Malta backs off tougher foreign gambling licence rules

The MGA still plans to gather data on B2C Recognition Notice holders despite the climbdown.

The hit

Malta’s gambling regulator has dropped several planned reforms meant to tighten oversight of companies operating under foreign licences, according to a Next.io report cited by GamblingNews. The Malta Gaming Authority (MGA) still wants stronger supervision but may need the Maltese government to change the law first.

Why it matters

Recognition Notices let Malta-based gambling firms run on licences from other EU, EEA or equivalent jurisdictions, skipping a separate MGA licence. The system has faced scrutiny over concerns that some firms may operate under foreign licences without informing the MGA, & that some operators may benefit from weaker AML controls abroad. The MGA says its revised approach will still enhance oversight, but the reforms now lack much of their original scope.

The record

Consultation launched	April, as part of Malta’s National AML/CFT Strategy for 2024-2026 (MGA)
FATF grey list	Malta added 2021, removed 2022 (Financial Action Task Force)
Original proposals	Extended corporate disclosures, financial detail & standardised legal opinions for foreign licence applicants (MGA)
Data collection start	MGA to begin collecting information on B2C Recognition Notice holders

What happens next

Watch for the MGA’s targeted, risk-based information requests to B2C Recognition Notice holders, due to start this year & focus on the 2025 reporting period, & any sign the Maltese government moves to amend the underlying legislation.

Sources: Malta Scales Back Foreign Gambling License Reforms

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