Agreements for the shared conduct of a remote gaming business

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”, theĀ  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 Authoritys final decision shall be reached only after considering such representations.

To apply for an ASCRGB an applicant must submit an applicationĀ  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.