GAMING ACT

GAMING

*

CHAPTER 400

GAMING ACT

To make provision in place of the Kursaal Ordinance for the licensing of the Casinos, for

the regulation of casinos and gaming therein by the Lotteries and Gaming Authority and for

the purposes connected therewith or ancillary thereto.

30th April, 1998

7th August, 1998

ACT X of 1998 , as amended by Acts XXIV of 2001 and III of 2004 ; Legal Notice 425

of 2007 ; Act XV of 2011 ; and Legal Notice 426 of 2012 .

The short title of this Act is the Gaming Act.

(Article 37)

TAXATION

(1) The casino licensee shall pay to the Authority on behalf of

the Government the following rates of taxation

(a) Table Games

(i) On total gross takings of all table games played

at the casino a sum equivalent to thirty-six per

centum (36%).

(ii) On the gross takings generated by junkets

approved by the Authority and in accordance

with any regulations applicable thereto, on all

table games dedicated to the junkets a sum

equivalent to fifteen per centum (15%).

(b) Gaming Machines

(i) On total gross takings of all gaming machines

played at the casino a sum equivalent to forty

per centum (40%).

(ii) On the gross takings generated by junkets

approved by the Authority and in accordance

with any regulations applicable thereto, on all

gaming machines dedicated to the junkets a sum

equivalent to twenty-five per centum (25%).

(2) The tax calculated under item (1) hereof shall be assessed

separately and no set-off for any tax or for any loss under any one

paragraph shall be allowed.

In this Act, unless the context otherwise requires -

"authorised game" means a game specified by the Authority

under article 29 to be an authorised game for the purposes of this

Act;

"authorised machine" means a machine used for the purpose of

gaming as specified under article 31(1);

"Authority" means the Lotteries and Gaming Authority

established under article 9 of the Lotteries and Other Games Act;

"casino" means such premises in relation to which the Minister

has granted a concession under article 3;

"casino employee" means any receptionist, dealer, chef de table,

cashier, supervisor, watcher, machine engineer, manager, or any

other person who, in the view of the Authority, is involved in the

gaming operations of a casino;

"casino licence" means a licence granted under article 15;

"chips" means any tokens used or capable of being used in a

casino in the conduct of gaming in the place of money and

approved for this purpose by the Authority;

"gaming" means the playing of a game of chance for money or

money’s worth;

"gaming equipment" means any electrical, electronic or

mechanical device, cards or any other thing, other than chips, used,

or suitable for use, in connection with gaming;

"gaming machine" means any machine which is constructed or

adapted for playing a game of chance or chance and skill combined

as may be prescribed by the Minister;

"inspector" shall have the same meaning as is assigned to it in

article 2 of the Lotteries and Other Games Act;

"junket" means an arrangement the purpose of which is to induce

any person, selected or approved for participation therein on the

basis of his ability to satisfy a financial qualification obligation

related to his ability or willingness to gamble, or on any other basis

related to his propensity to gamble, to come to a licensed casino for

the purpose of gambling and pursuant to which, and as a

consideration for which, any or all of the costs of transportation,

food, lodging, and entertainment for the said person is directly or

indirectly paid by a casino licensee;

"Minister" means the Minister responsible for finance.

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PART II

CONCESSIONS

(1) It shall be lawful for the Minister to grant concessions

to persons to open and operate casinos.

(2) A concession under this article shall be granted for such

consideration including the payment of any sums of money to the

general revenues, for such period and upon such terms and

conditions as the Minister thinks fit.

(3) The grant of a concession under this article shall not

dispense any person opening or operating a casino from the

requirement of any licence by the Authority under this Act.

(4) Notwithstanding the other provisions of this article, the

Minister may from time to time designate a company owned wholly

directly or indirectly by the Government as the Government Casino

Operator and such company shall, whenever the Minister so directs,

take over the operation of a casino owned directly or indirectly by

the Government whenever the person to whom a concession has

been granted to run such casino for any reason abandons such

concession or has his licence revoked or suspended under this Act.

Subject to the requirement of any other licence under this

Act or any other law and to the other provisions of this Act, where a

concession has been given by the Minister under article 3, or where

the Minister has directed a company as therein referred to operate a

casino, then, notwithstanding the provisions of any other law, it

shall be lawful during the period of such concession -

(a) for the person to whom such concession has been

granted or for any person to whom such concession

has been assigned in accordance with the terms and

conditions thereof, or for the company so directed, to

permit the use of the premises specified in the

concession as a casino for the playing therein of such

games of chance for money or money’s worth and for

such stakes as may be specified in the casino licence

and to encourage the playing therein by such persons

of any such games for any such stake; and

(b) for any person to take part therein in any such game

for any such stake.

