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Malta Gaming Authority

The Malta licence is used by a lot of international online casinos. This small european member state issues permits that allow companies to explore an online gambling site.

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Online Casinos with the MGA License:

Online gambling has evolved alongside the internet. High-tech developments and innovations in the past few decades have led to certain legal challenges. In order to prevent illegal gambling and organized crime, regulators have created gambling control commissions and boards which issue licenses to face those challenges and protect players.

Among the many licenses that oversee several jurisdictions, the UK Gambling Commission and the Malta Gaming Authority are among the most trusted. The MGA (Malta Gaming Authority) is a very well-respected organization that licenses many casinos across Europe, giving them enough credibility in a market where casino frauds are getting increasingly more common.

What is the Malta Gaming Authority?

The Malta Gaming Authority, formerly known as the LGA (Lotteries and Gaming Authority), is the main Maltese gaming control board. The MGA regulates all gaming activity on the island of Malta, including land-based and online gambling services. The board was formed in 2001 and is one of the first regulators to offer legislation that controls online gambling. The formation of the MGA was a logical step considering the fact that the online gambling industry has grown a lot since 2001, now contributing up to 12% of the country’s GDP.

Malta Gaming Authority
Malta Gaming Authority issues licenses

What does the MGA deal with?

The Malta Gaming Authority deals with licensing and regulation of gaming providers including protection of minors and vulnerable person. The license also ensures the integrity of games and gaming devices, the protection of a player’s funds, and safeguards the player’s rights in an online casino. Additionally, the MGA ensures that the licensee ensures compliance with gambling laws and makes sure all activities are free of crime.

Of course, the Malta Gaming Authority can’t help you get back funds you’ve staked and lost in a fair game, but it will assist in enforcing actual winnings and help resolve disputes between players and casinos.

Types of MGA Licenses

Depending on the types of games they offer, gaming companies seeking to obtain a license in Malta may apply for one of the 4 types of MGA licenses.

  • Class 1
  • Operators that manage their own risk on online lotteries, skill-based games, and casino games

  • Class 2
  • Operators that manage their own risk on matchbook games including fixed odds, spread, and pool betting

  • Class 3
  • Operators that promote and abet gaming from Malta and take commissions from the same (including online lotteries, casino and skill games)

  • Class 4
  • This license allows management and hosting of remote gambling operators, excluding the licensee

  • Class 1 on 4
  • Operators that manage their own risk on online lotteries, skill-based and casino games operating on a third-party platform

  • Class 3 on 4
  • Operators that promote and abet games from Malta and take commissions on them operating on a licensed third-party platform.

As you can see, each license corresponds to certain casino games. However, since the 2004 Remote Gambling Regulation act doesn’t specify games or technology, operators are free to run their imagination wild whilst having almost all their innovative games fully licensed by the MGA.

Applying for the MGA License

Prospective gaming operators that are seeking to obtain the MGA license need to undergo a pre-application screening process with the organization in order for the MGA to ensure that everything’s in order.

First, the MGA will conduct a research into the operator’s financial and management sector, while also conducting background integrity investigation with national and international governing bodies and law enforcement agencies. The next step is to research the company’s business plan thoroughly, taking a look at the financial structure and their plan moving forward.

Third, the MGA conducts a full review of the applicant’s games and their terms and conditions as well as the remote games and documentation. If the applicant passes with flying colors, the MGA will give them 60 days to commence their operation. During this period, the applicant can request independent audits on external systems compared to the proposed application. If everything’s in order, the MGA will issue the applicant a 5-year license.

Finally, after the license has been issued, the MGA will contact an independent third-party company that will conduct compliance audits of the licensee in the first and third year of operations.

Where can the license be used?

The MGA license can be used in nearly 200 countries. Since the list is pretty long, we’ll list the jurisdictions where it can’t be used. The USA, Lithuania, Slovenia, Estonia, Denmark, Iraq, Iran, Syria, Turkey, Malaysia, Indonesia, France, Spain, Belgium, Austria, Italy, Macau, Hong Kong, China, Australia, the Czech Republic.

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