The gaming industry in Malta : a regulatory perspective

Abstract

There is no denying the importance of Gaming in Malta. It has over the years become one of Malta‟s strongest industries. Numerous articles over the last couple of years have described how the gaming industry has generated jobs, increased the country‟s Gross Domestic Product (GDP) and attracted new Foreign Direct Investment (FDI). Nevertheless, as an industry grows so do its risks and exposures. The Gaming industry in Malta is no exception to the rule. One cannot deny that recent events have shown that the gaming industry has been indicating signs of instability: 1. The increase in the number of addictions 2. Gaming outlets used as fronts for money laundering 3. Lack of checks and balances in tax collection from gaming firms. In 2015, the Malta Gaming Authority (MGA) stated that the iGaming industry alone employed over 8,000 Maltese citizens locally and it was able to generate €13.27 billion in 2015. This is a strong affirmation that the gaming industry is not only a strong source of economic growth for the country but also a sign that in turn, the industry is in need of Malta‟s local talent. Having taken into account the benefits and the risks the industry is exposed to, what is the public sector doing to aid in the growth of the industry while protecting the interests of Maltese citizens? The aim of this dissertation is to study the arena of regulation in the gaming sector in Malta, investigating how policy is strengthening the gaming Industry by providing economic benefits while also defending the public interest. The first chapter introduces the subject and examines the importance of this study. The second segment gives a bird‟s eye view of the gaming industry; how it has developed and changed; how it has grown in Malta and what strengths and issues have developed over the years. The third segment focuses on legislation, the Institutions which exist and the forces which regulate and enforce policy. The fourth segment discusses what regulations the European Union (EU) has in place and if Malta is complying with EU regulations. The fifth and final segment presents conclusions and recommendations.