Monthly Reporting to the MGA
A B2B licensee is required to submit monthly B2B Compliance Reports which require the reporting of the B2B/B2C client companies it provides its licensable services to. Amongst other things, the B2B reporting entity is required to specify the relationship type held with its client companies from the list hereunder:
- B2C – Directly providing this B2C with games supplied and managed by the licensee submitting the B2B report;
- B2C – Directly providing this B2C with aggregated games supplied and managed by other authorised B2B providers;
- B2C – Directly providing this B2C with licensable supply and management of back-office software and/or the control system on which such software resides;
- B2B – Directly providing this B2B with licensable supply and management of back-office software and/or the control system on which such software resides;
- B2B – Directly providing this B2B with games supplied and managed by the licensee submitting the B2B report.
These reports need to be submitted by not later than the 20th day of the following month and can be done via the LRMS portal under the Company timeline through the relevant application titled “B2B Compliance Report – Month Year”.
These need to be submitted by not later than the 20th day of the following month and can be done via the Licensee Portal under the Company timeline through the relevant application “Tax Report – Month Year”.
This report shall be submitted by all B2Cs, as well as B2Bs managing pooled jackpots. This applies irrespective of whether or not the gaming operation has gone live. In this report, all month-end balances related to player funds (inclusive of open bets and pending withdrawals), jackpot funds, as well as player-designated bank/PSP account balances shall be reported. The report shall also be accompanied by supporting documents (i.e., backend screenshots, bank/PSP statements, merchant screenshots, etc.) as verification of the reported balances. The objective of this report is to determine whether the licensee has a surplus or shortfall of funds to cover the player and jackpot dues.
These reports need to be submitted by not later than the 20th day of the following month and can be done via the Licensee Portal under the Company timeline through the relevant application titled “Player Funds Report – Month Year”.
These need to be submitted by not later than the 20th day of the following month. This can be done via the Licensee Portal through the Company timeline, by using the application “ADR Reports”. Within the reports, the licensees shall include the name of their engaged ADR provider, the disputes (their nature, detailed description etc.), as well as the ruling (based on evidence).
Half Yearly & Yearly Reporting to the MGA
The Interim Financial Statements shall at least include a Statement of Financial Position and a Statement of Comprehensive Income. Moreover, the management accounts shall be signed by the Key Gaming Operations and/or any director.
Interim Financial Statements need to be submitted within two months (60 days) from the end of the first 6 months of the financial year. This can be done via the Licensee Portal through the Company timeline, by using the application “Interim Financial Statements”.
The Industry Performance Returns (IPRs) are to be compiled by all licensees providing key data on various aspects of the operation. This request for information is being made in terms of Article 7(2)(d) of the Gaming Act (Chapter 583 of the Laws of Malta). These need to be submitted on a bi-annual basis and are due on 7 September for the period 1st January till 30 June, and on 28 February for the period 1 July till 31 December of each year.
This can be done via the Licensee Portal through the Company timeline, by using the following applications:
- “Industry Performance Return – 1 January – 30 June – Year”; and
- “Industry Performance Return – 1 July – 31 December – Year”
The latest IPR Template Form may be found here.
Click here for guidance on how to complete the Industry Performance Return, which includes definitions of various terms and an explanation on how to fill in the Return.
All licensees shall submit an audited set of financial statements, prepared in accordance with International Financial Reporting Standards and audited in accordance with International Standards on Auditing. The respective audited financial statements shall include the following:
- Audit Report signed by the auditor;
- Directors’ Report signed by the directors;
- Statement of Financial Position signed by the directors;
- Statement of Comprehensive Income;
- Cash Flow Statement;
- Statement of Changes in Equity;
- Notes to the Accounts.
Furthermore, for B2C licensees providing gaming services by remote means, the audited financial statements shall illustrate the Player Funds Account Balance separately under the Cash and Cash Equivalents Note to the audited financial statements, as well as illustrate player funds separately under the Trade and Other Payables Note.
Audited Financial Statements need to be submitted within six months from the end of the financial year. This can be done via the Licensee Portal through the Company timeline, by using the application “Annual Audited Financial Statements”.
These need to be submitted annually within nine months from the end of the financial year. This shall be done via the Licensee Portal through the Company timeline, by using the application “Auditor Player Funds & Gaming Revenue Declarations”.
