14 October 2019.  The Malta Gaming Authority published guidelines in preparation of the United Kingdom’s exit (Brexit) from the European Union. The purpose of these guidelines is to provide an indication of the potential impact on the gaming industry operating in or from Malta, and the transitory measures that may be availed of in order to ensure minimal impact on regulatory efficiency and the ongoing business. 

The salient points of the guidelines are as follows:

• UK legal entities holding an MGA License, will no longer enjoy from the EU’s  ‘Freedom of Establishment’ principle, and shall thus be required to establish an EEA entity in order to continue holding an MGA License.       
• Legal entities operating in or from Malta with a UK Gambling License and which hold an authorisation to do so, will not have their authorisation (Recognition Notice) renewed at the end of the term of the said authorisation.  

Notwithstanding the above, the United Kingdom’s exit from the European Union will not impact a number of regulatory causes, and these include: 

• The Authority’s recognition of random number generator or game certificates issued according to UK standards; 
• The Authority’s acceptance of UK licensed and regulated credit, financial and payment institutions for the purpose of holding player funds; · 
• The Authority’s acceptance of the use by licensed entities of UK licensed and regulated payment methods; 
• The Authority’s acceptance of essential components located in UK territory (without prejudice to the position that may be taken by the European Commission, the European Data Protection Supervisor, and the Information and Data Protection Commissioner in Malta); and ​​
• The Authority’s no objection for licensed operators having offices, including key function holders performing their duties from the UK.

The MGA’s guidelines on the UK’s exit from the EU may be viewed on https://www.mga.org.mt/wp-content/uploads/MGA-Guidelines-on-the-Impact-of-the-UKs-Exit-from-the-European-Union.pdf

This article was written by Reuben Portanier and Terence Cassar.

Afilexion Alliance provides a full suite of gaming advice and compliance support to licensed entities, whilst GTG Advocates provide legal advice and services to the gaming and tech sector. For further information you may contact Reuben Portanier on rportanier@afilexion.com or Dr Terence Cassar on tcassar@gtgadvocates.com

This article is not intended to impart legal advice and readers are asked to seek verification of statements made, from an advocate or law firm, before acting on them.