Malta is a European State located in the Eastern Mediterranean sea, between Libya and Sicily.In 2000 began to grant licenses to online gambling websites, through the Public Lotto Ordinance (LN 34 of 2000), in order to regulate offshore betting offices.

A society dealing with offshore betting is a company that basically operates outside a particular country, or can be an online casino that has its servers in a country where gambling has different restrictions. In short terms, therefore, offshore betting is a casino that operates outside the country in which players live.

After the law on lotteries and other gambling games in 2001, the LGA (Lottery and Gaming Authority) has established the following statement:

"Our aim is to regulate competently the various lotteries and games’ sectors under the Authority legislation, in order to ensure fair and transparent games for players, prevent crime, corruption and money laundering and protect children and vulnerable people"

Since 2000, the LGA (Lotteries and Gaming Authority) has developed its own policies and procedures for remote gaming operations, and in April 2004 new regulations about Remote Gaming were published.

Trailer Malta Gaming Authority (MGA)

Malta became the first European Union Member State to regulate Remote Gaming

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The Authority for lotteries and gambling games (Lotteries and Gaming Authority - LGA) is the only regulatory institution responsible for the management of all gaming activities including:

• Gaming machines
• Media Broadcasting games
  (Games through media broadcasting, organized by an owner or operator, or a subcontractor of a television or radio. The participation of the players is possible takes place through their presence in the TV program or in the show recording, or their participation through any remote communication means)
• Casino
• Bingo halls
• Commercial Communication games
  (Commercial communication games;those games that are organized in order to promote or encourage the sale of goods and/or services. This is not a real economic activity, and all payments made by the participant are not a way to enter the game, but to acquire the goods and/or services promoted)
• Horse racing
• National Lottery
• Non-profit games
• Remote Gaming
  (A system that includes all types of game using remote control technology such as Internet, digital TV, telephone and fax, mobile technology).

Remote Gaming and Separate License Classes

In Malta Remote Gaming sector is, the most dynamic and rapidly growing among gambling games. It is regulated according to the of Remote Gaming provisions (LN 176/04).

In April 2004, the Remote Gambling Regulations have been updated and they are now able to offer four different classes of licenses:

• Class 1 is for operators who provide online casino games, gambling and games that use a random number generator.
• Class 2 is for the licensing of online games and regards sports betting operators.
• Class 3 covers advertisers and promotion companies operating in Malta.
• Class 4 covers licenses for companies that host and manage remote gaming operations, but they themselves are not operators.

Each type of license is lasting five years.

All licensees must pay an initial license fee of MTL 1000. Periodical taxes are also requested. Game fee is 0.5% of total turnover.

The companies holding a license in Malta are not authorized to receive bets from citizens of the island.

In March 2005 the first Malta Remote Gaming Council (MRGC) was elected. This Council brings together Remote Gaming operators and service providers, offering them a great opportunity to meet new challenges thanks to the benefits gained in a collective effort.

The MRGC has launched an online forum to allow all operators and service providers in the industry (ISP providers, legal and financial representatives of the Remote Gaming in Malta) to discuss legal matters, technical, and administrative issues regarding management of activities.

Every kind of Remote game that can be firmly managed by the regulations of the LGA will be considered for licensing.

The Remote Gaming and the National Lottery are the largest sectors in terms of revenue generated for the government. More than 2,100 workers are directly employed in the field of remote gaming.

In September 2007, Malta established the UK "white list" of all those countries that equals the strict British regulations on gambling. Consequently, the number of licensees in Malta is constantly increasing.

The regulatory regime of LGA aims to be neutral both technologically and in relation to games and it includes any type of game using an instrument of remote communication (including the Internet, digital TV, mobile phone technology, telephone and fax).