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Application for a Gaming Licence
Requisites
For the Lotteries and Gaming Authority to grant a licence, the applicant is to be a limited liability company registered in Malta . Its shareholder/s may, following receipt of dividends, claim a refund of 6/7ths of the Malta tax suffered at company level on the dividends distributed from the Malta company, the income of which would be 'trading' in nature.
The stages leading to the acquisition of a remote gaming licence is divided into three stages. In the first stage the Authority analyses all the information related to the persons involved in the financing and management and the business viability of the operation. The first stage is usually completed in approximately two weeks, depending on the correctness and completeness of the information submitted. The applicant is to file an application which includes the following information:
- personal background information;
- financial information;
- participation in legal commercial activities;
- criminal record information;
- information concerning all pecuniary, equity and other interests in the applicant; and
- any other information required by the Lotteries and Gaming Authority for every director, key official, chief executive officer and every shareholder with 5% or more ownership or controlling interest in the applicant. The authority may also request information about the beneficial owners of shares in the applicant.
In the second stage, which usually takes approximately three weeks, the Lotteries and Gaming Authority examines the incorporation documents and games, as well as the business processes relating to the conducting of the remote games, rules and conditions. In the third and final stage, a letter of intent to operate remote gaming is given to the applicant with the intent of obtaining a certification of compliance within six months. The Authority reviews agreements with all third parties which may impact the licencee's gaming, as well as backup and disaster recovery procedures, amongst others. This stage usually takes approximately two weeks to carry out.
In terms of the regulations, when deciding whether an applicant's licence is to be issued or renewed, the Lotteries and Gaming Authority is required to consider:
- the character and reputation of the persons vested with executive powers in the applicant;
- the financial position, business reputation and financial background of the applicant's promoters, shareholders and directors;
- whether the applicant has the appropriate business ability to conduct remote gaming successfully;
- whether the applicant has, or is able to obtain, appropriate resources and is able to maintain minimum required reserves as may be established by the Lotteries and Gaming Authority in order to ensure that players shall have winnings paid and deposits returned;
- the commitment of the applicant to maintain a physical presence in Malta;
- whether the applicant is, in the opinion of the Lotteries and Gaming Authority, untainted with illegality;
- whether the applicant has followed policies and will take affirmative steps to prevent money laundering and other suspicious transactions; and
- applicant's capacity and internal control structures to comply with policies and directives which the Lotteries and Gaming Authority deems appropriate.
Classification of applications
An applicant may apply for either or all of the following licences:
| Class | Purpose |
| Class 1 Remote Gaming License | Remote Gaming License |
| Class 2 Remote Gaming License | Remote betting office licence or online betting exchange office licence |
| Class 3 Remote Gaming License | Licence to promote and, or abet remote gaming from Malta |
| Class 4 Remote Gaming License | Licence to host and manage remote gaming operators, excluding the licensee himself. |
Control systems
The applicant is to inform the Authority of the specifications of the control systems that are intended to be used during the operations. The information submitted is to relate to, amongst others, the operation of remote gaming, the procedures for recording and paying prizes won in remote gaming, the accounting systems and procedures and the provision of an adequate system of data backup. This does not apply in the case of an application for a Class 4 Licence.
Application and Licence Fees
- All Classes of Remote Gaming Licence – two thousand, three hundred and twenty nine Euros(€ 2,329) una tantum to be paid up-front together with the submission of an application for the issuing of a Licence;
- Licence fee for all Classes of Remote Gaming Licence – six thousand, nine hundred and eighty-eight Euros(€ 6,988) upon receipt of notice that the class or classes of licences applied for will be granted for a period of five years;
- Renewal fee for each licence for all Classes of Remote Gaming Licence – eleven thousand, six hundred and forty seven Euros(€ 11,647) upon application for renewal (every five years).
Duration of licence
Once the Authority grants a licence, the licence is valid for a five-year period which may subsequently be renewed for a further five years.
Website
Once in possession of a licence, the licensee is to set up and maintain a website, which is to contain information, amongst others, about the licensee and the rules of the game and shall include hyperlinks to the website of organisations specialised in helping problem gamblers and which are approved by the Lotteries and Gaming Authority.
Key official
Any applicant in possession of any one of the classes of licences mentioned above is required to appoint at least one key official and such appointment is to be approved by the Lotteries and Gaming Authority and shall be a condition of the licence. The Lotteries and Gaming Authority shall issue, at its discretion, a key official licence to such person.
The role of the key official is twofold:
- to personally supervise the operations of the licensee of which he is a key official;
- to ensure that the licence holder complies with all applicable laws and regulations, the conditions of the licence and any directives issued by the Authority to the licensee.
- The key official is to be resident in Malta and be a director of the licensee, and, in the discretion of the Lotteries and Gaming Authority, a fit and proper person.
Players
A player of an authorised game must be any person who is over 18 years of age and is required to be registered with the licensee. Once registered, a players' account is then set up which includes all funds received by the licensee from or on behalf of the player, or owned by the licensee to the player.
The licensee is to keep players' funds in a Clients' account held with a credit institution approved by the Authority.
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