Skill Games Regulations, 2017

L.N. 31 of 2017

LOTTERIES AND OTHER GAMES ACT

(CAP. 438)

Skill Games Regulations, 2017

IN EXERCISE of the powers conferred by article 78(3) of the

Lotteries and Other Games Act, the Minister for Competitiveness and

Digital, Maritime and Services Economy, after consultation with the

Malta Gaming Authority, has made the following regulations:-

Part I

Preliminary

The title of these regulations is the Skill Games Citation.

Regulations, 2017.

Part II

Definitions

(1)

In these regulations unless the context otherwise Interpretation.

requires -

"Act" means the Lotteries and Other Games Act;

"Authority" means the Malta Gaming Authority established

under article 9 of the Act;

"controlled skill game" means a skill game subject to a licensing

requirement in terms of regulation 6;

"controlled skill games operator" means a person offering a

controlled skill games service;

"controlled skill games service" means making a controlled skill

game available for participation by end customers, whether directly

or indirectly, and whether alone or with others;

"controlled skill games supply" means the organisation of a

controlled skill game for or with a controlled skill game operator;

"licence" means a licence granted for the operation of a

controlled skill game in accordance with regulation 8 and "licensee"

shall be construed accordingly;

"player funds" means players’ money or money’s worth held by

a licensee under an arrangement made between such a licensee and

the player for the provision of a controlled skill games service and

includes, but is not limited to, funds that the player has the right to

withdraw and funds committed to games pending determination of

the outcome of those games;

"qualifying shareholding" means a direct or indirect

shareholding in a company which represents ten per centum (10%) or

more of the share capital issued by such company or of the voting

rights attaching to such share capital or which makes it possible to

exercise a significant influence over the management of the company,

provided that where the rights held as to the percentage of votes, to

profits available for distribution and to rights to assets available for

distribution on a winding up in respect of such holding are not

identical, the highest percentage figure shall be deemed to be the

percentage of equity holding held, and "qualifying shareholder" shall

be construed accordingly;

"regulatory objectives" means the objectives set out in

regulation 3;

"skill" means knowledge, dexterity, strength, speed, accuracy,

reaction time, coordination, and, or competence in other physical or

mental feats acquired, developed or learnt through practice,

experience or study;

"skill game" means a game for money or money’s worth and

through means of distance communication, the result of which is

determined by the use of skill alone or predominantly by the use of

skill and is operated as an economic activity, but does not include a

sport event.

(2) Unless the context otherwise requires, terms used in these

regulations and which are not defined herein shall have the same

meaning assigned to them in the Act.

(3) In these regulations, if there is any conflict between the

English and Maltese texts, the English text shall prevail.

Part III

Regulatory Objectives

These regulations are being issued with a view to ensuring

that

(a)

skill games are subject to risk-based regulatory

intervention, where this is necessary in the public interest, and

that such regulatory intervention is proportionate, consistent

and non-discriminatory;

(b)

skill games are conducted in a fair and transparent

manner and that the sector is kept free from crime;

(c)

the interests of all consumers are adequately

safeguarded and proper controls are in place to protect minors

and other vulnerable persons; and

(d)

all other relevant objectives listed in the Act are

fulfilled.

Part IV

Applicability

All skill games organised in Malta, provided from the Applicability.

territory of Malta or promoted or offered to persons in Malta shall be

regulated by the provisions of these regulations

Provided that the burden of proving that an activity is a

skill game shall rest at all times on the party operating or promoting

such an activity.

The Authority is vested with the discretion to classify the Classification.

activity as a skill game or otherwise on the basis of the considerations

listed in the First Schedule, and after taking into consideration the

submissions of the party operating or promoting the activity and any

research or publication issued by any other authoritative entity.

The Authority may determine, by means of a ruling issued Controlled skill

under these regulations, that a game is a controlled skill game if, game.

acting reasonably, the Authority deems it necessary and, or desirable

in pursuance of the regulatory objectives.

A ruling issued under regulation 6 shall be guided by the Ruling criteria.

criteria listed in the First Schedule, as well as any other criteria which

are deemed necessary in the public interest.

Part V

Licensing

A controlled skill game shall not be organised in, or Operations.

provided from the territory of Malta, and shall not be offered, made

available or promoted to any person in the territory of Malta unless

(a)

(i)

it is licensed in terms of these regulations; or

(ii) it is offered under an equivalent authorisation

issued by the government or a competent authority of

another Member State of the European Union or a Member

State of the European Economic Area; or

(iii) it is exempt from the requirement of a licence

under the Act or any other law; and

(b)

it is at all times compliant with these regulations

and any other applicable regulatory instrument

Provided that the Authority may, in respect of a controlled

skill game offered under paragraph (a)(ii), impose such proportionate

requirements and conditions in conformity with European Union law,

as it may deem necessary in fulfilment of its functions under the Act

and these regulations

Provided further that for an applicant who already holds a

Class 3 licence, or a corresponding Class 4 licence issued by the

Authority in terms of the Remote Gaming Regulations, the Authority

shall not duplicate the administrative requirements in terms of these

regulations that have already been satisfied by the same applicant and

furthermore such applicant shall be exempt from the annual licence

fee referred to in regulation 49.

