Annual Report 2022

The Board is primarily responsible for overseeing the strategic development of the Authority and attaining the set policy and strategic objectives. The Board is also responsible for policy development, overall risk management, and advising the Government on policy matters.

The Executive Committee is the central organ of the Authority and is primarily responsible for the execution of the overall strategic vision of the MGA, as directed by the Board. It is responsible for the day-to-day operation and management functions and the implementation of the Authority’s programmes and policies.

Falling directly under the responsibility of the Board of Governors of the Authority, the role of the Audit Committee is to ensure good corporate governance, risk management, oversight of audit/accounting issues and internal controls. Furthermore, the Audit Committee oversees the accounting and reporting processes, the audits of the financial statements, internal audits, and internal control systems. The Audit Committee oversees the accounting and reporting processes, the audits of the financial statements, internal audits and internal control systems and is authorised to conduct investigations into any matters falling within the scope of its responsibility. Furthermore, it is responsible for approving the strategic and annual operational internal audit plans while managing and supervising the internal audit function of the Authority.

The Legal Affairs function is responsible for advising on matters relating to the legislative framework concerning the gaming sector, general legal and regulatory affairs and dispute resolution. It is also responsible for taking the necessary actions on identified breaches of the laws and regulations governing the gaming activities licensed by the Authority. Furthermore, it liaises with the Malta Police Force, the Courts of Justice, the Office of the Attorney General, and reputable foreign agencies to further assist in prosecuting criminal offences.

The Compliance and Enforcement Committee is primarily responsible for evaluating breaches of the Gaming Act (Chapter 583 of the Laws of Malta, hereinafter the ‘Gaming Act’) and the regulatory instruments issued thereunder, together with deciding the enforcement measures that should be meted out for such breaches, if any. The Committee is composed of members from the different Authority directorates, reflecting the various issues escalated for the consideration of the Committee. The examination of breaches by the Committee is carried out per the pre-set guidelines published in November 2019, ‘Guiding Principles for the Application of Enforcement Measures’, to ensure that enforcement measures are imposed appropriately and proportionately.

The Fit and Proper Committee assesses and determines the fitness and propriety, (especially from a criminal probity perspective) of individuals and companies applying for a licence from the MGA, both at the onboarding stage and throughout their lifecycle as licensees. Complex structures may be escalated by the relevant internal directorate analysing them to the Committee to evaluate which entities and individuals should be screened. The Committee also determines when to conduct enhanced due diligence and whether existent licensees are still fit and proper where circumstances change. It is also tasked with recommending changes in the policies and procedures regarding the fitness and propriety of operators and individuals, recommending enforcement actions where necessary, and providing feedback to the Supervisory Council where it deems it is required to turn down an application based on the applicant not being fit and proper. Furthermore, the Committee also evaluates and determines any changes in the risk assessment of licensed operators on matters of probity and may impose licence conditions where it deems required.

The Operations Directorate is responsible for the overall day-to-day operations of the MGA through the various support functions falling within its responsibility, including the general management of facilities, health, safety, and security of the Authority. The human resource function ensures that employees work in a healthy, positive and safe environment that promotes a high-performance culture across the Authority, sustained by continuous investment in employees through several training programmes. The responsibility of the MGA’s promotional and corporate affairs management lies within this directorate, which ensures effective internal and external communications, strengthening the Authority’s relationship with the industry. Additionally, this directorate is responsible for undertaking research on due diligence topics concerning the Authority, intending to contribute towards policymaking and the way forward on various aspects of concern to the MGA. Furthermore, the Operations Directorate ensures that daily inspections are carried out in land-based outlets while maintaining oversight of live draws of the National Lottery operator’s games.

The Policy and International Affairs Directorate manages the relationship with the MGA’s foreign and international counterparts, including information exchange and cooperation, whilst keeping up with global developments in gaming regulation. It identifies critical regulatory areas requiring a specific focus to meet the Authority’s policy objectives and policy development thereto. It also oversees the European Union (EU) and international affairs management of the MGA and, by extension, advises the Government of Malta on any developments in this regard, including any risks and opportunities for the Authority and Malta.

