MGA issues Position Paper on Digital Games of Skill with Prize

Following a public consultation process and an assessment of the feedback received, the Malta Gaming Authority (MGA) is publishing its position with respect to digital games of skill with prize offered through means of distance communication. The consultation document and feedback received can be accessed on the MGA’s website through the following link.

The position paper, (which can be accessed below), seeks to clarify the Authority’s stand and approach with respect to the several different types of games available on the market which may include elements of skill, as well as detailing the Authority’s regulatory policy into the proposed overhaul of gaming legislation in Malta.

With respect to the regulatory policy concerning skill games in the short and medium term, and within the context of the regulatory overhaul underway, the Authority is of the opinion that skill games (with prize) with no, or a negligible element of chance should not be subjected to licensing requirements, since the risks associated with these games do not warrant such stringent ex-ante requirements. However, skill game operators and their gaming activities should fall under the governance and regulatory competence of the Authority and be subject to certain standards and monitoring to ensure a safe and fair environment for consumers. On the other hand, for games the outcome of which is mainly accidental but also influenced significantly by the skill of the player, and which are licensable under the present gaming framework, are also identified. The position is that such games should still be subject to a licensing requirement, but the requirements imposed should reflect the risk posed by such operation, and as such must be distinguished from those of games of chance. Regulatory intervention should not go beyond what is necessary to ensure a safe and fair environment for consumers, free from criminal activity.

The Authority therefore considers that the new regulatory framework should reflect the principles set out in this position paper, and will make proposals to this effect to Government. The Authority shall continue to monitor developments in this gaming segment and will review its position as necessary in the future.

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