Any person who organises, provides, offers, makes

available or promotes a controlled skill game in violation of

regulation 8 shall be guilty of an offence against the Act.

(1)

The Authority shall have the power to issue

licences as set out in these regulations.

(2) A licence issued under these regulations shall be a licence

to offer a controlled skill games service, or a licence to offer a

controlled skill games supply

Provided that the Authority may specify the activities

covered by each licence held and may also specify categories of

licences, subject to any such requirements which may be described.

(1)

The term of a licence issued under these

regulations shall be five (5) years.

(2) Upon the expiry of its term, a licence may be renewed by

the Authority for a further five-year term, provided that any such

renewal shall in all cases be subject to the continued compliance by

the licensee, during the preceding original or renewed term of the

licence, with the provisions of the Act, these regulations, all

applicable regulatory instruments and all other applicable laws.

(3) A person who desires to obtain or renew a licence shall file

an application with the Authority making use of the relevant forms

published by the Authority and submitting all information,

documentation and assurances required by the Authority in a general

manner or specifically with regards to the applicant as the Authority

may deem necessary in accordance with the regulatory objectives.

(4) An application for the renewal of a licence shall be made

no later than ninety (90) days prior to the expiration the current

licence and the Authority shall not entertain a late application for

renewal unless the applicant can show that due to matters beyond its

reasonable control it could not have filed an application for renewal

of that licence any sooner.

A person is not eligible to hold a licence unless such Qualifications.

person is a body corporate established in a Member State of the

European Union or a Member State of the European Economic Area.

(1)

The Authority shall not issue or renew a licence in Application for

a licence.

any of the following instances

(a)

if the application is not submitted through the

relevant forms designated by the Authority and in accordance

with the established procedure; or

(b)

if the application is incomplete; or

(c)

if the applicable fees have not been paid; or

(d)

if the Authority, in its reasonable discretion, is not

satisfied that the applicant is fit to and can properly carry on its

business, or proposed business;

(e)

if the Authority, in its reasonable discretion, is not

satisfied that the following persons are fit to and can properly be

involved with the type of business carried on or proposed to be

carried on by the applicant

(i) any person having a qualifying shareholding

in the applicant;

(ii) any person having effective control over

management of the applicant’s affairs, including the person

having legal and, or judicial representation of the

applicant;

(iii) any person being a member of the board of

directors, or equivalent position howsoever named, of the

applicant;

(iv) any person being a chief executive, managing

director, or equivalent of the applicant and having the

authority to manage the day to day affairs of the applicant;

and

(v) any other person who performs such key

functions for the applicant, or is connected with the

applicant in such manner, as may be determined by the

Authority from time to time.

In determining whether an applicant is fit to and can

properly carry on its business, or proposed business, the Authority

shall consider the following matters and shall make provision for the

publication of any other criteria which it deems it must consider in

making such a determination, with a view to adhering to the

regulatory objectives

(a)

the financial background and business reputation,

and current financial position of the applicant's promoters,

shareholders and directors;

(b)

whether the applicant is, in the Authority’s opinion,

untainted with illegality;

(c)

whether the applicant’s management appears to be

suitably qualified to run the applicant’s business, or proposed

business;

(d)

whether the applicant appears to have the necessary

competence, technical know-how and resources to carry on its

business, or proposed business;

(e)

whether the applicant’s business model suggests

that the applicant will offer Controlled Skill Games in a manner

which is compliant with these regulations and with its

obligations at law, as well as with any conditions or directives

which the Authority may deem necessary to impose on the

applicant with a view to adhering to the regulatory objectives;

(f)

whether the applicant is committed to implement

policies and to take affirmative steps to detect and prevent

money laundering, the funding of terrorism, fraud, and any

other criminal or suspicious transactions;

(g)

whether the applicant is proposing to fund its

business or proposed business through its own funds or through

funds borrowed or otherwise raised from third parties, and in

which case, who those third parties are; and

(h)

whether the applicant will comply with any

additional requirements that the Authority considers, on the

basis of a risk-based approach, necessary to be imposed on the

applicant, which requirements may include but are not limited

to financial safeguards, security, changes to the proposed set-up,

as well as the implementation of any policies and procedures

Provided further that the matters described above shall be

without prejudice to any further matters which the Authority may

deem relevant to consider when assessing the person in question.

