Malta softens foreign gambling licence reforms

According to NEXT.io, Malta’s Gaming Authority (MGA) altered its plans for changing the Recognition Notice (RN) framework. The decision comes after the authority being confronted by industry stakeholders regarding the imposed, unsubstantiated regulatory requirements and added administrative costs. The reforms were introduced as part of Malta’s National AML/CFT Strategy 2024–2026, following concerns that the existing system could allow companies to operate under foreign licences with insufficient anti-money laundering (AML) oversight. Recognition Notices are a solution for gambling operators that are regulated by other EU/EEA regulators or equivalent jurisdictions. The scope of the system includes B2C operators and B2B suppliers. In April 2026, the MGA started to carry out a targeted consultation on strengthening its assessment and monitoring processes. MGA relaxes proposed requirements In its feedback announcement dated 26 October, the MGA explained the changes it has decided to make after having consulted the industry. Overall, stakeholders embraced more stringent oversight measures. At the same time, they expressed the need to keep the proportionate requirements which will not duplicate the verification processes conducted by regulators from other jurisdictions. The MGA stressed that the information received was constructive and important and that all stakeholders underlined the need for “proportionate approach, operational convenience, and the absence of unnecessary duplications in requirements applied by licensing authorities from other jurisdictions.” Several initial proposals have now been reduced or withdrawn: Corporate structure information: The MGA has narrowed its request for a full corporate structure chart to information on ultimate beneficial owners (UBOs). B2B suppliers: These businesses will be exempt from many requirements originally proposed for consumer-facing operators. Legal opinions: A proposed standardised template has been dropped. Instead, the MGA will specify the key points that legal opinions must address. Regulatory history: Operators will no longer need to provide five years of regulatory correspondence, with disclosure limited to material licensing and fitness matters. Financial information: Instead of exact annual deposit figures, operators will provide information through predefined ranges. Payment methods: Reporting will use broader categories rather than detailed payment data. The MGA said the revised framework would introduce “a more differentiated approach between B2B and B2C RN holders” and place greater emphasis on risk-based supervision. New reporting requirements and legal questions This year, the MGA aims to start gathering information from foreign holders of licenses for the period of reporting 2025. Initial collection of information will apply only to B2C. Several stakeholders questioned whether the regulator has the legal authority to demand the entire information from all its initial proposals. The MGA accepted the necessity of improving some of its requirements first before they could be introduced. The regulator has claimed that it has modified its proposals in order to avoid any issues connected with commercial confidentiality, administrative burden, and repetitions of foreign regulatory checks. It also stated that its amended approach would allow for a proper oversight but would remain “dedicated, risk-sensitive, and responsive to the nature of the areas it operates”. The MGA has distributed its statement of comments among holders of Recognition Notices and their representatives.