A study identifying the important risk factors in the gaming industry in Malta

Abstract

Gaming has become a key industry in Malta, so much so that it has become an industry leader in Europe in the past few years. This is due to Malta’s attractive tax system and additional benefits to this industry. Therefore, this research study is aimed towards gaming companies to identify which risks are likely to affect them, and which of these risks are most important. Risk is faced by every company, and this study will identify which risks are of most burden to local gaming companies. In order to carry out this dissertation, a series of questionnaires were sent out to local gaming companies. These questionnaires were addressed to personnel within the company who are in charge of the day to day operations of the company, or are involved with the mitigation of risk of local gaming companies. The research established that local gaming companies find that changes in legislations, both Maltese and EU, are the most significant risks in the local gaming industry, with the latter being of more significance. The research also concluded that in spite of these risks being of severe nature, local gaming companies are ready to take on these risks, no matter how consequential they end up being. Whilst changes in legislation were the most noteworthy risks, being also classified as the most important, they were not the only ones which are a burden to the gaming industry. Foreign competition, cyber risks and the emergence of online gaming were also deemed to be significant risk to Maltese gaming providers. Despite these risks, Malta continues to grow in the gaming industry. It is one of the biggest industries of the Maltese economy, and the number one destination in Europe to set up a gaming company.