In determining whether a person is fit to and can properly Involved

be involved with the type of business carried on or proposed to be persons.

carried on by the applicant, the Authority shall consider the following

matters in adherence to the regulatory objectives

(a)

the character of the person concerned and his

business reputation;

(b)

the financial position of the person concerned;

(c)

whether the person concerned has been charged

with the commission of a crime and the nature of the charges

against him;

(d)

whether the person concerned has been found

guilty of a crime and the nature of the crime of which he is

guilty;

(e)

the business experience of the person concerned;

and

(f)

the training, academics

and

professional

qualifications of the person concerned

Provided that the matters described above shall be without

prejudice to any further matters which the Authority may deem

relevant to consider when assessing the person in question.

The Authority shall not issue or renew a licence if it Discretion to

believes that issuing or renewing a licence to the applicant may pose a renew.

risk to the reputation of Malta or be otherwise not in the public

interest.

In granting a licence in terms of these regulations, the

Authority may subject the licensee to any such other conditions as it

may deem appropriate in pursuit of the regulatory objectives, and

these regulations, and the Authority may, at any time following the

grant of the licence, vary or revoke any condition so imposed, or may

impose new conditions

Provided that whenever the Authority deems it appropriate

to vary any condition or impose any new condition in the licence, the

Authority shall, unless such a variation or imposition of a new

condition has been requested by the licensee itself, by notice in

writing inform the licensee of its intention to vary the said condition

or to impose the said new condition, calling upon the licensee to show

cause, within such period being not less than twenty (20) days after

the issue of the notice as may be specified in the same notice, why

such a condition should not be varied or imposed, and the Authority

shall consider any representations made by the licensee within the

period specified in the notice, before varying or imposing the

condition.

An applicant for a licence must be able to satisfy the

Authority that an activity which it intends to offer under a licence

issued in terms of these regulations is a skill game and the Authority

shall examine the documentation submitted, including any studies,

research, rulings or certification submitted by an applicant prior to

making such a determination.

A licence granted by the Authority may not be assigned or

transferred in any way whatsoever to any other person without the

prior written consent of the Authority, and any such assignment or

transfer to any other person without the Authority’s consent shall be

considered null and void and constitute sufficient grounds for the

Authority to cancel that licence.

The licensee shall notify the Authority forthwith of

(a)

any change in the Board of Directors, executive

management or other key personnel of the licensee, or in

general the effective control of the licensee;

(b)

the acquisition or disposal of a qualifying

shareholding in the licensee by any person;

(c)

the increase or reduction in the nominal or issued

share capital of the licensee;

(d)

any material change in the voting rights of the

(e)

the merger of the licensee with another company;

(f)

the reconstruction or division of the licensee;

(g)

the sale or other disposition by the licensee of its

(h)

any resolution or intended resolution, or any

application or intended application to any Court, or any other

action for the dissolution and winding up of the licensee, as

soon as the licensee becomes aware of such resolutions,

intended resolutions, applications or intended applications or

any other action;

(i)

any ongoing litigation involving the licensee or any

interested person;

(j)

any ongoing investigation into the licensee or any

interested person by the competent authorities of any other

jurisdiction;

(k)

any material changes in the information and

documentation previously provided to the Authority; and

(l)

any material change in the games offered or

Provided that in all cases, the licensee shall strive to notify

the Authority of any of the above before the act takes place, and as

soon as the intention becomes executable.

Part VI

Suspension or Termination of a Licence

A licensee may request the surrender of the licence at any Surrender of a

time during the licence term and the Authority shall accept the licence.

surrender of the licence unless in its opinion, circumstances indicate

that the surrender of the licence may prejudice the players or the

Authority’s ability to investigate, enforce or carry out any of its

functions at law

Provided that if the licensee is holding players’ monies, the

Authority shall also require evidence that players’ monies have been

duly refunded or alternative arrangements in respect of such monies

have been made to the satisfaction of the Authority.

The Authority may order the suspension or cancellation of

a licence if

(a)

any person with an interest in the licensee,

including any shareholder, director, any person vested with an

executive management function, effective control or any other

key person is deemed to be no longer fit to and can no longer

properly be involved with the type of business carried on by the

licensee;

(b)

the licensee has failed without reasonable cause

being shown to comply with the Act, these regulations, any

directive, any material term or condition of the licence, any

regulatory instrument issued by the Authority, or any other

applicable law;

(c)

the licensee has failed to discharge financial

commitments for the licensee’s operations or the Authority has

reason to believe that such failure is imminent;

(d)

the licensee is insolvent or is being wound up;

(e)

the licensee applies for an order, or is compelled by

any means or for any reason, to discontinue or to wind up its

operations;

(f)

the licence was obtained by a materially false or

misleading representation or in some other improper way;

(g)

the licensee has failed to meet commitments made

to players or such failure is imminent;

(h)

the licensee has failed to pay any monies due to the

Authority in a timely manner;

(i)

the Authority, in its sole discretion, has determined

that there is material and sufficient reason for suspending or

cancelling the licence;

(j)

the Authority reasonably deems it necessary in the

national interest to suspend or cancel the licence;

(k)

the Authority is reasonably satisfied that the

licensee presents a credible and imminent danger to players or

consumers; and

(l)

the Authority is reasonably satisfied that the

licensee presents a danger to the reputation of Malta.