PART III

THE AUTHORITY AND INSPECTORS

The Authority shall carry out the functions assigned to it

by the provisions of this Act or of any other law or of regulations

made thereunder and shall perform such other functions as the

Minister may from time to time assign to the Authority by order in

writing and considered appropriate by the Minister in relation to

the operation of this Act or of any other law.

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The functions of the Authority shall be -

(a) to supervise the operation of casinos;

(b) to issue licences to own and/or operate casinos under

article 15;

(c) to issue licences to the casino employees, including

the managers thereof, and junket leaders, proposed to

be engaged by a casino licensee to work in relation to

gaming;

(d) to inquire into the suitability of -

(i) casino owners and operators, licensees or

persons nominated as proposed casino licensees;

and

(ii) the employees, including the management and

junket leaders, proposed to be engaged by the

casino licensee;

(e) to regulate by licence the importation, supply and

maintenance of gaming machines and gaming

equipment for casinos;

(f) to advise the Minister on the making of regulations, in

accordance with the provisions of article 50, on

matters relating to the control of casinos or of the

operation of casinos, or, generally to gaming in

casinos;

(g) to perform any of the functions that is or may be

assigned to it by this or any other law.

Deleted by Act XXIV. 2001.80.

Deleted by Act XXIV. 2001.80.

Deleted by Act XXIV. 2001.80.

An inspector may at any time upon production of his

legally valid identification document enter and remain in casino for

the purposes of -

(a) viewing gaming;

(b) observing any of the operations of the casino or,

generally, of gaming;

(c) ascertaining whether the operation of the casino or,

generally of gaming, is being properly conducted,

supervised and managed;

(d) ascertaining whether the provisions of this Act are

being complied with; and

(e) in any other respect, exercising his powers or

performing his duties.

(1) An inspector may for the purpose of ascertaining that

the provisions of this Act are being complied with and that the full

amount of tax under this Act is being paid -

(a) require any person whom the inspector believes, on

reasonable grounds, to be in possession or have under

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his control any gaming equipment or chips -

(i) to produce the equipment or chips to the

inspector for inspection or testing; or

(ii) to attend before the inspector at a reasonable

time and place specified by the inspector and

there to answer such questions, or to supply such

information, relating to the equipment or chips

as the inspector specifies;

(b)

require a casino licensee or a person acting on behalf

of a casino licensee -

(i) to produce to the inspector for inspection such

book or document in his custody or control

relating to the operation of the casino as the

inspector specifies; or

(ii) to attend before the inspector at a reasonable

time and place specified by the inspector and

there to answer such questions, to supply such

information, or to produce such book or

document, relating to the operation of the casino

as the inspector specifies;

(c)

inspect or test any gaming equipment or chips or

inspect such book or document, and take copies of, or

make notes in relation to, such book or document,

relating to the operation of the casino as the inspector

considers necessary;

(d)

direct a casino licensee not to use any gaming

equipment or chips that the inspector considers to be

unsatisfactory for use;

(e)

receive and, if the inspector thinks fit, investigate a

complaint with respect to any aspect of the operation

of a casino and to make a report of the result of such

investigation to the Authority;

(f)

call to the inspector’s assistance -

(i) another inspector; or

(ii) a casino employee who, in the belief of the

inspector, is competent to assist the inspector in

the exercise of his powers or performance of his

duties; and

(g)

require any person entering or to be found at a casino

to produce identification documents.

(2) A requirement under subarticle (1)(a) or (b) or a direction

under paragraph (d) of the same subarticle shall be made by notice

in writing or orally as the inspector deems fit in the circumstances.

(3) An inspector shall be present in a casino at the opening and

closing of any gaming table, when any adjustment is made to the

table float, when the count of money and tokens is undertaken, and

at the opening and closing of any gaming machine and to verify

jackpot wins.

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(4) Any person who, without reasonable excuse, hinders or

fails to assist the inspector in the discharge of his duties under

subarticle (1), shall be guilty of an offence under this Act.

(5) An inspector shall make a report on the exercise of his

functions under this Act to the Authority.

(1) Without prejudice to any power exercisable by virtue

of the preceding provisions of this Act, the Authority may at any

time serve on a casino licensee a notice requiring him, in such

manner and within such reasonable time as may be specified in the

notice -

(a) to produce for inspection by or on behalf of the

Authority books or documents relating to the casino,

as specified in the notice which the Authority

reasonably requires to inspect for the purpose

specified in of article 11(1), and

(b) to furnish the Authority with information relating to

the premises as specified in the notice which the

Authority reasonably requires for that purpose.

(2) If without reasonable excuse any requirement imposed in

relation to a casino by a notice served by virtue of subarticle (1) is

not complied with, the casino licensee shall be guilty of an offence

under this Act.

Without prejudice to the provisions of the Professional

Secrecy Act, any information disclosed to an inspector, the

Authority or any member, officer or employee of the Authority, and

any document produced in pursuance of articles 11 or 12 shall be

secret and confidential and may not be disclosed or produced other

than for the purposes of this Act or any prosecution for an offence

against this Act or an offence committed against or in a casino.

