The ‘ESG in Gaming’ seminar held in October 2023, which was co-hosted by GTG, anticipated that before the end of 2023, MGA would have released its full voluntary code of good practice. The MGA kept their promise and on the 8th of November 2023 published a voluntary code for its regulated entities.
With the aspect of Environmental, Social and Governance (“ESG”) measurement and reporting taking prominence within every sector, mainly driven by EU’s CSRD (Corporate Sustainability Reporting Directive) which came into force on the 5th January 2023, the Malta Gaming Authority (“MGA”) published its ESG Code of Good Practice for the Remote Gaming Sector in Malta (“ESG Code”).
Following the ‘Three Pillar Approach’ of ESG, the MGA adopted a disclosure system based on “international and local ESG reporting standards and requirements”, where a set number of conditions, present within the published ESG Code, can be satisfied and reported to the MGA. The first deadline for such disclosures by MGA licensees that would like to subscribe to the ESG Code, is set for Q3 2024.
Whilst this ESG Code is strictly voluntary, gaming companies which comply with the imposed conditions, may have their efforts awarded with an MGA ESG Code Approval Seal which can be brandished on their MGA-licenced website, social media and publications.
The ESG Code will allow MGA Licensees to choose between two different levels of reporting, that is; Tier 1, being a basic ESG standard and possibly the best fit for operators which will have this framework as their first ESG reporting experience, and, a Tier 2 being more sophisticated category suitable for entities that have already started their ESG journey. Minimum criteria to achieve this recognition have been defined and include core and optional disclosures.
MGA’s ESG Code is an industry ‘first’ globally, and can facilitate MGA licensees in either dealing with other entities that are captured by CSRD requirements and which will force its suppliers/partners to provide ESG metrics, or those MGA licensees that have the vision of listing their business in 3 to 4 years time, and thus will eventually be captured by CSRD.
GTG has established a multidisciplinary team made of gaming advisors, lawyers, economists, and engineers, that can assist in developing an operator’s ESG Framework. Our ESG Design methodology is multipronged so as to allow for a stepped approach, thus fitting in quite neatly with MGA’s 2 Tier model.
Should you like to learn more about how GTG can assist you to achieve Tier 1 or Tier 2 status, kindly send an email to our ESG Head of Practice, Reuben Portanier, rportanier@gtg.com.mt, or to our compliance advisory team at compliance@gtg.com.mt