Innovation in Malta
Using trusts to protect gaming players’ funds In a difficult banking environment, Roger Strickland and Franklin Cachia find gaming operators are using Trusts and licensed Trustees to protect and safeguard players’ funds.
G aming operators have an obligation at law to has also achieved international standing around the globe. When looking at the Maltese landscape with particular focus on the protection of player funds, such obligations mostly stem from the Maltese Gaming Act 1 (the “Act”) and subsequent directives issued by the Malta Gaming Authority, predominantly the Player Protection Directive 2 (the “Directive”). Part IX of the abovementioned Directive clearly states that “the Act and the regulations made thereunder establish funds as being the separate and distinct patrimony of the players, segregate and protect their players’/customers’ funds. This obligation is not only locally imposed but it
and are not funds belonging to the licensee.” The Act goes on further to state that “Player funds may be held within credit, financial and, or payment institutions licensed in Malta, or licensed outside Malta but within the EU/EEA or other approved jurisdictions”. Further to the above, it has become a current reality that Gaming operators are experiencing difficulty in opening a bank account, not only locally. Such difficulty is a result of various factors such as the de-risking practices that banks and payment institutions are undergoing, to minimise their exposure to money laundering and/or financing of terrorism as well as minimisation of regulatory risks of hefty penalties imposed by the applicable authorities.
1 Chapter 583 of the Laws of Malta. 2 Directive 2 of 2018, Player Protection Directive, in exercise of the powers conferred by article 7(2) of the Gaming Act, 2018 (Cap. 583 of the Laws of Malta.
14 • IMGL Magazine • July 2022
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