Malta Gaming Authority provides top tier licences. These are industry standard licences in line with EU laws. Before giving licences, the company provides an analysis of the applicant’s information. They analyse if the operator will be able to meet obligations prescribed by law and policy. They need to be satisfied that the operator has the resources and financial backing to run the venture.
Pros of MGA Gambling Licence
The MGA licence is one of the most prestigious licences in the gaming industry. That is why hundreds of operators have acquired it. The company safeguards the interest of players. This is by ensuring that their fundamental rights are protected. To get the licence, operators have to meet stringent rules. Getting this licence is neither easy nor cheap. But it is worth it. The Malta gambling licence comes with a host of benefits:
Reputable & Trustworthy Gambling Regulator
Any operator with an MGA licence will find many doors open to them. It will be easier to attract international players, open bank accounts and enter into third party agreements. This is because stakeholders have trust and confidence in this regulator. This trust is driven by the thorough control mechanisms they enforce.
Good Protection Measure for Players
Displaying the MGA licence on an operator’s site will earn the player’s trust and confidence. Players are attracted to this regulator due to the high levels of player protection that they have in place. Players can be sure that their personal and financial information is safe. The regulator guarantees that casino sites adhere to the data protection act.
Limited Amount of Countries to Provide Services
MGA licensed operators cannot provide services to FATF blacklisted jurisdictions. These are countries where local prohibitions prevent this. For instance, in countries where gambling is illegal. Or in places where it is a must for operators to get local licences. However, MGA licensees are free to provide their services in jurisdictions where this licence is recognized and accepted.
Cons of MGA Gambling Licence
MGA is known for its demanding requirements and non-compromise. If an operator wants to hold a Malta Gambling Authority licence, they must meet these standards. The operator is required to give a detailed account of their business practices. They must also give a financial projection of the costs and profits of the casino they are starting. They need to present a full detailed business plan. Apart from this, other challenges of an MGA gambling licence include:
Long KYC/AML Process to Get Licence
It takes a minimum of four months to get an MGA licence. The process is stringent and lengthy, as it is more in-depth, compared to other regulators. They conduct proper checks and processes. Some of the things the operator needs to showcase include financial information. They should also highlight the complete ownership of the business. Additionally, they need to prove that they have no criminal background whatsoever.
Gambling Taxes Are Quite High
Operators are obligated to pay a gaming tax based on their activities. They have to pay tax from the revenue generated from players. In addition, they have to pay annual licence fees for gaming services. For B2C operators, this is a fixed fee. For B2B operators, this is a variable fee depending on their annual revenue.
Tough Compliance and Lots of Changes
The application process is complex. Applicants need to provide detailed documentation and information to MGA. Even after going live, operators need to do various compliance reviews of their operations. These are done by independent 3rd parties contracted by MGA. These reviews are done after the first year of operation. They are also done whenever deemed necessary following any changes made by MGA.