Types of Licences

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    Oliver Zammit

    Oliver Zammit
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    oliver.zammit@nexiabt.com
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    Companies who wish to operate an online gaming company in or from Malta must possess a valid licence issued by the MGA, being either a B2C or a B2B licence.

    B2C LICENCES

    For B2C licences, applicants are required to identify the types of games that will be offered, and the Regulations recognise four types:

    Type 1: Games of chance played against the house, the outcome of which is determined by a random generator, and shall include casino type games, including roulette, blackjack, baccarat, poker played against the house, lotteries, secondary lotteries and virtual sports games.
    Type 2: Games of chance played against the house, the outcome of which is not generated randomly, but is determined by the result of an event or competition extraneous to a game of chance, and whereby the operator manages its own risk by managing the odds offered to the player.
    Type 3: Games of chance not played against the house and wherein the operator is not exposed to gaming risk, but generates revenue by taking a commission or other charge based on the stakes or the prize, and shall nclude player vs. player games such as poker, bingo, betting exchange and other commission based games.
    Type 4: Controlled Skill Games. Applicants for a B2B licence, would need to identify whether the proposed gaming services are ‘critical’ or ‘non-critical’. A licence is required only for critical gaming supplies, whilst those wishing to offer non-critical supplies need only seek approval from the MGA.

    B2B LICENCES

    A B2B licence is required solely for providers of critical and/or material gaming supplies, namely those supplies which are indispensable in determining the outcome of games forming part of the gaming service, and/or constitute an indispensable component in the processing and/or manage essential regulatory data and which are of such importance that any weakness or failure in its provision could have a significant impact on the operator’s ability to meet its legal obligations, to manage the risks related to the supply and/or to continue in business.

    Namely but not exhaustively, a B2B licence is required for supplies of games or material elements thereof, control systems and software which generates, captures, controls or otherwise processes any essential regulatory record (whether as a stand-alone or as part of a system).

    For ancillary supplies not being critical and/or material, whilst a licence is not required, notification to and approval from the MGA would invariably be required.

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