(1)

The suspension, cancellation or expiration of a Liability of the

licence shall not affect any liability of the licensee for anything done licensee.

or omitted to be done before the date of suspension, cancellation or

expiration.

(2) The liability of the licensee to pay any fee shall continue

during any period when the licence is suspended.

(3) The term of a licence shall

continue

running

notwithstanding the suspension of a licence.

(1)

Where a ground for cancellation or suspension of a Procedure for

licence arises under regulation 22, the Authority shall, by notice in suspension

cancellation.

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

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

period being not less than twenty days after the issue of the notice as

specified in the same notice, why the licence should not be cancelled

or suspended on such ground as is stated in the notice

Provided that the Authority may, in the same notice,

require the person on whom the notice is served in terms of this

regulation, to tender any information or documents which the

Authority may deem necessary in the circumstances.

(2) The Authority shall have regard to any representations

made under sub-regulation (1) in such a manner that

(a)

where the matter is resolved to its satisfaction, it

shall take no further action and shall inform the licensee in

writing accordingly;

(b)

where the matter is resolved to its satisfaction, and

it considers that further action under paragraph (c) is not

warranted, it may caution the licensee in writing; 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 to the

licensee as it considers appropriate; or

(ii) suspend the licence for such period as it

thinks fit, or cancel such licence.

(3) Where a direction given by the Authority under sub-

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

the notice, the Authority shall cancel the licence.

(4) Nothing in this regulation shall prejudice anything contained

in Part VIII of these regulations.

Part VII

Key Official

(1)

A licensee shall appoint and maintain at least one

key official throughout the duration of the licence term, and such

appointment has to be approved by the Authority.

(2) A key official shall

(a)

personally supervise the operations of the licensee

of which he is a key official;

(b)

ensure that the licence holder shall comply with all

applicable laws and regulations, the conditions of the licence

and any directives issued by the Authority to the licensee;

(c)

have access to the licensee’s systems;

(d)

be

responsible

for

the

licensee’s

reporting

obligations;

(e)

be knowledgeable and competent in matters

relating to compliance and the operations of the licensee;

(f)

act as a liaison between the licensee and the

Authority; and

(g)

be readily available to the Authority.

(3) The Authority shall not approve of the appointment of a

key official unless it is satisfied that such person is fit and proper to

fulfil his obligations and discharge his duties.

(4) The Authority may, in its sole discretion, determine that an

approved key official is no longer fit and proper to fulfil his

obligations and discharge his duties, and may revoke any approval

previously granted, and order the licensee to appoint another person

as key official.

(5) The Authority may impose further conditions

or

requirements on any person holding the office of a key official.

(6) A person holding the office of a key official of a licensee

shall remain answerable to the Authority even after leaving the office

of a key official for any issues occurring during the time in which he

held such office.

(7) A key official may resign, or may be removed from office

and the licensee shall request the appointment of a replacement

within not more than fourteen days from the date of resignation or

removal from office.

(8) An application for the appointment of a key official shall

be made to the Authority on the relevant form as designated by the

Authority.

Part VIII

Operations

The Authority may issue requirements with regards to the Requirements or

organisation, provision, offering, making available or promotion of Directives

Authority.

skill games or may issue directives to any operator of skill games, as

may be necessary in pursuit of the regulatory objectives.

(1)

An applicant for a licence or a licensee shall, as Obligations of

may be specified by the Authority in the licence application, or at any the

holder.

time

(a)

provide the Authority with any such documentation

and information on the systems used as may be required by the

Authority;

(b)

comply

with

any

technical

regulation,

specification, directive, order or licence condition as may be

imposed or issued by the Authority;

(c)

certify any systems in accordance with any

technical specifications as may be required by the Authority;

and

(d)

provide any documentation, information or

certification which may be requested by the Authority with

regards to any service that the licensee outsources to any third

party.

(2) A licensee shall conduct the controlled skill games

services and the controlled skill games supply under the systems

approved by the Authority.

(3) The licensee shall notify the Authority forthwith of any

material changes to the systems used by the licensee in conducting

the controlled skill game service or the controlled skill games supply.

(4) The Authority shall be empowered to order the licensee to

make any changes to the systems used by the licensee for the

purposes of compliance with the provisions of these regulations, any

regulatory instrument or any other applicable law, or in pursuit of any

of the regulatory objectives.

The Authority may issue specifications, directives, orders

or licence conditions relative to controlled skill games or a category

thereof setting out

(a)

the minimum age required to participate in a

controlled skill game, provided that unless otherwise specified,

the minimum age to participate in a Controlled Skill Game shall

be eighteen (18);

(b)

the keeping of player, game and financial records;

(c)

the registration, identification and verification of

players;

(d)

requirements regarding payment methods;

(e)

the interface used, and the information made

available to the players;

(f)

requirements

relating

to

the

technical

infrastructure;

(g)

requirements related to the prizes awarded; and

(h)

any other obligations that the Authority may deem

it necessary to impose in adherence with the regulatory

objectives.