PART IV

GRANT OF CASINO LICENCE

No person may open or operate a casino unless he is in

possession of a licence by the Authority.

(1) It shall be lawful for the Authority by licence to

authorise a person to open and operate a casino in Malta.

(2) The Authority shall not issue such licence to a person

unless that person is a company registered in Malta and unless it

appears to the Authority that -

(a) the relevant voting share capital of the proposed casino

licensee is owned, directly or indirectly, by a person or

persons of integrity;

(b) the director or directors of the company or of any

affiliate thereof are persons of integrity;

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(c) the proposed casino licensee has the financial means

and expertise available to operate the casino and to

fulfil all its obligations under this Act.

(3) A casino licence remains in force for up to ten years and shall

be subject to the annual payment of a licence fee. Subject to

compliance with the provisions of this Act, the licence, unless it is

sooner surrendered or cancelled, may be renewed by the Authority.

A casino licence shall, in all cases, be conditional to there being a

concession by the Minister in favour of the licensee in accordance

with the provisions of Part II of this Act.

(4)

The casino licence shall be in a form approved by the Board

(a) shall specify inter alia

(i) the date of its issue;

(ii) the date of its expiration;

(iii) the name of the licensee;

(iv) an address in Malta specified by the licensee for

the service of documents on the licensee;

(v) the address of the casino;

(vi) the maximum number of tables that can be

operated under the licence;

(vii) the maximum number of machines allowed to be

used under the licence;

(viii) the minimum opening hours;

(ix) such other particulars relating to the casino as

the Authority considers necessary; and

(x) such other particulars as may be prescribed;

(b) shall identify the area or areas by reference to plans

designated to be the casino.

(5)

(a) A licensee shall within fourteen days of any change in

the ownership of any share capital of the company or

of its affiliates and of any change in the management

or Board of Directors of the company or of its affiliates

inform the Authority of such change.

(b) If pursuant to any change as is referred to in paragraph

(a) a situation is brought about that had it existed at

the time of the application for the licence, would have

disqualified the company from obtaining a licence in

accordance with subarticle (2), the Authority shall by

notice inform the licensee accordingly and if the

situation shall not have been remedied within one

calendar month from the notice to that effect by the

Authority, the Authority shall revoke the licence

Provided that the Authority shall not issue a

notice as aforesaid later than three calendar months

after being informed by the licensee of the change in

accordance with paragraph (a).

(6)

Failure to comply with the provisions of subarticle (5) shall

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constitute an offence against this Act.

(7)

A licence under this article may not be assigned.

(1) The Authority shall, on the basis of the costs incurred

by itself in carrying out its functions under this Act, determine the

casino licence fee, in the casino licence, for the purposes of this

Act.

(2) The casino licence fee is payable in advance to the

Authority on behalf of the Government on each anniversary of the

licence by the casino licensee.

(3) Determinations and variations under sub-article (1) shall not

be made at intervals of less than twelve months.

(1) The casino licensee may surrender the casino licence

at any time by giving notice in writing to the Authority not less

than one year prior to the date of the surrender of the licence.

(2) The surrender of any casino licence shall not dispense the

person surrendering the licence from any obligation incurred under

articles 16 and 37.

(3) If the casino licensee surrenders the casino licence without

giving the notice specified in subarticle (1), the gaming equipment

and machines to be found in the casino shall be forfeited to the

Authority on behalf of the Government.

The Authority may order the cancellation of a casino

licence on any of the following grounds

(a) any director or manager of the casino licensee is

convicted of an offence against this Act or of theft,

receiving stolen property, fraud or any crime against

public trust;

(b) the casino licensee contravenes a provision of this Act

or is in breach of a licence condition;

(c) the casino licensee knowingly or recklessly supplies to

the Authority information that is false or misleading in

a material particular;

(d) the casino licensee fails to fulfil the licensee’s

financial commitments when they become due and

payable;

(e) the casino licensee fails to maintain the formal gaming

reserve as specified in article 39;

(f) the licensee is being wound up; or

(g) the Authority is satisfied that the casino licensee is

not, or has ceased to be, a suitable person to be the

licensee of a casino.

(1) Where a ground for cancellation of the casino licence

arises under article 18, the Authority, by notice in writing, shall

request the casino licensee, and may request any other person who

in its opinion has an interest in the licence, to show cause, within

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such period, being not less than twenty-one days after the issue of

the notice, as is specified in the notice, why the casino licence

should not be cancelled on such ground as stated in the notice.

(2) The Authority shall have regard to any response made

under subarticle (1) and -

(a) where the matter is resolved to its satisfaction shall

take no further action;

(b) where, although the matter is not resolved to its

satisfaction, it considers that further action is not

warranted, it shall, in writing, caution the casino

licensee; or

(c) where the matter is not resolved to its satisfaction and

it is satisfied that further action is warranted, it may -

(i) by notice in writing, give such direction as it

considers appropriate; or

(ii) suspend for such period as it thinks fit, or

cancel, the casino licence.

(3) Where a direction given by the Authority under subarticle

(2)(c)(i) is not complied with within the time specified in the

notice, the Authority shall cancel the casino licence.

(1) No person shall employ or work as a -

(i) casino employee;

(ii) casino manager; or

(iii) junket leader,

without a licence from the Authority, wherever such licence shall

be required by any regulations under this Act.

(2) Any person who shall do anything referred to in subarticle

(1) wherever a licence therefor is required under subarticle (1),

without being in possession of the relative licence or not in

accordance with such licence shall be guilty of an offence against

this Act.

PART V

OPERATION OF CASINO

(1) It shall be lawful for a casino licensee to require

persons entering the casino premises to pay a fee therefor. Such fee

shall be fixed by the licensee with the approval of the Authority.

(2) Such approved fee is to be clearly displayed at the entrance

to the premises. All such fees received shall be recorded.

(1) A casino licensee shall -

(a) maintain the facilities and amenities of the casino in a

condition to the satisfaction of the Authority;

(b) ensure that the casino is at all times properly and

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competently conducted;

(c) ensure that all casino installations, equipment and

procedures for security are available and are tested,

used, operated and applied effectively; and

(d) ensure the gaming equipment and chips approved by

the Authority for use in the casino are maintained in

good order and condition.

(2) The casino licensee shall not operate the casino unless the

layout of the casino is in accordance with plans and diagrams

approved by the Authority.

The casino licensee shall, for the purpose of ensuring

security within the premises of the casino, install and keep in good

working order such camera and audio system, in such numbers and

locations, and which shall be monitored by such number of persons

adequately trained to be employed as professional security staff as

may be approved by the Authority.

The Authority shall, in the casino licence, establish a

schedule of minimum operating times for the casino setting out the

days on which, and hours during which, the licensee shall operate

the casino. The Authority may also establish the days during which

casinos shall remain closed.

(1) It shall be the duty of the casino licensee to ensure that

persons entering the casino premises are identified and may at any

time request such persons to produce their legally valid

identification document or passport for inspection.

(2) The casino licensee shall cause the particulars of persons

entering the casino together with details of a legally valid

identification document or passport produced to be registered in a

register kept at the casino premises for such purpose.

(1) A person shall not enter a casino during the hours of

operation of the casino, if the person -

(a) is requested by a licensed casino employee not to enter

the casino or other gaming premises, as the case may

be, on the ground that the person has previously

contravened the approved rules of an authorised game

or rules of conduct of gaming in force;

(b) is a person in relation to whom a court order under

article 27(1) is in force;

(c) is in the case of a citizen of Malta under the age of

twenty-five years;

(d) is in the case of any other person under the age of

eighteen years;

(e) has asked for a ban or restriction on his own

admission;

(f) upon a request to do so by a licensed casino employee,

fails to produce his legally valid identification

document or passport; or

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(g) appears to be under the influence of alcohol or a drug

or is acting in a disorderly manner

Provided that, any ban or restriction of admission shall,

under paragraph (e), have effect during the period requested by the

person concerned, which shall not be less than six months and not

more than one year. Any such ban or restriction cannot be cancelled

before its expiry.

(2) A person shall not remain in a casino during the hours of

operation of the casino if the person -

(a) when requested to do so by a licensed casino

employee, refuses or fails to produce evidence of his

age;

(b) has been requested by a licensed casino employee to

leave the casino on the ground that the person -

(i) appears not to understand fully the nature or

consequences of gaming as it relates to the

application of the approved rules of authorised

games and the potential for financial loss;

(ii) appears to be under the influence of alcohol or a

drug;

(iii) is affecting the orderly functioning of the

operations of the casino or, generally, of gaming

whether because of the influence of alcohol or

drugs or otherwise;

(iv) appears to be disturbing the peace or affecting

the orderly functioning of the operations of the

casino;

(v) appears to be cheating, or attempting to cheat, in

the casino; or

(vi) has previously contravened the approved rules

of an authorised game or rules of conduct in

force in a casino;

(c) is a person in relation to whom a court order under

article 27 is in force.

(3) Without prejudice to the other provisions of this Act,

admission to a casino shall be at the discretion of the licensee who

shall ensure that persons who may have a problem of pathological

gambling are not given access to the gaming area

Provided that no person shall be refused admission to a

casino by reason of his race, place of origin, political opinion,

colour, creed, sex or physical infirmity.

(1) Where any person is convicted by a court of an offence

which in the opinion of the court is of such nature, or where the

circumstances under which it was committed were such that it is

undesirable that the person so convicted should be permitted to

enter a casino, the court may in addition to any other power under

any other law make an order prohibiting the person convicted from

entering a casino as specified in such order, for such period as may

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be specified therein.

(2) The Authority as well as all casino licensees shall, as soon

as practicable, be notified with such order by the Registrar of

Court.

(3) The casino licensee shall keep a list of the names, together

with any other available identification details of those persons, in

relation to whom a court order has been made as provided in

subarticle (1).

(4) A casino licensee shall make the said list available for

inspection by the Authority and by inspectors.

(1) A person who is -

(a) a police officer; or

(b) for the time being in charge of the casino; or

(c) an agent or an employee of the casino licensee,

may, with such assistance as is necessary and reasonable and using

such force as is necessary and reasonable, cause any person who,

under article 26, may not enter, or remain in, the casino

(i) to be prevented from entering the casino; or

(ii) to be removed promptly from the casino as the

case requires.

(2) A person who, without reasonable excuse, obstructs or

hinders a person in the exercise of a power conferred on the latter

person under subarticle (1), shall be guilty of an offence under this

Act.

(3) The casino licensee who, knowingly or recklessly, permits

to enter, or fails to remove from, the casino a person who is not

entitled to be in such premises by virtue of the provisions of article

26, shall be guilty of an offence under this Act.

(1) The Authority shall, in the casino licence issued or to

b e i s s u e d u n d e r t h i s Ac t , s p e c i f y t h e ga m e o r ga m e s t o b e

designated as authorised games for the purposes of the Act.

(2) The Authority may at any time alter the list of the

designated authorised games and the approved rules of a game as

specified in the casino licence.

(3) In carrying out its functions under subarticles (1) and (2),

the Authority shall seek the agreement of the casino licensee

thereon.

The Minister may, after consultation with the Authority,

make regulations specifying in a general manner the terms and

conditions according to which gaming is to be conducted in a

casino. The Authority may in a casino licence specify in a

particular manner terms and conditions, being terms and conditions

not prohibited by regulations, according to which gaming is to be

conducted in a casino.

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(1) The Authority shall, in a casino licence, specify the

number of authorised machines that may be installed and kept for

use on the casino premises, and may in the licence subject the

keeping of such machines to any conditions as may be specified by

the Authority in the licence.

(2) Subject to any limitation in the concession granted by the

Minister under article 3 the Authority may, either on its own

initiative or upon a request by the casino licensee, upon the renewal

of a casino licence, vary the number of, and the terms and

conditions regulating, authorised machines permitted to be

installed in the casino

Provided that the Authority shall not refuse the request

made by the casino licensee under this subarticle unless there are

reasonable grounds for such refusal. The acceptance or refusal of

any such request shall be made in writing.

(1) No gaming machine of any description shall be kept

for use in a casino -

(a) contrary to the conditions specified in the casino

licence; or

(b) without the machine being registered in accordance

with any regulations issued under this Act and in force

from time to time.

(2) If any gaming machine is kept for use in the casino in

contravention of subarticle (1), the casino licensee shall be guilty

of an offence under this Act.

(3) Any person who manufactures, imports, keeps or supplies a

gaming machine for use as a casino under this Act shall, without

prejudice to any other liability under any other law, be guilty of an

offence under this Act

Provided that the Minister may, under such conditions as he

may deem appropriate, give a permit for the manufacture of gaming

machines for export, and any machines manufactured in accordance

with such a permit shall not be deemed to be manufactured in

contravention of this subarticle.

(4) If, in any proceedings for an offence under subarticles (2)

and (3), it is proved that a gaming machine was on the premises of

a casino, it shall be presumed, unless the contrary is shown, that the

machine was kept on the premises of the casino for use on those

premises.

PART VI

PROVISION OF MONEY FOR GAMING

It shall not be lawful for the licensee or any person acting

on his behalf or under any arrangement with him, to make any loan

or otherwise provide or allow to any person any credit, or release or

discharge on another person’s behalf, the whole or part of any debt

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(a) for enabling a person to take part in gaming at a

casino; or

(b) in respect of any losses incurred by any person in

gaming at a casino.

(1) Article 1716 of the Civil Code shall not apply with

respect to a game lawfully played in a licensed casino.

(2) The provisions of article 1713 of the Civil Code shall not

prejudice the right of the casino licensee to recover a debt arising

from the acceptance of a cheque in accordance with article 35 and

which is subsequently not honoured.

(1) Subject to any regulation made by the Minister or any

directive that may be issued by the Authority, a casino licensee or

any person acting on his behalf or under any arrangement with him

may, if he has reasonable grounds to believe that a cheque will be

honoured upon presentation, accept a cheque and give in exchange

for it cash or tokens for enabling such person to take part in the

gaming as long as -

(a) the cheque is not a post-dated cheque; and

(b) the cheque is exchanged either for cash to an amount

equal to the amount for which it is drawn, or it is

exchanged for tokens at the same rate as would apply

if cash, to the amount for which the cheque is drawn,

were given in exchange for them.

(2) Where the conditions set out in subarticle (1) are fulfilled,

the giving of cash or tokens in exchange for a cheque shall not be

deemed to be contrary to the provisions of article 33.

(3) Where the casino licensee or a person acting on his behalf

or under any arrangement with the licensee, accepts a cheque in

exchange for cash or tokens to be used by a player in gaming, he

shall, not more than two banking days later, cause the cheque to be

delivered to a bank for payment or collection.

A person may, with the consent of the casino licensee, and

not later than thirty minutes from the end of a gaming session

redeem any cheque accepted from the person by the casino licensee

during that gaming session by presenting at the cash desk of the

casino -

(a)

an amount of money, or

(b)

chips the face value of which is, or

(c)

any combination of cash and chips, or

(d)

where more than one cheque is being redeemed, a

consolidating cheque for an amount,

equivalent to the amount for which the cheque or cheques are

drawn, or the sum of the amounts of the cheques, to be redeemed.

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PART VII

FINANCIAL

(1) The licensee shall pay to the Authority on behalf of the

Government the rate of tax based on the total gross takings of all

games played at the casino specified in the Schedule without the

deduction of any expenses of any kind whatsoever, but subject to

the following provisions of this article. The licensee shall not later

than the seventh day of each month, effect payment to the

Authority of the tax due in respect of the preceding month.

(2) For the purpose of determining the sums due to the

Authority under subarticle (1), the gross takings or gross losses, as

the case may be, on all games of chance shall be those resulting at

the closing of the casino each day, but the casino licensee shall be

entitled to set off any gross losses on such games incurred during

any two months against gross takings on such games made during

the same months

Provided that where a casino remains open for twenty-four

hours in a day the closing of the casino for the purposes of this

subarticle shall be deemed to be 8 a.m.

(3) The gross takings or losses on all games of chance shall be

calculated at the closing of the casino each day and duly appointed

representatives of the Authority shall be entitled to attend the

making of such daily calculation for the purpose of verifying the

same and, moreover, to attend at the playing of all games at the

casino.

(4) The licensee shall further pay to the Authority on behalf of

the Government such rate of tax on the casino entrance fee as may

be specified in the casino licence.

(5) For the purposes of subarticle (2), the term "two months"

means periods of two months, ending at the closing of the casino on

the last day of February, April, June, August, October and

December of each calendar year and does not include any time after

the closing of the casino during which the business of the casino,

commenced on the last day of the relevant two months’ period, is

continued or concluded.

(1) Upon the grant of a casino licence, the Authority may

require the casino licensee to take out a bank guarantee issued by a

bank or by a credit or financial institution licensed in Malta in

favour of the Authority on behalf of the Government in an amount

not exceeding the gaming reserve and subject to such terms and

conditions as may be specified in the licence. Such bank guarantee

shall remain valid until the expiration of one year after the

expiration of the licence.

(2) The casino licensee may forfeit such bank guarantee in

favour of the Authority in any of the following cases

(a) upon the surrender of the casino licence under article

17;

(b) upon cancellation of the casino licence by the

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Authority under article 18;

(c) upon breach of any of the conditions in respect of

maintenance of facilities in terms of article 22;

(d) in settlement of any liability of the licensee with

respect to a fine imposed under Part VIII of this Act.

(1) Upon the grant of a casino licence, the casino licensee

shall establish a formal reserve in an amount to be fixed by the

Authority which will protect the casino against a run of gaming

losses and therefore ensure that punters are paid out after a large

win and which will provide comfort that the casino licensee has

adequate financial resources to carry on the business of casino

gaming to acceptable and proper standards and without imminent

risk of closure or liquidation.

(2) The gaming reserve shall be in the form of a deposit held

with a bank established in Malta and or any other security held on

the licensee’s behalf by such bank acceptable to the Authority. The

casino licensee shall cause the bank to confirm existence of such a

reserve to the Authority, as and when requested by the Authority,

and in any case annually upon every anniversary of the licence.

(3) Should it be necessary for the reserve to be drawn upon, the

casino licensee shall immediately inform the Authority and shall

restore the reserve within two months and shall thereupon cause the

bank to confirm its restoration to the Authority.

(1) Without prejudice to the provisions of the Prevention

of Money Laundering Act, and of article 50, the Minister with the

concurrence of the Minister responsible for justice may by order

provide guidelines for conduct by a licensee, inspectors or the

Authority in relation to certain transactions that may give rise to

suspicion of money laundering, and may in particular provide that

the provisions of article 12(1) of the Prevention of Money

Laundering Act shall apply with regards to a casino with such

modifications and adaptations as may be specified in the Order.

