MGA ISSUES BINDING INSTRUMENT IN RELATION TO THE PROVISION OF CRITICAL GAMING SUPPLY (B2B SERVICES)

Yesterday, on the 19th of December, the MGA issued a Binding Instrument in relation to the provision of Critical Gaming Supply (‘B2B’) services.

MGA-licensed B2B service providers are to determine whether they are reasonably satisfied that they are offering their critical gaming supply to persons or entities that are duly licensed by the MGA or by a regulatory or governmental body in another jurisdiction. 

Such a receiving person or entity must also be subject to regulatory supervision in the given jurisdiction, so that the B2B Licensee’s integrity and reputability, as licensed by the Authority, is not compromised. 

Binding Instrument:

This Binding Instrument (‘Instrument’) is being published in terms of Article 7 (1) (a), (2) (a) and (4) of the Gaming Act (Cap. 583 of the Laws of Malta) (‘Act’), in conjunction with Reg. 25 of the Gaming Authorisations Regulations (S.L. 583.05) (‘Authorisations Regulations’), which empowers the Authority to issue conditions to authorisations granted in terms of the Act or any regulations thereunder.  “

It addresses one of the conditions listed in the General Terms and Conditions attached to Critical Gaming Supply licences issued in terms of the Act, any subsidiary legislation issued thereunder, and any regulatory instrument that may be applicable. 

The Authority is specifically addressing the condition that governs the provision of a critical gaming supply (i.e. B2B services) to licensed persons or entities in other jurisdictions. 

The following condition in the General Terms and Conditions,

“The Licensee shall offer a critical gaming supply solely to persons or entities that are licensed by the Authority or the competent regulator in another jurisdiction within the EU or EEA, or in another reputable jurisdiction where the Authority has an agreement with the relevant regulator. The Licensee may also offer the critical gaming supply to persons or entities licensed by the competent regulator in another reputable jurisdiction, where the Authority, in its sole discretion, is satisfied that equivalent safeguards are in place therein, and that the Licensee’s integrity shall not be compromised.”

shall be substituted, replaced in full and superseded by the condition identified below:

“The Licensee may offer the critical gaming supply to persons or entities that are licensed by the Authority, or to persons or entities licensed by a governmental body or regulatory authority in another jurisdiction. The Licensee must exercise due care to ensure that the critical gaming supply is provided solely to persons or entities that are duly licensed and subject to regulatory supervision by a governmental body or regulatory authority, such that the Licensee’s integrity and reputability shall not be compromised.”

The MGA further reminded B2B Licensees that this instrument, which shall for all intents and purposes be considered a regulatory instrument in terms of the Gaming Definitions Regulations (S.L. 583.04), is legally binding and shall come into force on 1 January 2024:

“The Authority reserves the right to take any regulatory action it may deem necessary in the event of any non-compliance in terms of the Gaming Compliance and Enforcement Regulations (S.L. 583.06).

The Instrument is solely for the relevant B2B Licensee’s reference and interpretation of the relevant condition.”