Malta Gaming Authority clarifies compliance contributions calculation

The Malta Gaming Authority (MGA) has issued a directive clarifying how compliance-related contributions to the authority are to be made and calculated.

The new method of calculation of gaming revenue is based on the total real-money wagers added to the total ‘bonus wagers and other financial incentives’ minus the total cost of withdrawable winnings when added to the total amount of any bonus wagers.

The definitions of ‘bonus wagers and other financial incentives’ is restricted to include player incentives such as promotional gaming credits, free bets, bonus bets, bonus wagers and other formers of player credit or player credit equivalents.

The definition of real money winnings also include winnings awarded other than in flat currency denomination, such as movable or immovable property, trips, tournament entry fees, virtual goods and currency, where “prizes shall be value according to lower of the market value at the time of the winning and the price paid by the licensee to purchase said prizes at the time of winning.

In addition, licensees are obliged to provide the MGA with data in all these areas to confirm that the contribution paid is calculated correctly.

Under the act, a compliance contribution is payable on qualifying activities consisting of type 1,2,3 and 4 gaming. It is determined by the gaming revenue generated during the license period depending on the type of gaming services approved.

The requirement to make compliance contributions to the MGA begins on the first day that any licence is issued and only stops when the authority terminates or is otherwise informed of the termination of any licence.