Malta market focus
Malta – 20 years of fully regulated remote iGaming As Malta celebrates removal from the FATF grey list, James Scicluna and Ramona Azzopadi chart the keys to development of the island’s gaming sector and outlines the challenges to be faced in future. F
rom a standing start 20 years ago, Malta has grown to be a world leader in remote gaming. At the same time, the industry has become a significant contributor to the Maltese economy accounting for over 10,000 jobs. It has also been responsible for an influx of thousands of young, well paid and well-educated workers who have made the island their home. In the decade from 2010, the industry grew by over 80 percent. This trend continued during Covid, boosted by the move to remote working so that today it accounts for 12 percent of Maltese GDP and is one of the local economy’s most value adding industries. The cause of this success? Regulation. Malta was the first European Union member state (by several years) to create a comprehensive legal framework for igaming. That first- mover advantage persists despite many other jurisdictions regulating gaming themselves. Being the first fully regulated environment in Europe drew gaming companies seeking the credibility and respectability of a gaming license to the
island. The law, which was revamped in 2018, and the Malta Gaming Authority have proven effective at keeping up with the pace of change and Malta is still one of the only EU markets to boast a fully-functioning regulated market. Over 20 years the island has built a critical mass of investment, infrastructure and local talent which have combined with market access to produce a thriving industry. It is testament to the value of a Malta’s gaming ecosystem that some recent investors have located onto the island for this alone, rather than the benefits of a Maltese license. The growth of the gaming industry has not been entirely plain sailing and there have been some headwinds along the way. Some of these are familiar to all hi-tech industries – talent and digital infrastructure are as in demand in Seattle as they are in St Julian’s, as are affordable property and a balance between growth and quality of life. Other factors are more homegrown. Financial services, one of Malta’s other growth stories, has largely developed in a parallel rather
IMGL Magazine • July 2022 • 7
Made with FlippingBook flipbook maker