The Internal Audit function within the MGA provides internal assurance and advice independently and objectively, with the ultimate aim of adding value and improving the overall operations of the Authority, as well as ensuring that adequate control mechanisms are in place and functioning. During 2022, several internal audits were undertaken in line with the risk-based internal audit plan approved by the Authority’s Audit Committee.

The Supervisory Council is responsible for ensuring the integrity, consistency, and development of the regulatory functions of the MGA. It also acts as an advisory force to the Executive Committee on regulatory developments and how the Authority should react to them. It also evaluates and decides whether an applicant should obtain a gaming licence.

The Regulatory Directorate is responsible for the authorisations function of the Authority, and it is tasked with the overall management of the onboarding process of new operators and applicants of the various types of authorisations. The overarching process involves the undertaking of criminal probity screening at the application stage and, whenever necessary thereafter, the processing of the application and the issuance of the relevant gaming licences, certificates, and any other types of authorisations required or sought by applicants and their eventual renewals. In addition, it is responsible for ensuring that both online and land-based licensees comply with the stipulated licence conditions, the relevant legislative framework, and other regulatory instruments, through prudential compliance audits and reviews. Furthermore, this directorate ensures that players have protection by undertaking the necessary regulatory supervision to ensure sufficient player funds. This directorate also handles any requests from players for assistance by facilitating resolutions of complaints between players and licensed operators. It strives to ensure that licensees have responsible gambling measures to protect players and vulnerable persons, contribute toward the fight against the manipulation of sports competitions by ensuring sports integrity, and participate in the investigation of irregular and suspicious betting activities with various local and foreign bodies. This directorate’s functions also encompass compliance with Anti-Money Laundering (AML) regulations as instructed by the Financial Analysis Intelligence Unit (FIAU) and the carrying out of investigations on reported or identified unauthorised gaming operations performed to or from Malta or through a Maltese legal entity. It encompasses the risk management function, responsible for the overall development and centralisation of a risk-based approach aimed at identifying and mitigating risks posed to the Authority’s day-to-day operations, ensuring that strategic risks align with the risk appetite established by the Board. Furthermore, the directorate implements effective risk management practices within the Authority and assists risk owners in defining the risk exposure within each department. As part of its regulatory duties, the Investigations Unit within the MGA carries out investigations on reported or identified gaming operations performed from/to Malta or through a Maltese legal entity without the relevant authorisations. The unit offers investigative support to other departments and committees within the MGA.

The Finance and Business Transformation Directorate is responsible for several cross-cutting support functions that ensure the Authority’s well-functioning. The finance function is primarily responsible for collecting compliance contributions, levies, licence fees, and other administrative fees due to the Authority, together with the general corporate finance support that provides for financial accounting, planning and control, as well as procurement. This directorate is responsible for the business transformation function of the Authority, ensuring that the Authority embraces a culture of operational excellence through high-quality outputs as well as efficient business processes and daily operations workflow management, together with information management and data quality. This ideal supports the organisation in embracing a culture of data-driven decision-making coupled with the overall centralisation and management of data and records. Furthermore, this directorate is also responsible for overseeing the Authority’s strategic projects. In addition, this directorate is responsible for the MGA’s security, infrastructure and software development functions. It is entrusted with designing, maintaining, and supporting the Authority’s information technology infrastructure, providing an opportunity to leverage information and technology in a productive, efficient, and secure manner. It achieves this through technology and infrastructure planning, hosting and data management, in-house software development, business and software analysis, quality assurance of software, and testing and integration with other systems.

The Commercial Communications Committee evaluates commercial gaming communications which are brought to its attention – through internal monitoring processes or via external reports – to ensure that they comply with the provisions set out in the Gaming Commercial Communications Regulations (S.L. 583.09) and, more importantly, to guarantee that adverts protect players and vulnerable persons. Commercial communications may be brought to the attention of the Committee by the general public or through the various regulatory and monitoring structures set up within the Authority.

The CEO’s Office is primarily responsible for implementing the strategic vision of the Authority and directing the overall management and operations of the various directorates within the MGA.

This function plays a critical role in ensuring that the gaming industry in Malta operates in a fair, transparent, and responsible manner, by investigating and enforcing compliance with the laws and regulations governing the industry, and working with other stakeholders to promote responsible gambling practices.