A player shall not register more than one account with a

licensee, and the licensee shall take all steps necessary to prevent

collusion.

(1)

The licensee shall make available to a player the

following information

(a)

all the rules relating to the controlled skill game

conducted by the licensee

Provided that any change in such rules must be

notified to the player prior to the entry into force of said change;

and

(b)

any fees, including processing fees that may be

incurred by the player.

(2) The player of a controlled skill game shall comply with all

rules mentioned in sub-regulation (1)(a).

Part IX

Players’ Funds

(1)

The licensee shall, where applicable, keep a record Players’ funds.

per player of all funds received by the licensee from or on behalf of

the player, or owed by the licensee to the player.

(2) The licensee shall not accept a financial commitment from

a player unless

(a)

the player is above the minimum age required to

play the game; and

(b)

the player holds adequate funds to cover the

amount of the financial commitment.

(3) A licensee shall not provide credit to a player or act as

agent for a credit provider to facilitate the provision of credit to a

player.

A licensee shall not make a payment to a player, or process Identity

any deposit from a player which cumulatively is in excess of two verification.

thousand euro (€2,000), until the player’s identity, age and place of

residence have been verified.

(1)

A licensee shall, at the request of the player to Remission of

whom the funds are owed, remit said funds to the player by no later player funds.

than five working days, or as soon as practicable if for duly justifiable

reasons the funds cannot be remitted within those five working days,

after receipt of the request.

(2) A licensee may, before remitting funds to a player in

accordance with sub-regulation (1), take such time as is reasonably

necessary for the purpose of

(a)

verifying the player’s identity, age and place of

residence;

(b)

verifying the playing of a game by the player;

(c)

conducting security and other checks in relation to

the player’s activity; and

(d)

ensuring that the rules that are approved relating to

the award of the prizes to players have been complied with.

(3) The Authority may, at any time, require a licensee to abide

by obligations and procedures for the detection and prevention of

money laundering and other related crimes.

(1)

A licensee shall keep players’ funds separately

from the licensee’s own funds in a clients’ account held with a credit

institution approved by the Authority.

(2) (a)

The funds in the clients’ account, including funds

in transit or in the process of being cleared through the banking

system or by credit card processing companies, shall at any time be at

least equal to the players’ funds held by the licensee

Provided that if the funds standing to the credit of

the Clients’ account fall below the aggregate total of the amounts

standing to the credit of players’ accounts, the licensee shall make

good the shortfall from the licensee's own funds forthwith.

(b)

The Authority may, at its sole discretion, consider

funds held in other accounts belonging to or controlled by the

licensee to be included with funds in the clients’ accounts for the

purpose of these regulations.

(3) (a)

For the purpose of protecting players’ funds the

Authority may, for just cause, order the licensee to take out a bank

guarantee in favour of the Authority.

(b)

The bank guarantee shall be in such amount and for

such period of time, as determined by the Authority

Provided that if the licensee fails to comply with

the order within three working days from the issue of such an order,

the Authority may suspend or cancel the licence.

(4) For the purpose of avoiding doubt as to the effect of this

regulation, save as may be explicitly stipulated in the garnishee order,

any precautionary or executive garnishee order shall not have any

effect or be construed as ever having had any effect on players’ funds,

including funds in the licensee’s clients’ account held with a credit

institution or in an account of a trustee who on behalf of the licensee

holds, manages, administers or deals in any other way with players

funds, held with a credit institution, players’ funds in transit or in the

process of being cleared through the banking system or by credit card

processing companies, including credit or financial institutions, and

any players’ funds held in other accounts held with a credit institution

belonging to or controlled by the licensee or belonging to or

controlled by a trustee as aforesaid, as the Authority may have

determined in terms of sub-regulation (2)(b) to be included with

funds in the clients’ accounts.

(5) The licensee shall instruct and authorise the credit

financial institution by which a players’ account is held to disclose

any information as may be requested by the Authority in respect of a

player’s account and evidence of this shall be submitted to the

Authority.

(6) The Authority may accept alternative methods of security

of players’ funds, or demand additional methods of security of

players’ funds provided that in its sole discretion, such player funds

are protected in a way that is equivalent or superior to the above

requirements.

(7) For the avoidance of doubt, player funds shall be insulated

against the claims of creditors of the licensee, or of any other person

holding such funds other than players themselves, including in the

event of insolvency.

(1)

A licensee shall provide players with the option to

Player

protection

mechanisms.

(a)

set a limit on the amount the player may deposit or

play; and

(b)

exclude oneself from playing for a definite or

indefinite period of time.

