Beacon of Effective Regulation Emerges in Malta’s H1 ResultsPublished November 30, 2017 by Lee R
More innovations are in store for Malta’s progressive regulation policy after robust H1.
Malta is welcoming to iGaming, providing a model for reaping the benefits of regulation in government revenue in H1 2017.
Recently released figures from the Malta Gaming Authority (MGA) indicate that gaming brought over €556m ($655.6m) to the domestic economy in the six months ending June 30.
The half year count represents a 10% year-on-year jump from the previous year and a full additional 12% in total value added to the Maltese economy, for an 11.8% year-on-year jump.
More substantial gains were to be found for Malta in gaming tax revenue at €29m, with a 5.5% increase of tax indirect tax intake, gains that were driven in no small part by a 6% increase in number of gambling companies licensed in Malta from 2016 H2.
The MGA further lauded the amount of jobs created by these increases as ahead of forecast: initial estimates at the launch of regulation set a benchmark of 6,400 full-time jobs created from online gaming industry by June 2017, only to reveal in real time that total employment in the gaming sector has reached 9,000 full-time equivalent jobs when including indirect employment.
Further Proactive Measures
The robust growth that MGA anticipates for the rest of 2017and through all of 2018 will be bolstered by an overhaul of its regulatory framework, which will continue to “streamline, consolidate and future-proof” all gaming sectors under one legislative umbrella while further aligning MGA enforcement powers with consumer protections. standards.
New Licence Categories
Regulation developments of note for 2017 H1 included MGA’s January introduction of the new controlled skill games licensing category, for which 13 licenses were issued in H1, including 10 for B2C operations and with three supplier licenses.
Crucial Study Underway
Another important new development was the sandbox test MGA has launched of the impact on Malta’s economy from permission of MGA licensees are permitted to conduct cryptocurrency transactions using digital currencies such as Bitcoin, for which the first interim reports is still pending.
From job increases to government revenue increases, Malta’s H1 has proven a mini-model for realizing the ideal benefits of regulation that any jurisdiction would do well to make note of, and monitor closely moving forward.