All of this combined means we have a technology partner who we can trust and we know will continue to deliver great results.”

Ramiro Atucha, CEO, Vibra Gaming, said: “Betsul has been a great to work with ever since we began two years ago and it’s a real pleasure to be able to shine a light on some of our joint efforts, particularly on the platform side where we’re proud of what we’ve achieved.

“Betsul was one of the first brands to believe in us and what we’re trying to do in designing and delivering a highly flexible and customizable platform for forward-thinking operators, and we’re very grateful for the faith they’ve shown in Vibra.”

Vibra Gaming will exhibit at SBC Lisbon 2024 at stand no. B550. Book a meeting with the team today! Contact: [email protected]

 

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Latest News

ZITROS’ MEGA LOUNGE IS NOW FEATURED AT TRILENIUM CASINO IN ARGENTINA

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Zitro, a leading global gaming provider, in partnership with the prestigious Boldt Group, announces the launch of Mega Lounge at the Trilenium Casino, located in the province of Buenos Aires, Argentina. This innovative concept, which has generated great anticipation in the market, offers players a unique communal experience.

In a dedicated area of the casino, Mega Lounge features a variety of Zitro games and cabinets, all interconnected to the MEGA jackpot, which is celebrated by all players participating in the Lounge’s Zitro machines.

Thanks to the number of machines contributing to the jackpot, Mega Lounge ensures a high frequency of jackpot hits, while providing a highly rewarding communal gaming experience for players. Additionally, the diversity of available games, which includes classics like Link King, Link Me, 88 Link, Mighty Hammer, and Energy Link among others, allows the Trilenium Casino to offer its customers—through Zitro’s 30 GLARE cabinets—a wide range of options to suit each player’s preferences.

Jose Pallota, General Manager of Trilenium Casino, Boldt Group, commented: “We are more than satisfied with the excellent performance that Mega Lounge has had at the Trilenium Casino and with the great reception from our customers. We are confident in continuing to work with Zitro to make Trilenium a reference casino for players in Buenos Aires.”

For her part, Alejandra Burato, Regional Director for Latin America at Zitro, commented: “We are very grateful for the trust that the Boldt Group has placed in Zitro once again. From now on, their customers will be able to enjoy the unique experience of the Mega Lounge and our proven performance games. We are confident that this new addition will contribute to the success of the casino, as it has in other markets.”

 

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Industry News

A deep dive into generative AI

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A deep dive into generative AI
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Nick McDonald, Account Director at Fujitsu, takes a closer look at the revolutionary technology and says it should not be feared if used in the right way. 

The topic of AI is dominating conversations across the industry right now.

Businesses understand that it can have a seismic impact on all aspects of their operations, from internal processes and procedures to the solutions, tools and services they provide to customers.

Of course, that impact can be both positive and negative, and while there has been a lot of hype around the potential of AI concerns have been raised, too.

This has left many organisations – and, indeed, the global markets – a little nervous about AI and unsure how they should approach the technology.

It’s important to understand there are different types of artificial intelligence, with each type having its own use cases. This includes but is not limited to:

  • Narrow AI
  • General AI
  • Super AI
  • Reactive machines
  • Limited memory
  • Theory of mind
  • Self aware

The category of AI that most are interested in is Narrow AI and in particular, the Generative AI that sits within this category of artificial intelligence.

But what do we actually mean by Generative AI?

 

Generative AI – a simple definition:

Generative AI can create new data including texts, images, videos and more. It does this by learning the structure and patterns of its training data to generate new ideas with similar characteristics.

It can be training to understand human language, programming languages, art, chemistry, biology, law and countless other complex subjects.

Large AI models power Generative AI. Often referred to as foundation models, they can perform a wide variety of tasks including summarization, classification and answering queries.

This makes it ideal for things like chatbots, creating media assets, design and product development.

 

ChatGPT catapulted Generative AI into the mainstream:

ChatGPT is the most well-known example of how Generative AI can be used.

Its rise has been nothing short of meteoric, reaching 100 million users in just two months (Facebook took 54 months to reach the same milestone).

ChatGPT is essentially a chatbot that runs on the foundation of large language models (LLMs), trained on vast amounts of data to produce texts that humans can understand.

Users ask a question and ChatGPT breaks down the query into smaller components to analyse their meaning and to determine what the user is really asking it to do.

It then returns words and sentences it predicts will base answer the query, based on the data it has been trained on.

 

Generative AI – the risks:

While ChatGPT may seem like a useful tool that, if nothing else, is great fun to use, it also highlights some of the concerns surrounding Generative AI.

This includes the accuracy of the outputs being generated, inconsistent output, bias, a lack of explainability and even threats to security, privacy and intellectual property.

There’s a growing number of examples of people using tools like ChatGPT and finding themselves in hot water but one of my favourites is that of a lawyer who used it to search for legal precedents in a case they were working on.

The lawyer typed their query into ChatGPT – thankfully being smart enough to not include specific information about the case – and it returned information showing that there were legal precedents.

They then instructed ChatGPT to compile the information in a document to submit to the court.

The issue was that the information ChatGPT returned was false, something the judge picked up on after reading the document submitted by the lawyer and undertaking their own research into the legal precedents presented.

When the judge was unable to find any such cases, they put this to the lawyer who came clean about using ChatGPT to search for legal precedents, but then not checking what it returned.

The lawyer was ultimately struck off – the best possible result because had they included information about the case in their ChatGPT search, they would have faced a lengthy prison sentence for breaching confidentially.

This is because ChatGPT is a public service that consumes information as well as shares it.

 

Don’t fear Generative AI:

But this shouldn’t stop organisations from embracing the power of Generative AI and the clear benefits it can bring to their operations.

From streamlining game development to improving customer support, there are many ways online gambling businesses can harness its potential to drive growth.

The way we have gone about this is to create a chatbot similar to ChatGPT that organisations can use with confidence. It works similarly to ChatGPT but instead of using publicly available data, it sits on top of the company’s data warehouse.

This allows teams and employees to ask questions and queries and have answers generated based on the proprietary data that foundation models have been fed on.

This data can be siloed within the warehouse, with individuals and teams given specific levels of access – the marketing team doesn’t need to be able to ask questions of the same data sets as the CFO and CEO, for example.

The use cases for a Private GPT are endless but include being able to ask any question, chat with company data, find new answers and insights, foster deeper collaboration, jointly generate insight and evaluate results and decision support systems.

Of course, this is just one way that Generative AI can be used but demonstrates how its capabilities can be harnessed safely and without any negative repercussions.

But as the industry gets to grips with the technology, many more will emerge and undoubtedly change the game for all stakeholders.

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