The Malta Gaming Authority (MGA) has launched a ‘closed consultation’ to gather input from stakeholders on proposed changes to the financial reporting and disclosure requirements of online gambling licences.
The MGA documented the proposed amendments under the Gaming Authorisations and Compliance Directive, a mandate which is attached to the Malta Gaming Act of 2018.
The MGA seeks to strengthen its risk-based approach to regulating licensees’ financial conduct and to address uncertainties in the industry. The consultation will remain open until 25 April 2025 as part of the MGA’s effort to improve its regulatory efficiency and effectiveness.
The Gaming Authorisations and Compliance Directive proposes enhanced reporting requirements for licensees who will be ordered to submit new monthly reports on ‘player funds’ and ‘managed accounts’ to the MGA.
For financial reporting, the MGA plans to introduce a standardised framework. All licensees must submit their interim and annual statements in line with the International Financial Reporting Standard (IFRS). Audited statements must reference the total player fund balance under “cash and cash equivalents” and include a declaration confirming compliance with the Gaming Tax and Licence Fee Regulations.
The MGA will introduce new financial disclosure obligations. Licensees must notify the MGA within 30 days of any external investments in the business, excluding share subscriptions. Licensees must also submit disclosures for any loan from a non-EU/EEA licensed institution.
Licensees must immediately inform the MGA of adverse financial impacts, such as bankruptcy threats, failure to meet debt obligations, and the loss of a foreign gaming licence.
The MGA will require licensees to get direct authorisation before changing customer account funds. Licensees must also notify the MGA when adding new gaming verticals or making significant changes to gaming systems.
Each year, licensees must document with the MGA the steps they have taken to improve financial risk management. The MGA recommends that third-party agencies review and submit these reports.
The compliance directive sets new rules for managing dormant accounts. After three months of inactivity, the MGA will classify an account as dormant. Licensees must maintain dormant accounts for five years of inactivity before they can allocate the funds to responsible gaming initiatives.
In 2025, the MGA will focus on improving risk-based resource allocation, strengthening international alliances, and encouraging licensees to take a more proactive approach to risk management.