The Malta Gaming Authority’s Notice on the Licensees Financial Reporting Obligations and the Agreed-Upon Procedures Issued in Collaboration with the Malta Institute of Accountants
In light of the recent revision of the Gaming Authorisations and Compliance Directive (Directive 3 of 2018), the Malta Gaming Authority (‘MGA’ or ‘Authority’) would like to remind its licensees of their obligations stemming from Article 41 (2)(b) of the said Directive. Licensees are required to ensure that:
- the statutory financial statements are audited in accordance with International Standards on Auditing, and prepared in accordance with International Financial Reporting Standards as adopted by the EU. In addition, for B2C licensees providing gaming services by remote means, the financial statements should disclose the Player Funds Account Balance separately under the Cash and Cash Equivalents Note within the audited statutory financial statements as well as disclose player funds under the Trade and Other Payables Note to the audited statutory financial statements;
- an Agreed-Upon Procedures Report drawn up in accordance with ISRS 4400 (Revised) Agreed-Upon Procedures Engagements in relation to the Gaming Tax and the Gaming Licence Fees applicable to the licensees which fall under the Maltese licence is submitted to the MGA; and
- in the case of B2C licensees providing gaming services by remote means, an Agreed-Upon Procedures Report drawn up in accordance with ISRS 4400 (Revised) Agreed-Upon Procedures Engagements in relation to the player funds, the jackpot funds, as well as the portion of Player Funds Account balance held by the licensees which fall under the Maltese licence, is submitted to the MGA.
The ISRS 4400 reports provided in terms of sub-paragraphs (ii) and (iii) above shall be provided in the form of separate reports signed by the practitioner. The ISRS 4400 reports submitted by the licensee in terms of sub-paragraphs (ii) and (iii) above are distinct from the statutory auditor’s report and are thus subject to separate terms of engagement.
The said ISRS 4400 reports shall be submitted to the Authority together with the audited statutory financial statements within one hundred and eighty (180) days from the end of the company’s financial year. By way of exception, the MGA will accept that the first round of ISRS 4400 reports, which are required to be submitted for the financial year ending 31 December 2021 and which should be submitted by 30 June 2022, may, instead, be submitted by 31 October 2022 to allow sufficient time for the licensees and practitioners to adjust to these new requirements.
In order to provide clarity on the professional requirements in the carrying out of the engagements intended to procure the ISRS 4400 reports required in terms of the Directive and to provide guidance on the agreed-upon procedures to be performed in accordance with the International Standard on Related Services (ISRS) 4400 (Revised), the Malta Institute of Accountants Gaming Committee in collaboration with the MGA issued the below Technical Releases laying down the professional requirements for the carrying out of these engagements:
Technical Release Audit 02/21 – Gaming Tax Payable and Levy on Gaming Devices
Technical Release Audit 02/21 – Player Funds and Jackpot Funds
Any queries on the above requirements shall be sent to the Authority on the following email address: [email protected].