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Capital Market Resources towards the Development of Remote Gaming in
Malta
Speech delivered by Chairman, Malta Gaming Authority, 28 April 2017
Hon Minister,
Distinguished guests, ladies and gentlemen,
We gather today to discuss and contribute to form a vision for a future where two key
contributors to economic activity in Malta - namely the gaming industry on one hand and
capital markets on the other - explore more deeply the potential synergies between them
for mutual benefit. And from the perspective of the gaming sector, the timing of this
discussion can hardly be more appropriate. This is because the industry is on the
verge of a far-reaching repositioning exercise which will, amongst other things,
reshape the sector to incorporate activities which will be more intrinsically linked to the
specific competitiveness factors which the Maltese economy can offer. This will go a long
way to de-risk activity in the gaming industry in Malta from the potential implications
of external shocks, while providing a solid basis for sustained, compliant and quality
growth. I strongly believe that an active capital market which provides the gaming sector
with the required resources in an efficient manner can be one of the key competitiveness
factors sustaining the growth of the gaming industry in Malta.
The Malta Gaming Authority is not resting on the laurels of post successes because what
got us here, won't take us there. This is because the very importance of the sector – whose
contribution to the Maltese economy in 2016 was valued at over €1 billion in terms of value
added and at 9,000 full-time equivalent jobs – hardly allows any room for complacency.
While it is encouraging to note that these results were attained within an environment
that is becoming more subject to national protectionism, at least across EU jurisdictions,
it is also important to realise that the sector is attracting increasing risks and regulatory
focus with respect to financial crime. On the other hand, the industry can benefit from
important demand opportunities globally and offers tremendous potential based on
technological development and innovation across all levels of service delivery. In this light,
the Authority is proceeding with the overhaul of its regulatory framework which was started
in 2015 and which will come into force in 2017.
From a business perspective, the new licencing framework entails a more focused approach
to develop business-to-business activities. There is a global emerging trend for such
activities to be licenced in order to enhance their marketability. Business-to-business
activity also tends to be less vulnerable to financial crime, regulatory and other external
risks, and promises to make an even more pronounced contribution to the economy. This
will entail stronger connections with the domestic economy with opportunities to build
stronger input-output relationships, including with the domestic capital market.
The Authority will be also enhancing the efficiency of regulatory processes across all areas of
activity. This will entail the removal of unneeded bureaucracy while ensuring that regulatory
resources are focused where they are effectively needed through a risk-based approach.
Concurrently, it will be essential for processes in business service provision oriented to the
sector, including those related to the capital and financial markets, to be streamlined as
much as possible, while becoming more effective.
The regulatory repositioning furthermore aims to ensure the flexibility necessary to meet
current and future dynamics with respect to technological developments and market
demands. In this respect, our jurisdiction will be future-proofed to accommodate an
increased convergence between game types, channels of distribution and markets, as well
as new technologies such as skins gambling and virtual reality.
I am furthermore pleased to report that the Authority is undertaking in-depth studies on the
role which crypto-currencies can play within the Maltese regulatory regime. In the context
of the rapid developments in this area which are taking place at a global level, the Maltese
regulatory system cannot afford any loss in competitive edge in this regard, especially to
sustain its reputation as a forward-looking jurisdiction which is friendly to compliant
businesses. For this reason, the Authority is actively evaluating the circumstances and
requirements necessary which could eventually enable operators to conduct business in this
manner as well. I am sure that this will also have important implications with respect to the
interface between the gaming industry and capital and financial markets in Malta.
I furthermore welcome the forward looking initiative taken by the Government of Malta in
developing a block-chain technology strategy for the Maltese economy, one which will
impact on the future of gaming as well as financial services.
From a compliance perspective, the regulatory repositioning process will achieve a high
level of integrity consistent with on-going and future global requirements. This is consonant
with the regulatory developments which have profoundly affected financial and capital
markets activity in recent years. This process has already begun through a close
collaboration with the Financial Intelligence Analysis Unit with respect to combating money
laundering, among other initiatives. I strongly believe that this work will help to build a safer
world for us all.
The Authority is also sharpening its focus on other key success factors for Malta’s gaming
jurisdiction over the medium term. In this regard, I believe that the question of human
resources deserves close and immediate attention. In this respect, we shall soon be
launching the European Gaming Institute of Malta in partnership with the Malta College of
Arts, Science and Technology, amongst other initiatives. In a similar fashion, the
development and attraction of human capital needs to be considered also within capital
market services providers seeking to re-orientate their business activities towards the
gaming industry.
Through the deepening of relationships between operators in the gaming industry and
capital market services providers, there is even greater promise that these crucial sectors
will consolidate and hopefully improve their contribution to the Maltese economy. This can
also be conducive for the replication of the success that Malta has achieved in the remote
gaming sector to other areas such as financial technology, e-commerce activities, electronic
payments, digital currencies and other digital economy sectors.
I believe that all of us in this room have a role to play in making great things happen.
I thank you for your attention and wish you a great conference.