SKILL GAMES LICENCE & Fantasy Sports Ruling
Fantasy Sports operators operating in or from Malta are required to obtain a skill games licence following the Malta Gaming Authority’s recent ruling in terms of the newly published Malta Skill Games Regulations.
A licence issued under the said Skill Games Regulations has a duration of 5 years (renewable) and can be either:
– A licence to offer a skill games service (i.e. business-to-consumers); or
– A licence to offer a skill games supply (i.e. business-to-business).
Eligibility to obtain a SKILL GAMES LICENCE
A body corporate established in Malta (or in the EU/EEA) can apply for a skill games licence in Malta provided that its share capital is of a minimum of €40,000.
The company must have a Key Official, a Money Laundering Reporting Officer and an Information Security Officer and these persons must be readily available to the Malta Gaming Authority.
A number of reporting requirements have been provided for in the new regulations, including monthly tax and player liability reports. A company holding a licence must also subject its accounts to an annual audit and present half-yearly interim financial statements to the authority.
Furthermore, the licence holder must follow policies on anti-money-laundering, protection of player funds, self-exclusion, information security, collusion and fraud prevention, data redundancy, fair and transparent game rules and player classification.
The company will need to complete all relevant application forms and relevant supporting documents and submit these with the Malta Gaming Authority. The Authority will perform probity checks on the shareholders, directors and management of the applicant, perform a review of the company’s business plan and its statutory and operational documentation. Following this the authority will contact the applicant for any comments, clarifications or changes that may be needed.
When the application is accepted, a full systems review is performed (unless prior certification is acquired in a business-to-business scenario as per above). Following the review, any further changes or clarifications may be requested and once accepted the licence is issued.
Fees and taxes
An application fee amounting to €2,300 is payable upon submission of application. This fee is also payable upon any renewal of the licence (after 5 years).
An annual licence fee of €8,500 is payable in advance, every year.
A systems review fee of €2,500 and a compliance review fee of €3,500 is payable and other fees may be payable for any changes made to the licence or the company’s shareholding, etc.
An annual gaming tax amounting to 5% of real income is payable (on a monthly basis). Real income is made up of total wagers less total monies paid out to players. The maximum annual tax payable amounts to €466,000.
For any further information regarding a Malta Skill Games Licence or any other licence issued by the Malta Gaming Authority, please contact us for more information and clarity.