MALTA AS A LEADING EU JURISDICTION IN REMOTE GAMING

OLIVER ZAMMITMANAGING DIRECTOR

GAMING BUSINESS SERVICES LTD

5TH JUNE 2014

• About Malta

• Remote Gaming in Malta

• Developments

• Why Malta

About Malta

Official Name: Republic of MaltaCapital: VallettaLocation: Southern EuropeEuropean Union: Member since 2004Currency: EuroPopulation: 416,110 (2011)

About Malta

Area: 316 sq kmTime: 1+ GMTLanguages: English (official) & Maltese (official)Legal System: Common & Civil LawEconomic Sectors: Remote Gaming, Financial Services, Aviation, Maritime, Tourism, Pharmaceuticals

Remote Gaming in Malta

• First EU Member State to regulate remote gaming

While other EU jurisdictions have started regulatingremote gaming, Malta Remote GamingRegulations has turned 10 years and yet we arestill looking ahead.• Size of IndustryMalta hosts over 400 licenses shared amongst over 250 companies

Remote Gaming in MaltaLotteries & Gaming Authority (LGA)• Lotteries & Gaming Authority (LGA)LGA is the single regulatory body for both landbased and remote gaming activities in Malta. Themain aims or the regulator are;- Protecting minors and vulnerable persons;- Safeguarding players’ rights;- Promoting responsible gaming in a safe environment;- Ensuring the integrity of games and gaming devices;- Keeping gaming free from criminal activities.

Remote Gaming in Malta• Type of gaming licenses- Class 1Operators manage their own risk on repetitivegames which results depend on randomgeneration. Example; casino type games, slotsand online lotteries.- Class 2Operators manage their own risk by offering betson events based on a matchbook. Example;fixed-odds betting.

Remote Gaming in Malta• Type of gaming licenses- Class 3Operators take a commission from promoting andabetting games. Example; poker & bingo networks,betting exchanges and other pool and P2P games.- Class 4B2B operators that provide management andhosting facilities on their gaming platform to otherB2Cs operators and EEA licensees. Example;providing hosting and management facilities ontheir platform.

Remote Gaming in Malta• Licensing Process1. Due Diligence ChecksLGA ensures that applicants are fit and proper toconduct gaming business. Fit and proper test onthe UBOs, Directors, CEO and employees of thegaming company.2. Business PlanLGA assesses the feasibility of the gamingoperations.

Remote Gaming in Malta• Licensing Process3. Systems DocumentationLGA carriers test on company policies andprocedures, game operations and certifications.

4. Systems AuditThe systems auditor will audit the liveenvironment against the proposed application.

The licensing process usually takes 3 to 6months and is valid for 5 years.

Remote Gaming in Malta• Gaming TaxesMaximum tax is € 466,000 per annum per license.Class 1€ 4,660 per month for the first 6 months, and €7,000 per month for the entire duration of thelicense. Class 1 on Class 4, operators pay €1,200 per month for the entire duration of thelicense.Class 2Operator pays a sum equivalent to 0.5% of thegross amount of bets.

Remote Gaming in Malta• Gaming TaxesClass 3Operator pays a sum equivalent to 5% of realincome (revenue less direct costs that includebonuses, affiliate commissions and paymentprocessing fees).Class 4Operator pays no tax for the first 6 months,pays €2,330 per month for the subsequent 6months and €4,660 per month thereafter.

Developments• Signing of MoU’s with other jurisdictionsEx: Isle of Man, Jersey & Denmark

• Streamlining of licensing processTo make the process more efficient and effective

• Introduction of digital games regulationPromoting industry standards, settingparameters for other jurisdictions, ensuring thatgamers are rewarded, certifying game design,protecting gamers.

Why MaltaMalta has today gained international recognitionas a hub for remote gaming companies. Withattributes based on legislation, cost, tax andhuman resources effectiveness it providesgaming operators with an EU-compliant, yetflexible domicile.• Experienced & reputable regulator• Well-regulated remote gaming jurisdiction

which protects the interests of both operators and player

Why Malta• Attractive tax regime for both companies and

individuals• An extensive network of double tax treaties

including one with Russia• Established and well-regulated financial

services institutions• Excellent telecommunication infrastructure• Political and Economic Stability• Top business support services specialized in

the gaming industry• A safe, secure and pleasant lifestyle

Thank YouСпасибо