Duties and Responsibilities of a Key Official

Malta has always been at the forefront of the remote gaming industry and has established itself as one of the prime jurisdictions for remote gaming operators.  The Remote Gaming Regulations were the first legislative instrument to effectively regulate the remote gaming industry in the European Union. The key official is the liaison person between the […]

Written By Stephen Balzan

On October 24, 2016
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Malta has always been at the forefront of the remote gaming industry and has established itself as one of the prime jurisdictions for remote gaming operators.  The Remote Gaming Regulations were the first legislative instrument to effectively regulate the remote gaming industry in the European Union.

The key official is the liaison person between the Malta Gaming Authority (MGA) and the licensee. Therefore the designated official must always keep abreast of all the operations being undertaken by the licensee. The key official must be a director of the licensee company and must be a resident of Malta.

The key official is the person who is appointed by the Gaming Company that has obtained the license (hereinafter referred to as ‘the licensee’) in order to liaise with the MGA on behalf the licensee and ensure that the operator is compliant with the Remote Gaming Regulations as well as MGA guidelines.

As stated above, the key official must be resident in Malta. The term ‘residence’ is not defined in the Law and in the Regulations and the key official is not required to stay in Malta for any minimum number of days during the year.  However the term ‘resident’ is interpreted to mean that that the key official must be present in Malta in order to be able to fulfill all his duties and legal requirements and is ready available when requested by the MGA.

The Key Official must also be a member of the Board of Directors of the Gaming Company.  Approval is required from the MGA for an individual to be appointed a Key Official.  All directors of the company must promote the gaming company’s well-being and shall also be responsible for the general governance, proper administration and its management together with the general supervision of its affairs. 

Responsibilities of the Key Official 

The responsibilities of the key official are:

  • Ensuring that the remote gaming system is set up and maintained in accordance with the remote gaming regulations and any license conditions imposed by the MGA. 
  • Participation and assistance in the certification process (stage three of the license application process) conducted by the MGA 
  • Submission of periodic financial, administrative and other reports to the MGA. These include: 

Preparation of incident reports to report uncontrolled incidents within 24 hours

Preparation of notification reports to submit to and seek MGA approval prior to effecting any critical changes to the gaming infrastructure, core system modules, gaming operation, rules of the games, terms and conditions and games portfolio.

Preparation of monthly player and gaming data reports and reconciliation of monthly player balances in the gaming system to the players’ bank account.

Preparation and submission to the MGA of six monthly Interim Financial Statements.

Submission of the annual audited financial statements to the MGA. 

  • Payment of the monthly gaming tax and annual gaming license fee within the stipulated time frames. 
  • Monitoring adherence to the provisions of remote gaming and other pertinent legislation.

The key official must be familiar with IT systems and laws and regulations governing remote gaming, knowledgeable of gaming operations and approved by the MGA as a fit and proper person to hold such post.

The key official is the primary and sole contact between the MGA and the licensee. In fact the MGA recognises only the key official as the person to liaise with on behalf of the licensee and thus effects all communication through the said key official.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected]. 

Disclaimer: This article contains general information only and is not intended to address the circumstances of any particular individual or entity. ACT, by means of this article is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. This article is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Before making any decisions or before taking any action that may affect your finances or your business, you should consult a qualified professional adviser. ACT shall not be responsible for any loss whatsoever sustained by any person who relies on this article.