Malta clarifies licensing status of affiliates under new act

The Malta Gaming Authority (MGA) has issued new guidance clarifying the position of affiliates and marketing firms under its new Malta gaming act.

Under previous regulations, firms undertaking affiliate activities, known as ‘intermediaries’, did not require a licence to refer players to Malta-licensed operators. A licence was not required as long as the intermediary did not register players, manage player funds or undertake any risk related gaming activities.

The MGA’s new directive clarifies that when an intermediary enters into contractual arrangements with players, it is required to obtain a B2C licence.

In addition, a B2C licence is required where the intermediary handles registration including player deposits and withdrawals, with the exception of where “it is proven that such functions are being carried solely to facilitate the provision of the B2C licensee’s gaming service, for and on behalf of the licensee”.

In instances where the intermediary does not undertake any of these activities, a license is not required, with the intermediaries website being treated as a separate URL under the main B2B licensee.

The main B2B licensee is required to supply the URL address to the MGA, together with a full description of the activities that the intermediary undertakes on their behalf. In this case all regulatory responsibility lies with the main licensee and not with the intermediary.