In September 2015 the Malta Gaming Authority (MGA) invited interested companies from the licensed remote gaming industry in Malta to participate in its initiative to form a small Joint Working Group (JWG) with officials of MGA, in order to consider the regulatory issues surrounding outsourcing in remote gaming. In April 2016, the JWG submitted a draft policy on Outsourcing in Remote Gaming to the MGA for consideration. The MGA has endorsed this draft policy and is now asking for input from the widest possible representation of the Malta based industry and other stakeholders that are affected by an eventual adoption of such a policy.

The draft policy is not intended to restrict outsourcing in the remote gaming industry.  Conversely, it recommends that while the operator should be free to outsource services and activities at will, the responsibility for regulatory risk, management, and regulatory compliance in the outsourcing practices it undertakes, shall continue to reside solely and at all times with the Board of Directors and senior management of the operator.

Accordingly, the draft policy essentially proposes that when certain material or critical supplies and activities’ are outsourced by operators, they should be subject to some form of regulatory oversight by the Regulator. The draft policy defines such ‘material and critical supplies and activities’ and proposes manners by which the regulator may exercise a proportionate degree of oversight.

In this regard, the draft policy proposes certain requirements to be fulfilled by the operator together with others to be fulfilled by providers of ‘critical’ supplies and activities.

To find out more about how this will impact your business and the suppliers that you use, please contact Joseph.Borg@whpartners.eu

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