Gaming operators are increasingly finding it more beneficial to
enter into a shared conduct agreement with other parties who provide ancillary
services to gaming.
After various meetings and presentations and discussions on
the subject matter of "Agreements for the shared conduct of a remote gaming
business", the Malta Lotteries & Gaming Authority (LGA) published its
regulatory policy paper on 18th January 2008.
The LGA emphases that in such agreements the parties
undertake to conduct their business together by being responsible for specific
activities in the provision of gaming services.
The LGA is aware of these developments and realizes the need
for such arrangements. However the Authority must ensure that the same
arrangements are not done at the expense effective regulatory governance. In
this respect a new set of license conditions are being introduced for licensees
entering into such agreements.
The Lotteries and Gaming Authority is notifying its
licensees that, effective from 1st January 2008, a new set of conditions
(thereon referred to as ‘the conditions’ ) are being added to the license
relating specifically to this type of agreements (Agreements for the Shared
Conduct of a Gaming Business – ASCRGB) .
The conditions shall be directed to all types of licensees
who are issued a license under the Lotteries and Other Games Act, (thereon
referred to as ‘the Act’) provided that such licensees are prohibited from
entering into such agreements by the Act or their existing License.
Licensees (thereon referred to as ‘’Applicant’) who wish to
include these conditions must apply for the approval of the Authority to the
proposed ASCRGB immediately.
On the other hand, those licensees who do not intend to
enter into such agreements will not be affected by the imposition of the new
conditions and may not need to apply
Licensees who are already a party to such an Agreement prior
to the issue of this notice shall be allowed until end of March 2008 to comply
to comply to the new conditions. During such period the licensees may still
tender their representations in regard to the conditions imposed and the
Authority’s final decision shall be reached only after considering such
representations.
To apply for an ASCRGB an applicant must submit an
application and pay a minimum processing fee of €1000. The applicant may
be requested to pay additional charges related to the processing of the
application.
For the processing of an application of an ASCRGB the
Authority requires information pertaining the proposed party (PP) with whom such
an agreement is to be entered into.
The Authority shall then review the documentation submitted
by the licensee, conduct probity tests on the proposed party to the Authority
and notify the licensee with its approval or otherwise. The Authority may
request any amendments to the Proposed Agreement which it considers necessary.
See also:
