Operation of Betting Offices Regulations, 2000

L.N. 34 of 2000

PUBLIC LOTTO ORDINANCE

(CAP. 70)

Operation of Betting Offices Regulations, 2000

IN EXERCISE of the powers conferred by section 11 of the Public

Lotto Ordinance, the Minister of Finance has made the following

regulations

(1) The title of these regulations is the Operation of Betting

Offices Regulations, 2000.

(2) These regulations shall be deemed to have come into

force on the 1st February, 2000.

In these regulations, unless the context otherwise requires -

"approved control system" means a control system approved

by the Gaming Board, and includes an approved control system

changed with the approval of the Gaming Board;

"betting office" means premises in respect of which a

permission has been granted by the Director under the provisions

of section 11 of the Ordinance for the purpose ofconducting therein

betting transactions by electronic means otherwise than with

persons resident in Malta;

"betting transaction" includes any transaction in which one

or more of the parties acts as a bookmaker;

"bookmaker" means any person who, whether on his own

account or as employee or agent of any other person, carries on

the business of receiving or negotiating bets;

"control system" means a system of internal controls and

administrative and accounting procedures for the conduct of a

betting office;

"Director" means the Director of Public Lotto whose office

is constituted under the Director of Public Lotto (Constitution of

Office) Act;

"electronic means" includes all electronic data transfer,

whe~.i.ler by telephony, facsimile, computer or any other means as

approved by the Gaming Board;

"Gaming Board" or "Board" means the Gaming Board

established under section 5 of the Gaming Act, 1998;

"inspector" has the same meaning assigned to it in the Gaming

Act x of 1998.

Act, 1998;

"Ordinance" means the Public Lotto Ordinance.

(1) When granting a permission to operate a betting office, Suitability of

regard shall be had to the suitability and integrity of the applicant.

Without prejudice to the generality of the aforesaid, in deciding whether

a person is suitable to hold a permission to operate a betting office, the

Director shall have regard to the following -

(a) the applicant's character, or the character of the persons

vested with executive powers if the applicant is a body corporate,

and his business reputation;

(b) the applicant's current financial position and financial

background;

(c) whether the applicant has, or is able to obtain, appropriate

resources and appropriate services;

(d) whether the applicant has the appropriate business ability

to conduct the betting office successfully.

(2)

For the purposes of this regulation -

"appropriate resources" means financial resources which

are-

(a) adequate, in the Director's opinion, to ensure the

financial viability of operations of a betting office; and

(b) available from a source that is not, in the Director's

opinion, tainted with illegality;

"appropriate services" means the services of persons who have

appropriate experience to ensure the proper and successful conduct

of a betting office.

(1) An application made to the Director under the provisions

of section 11 of the Ordinance shall be accompanied by -

(a) a plan of the premises in respect of which the application

is made; and

(b) evidence that any authorisation, consent or permission

required under any law in respect of the structure or use of any

premises which are the subject of such application has been granted

or that, in the particular circumstances of the case, no such

authorisation, consent or permission is necessary.

(2) Any premises in respect of which a permission has been

granted for the operation of a betting office shall be used solely for the

purpose of conducting therein betting transactions as authorised in the

said permission.

(1) It shall be the duty of the Board to regulate, control and

supervise the operations of a betting office in respect of which the

Director has granted permission under the provisions of section 11 of

the Ordinance, and to ascertain compliance with any conditions imposed

by the Director in the said permission.

(2) For the purposes of carrying out its duties under these

regulations, the Board may at any time serve on a person who has been

granted permission to operate a betting office a notice requiring him, in

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

the notice, to produce for inspection by or on behalf of the Board books,

documents or any other records relating to the betting office, as specified

in the notice which the Board reasonably requires to carry out its duties,

and the person operating a betting office shall comply with any such

notice.

(3) It shall not be lawful for the person who has been granted

a permission as aforesaid to employ or permit to work in relation to the

operation of the betting office any person unless such person is approved

for that purpose by the Board.

(1) A person granted a permission to operate a betting office

shall ensure that there is in the premises used as a betting office an

approved control system and that all betting transactions are effected

under the system.

(2) The person granted a permission to operate a betting

office shall not change an approved control system without the prior

consent of the Board.

(3) The person granted a permission to operate a betting

office shall make a submission in writing, prepared at his own cost and

by or with the approval of his auditors (hereinafter referred to as a

"control system submission"), to the Board for approval of the control

system -

(a)

before effecting betting transactions; and

(b) before effecting any change to an existing approved

control system.

