The Malta Gaming Authority (MGA) recently released new guidelines for operators related to the UK’s exit from the EU. The regulator defined how regulators based in and out of Malta, with or without a license from the MGA, will operate.
The effects of Brexit
Though Brexit’s deadline is frequently pushed, the MGA can no longer continue to watch from the sidelines. As one of the premier and most responsive gaming authorities in Europe, the MGA has decided to set the record straight. When the UK divorces from the EU, the British market will no longer be a part of the singular European entity, bringing a striking change in rules and regulations.
The MGA has given operators 12 months to comply with its guidelines starting immediately after the UK leaves the EU. The new guidelines will adversely affect people and entities who are based in the UK but operating gaming facilities with a Maltese gaming license. After Brexit, they will violate Regulation 10 of the Maltese Gaming Authorisations Regulations, which states that even people and entities based out of Malta can receive Maltese gaming licenses. However, they should be based in the European Economic Area.
After Brexit, it will require these entities to transfer their license to another person or entity based in the European Economic Area or re-domicile themselves in the EU.
Who else will be affected?
Regulation 22 will affect entities providing gaming services from Malta or to Maltese citizens that do not have a license by the MGA but from the EU or European Economic Area regulator. It states that all such entities need to apply for a notice of recognition with the MGA so that the authority can ensure that only recognized and regulated entities work in the country. This will help the regulator ensure that there are no regulatory gaps to address and that these companies need not comply with additional rules while operating within the country.
All UK based or UK-facing entities in Malta or MGA licensed or Malta-facing entities in the UK will now have to buckle up for a series of regulatory patchwork. A failure to comply with the new guidelines will be counted as a criminal office under Chapter 583 of the Maltese law. The regulator suggests that its rules will not bother registered entities that have key offices or employees located in the UK. Other European regulators may also take cues from the new guidelines to handle post-Brexit chaos.