(2) A player may amend the limit or exclusion imposed above

by notice to the licensee

Provided that a notice increasing the limit or revoking a

limit or decreasing the exclusion has effect only twenty-four (24)

hours after the licensee has received notice, whilst a notice reducing a

limit or increasing the exclusion shall have immediate effect.

(3) A licensee shall not accept any financial commitment from

a player, or allow a player to play contrary to a limitation or exclusion

imposed in terms of sub-regulation (1).

Where a player retains funds deposited with the licensee, Player’s balance

the licensee shall cause the updated player’s balance to be viewable to

and accessible.

and accessible by the player at all times.

A licensee shall, where applicable, make the player’s

transaction history, including any deposits, commitments and wins

available to the player.

A licensee shall take all reasonable steps to ensure that in

the event of the interruption of a game, including due to a failure of

the telecommunications system, the game shall be restored and

resumed to the situation prior to failure without adversely affecting

the player, and if the game cannot otherwise be resumed without

adversely affecting the player, the game shall be terminated and the

player’s financial commitment restored to the player accordingly,

together with any additional benefits which the player would have

reasonably and legitimately accrued prior to interruption

Provided that the Authority may order a licensee to stop

offering a particular controlled skill game, if such game is suffering

such serious failures impacting the players’ experience.

A licensee shall maintain the following information

accessible by any person

(a)

the registered name of the licensee’s company;

(b)

the address of the company’s registered office;

(c)

the reference number of the licence;

(d)

a statement that the licensee’s operations are

regulated by the Authority;

(e)

any tool that the Authority may integrate for the

purposes of allowing players to verify that the operation is

licensed and regulated by the Authority; and

(f)

any other information that the Authority may deem

necessary and expedient

Provided that the Authority may require such information

to be presented in a particular format.

The licensee shall make any regulatory data required

accessible to the Authority as may be determined by the Authority.

(1)

The Authority may require the licensee to undergo

an audit conducted by a certified third party with regards to the

licensee's financial position, its compliance with these regulations

and any regulatory instrument issued by the Authority and any

additional scope which the Authority may determine

Provided that any expense related to the engagement and

performance of such an audit shall be borne by the licensee.

(2) The Authority may require that the results of the audit are

directly or otherwise reported to the Authority.

(3) The licensee shall ascertain that the certified third party

performing the audit shall be authorised to disclose information to the

Authority.

(4) The Authority may order a licensee to make any changes it

deems necessary on the basis of the findings of the audit.

(5) The Authority may engage a certified third party to

perform an audit on a licensee on its behalf, and the Authority may

charge any reasonable expenses incurred by it for such an audit to the

licensee.

(1)

A licensee shall immediately inquire into any Player

complaint made to the licensee or to the Authority by a registered complaints.

player in respect of the operation of a game operated by the licensee,

or any entity providing services related to the licensee’s controlled

skill game service or supply.

(2) The licensee shall inform the complainant, or the

Authority, where the complaint was referred to the licensee by the

Authority, by notice in writing of the results of the inquiry within

twenty days from the date on which the complaint has been lodged

with the licensee.

(3) Where a complaint is lodged directly with the Authority,

the Authority may

(a)

either inquire into the complaint itself; or

(b)

refer the complaint to the licensee against whom

the complaint is made

Provided that the licensee shall follow the procedure set

down in sub-regulation (2).

(4) A complaint shall contain clear and unequivocal

information about the complainant’s identity, and shall give all the

relevant details that gave rise to the complaint.

Nothing in these regulations shall prejudice article 20 of Secrecy.

the Act.

Part X

Investigation and Enforcement

The Authority may, at its sole discretion, conduct an

investigation of a licensee and any associated persons or entities if it

is brought to its attention or it has reason to believe that the licensee is

in breach of these regulations, any regulatory instrument or any other

applicable law, or is compromising the regulatory objectives.

(1)

The provisions of articles 18 and 19 of the Act

shall apply mutatis mutandis to these regulations and any reference

contained therein to gaming or a gaming device shall, for the

purposes of this regulation, be deemed to be a reference to a skill

game or a device used in relation to the offering of a skill game.

(2) An inspector or any officer of the Authority shall, for the

purpose of ascertaining that these regulations and all regulatory

instruments issued by the Authority are complied with, and that the

full amount of fees, tax or any other sums payable under the Act or

under these regulations are being paid, also have the powers

(a)

to inspect, test and examine any equipment or

software being used in the operation of skill games;

(b)

to remove any equipment or software to another

place or premises approved and designated by the Authority, for

the purpose of an inspection or examination;

(c)

to inspect any premises whether approved or not

where equipment, software, documents or records are kept;

(d)

to request information or the production for

inspection of any document or any other thing for the purposes

of an inspection;

(e)

to remove any document or any other thing

produced as a result of a request under paragraph (d) or

discovered during an inspection for the purpose of examining

the document or other thing or making copies or taking extracts.

