MGA Launches Consultation on Financial Reporting Amendments for Licensees
The Malta Gaming Authority (MGA) has initiated a closed consultation to seek industry feedback on proposed amendments to financial reporting and disclosure requirements for licensees. The revisions, part of the Gaming Authorisations and Compliance Directive, aim to enhance regulatory oversight and strengthen MGA’s risk-based approach. The consultation remains open until 25 April 2025.
Enhanced Financial Reporting Requirements
Under the proposed changes, licensees must submit new monthly reports detailing player funds and managed accounts.
The MGA also plans to enforce a standardized reporting framework, requiring all interim and annual financial statements to comply with the International Financial Reporting Standard (IFRS).
New Obligations on Financial Disclosures
The amendments introduce stricter disclosure rules. Licensees must notify the MGA within 30 days of any external investments outside of share subscriptions.
Additionally, financial disclosures are mandatory for loans taken from institutions outside the EU/EEA.
Mandatory Notifications for Financial Risks
Licensees must immediately inform the MGA of any financial distress, including the threat of bankruptcy, failure to meet debt obligations, or loss of a foreign gaming license.
The new framework also requires MGA approval for changes to customer account funds.
Regulations on Dormant Accounts
The MGA proposes stricter rules for handling dormant accounts. After three months of inactivity, an account will be classified as dormant.
Licensees must maintain these accounts for five years before funds can be redirected to responsible gaming initiatives.
Strengthening Compliance and Risk Management
The directive mandates annual documentation of financial risk management duties, which the MGA recommends be reviewed by third-party agencies.
Furthermore, operators must notify the MGA before adding new gaming verticals or making significant changes to gaming systems.
MGA’s 2025 Regulatory Priorities
The MGA’s review aligns with its broader strategy to enhance consumer protection, prevent illegal activities, and support sustainable market growth.
Key regulatory priorities for 2025 include optimizing risk-based resource allocation, strengthening international cooperation, and promoting proactive risk management among licensees.