(2) Where an inspector or a casino employee has reason to

suspect that a transaction or a proposed transaction could involve

money laundering, he shall act in accordance with regulations made

under the Prevention of Money Laundering Act, and any regulation

made under this Act, applicable thereto.

It shall be lawful for a casino licensee, upon authorisation

granted by the Central Bank of Malta and subject to such

conditions as may be specified in such authorisation, to provide

facilities for the exchange of foreign currency on the casino

premises.

GAMING

PART VIII

OFFENCES

(1) Any person guilty of an offence against this Act, shall

on conviction be liable to a fine (multa) of not less than six

thousand and nine hundred and eighty-eight euro and twelve cents

(6,988.12) and not more than two hundred and thirty-two thousand

and nine hundred and thirty-seven euro and thirty-four cents

(232,937.34) or to imprisonment of not more than two years or to

both such fine and imprisonment

Provided that where the person so found guilty is the

director, manager, secretary or other similar officer of a company

or other undertaking the said person shall, for the purpose of this

article, be deemed to be vested with the legal representation of the

same company or other undertaking which accordingly shall be

liable in solidum with the person found guilty for the payment of

the said fine

Provided further that where the Attorney General in the

sanction issued in accordance with article 48, certifies that the

offence will be adequately punished with a fine (multa) of not less

than two hundred and thirty-two euro and ninety-four cents

(232.94) and not more than six thousand and nine hundred and

eighty-eight euro and twelve cents (6,988.12) the applicable

penalty shall be a fine (multa) of not less than two hundred and

thirty-two euro and ninety-four cents (232.94) and not more than

six thousand and nine hundred and eighty-eight euro and twelve

cents (6,988.12).

(2) The fine referred to in subarticle (1) shall be recoverable as

a civil debt in favour of the Government by the Chief Executive of

the Authority.

(3) The provisions of the Probation Act and of article 21 and of

articles 28A to 28I of the Criminal Code shall not apply with

respect to offences referred to in subarticle (1).

(1) The Authority may, with the concurrence of any

licensee or holder of a permit issued in terms of article 36 who

contravenes a condition of his licence or, as the case may be, of his

permit, or any directive issued by the Authority in terms of this Act

or of regulations made thereunder and applicable to such licensee

o r, a s t h e c a s e m a y b e , t o s u c h p e r m i t h o l d e r w h e r e s u c h

contravention amounts to an offence against this Act, impose

administrative penalties or sanctions upon such licensee or holder

of a permit as an alternative to proceedings in Court.

(2) For the purposes of subarticle (1), where the Authority

decides to exercise its powers thereunder, the Authority shall enter

into an agreement in writing with the offender whereby the said

offender pays a sum which shall not exceed two hundred and thirty-

five thousand euro (€235,000.00), as the Authority shall determine,

and upon the signing of any such agreement between the Authority

and the offender, all criminal liability of the offender under this

Act, with regard to the offence or offences in relation to which the

agreement has been entered, shall be extinguished

GAMING

Provided that any such agreement and the provisions of this

article shall be without prejudice to the power of the Authority,

where applicable, to cancel or suspend the licence held by the

o ff e n d e r i n t e r m s o f t h e p r o v i s i o n s o f t h i s A c t r e l a t i n g t o

cancellation or suspension of the relevant licence.

(3) The provisions of subarticle (2) shall apply also in any case

where the offender has been charged before a Court in relation to

the offence, but before final judgement has been given in the case.

(4) Any sum due by virtue of an agreement entered into in

terms of subarticle (2) shall be due to the Authority as a civil debt.

The Authority shall not enter into an agreement as is referred to in

subarticle (2), unless such agreement is accompanied by the

payment of the sum due or by an adequate and sufficient security

for its payment.

(1) It shall not be lawful for a person to use, or have in his

possession, in or outside a casino -

(a) chips that the person knows are counterfeit chips; or

(b) cards, dice or coins that the person knows have been

marked, loaded or tampered with.

(2) Whosoever shall contravene the provisions of subarticle (1)

shall be guilty of an offence against this Act.

(1) It shall not be lawful for a person -

(a) to forge or counterfeit any chips or other tokens to be

used in a casino licensed under this Act, or a licence

used for the purposes of this Act; or

(b) knowingly to utter counterfeit chips or knowingly utter

a forged or counterfeit licence.

(2) Whosoever shall contravene subarticle (1) shall be guilty of

an offence against this Act.

(1) No person shall take part in gaming at a casino -

(a) if he is not present on the premises of the casino when

gaming takes place there;

(b) on behalf of another person who is not present on the

premises at the time.

(2) Any person who contravenes the provisions of subarticle

(1) or who aids or permits any other person to contravene such

provisions shall be guilty of an offence under this Act.