(3) An inspector or any officer of the Authority removing

equipment, software, document or other thing from approved

premises or other place under sub-regulation (1) or (2) shall first

provide a receipt for it to the person who owns or is in charge of the

premises or place and, subject to sub-regulation (4), shall promptly

return the equipment, software, document or other thing to the

premises or other place after completion of the inspection,

examination, testing, making of copies or taking of extracts, as the

case may be.

(4) An inspector or any officer of the Authority may, for the

purposes of evidence, detain any equipment, software, document or

other thing that the inspector discovers while acting under this

regulation and believes, on reasonable and probable grounds, may

afford evidence of a violation of or a non-compliance with anything

contained in these regulations

Provided that copies of or extracts from documents or

other things removed from a licensed premises or other place under

this regulation, and certified by an officer of the Authority making the

copies or taking the extracts as being true copies of or extracts from

the originals, are admissible in evidence to the same extent as, and

have the same probatory value as, the documents or things of which

they are copies or from which they are extracts.

(1)

The person who owns or is in charge of any place Premises.

or premises entered by an inspector under regulation 45, and any

employee or agent of such person shall give all reasonable assistance

to the inspector or any officer of the Authority to enable him or her to

exercise the powers given under articles 18 and 19 of the Act and

regulation 45, and shall furnish the inspector or officer with such

equipment, software, records, documents, information or other thing

as may reasonably be requested.

(2) No person shall hinder, obstruct or otherwise interfere

with, or knowingly make a false or misleading statement, either orally

or in writing, or provide or produce a false document or other thing

to, an inspector or other officer of the Authority who is carrying out

his or her duties and functions under this regulation

Provided that any act of commission or omission or any

other behaviour in contravention of this regulation shall constitute an

offence against the Act.

Any contravention of these regulations shall be considered Penalties.

an offence against the Act and any person so guilty of an offence

shall, on conviction, be liable to a fine (multa) of not less than three

thousand euro (€3,000) and not more than one hundred thousand euro

(€100,000) or to imprisonment for a term of not more than three

years, or to both such fine and imprisonment

Provided that where the person convicted of such an

offence is a recidivist, he shall be liable to a fine (multa) of not less

than six thousand euro (€6000) and not more than two hundred and

fifty thousand euro (€250,000), or to imprisonment for a term of not

less than six months and of not more than four years, or to both such

fine and imprisonment

Provided further 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

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

same company or other undertaking, which shall accordingly be

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

said fine.

The provisions of articles 68, 69, 70, 72, 73 and 74 of the

Act shall apply mutatis mutandis to these regulations and any

reference contained therein to gaming or a gaming device shall, for

the purposes of this regulation, be deemed to be a reference to a Skill

Game or a device used in relation to the offering of a skill game.

Part XI

Financial Provisions

(1)

A licensee shall pay to the Authority the relevant

licence fees, application fees, approval fees and any other

administrative fees as laid down in the Second Schedule.

(2) The Authority may, when objectively reasonable, require

applicants or licensees to pay the actual costs and any other expenses

incurred in conducting analyses, inspections and investigations into

their backgrounds, suitability and qualifications to obtain and

maintain a licence, including any checks performed by the Authority

following notification in terms of regulation 20 and the Authority

may publish a Directive setting out a schedule of fees.

The provider of a controlled skill games service organised

in, or provided from the territory of Malta that is licensed in terms of

these regulations, or providing a controlled skill games service to any

person in the territory of Malta in terms of regulation 8(a)(ii) or (iii)

shall pay to the Authority on behalf of Government the rate of tax

established in the Third Schedule.

Part XII

Monitoring

(1)

The Authority may, at any time, following

consultation with the licensees, require a licensee, a specific category

of licensees or all licensees to connect any of its systems to a

monitoring system operated by the Authority, and to maintain such

connection at all times.

(2) In the event that the Authority imposes the requirement

referred to in sub-regulation (1), the Authority may specify the

specifications necessary for it to be able to, and the manner in which

it shall operate the monitoring system in directives, and licensees

shall modify or upgrade their systems as necessary to ensure their

compatibility with the monitoring system and the requirements of the

Authority.

(1)

The Authority may use a monitoring system for

Use of the

monitoring

system.

(a)

receiving reports or statements which licensees are

obliged to submit to the Authority in terms of these regulations,

any directive, any other applicable law or any condition of the

licence;

(b)

monitoring and receiving information relating to

the games and the gaming operation, including player, game and

financial data as may be required by the Authority to fulfil its

objectives at law;

(c)

investigating the licensee’s compliance with the

Act, these regulations, any licence conditions, directives, and

any other applicable legislation, including any laws or

regulations at any time in force for the prevention of money

laundering;

(d)

research and the compilation of statistics and

analytics in an aggregated format; and

(e)

any other purpose required by the Authority in

fulfilling its objectives at law, or as may be specified in

directives issued by the Authority from time to time.

