ESG Reporting in Malta’s iGaming Sector Sees First Benchmark Set by MGA

Initial Reporting Cycle Yields Encouraging Insights

The Malta Gaming Authority (MGA) has released the findings from the first ESG Code of Good Practice reporting cycle, marking a pivotal moment in the integration of sustainability principles into the online gaming sector. Fourteen remote gaming licensees voluntarily submitted data for the 2023 cycle, covering a wide array of Environmental, Social, and Governance (ESG) metrics.

This effort, while non-mandatory, aligns with Malta’s long-term sustainability strategy, Malta Vision 2050, and aims to build a more transparent and accountable gaming ecosystem. Although the sample size remains limited, the results provide a snapshot of current practices and serve as a baseline for future benchmarking.

Environmental Reporting and Social Metrics

Most reporting entities disclosed Scope 1 and 2 carbon emissions, with an average carbon intensity of 0.06 kgCO₂ per euro of revenue. However, comprehensive reporting on Scope 3 emissions remains rare. Half of the participants had formal environmental policies aligned with the Paris Agreement, yet only 50% included water reduction targets. This suggests a foundational approach to environmental impact, with clear room for broader data capture and strategic planning.

Gender diversity in non-management roles showed near parity (52.9% male, 47.0% female), but the balance skewed in higher positions: women made up only 35.2% of management and 20% of executives. This imbalance partially explains a reported 27.1% gender pay gap across participants.

On the positive side, 100% of entities have data privacy policies in place, and all provide responsible gambling tools and training. Customer-facing staff received an average of 6.3 hours of responsible gambling instruction annually, and 70% of companies exceeded minimum harm markers defined by MGA regulations.

Governance: Strong Foundations, Scope for More Inclusivity

Governance structures across the respondents appeared solid, with most having anti-bribery and whistleblower policies in place. All licensees maintain AML/CFT policies, with high training compliance among staff. However, only 25% of board members were independent, and women represented just 21.4% of board positions.

While all operators had information security policies, only half had a formalised ESG oversight body such as an ESG committee. Just as many had begun integrating ESG risks and opportunities into their business models.

Community Impact and Social Protection

Donations and volunteer work were modest, accounting for 0.1% of revenue and 0.1% of labour time respectively. Still, 85% of entities offered employee well-being programs, and the average daily work time stood at 7.7 hours. Nearly two-thirds (63.4%) of staff had access to flexible work arrangements.

Meanwhile, 92.3% of employees had sickness and parental leave coverage, and 76.9% were covered for work-related injury, though none were reported under collective bargaining agreements.

Looking Forward: A Blueprint for Broader Engagement

All participants in the 2023 reporting cycle were awarded the ESG Code Approval Seal, with distinctions made between Tier 1 and Tier 2 recognition based on alignment with the code’s principles. The MGA emphasised that the findings, while encouraging, should not be extrapolated across the entire industry due to the sample’s self-selective nature.

The regulator encourages more licensees to participate in future ESG reporting cycles and to treat this inaugural benchmark as both a signal of progress and a call to action. Broader participation and more standardised data will be essential for advancing Malta’s standing as a responsible iGaming jurisdiction and for reinforcing the industry’s credibility on the global stage.