Gambling License Malta: Application Process and Support

Prior to granting a remote gaming licence, the Lotteries and Gaming Authority applies a rigorous application process which is made up of 3 Stages.

Stage 1 - In this stage, the Authority examines all the information provided. The LGA will conduct a fit and proper exercise on the Applicant, including the evaluation and analyses of all information related to persons involved in managing and financing the business, and will carry out a financial analysis of the business plan. Applicants must demonstrate a business and technical ability to carry out the operation and must demonstrate that the operation is covered by sufficient reserves or securities to ensure player winnings and deposit returns.

The business plan should outline in detail the following:

The objectives of the operation;
The proposed company structure including business functions and human resources to be employed (e.g. risk managers, odds compiler, financial officers, etc.);
The nature of games to be offered (e.g. betting, pool betting, betting exchange, casino, poker, leagues, etc);
The technologies to be used to conduct remote gaming (e.g. Internet, telephone, fax, mobile, etc);
An overview of the application software to be used as gaming and control systems;
A three-year business plan including:

1. Marketing and sales plan;

2. Forecast balance sheets;

3. A financing plan showing sources of finance, distinguishing between shareholder funds and other funds. (Such as venture capital, bank guarantees, etc.)

Besides completing the necessary LGA application forms, the following information / documents in respect of each shareholder and key management personnel need to be submitted to the LGA:

Birth certificate
Passport copy
Passport size photo
A conduct certificate, or a relevant document, issued by a law enforcing authority in the country of origin of the applicant.
Statement of Affairs
Credit and/or financial references including a professional recommendation.
A signed Resume / CV.
Existing Gaming License (if applicable).

All documents are to be certified a true copy by a Lawyer or Public Notary using his/her seal or stamp.

The above “KYC” (Know Your Customer) documents are also required by CSB to enter into a professional working relationship as part of our due diligence procedures.

Under normal circumstances (and if all documentation is found to be in order) the first stage is completed within 3 / 4 weeks (circa).

Stage 2 - After successfully completing Stage 1 of the application process, the LGA shall inform the Applicant to proceed to Stage 2. At this stage, the following documents are to be submitted to the LGA:

Incorporation Documents - A Maltese Company Registration Certificate, Memorandum and Articles of Association and the LGA’s Business Entity Information Form.
A detailed Operational Manual outlining the application & system architecture of the gaming and control systems, the software developer, security and control procedures, back-up and disaster recovery procedures, and the rules, terms, conditions and procedures of the games, and the respective online text.
The Payment methods, payment system/s and its provider/s.
Agreements with business partners, affiliates and/or agents.

The duration of Stage 2 is generally completed within 3 / 4 weeks (circa), depending on the correctness and completeness of the information submitted to the LGA.

Stage 3 - Following Stage 2, a temporary licence to operate remote gaming is granted to the Malta Company with the intent of obtaining certification of compliance for the operation based on the standard ISO / IEC17799:2000 within six months. Further to the necessary certification, the applicant must appoint a Key Official within 21 days of the Letter of Intent being issued, conclude necessary testing as well as conclude all the required agreements in respect of the hosting of servers / associated equipment and the office lease agreement. Once completed, the Applicant is issued with the official gaming license.

Requirements for Certification:

Server protocols, communication protocols and other specifications which are part of the gaming system architecture;
Gaming risk management procedures;
IT security risk management procedures and internal control of the system;
Modules that affect processes, rules and parameters of the game if the source code is changed;
Detailed description of the set-up and functionality of the application architecture and system architecture.

Control System

A system of internal controls, administrative and accounting procedures for the conduct of a remote gaming office;
Technically this includes all the subcomponents of the system where the player is in the “secure area”, login module included.
The RNG is part of the control system.
The applicant is required to submit a written document outlining the control system functionality and specifications for the approval by the LGA and update if there are any changes.

The control system is to be located in Malta and a Gaming License is granted once the control system has been issued the certification of compliance.

Gaming System

A system by means of which remote gaming is conducted, and shall include all its associated components, its operating systems and application software;
Technically this includes all the sub components of the system which provide the games, including gaming devices where applicable.

The gaming system must also be certified for compliance and requires further approval if critical components of the system are subsequently changed.