(1) Every person who in any premises not licensed under

this Act or under the Lotteries and Other Games Act or in

contravention of the provisions of this Act or any regulations made

thereunder or in breach of any condition imposed in any licence

issued under this Act, takes part in any game of chance played for

money or money’s worth; or permits the use of any place for or

encourages any such game; or wilfully prevents any Police officer,

lawfully authorised to enter into any place suspected of being used

as a gaming house, from entering into such place or any part

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thereof, or obstructs or delays any such officer in so entering, or, by

any bolt, bar, or other contrivance secures any external or internal

door or means of access to any such place; or uses any means or

contrivance whatsoever, for the purposes of preventing, obstructing

or delaying the entry of such officer into any such place or any part

thereof; or although not taking part in any unlawful game, shall be

a partner of any player at any such game; or who is present while

any such game is being played shall be guilty of an offence against

this Act.

(2) In addition to any penalty under any other provision of this

Act the money and effects representing the stakes as well as the

instruments and articles used in gaming in contravention of

subarticle (1) and any money found on any person committing an

offence under that subarticle shall be forfeited in favour of the

Government.

(3) Subarticles (1) and (2) shall not apply in respect of any

game lawfully played in terms of the Lotteries and Other Games

Act or any other law.

The Court of Magistrates shall be the competent court to

take cognisance of offences against this Act.

No proceedings for an offence against this Act shall be

commenced without the sanction of the Attorney General.

PART IX

MISCELLANEOUS

(1) No person shall issue or cause to be issued any

advertisement -

(a) informing the public that any premises in Malta are

premises on which gaming takes place or is to take

place as a casino; or

(b) inviting the public to take part as players in any

gaming which takes place, or is to take place, in any

such premises, or to apply for information about

facilities for taking part as players in any gaming

which takes place, or is to take place, in any such

premises; or

(c) inviting the public to subscribe any money or money’s

worth to be used in gaming on such premises or to

apply for information about facilities for subscribing

any money or money’s worth to be so used; or

(d) inviting the public to take part as players in any

gaming which takes place, or is to take place, in any

casino outside Malta or to apply for information about

facilities for taking part as players in any gaming

which takes place, or is to take place, outside Malta

GAMING

Provided that such restriction on advertising shall not apply

to advertisements published, displayed or broadcasted outside

Malta for distribution or circulation outside Malta or to advertise-

ments as described in subarticle (1) which are displayed in

locations frequented mainly by tourists and are to include airports,

seaports, hotels and holiday complexes but shall not include bars

and restaurants.

(2)

subarticle (1) shall not apply to

(a) the display in a casino in respect of which a concession

has been granted by the Minister, and a casino licence

has been issued by the Authority, under this Act, of a

sign or notice indicating that gaming takes place, or is

to take place, in the casino, whether the sign or notice

is displayed inside or outside the premises; or

(b) the publication of a notice in the Gazette where the

notice is required to be published under this Act; or

(c) any advertisement authorised by the Authority relating

to non-gaming activities held at a casino.

(3) Any person who contravenes the provisions of subarticle

(1) shall be guilty of an offence under this Act.

The Minister may, on the advice of the Authority, make

regulations for carrying out the provisions of this Act and, without

prejudice to the generality of the provisions of the foregoing, may

by such regulations -

(a) regulate the issue, suspension and cancellation of a

licence;

(b) regulate gaming, and stakes at a casino;

(c) regulate junkets and prescribe the rate of taxation

applicable to takings generated by junkets;

(d) regulate the use of machines at a casino;

(e) prescribe the records and accounts to be kept by a

casino licensee;

(f) prescribe in relation to the gaming reserve referred to

in article 39;

(g) prescribe anything that is to be prescribed under any

other provision of this Act; and

(h) re g ulate the operations of casinos on a voluntary basis, on board

aircrafts and cruise ships re g istered in Malta and, or other

cruise ships which berth in a Maltese port and determine

the tax and licence fees which shall apply to such

operations as w e l l as determine which provisions of this Act

s h a l l either apply or not apply for such operations

Provided that for the purposes of this paragraph the term

cruise ship s h a l l mean a passenger ship used for pleasure

voyages with a minimum of t h r e e ports of call in three

different jurisdictions which may or may not include

Malta, having i t s own amenities, that include lodging

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facilities for all passengers, and a minimum capacity of

one hundred and fifty (150) passengers

Provided further that cruise ships, which shall be given an

authorisation to operate their casinos while they are berthed

in Malta, shall solely allow passengers who are

registered for such a voyage to board such ship during

such time

Provided further that ferry boats used for transporting

passengers and, or cargo shall be excluded from this

term.

The use of any part of a hotel for the running of a casino

licensed under this Act shall not, for the purpose of the

Development Planning Act, be deemed to be a change of use.

Nothing in this Act shall prejudice the operation of, or

shall be deemed to substitute or to derogate any of the provisions

of, the Lotteries and Other Games Act.