The Malta Gaming Authority (MGA) has published its Capital Requirements Policy (the ‘Policy’), which serves as a foundation for reinforcing the financial soundness of entities holding a licence issued by the MGA to offer a remote gaming service and/or a critical gaming supply.

The primary objective of this Policy is to safeguard the integrity and financial sustainability of the gaming industry by ensuring that sufficient capital resources are available to support licensees’ continued operation and growth. This reflects the MGA’s long-standing commitment to promoting a resilient and sustainable gaming industry, in line with its regulatory objectives.

The Policy has been shaped by an extensive consultation process and has been formally notified to the EU’s Technical Regulation Information System (TRIS), in accordance with Directive (EU) 2015/1535. The consultation process was instrumental in refining the Policy to ensure it strikes a balance between the MGA’s objective of enhancing sector-wide financial stability and the practical considerations of licensees’ business operations.

In addition to existing minimum nominal share capital requirements, the Policy now introduces a requirement for licensees to maintain a Positive Equity Position. The new requirement to restore a Negative Equity Position will serve as an objective early warning mechanism, enabling the MGA to ensure that licensees remedy the situation at an early stage.

This new framework will enhance the Authority’s ability to proactively address potential financial instability, and to monitor and resolve issues of non-compliance more effectively. The Policy comes into force with immediate effect. However, a transitional period is being granted to both new and existing licensees, as described within the Policy.

The ‘Capital Requirements Policy’ may be accessed here.