Malta mulls end to sports betting veto

Malta’s government is considering ending a seven-year embargo on sports betting to receive a positive anti-money laundering rating on the Financial Action Task Force’s (FATF) Moneyval test.

Reports in Malta have suggested the FATF is delaying its latest decision on whether to include Malta on a list of risky financial jurisdictions, a decision which could have damming consequences for the island’s financial and gambling industries.

The FATF is expected to decide Malta’s rating on 15 June, based on a report by the Council of Europe’s anti-money laundering committee, known as Moneyval.

Malta failed a similar test of its anti-money laundering rules in 2018, and a subsequent test failure could see the island grey-listed by the FATF. However, the Malta Today newspaper has said a climbdown by the Maltese government will see the island receive a positive rating.

The embargo centres on a 2014 veto on the Council of Europe Convention on the Manipulation of Sports Competitions, popularly known as the Macolin Convention.

The Macolin Convention is the only international legally-binding instrument against match-fixing. It aims to combat illegal betting, bad governance, insider information, conflicts of interests and the use of clubs as shell companies.

Lastly, it aims to educate sport’s governing bodies about the importance of good governance and the education of athletes on match-fixing issues.

While many EU nations chose to join the convention, Malta did not, flagging concerns over the definition of illegal sports betting contained within the convention itself.

This decision has delayed the passage of the Macolin Convention in all 28 EU member states.

This definition will render any sports betting activity illegal in one signatory state if laws where the player is based consider it to be so.

Malta has said that, if ratified, the island’s operators would be unable to expand to other jurisdictions unless they apply for separate licences in each jurisdiction.

Maltese licences have been used by operators to expand into other jurisdictions, something which would end with the signing of the convention.

In October 2020, a Maltese government statement addressing the veto said: “Malta’s concerns in relation to the convention stem from the fact that there is no accepted definition of what constitutes ‘illegal gambling’, or ‘illegal sports betting’ within EU or international law.

“Every state is free and duty-bound to define and regulate gambling in the best interests of its citizens and is responsible to ensure that its regulation keeps gambling free from crime, and to protect its citizens from any harm that may ensue from the consumption of gambling products and services,” the Maltese government explained.

“Malta was always concerned that once a convention on match-fixing includes a gambling definition, it will pave the way for regulation of non-harmonised sectors by virtue of legal instruments intended to regulate a separate sector altogether.

“Malta continues to believe that any discussions on agreed terms, definitions and practices in gambling regulation should be discussed and agreed upon in dedicated groups, and within sector-specific legislation,” Malta’s government added.