The new provisions are largely based on the results of the 18-month public consultation from March 31 2017 onwards. Formally, Parliamentary Committee on Cultural Affairs has approved provisions.

Key provisions

Practically, the new legislation will, to the biggest extent, remove the multiple-market monopolies of state-owned Svenska Spel. As a consequence, this will result in tackling of the country’s unregulated and illegal market. Furthermore, in attempt to keep the pace with latest global regulatory trends, taxation rate of 18% on GGR will apply. The latter will apply to sports betting operators as well as to online casino.

The Law, entering into force on January 1, 2019, enables the operators to submit their respective online gambling applications as early as of 1 August.

The key intent behind the legislative change was to create a more favourable market environment. It will take into account excellent customer protection and anticipate opening of the country’s local gambling sector towards key international stakeholders.

In addition, adhering to the Swedish regulatory rules regarding safe service and responsible gambling approach are also some of the fundamental objectives behind the newly-adopted Law.

A number of global online operators revealed they were very positive about the future regulatory changes in Sweden.

The newly-adopted legislation will, however, leave under state control some types of gambling like the state-run casinos and national lottery. In that respect, a series of debates on the future of the state-led operator will re-emerge.

For the comprehensive analysis of regulatory changes to accrue from the new legislation, please find the EOGL article written earlier this year.

Attracting more licensed operators and improved consumer channelling rate are the rationale behind the decision made by the Government, subsequent to the months of lobbying performed on behalf of the nation’s leading operators, the process firstly resulted in passing the new Gaming Bill back in 2011 and opening of a subsequent licencing windows.

The projected change in budget structure is to be applied to fixed-odds sports betting, betting exchanges and fixed-odds horseracing, but also to online casino, poker and bingo.

However, there is a massive road ahead of this reform, as the ruling party struggles to assure the absolute legislative majority needed for the passing of the Bill in light of the country’s ongoing political crisis. Furthermore, the Spanish division of competence is such that the federal authority is in charge of lotteries and complete online gambling offer, whereas retail offer is under the jurisdiction of regional territorial units.

The legislative process is expected to last at least one month, with the new tax regime to enter into force in summer this year.

The proposed regulatory framework intends to strengthen the compliance dimension, especially in view of more in-depth risk analysis as regards anti-money laundering and terrorism funding.

Consumer protection standards, responsible gaming measures, reporting of suspicious sports betting transactions in light of tackling the manipulation of sports competitions and innovation and development-oriented standards are also in special focus of the pending legislation.

Here are the key changes to be introduced by the pending Bill:
LICENCING SYSTEM: Current multi-license system is to be replaced by a dual licencing regime, one covering the Business-to-Business (B2B) and Business-to-Consumer (B2C) activities.

ENHANCED POWERS OF MALTA GAMING AUTHORITY: The regulatory scope will be widened in order to increase the oversight and enforcement role of this institution, with emphasis on the compliance with strict AML and CTF standards.

INNOVATION: Change towards an objective-based rather than excessively prescriptive regulatory approach which will foster the innovation approaches and growth of public revenues.

SCRUTINY CHECK-UPS FOR THE OFFICIALS: The Key Official role will be segmented into various key functions within a licensed activity. There will be approval requirements, direct scrutiny check-ups and targeted supervisory controls as prerequisites for a person to be assigned with the responsibility to conduct a role within gaming business.

STRENGTHENED PLAYER PROTECTION: The mediatory role of the MGA’s Player Support Unit is to be formalised, unified self-exclusion database is expected to move across both remote and land-based delivery channels. The allocation of appeals from decisions of the Authority to the Administrative Review Tribunal will also take place, as well as the introduction of a distinction between administrative and criminal offences.

AUTOMATIZATION: The Authority will function within an automated reporting framework, thus facilitating adherence to obligations and strengthening the Authority’s role in the oversight process.

SPORTS INTEGRITY: The Authority’s role in the fight against manipulation of sports competitions will be more proactive, given the Draft Law will introduce new obligations on operators to monitor betting patterns and report suspicious bets, and to actively cooperate with the National Anti-Corruption Task Force.

TAX RELIEFS: The B2B licensees will be exempt from gaming tax, which will result in increasing Malta’s competitiveness as a global hub for B2B activities.