(2) Any information collected by the Authority in terms of

sub-regulation (1)(d) may be made available to the public.

(3) The Authority shall not be held liable for any loss or

damage due to a fault in the monitoring system, or in the

telecommunications system used to operate the monitoring system.

Where the obligations referred to in regulation 51 have Proper operation

been imposed, a licensee shall ensure that its systems, and the means of

monitoring

of distance communication through which its systems are connected system.

to the monitoring system comply with any standards or requirements

established by the Authority, and remain so compliant throughout the

duration of the licence, and shall not be modified, tampered with, or

re-programmed by any person without the approval of the Authority.

Part XIII

Administrative Review

(1)

Any person who feels aggrieved by a decision of

the Authority taken in terms of these regulations may appeal to the

Administrative Review Tribunal, constituted in terms of the

Administrative Justice Act, in accordance with the provisions of this

regulation

Provided that in any case, a person filing an appeal with

the Administrative Review Tribunal shall explain and bring evidence

of his juridical interest in impugning the decision being appealed

from.

(2) An appeal from a decision of the Authority shall be made

by application and shall be filed with the secretary of the

Administrative Review Tribunal within twenty days from the date on

which the said decision was notified to the party appealing.

(3) The application of appeal shall be notified to the Authority

which shall file its reply thereto with the secretary of the

Administrative Review Tribunal within the time granted for such a

purpose by the Administrative Review Tribunal.

(1)

The decision of the Authority under appeal shall

remain in force pending an appeal, whether before the Administrative

Review Tribunal or the Court of Appeal (Inferior Jurisdiction), unless

otherwise determined by the Administrative Review Tribunal.

(2) The Administrative Review Tribunal or the Court of

Appeal, as the case may be, where it considers it to be appropriate,

may on the application of a party to the appeal, suspend the decision

of the Authority, pending the final determination of the appeal. The

Administrative Review Tribunal or the Court of Appeal in deciding to

suspend the decision shall state their reasons for doing so.

Part XIV

Miscellaneous

(1)

The Authority may provide for a transitory period

of not more than three months from the date of coming into force of

these regulations, or a ruling made thereunder, for any person to

comply with the provisions thereof.

(2) The Authority may also provide for additional transitory

measures in the implementation of these regulations.

Without prejudice to the provisions of regulation 56, the Revocation of

Fantasy Sports

Fantasy Sports (Exemption) Regulations are hereby revoked.

(Exemption)

Regulations.

First Schedule

Regulation 3

Criteria for Classification

The criteria which the Authority shall take into consideration in determining

whether a game is a skill game or a controlled skill game in terms of regulation 5

and 7 shall include the following

(a)

the presence of random draws and their effect on the outcome;

(b)

whether the game is played for money and, or prizes with a

monetary value;

(c)

whether participation in a game involves any form of monetary

commitment, or commitment of a monetary value;

(d)

the possibility of any negative social impact of the game;

(e)

whether the activity is closely associated with games of chance

and/or gambling;

(f)

the duration of each event, competition or match;

(g)

whether, on the face of it, a skilled player is able to win more

than an unskilled player;

(h)

whether a player’s chance of winning is significantly increased

by experience in playing the game;

(i)

whether skill can be acquired through training, experience,

reading literature or other educational material;

(j)

whether a rule-set or format that is used further nullifies the

effect of any element of chance;

(k)

whether the game is played against other human players, or

(l)

the level of interaction between the players, the level of

interaction between the operator and the players, and the level of intervention

by the operator during the event, competition or match; and

(m)

the complexity of the game, including the amount of player

choices and their potential effect on the outcome, and the strategies involved.

Provided that when the Authority determines, basing itself on any one

or more of the above criteria, that an activity is more akin to a game of chance or a

game of chance and skill than to a skill game as intended by the Act and any

regulations made thereunder, then such an activity shall not fall within the

parameters of this Schedule.

Second Schedule

Regulation 49

Fees

Description

Fee

Regulation

Non-refundable application/

€ 2,300

Regulation 11

renewal fee

Licence fee

€ 8,500 per annum

Regulation 49

Third Schedule

Regulation 50

Taxation

1. (a)

The rate of taxation due shall be five per centum (5%) of real

income.

(b)

Real income shall be construed as total wagers less total monies

paid out to players.

Provided that the Authority may issue directives or further specifications as

to the manner in which such tax is to be calculated.

2. The tax due shall be paid to the Authority monthly, and by not later than

the twentieth (20th) day of the following month.

3. The maximum tax payable annually by a single controlled skill game

operator shall not exceed four hundred and sixty-six thousand euro (€466,000).

4. The Authority may, in order to avoid the possibility of double taxation,

grant credit, set-off or relief with respect to tax under these regulations on a

unilateral basis, or pursuant to bilateral or multilateral treaties, agreements,

memorandum of understanding or other arrangements entered into with any

foreign government or any local or foreign authority or government agency.

B

€2.52