Malta Regulator Launches AI Charter to Address Governance Gaps

Malta’s gambling regulator has launched a new artificial intelligence (AI) gaming charter after finding that governance is struggling to keep pace as the technology becomes more widely used across the sector. The Malta Gaming Authority has published a new AI gaming charter. (Image: Getty) The Malta Gaming Authority (MGA), working with the Malta Digital Innovation Authority (MDIA), drafted the voluntary charter based on surveys and interviews with licensees. That study found that AI adoption across the gambling industry remained uneven. It highlighted customer support, data analytics, fraud detection, and responsible gaming as areas where the technology was already being heavily used. However, it also found that formal governance of AI was struggling to keep pace with its growing usage. Only a minority of organizations surveyed reported having a formal AI strategy or roadmap. Many said one remained in development. The MGA also found that only a small number of respondents had fully established AI risk assessment processes or incident-response plans. Speaking at an event to launch the charter, MGA CEO Charles Mizzi said the regulator did not want to hinder adoption. “Our role as a regulator is not to stand in the way of innovation, but to help create the certainty and confidence needed for innovation to flourish responsibly,” he said. The charter does not create new regulatory obligations and was designed to complement legislation including the EU AI Act and GDPR. Instead, it proposed a risk-based approach. It suggested lighter controls on use cases such as coding assistants, but strong checks on customer-facing functions, particularly those involving fraud and responsible gambling. ‘Trust is Fundamental’ Kenneth Brincat, CEO of the MDIA, said companies needed “practical ways” to better understand where AI fits within their businesses. “Trust is fundamental to the responsible adoption of AI. As its use becomes increasingly embedded across the gaming sector, organisations need practical ways to understand where AI is being used, manage the associated risks and ensure that accountability and human oversight remain firmly in place,” he said. “The AI gaming charter translates these principles into practical, sector-specific guidance,” he added. The charter also made a series of other recommendations. It suggested that companies should designate a senior member of staff responsible for governance of the technology. It additionally recommended an AI oversight or ethics committee. The framework also urged companies to implement rollback mechanisms and “kill-switch” controls for higher-impact systems. For AI-powered customer support and chat, operators are encouraged to set clear parameters for when conversations should be moved to a human member of staff. These include repeated low-confidence responses, unresolved queries, indications of distress, or a customer simply asking to speak to a human. The MGA said the charter will be reviewed periodically as technology and regulation develops. Earlier this year, the regulator was targeted by a white-hat (ethical) hacker, who threatened to expose what she alleges are systemic links between the country’s iGaming sector and organized crime. The post Malta Regulator Launches AI Charter to Address Governance Gaps appeared first on Casino.org.