(4) A control system submission shall describe and, without

prejudice to the generality of the foregoing, shall include information

(a) the following items to be used for the conduct of the

betting office -

(i) accounting systems and procedures and chart of

accounts,

(ii)

administrative systems and procedures,

(iii)

computer software,

(iv)

standard forms and terms; and

(b) the general procedures to be followed for effecting

betting transactions;

(c) the procedures and standards for the maintenance,

security, storage and transportation of equipment to be used for

effecting betting transactions;

(d) the procedures for recording bets and paying winnings

won in a betting transaction; and

(e) the procedures for using and maintaining security

facilities.

(5) The Board shall consider the control system submission

and either approve or refuse the proposed control system or the proposed

change thereto.

(6) In considering the control system submission, the Board

may require the person granted permission to operate a betting office -

(a) to give the Board further information about the

submission that is necessary and reasonable to assist the Board to

make a decision about the submission; and

(b) to allow the Board, acting through its inspectors or

agents, to submit the proposed control system, or the approved

control system as proposed to be changed, to tests.

(7) In considering whether to give an approval, the Board

shall have regard to -

(a) whether the system control submission satisfies the

requirements of this regulation; and

(b) whether the proposed control system, or approved

control system as proposed to be changed, is capable of providing

satisfactory and effective control over the management and conduct

of a betting office.

(8) The Board may refuse to give an approval if the person

granted permission to operate a betting office fails to comply with a

requirement under paragraphs (4) and (6).

(9) If the Board decides to withhold its approval, a notice

in writing stating the reasons for the decision shall be served on the

person granted permission to operate a betting office within thirty days

and, if the Board is of the opinion that the control system submission

can easily be rectified to enable it to give an approval, the notice must

also -

(a)

explain how the submission may be changed; and

(b) invite the person granted permission to operate a betting

office to resubmit the submission after making the appropriate

changes.

(1) The person granted pennission to operate a betting office

shall cause to be kept, in respect of the transactions and affairs relating

to the operation ofthe betting office, proper accounts and records which

show a true and fair view of the financial operations and affairs

conducted by the person in relation to the operation of the betting office.

(2) The person granted permission to operate a betting office

shall, within thirty days from the end of each six month period to be

reckoned from the beginning ofeach financial year, lodge with the Board

a full set of financial statements made in accordance with international

accounting standards and audited in accordance with international

standards on auditing and which comply with the provisions of the

. A ct, 1995 .

Act xxv of 1995.

C ompanles

(1) An inspector may at any time upon production of his :owers of

identity card enter and remain in a betting office for the purpose of _ Inspectors

(a)

observing the operations of the betting office;

(b) ascertaining whether the operations of the betting office

are being properly conducted and managed;

(c) ascertaining whether the conditions imposed in the

permission issued by the Director are being complied with; and

(d) in any other respect, exercising his powers or performing

his duties.

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

the conditions imposed by the Director in the permission are being

complied with and that the full amount of tax under the permission is

being paid-

(a) require, in writing or orally, a person granted permission

to operate a betting office or a person acting on his behalf -

(i) to produce to the inspector for inspection such book,

document or record in his custody or control relating to the

operation of the betting office 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 infonnation, or to produce such

book, document or record, relating to the operation of the

betting office as the inspector specifies;

(b) inspect or test any equipment, including software, or

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

notes in relation to, such book, document or record, relating to the

operation of the betting office as the inspector considers necessary;

(c) direct a person operating a betting office not to use any

equipment, including software material, that the inspector considers

unsatisfactory for use; and

(d)

call to the inspector's assistance-

(i)

another inspector; or

(ii) a betting office 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.

(3) No person employed in a betting office shall, without

reasonable excuse, hinder or fail to assist an inspector in the discharge

of his duties.

(4) Inspectors may, in carrying out their functions under

these regulations, be assisted by or accompanied with such experts as

the Secretary of the Board may direct.

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

functions under these regulations to the Secretary of the Board.

Persons granted permission to operate betting offices are to

pay to the Government of Malta a tax equivalent to half of one per

centum (0.5%) on the value of all bets received and accepted by them at

the betting offices established and operated through such permission,

in lieu of the tax provided for in subsection (2) of section 11 of the

Ordinance.

It shall be the duty of the Board to advise the Director to

restrict, suspend or withdraw any permission granted under section 11

of the Ordinance if it considers that any person granted permission to

operate a betting office is acting in breach of any condition imposed in

the permission or of any provision of these regulations or if, upon giving

sufficient reason, it deems necessary in the national interest to suspend

or withdraw the permission.