Malta Experiences Growth in Gambling Sector
The Maltese Gaming Authority (MGA) has recently unveiled the revenue statistics for the island country's gaming sector, revealing that the industry contributed a whopping €1.56 billion to the state's economic growth in 2019. This marks a significant 9.6% increase from the previous year, despite the MGA tightening its enforcement measures and revoking no less than 14 licenses that year. Predictably, the number of licensed companies also saw a 3.9% rise, now standing at 294.
Interestingly, this €1.56 billion value added from the gaming sector ranked third among the private sector's contributions to the Maltese economy. Notably, the sector trailed only behind retail, the hotel and catering industry, and professional services. Notably, the gaming industry also contributed to the value added of other key sectors, such as finance and ICT activities, the hotel and catering industry, and trade and real estate. In terms of creating jobs, the gaming industry generated a stunning 7,417 jobs in 2019, representing a remarkable 9.2% increase over the previous year, with 6,593 of these positions specifically employed within the online gaming industry.
The most popular gaming vertical, as per the MGA's report on online revenues, was games of type 1, where players compete against the casino. These games accounted for an impressive 56% of the total online revenues. Unsurprisingly, online slot machines were the most sought-after games, generating an eye-popping 74.4% of the revenues. Table games followed with a comparatively lower 21.5%.
The second most popular category, namely games of type 2, or sports betting, witnessed a slight dip in revenues compared to 2018 (39%). Football betting continued its reign as the most lucrative sport, accounting for 76.4% of the revenues. Interestingly, tennis betting took the silver, making up for 7.7%, with basketball betting earning 5.9%.
The wealthiest vertical of the lot was games of type 3, or player-against-player contests, such as online poker. These games brought in 7.7% of the revenues, and of these earnings, 81.9% originated from poker while a meager 10.3% from betting exchanges. Lastly, the MGA announced that it would start offering type 4 licenses for controlled skill games in the near future, though these revenues have been deemed rather insignificant for the overall industry.
The MGA wasted no time in tightening the noose in 2019. The regulator issued a total of 14 licensing revocations, a far cry from the 8 in 2018, and the 3 in 2017. Additionally, 11 licenses fell under review, which was unchanged from the previous year. Heathcliff Farrugia, the MGA's CEO, emphasized that 2019 was marked by stronger leadership and a resolute focus on compliance and enforcement of all regulations. To demonstrate this commitment, the MGA invested in more resources and expanded its enforcement efforts.
The tally of approved licenses increased from 286 in 2018 to 298 in 2019. Regrettably, this fell short of the 296 licenses in 2017. Although only 53 of the 89 license applications were successful, Farrugia believes that the scarcity of approvals can be attributed to the more stringent licensing conditions that were introduced in August 2018.
Perhaps one of the more inspiring initiatives the MGA embarked upon was the introduction of unannounced gaming audits to ensure player protection measures were being diligently implemented by the licensees. In tandem with these audits, regular and customized audits are now being carried out.
Finally, the MGA introduced a new wave of measures to curb match-fixing in May 2019, with plans to provide its licensees with the necessary tools to curb suspicious betting activities. Following are the new regulations set forth in the consultation paper: licensees will be expected to report any suspicious activities through a dedicated system on the MGA website. This step aims to uphold the sanctity of sports.
The Authorities demand thorough information. It's necessary for operators to offer a complete account of the markets where the questionable actions occurred. Additionally, details about the markets where suspicious accounts were accessed are needed. The precise timing of the suspicious betting activities is critical. Further related actions are anticipated in the near future.
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Source: www.onlinecasinosdeutschland.com