This submission shall consist of:
- a player funds declaration prepared in accordance with Technical Release Audit 02/21 Player Funds and Jackpot Funds, and which is applicable to all remote B2C licensees;
- a gaming revenue declaration prepared in accordance with Technical Release Audit 02/21 Gaming Tax Payable & Levy on Gaming Devices which is applicable to all remote and land-based B2C licensees.
Following the completion of the statutory audit engagement, all licensees shall submit the auditor’s management letter within nine months from the end of the financial year. This can be done via the Licensee Portal through the Company timeline, by using the application “Auditor’s Management Letter”.
Notifications to the MGA
An Authorised Person is required to submit a Declaration of Go-Live application, stating that the Authorised Person will go live within ninety (90) days from the original date of the licence. Such an application shall be provided to the Authority by no less than two (2) days prior to the go-live date indicated within the declaration, and can be accessed within the Licensee Portal.
Back in 2018, the Malta Gaming Authority issued its 5th directive, the Alternative Dispute Resolution (ADR) Directive, which came into force on 3 December 2018. An Alternative Dispute Resolution entity, is a third-party provider that a player can make use of in order to settle a dispute. All B2C licensees shall put into effect a written procedure for handling player disputes, and this procedure shall be made readily available to the players, and included within the general terms & conditions. A B2C licensee is required to appoint an ADR entity (of its choice) and make it available to players as soon as they go live.
A list of ADR-approved entities may be found here.
Any engagement of a Material Supply Service Provider should be reported to the Authority via the Licensee Portal, under the New/Change dropdown through an Operational – Outsourcing Arrangements application, on a case-by-case basis.
In case of any incident which falls under the below classifications, this shall be reported to the Authority via the Licensee Portal within 72 hours, under the Online Services dropdown:
- Any breach of the licensee’s information security that adversely affects the confidentiality of information relating to players;
- Any breach of the licensee’s information security that precludes players from accessing their accounts for a period exceeding twelve (12) hours;
- Any urgent changes to the essential components that are carried out to avoid a significant interruption of the licensee’s operations.
The MGA has in force the Suspicious Betting Reporting Requirements, as noted in Article 43 of the Gaming Authorisations and Compliance Directive (Directive 3 of 2018), which obliges Maltese licensed operators that offer sports betting to report any instance of suspicious betting to the MGA and in the immediate.
The MGA expects that licensees report all suspicious events that were offered to customers falling within the remits of the MGA licence. In such event where the suspicious betting behaviour takes place via accounts not falling within the remits of the MGA licence, the MGA expects licensees to report the said activity just the same (even though the MGA is aware that such operators are unable to share the corresponding betting data).
As part of the SBI’s Alerting process, the MGA will share knowledge regarding the suspicious betting reports received with its licensees without revealing the source of the information. The MGA expects that licensees will be able to review (or re-review) the betting activity surrounding the event being indicated in the alert, as this will increase the odds in recognising any suspicious behaviour (if there is any). If suspicious betting is recorded by an operator after receiving an alert, then the suspicious event in question is to be reported via the Suspicious Betting Reporting Mechanism.
The reporting instrument to be used for reporting purposes between licensees that offer a gaming service and/or a critical gaming supply, and the Authority is the Suspicious Betting Reporting Mechanism via access through the MGA’s Licensee Portal. Therefore, all licensees reporting suspicious events shall make use of this instrument to report. Licensees that offer sports betting (Business-to-Customer Type 2) are expected to provide the corresponding betting data that falls under the MGA’s remit at the reporting stage. If such betting data does not fall under the MGA’s remit, the licensee is expected to highlight under which jurisdiction such betting data falls, in the report itself. Moreover, licensees that offer a critical gaming supply (Business-to-Business) are not expected to provide any betting data when reporting suspicious events, as the MGA is aware that such licensees are unable to provide such information.
Request for Information (corresponded by the Authority to operators)
The MGA may, in certain circumstances, request its licensees to provide information subject to a set deadline. Such request will be corresponded formally and via email. In these instances, the Authority may be interested in knowing which authorised persons offered bets on a sporting event whilst also detailing the information required.
In such cases, disclosure to the MGA is necessary for the prevention or detection of crime as well as for reasons of substantial public interest. Where necessary, the exchange of information must be carried out without tipping off, so as not to prejudice any ongoing investigation. In doing so, the operator’s systems should be designed in such a way as to ensure compliance with relevant data protection legislation. Operators are obliged to reply to such emails.
More information regarding Suspicious Betting Reporting Requirements and Suspicious Betting Reporting Mechanism can be found through the SBRM Manual.