The Malta Gaming Authority (MGA) has long been recognized as a leader in regulating the global iGaming industry, and under the leadership of Charles Mizzi, its strategic direction is evolving to meet new challenges. CEO Mizzi sits with Rami Gabriel to bring to light his unique perspective to the role, merging public sector management expertise with a clear understanding of the gaming industry’s fast-paced nature. His focus on strengthening the regulatory framework is ensuring that Malta remains a hub for iGaming innovation while balancing player protection with industry growth. 

What major challenges have you faced as MGA’s CEO over the past nine months, and how did you overcome them?

Given that this is my first direct role within the gaming industry, there has certainly been a steep learning curve. I’ve dedicated time to understanding the nuances of the sector and of gaming regulation, and I approached this challenge with a commitment to learning from both the industry’s complexities and the expertise within the MGA.

My experience as CEO of the Residency Malta Agency has helped to provide me with a strong foundation. Both organisations share key similarities in terms of operational management, particularly in navigating public sector policies and addressing challenges such as recruitment and talent retention. This experience allowed me to adapt quickly to the specific demands of the gaming sector while drawing on established practices in organisational efficiency and governance.

One of my core priorities during this period has been improving our operational efficiency. We recognise that timely responses to the industry are crucial, and we’ve undertaken a comprehensive analysis of our internal processes to identify any inefficiencies or bottlenecks. By systematically addressing these, we are not only streamlining our operations but also creating a more agile and responsive organisation. In tandem, we have also worked to bolster our human resource capacity. This will enable us to better support gaming operators while staying ahead of the fast-evolving needs of the industry.

How have your strategies evolved during your leadership, and what key initiatives do you plan to implement moving forward?

My primary focus has been on maintaining continuity while identifying opportunities for improvement. The MGA has a strong and respected regulatory framework in place, so it’s crucial that we sustain the industry rather than introduce any abrupt changes that could unsettle it.

That said, as mentioned above, we are always striving to refine our processes and improve our efficiency. To better achieve this, we have been working on bolstering our human resources capacity. By strengthening our team, we are positioning the MGA to be an even more responsive and proactive regulator, so that we can continue to foster a regulatory environment that is conducive to business while maintaining the highest standards of compliance and integrity.

Another priority is maintaining open lines of communication with our stakeholders. It’s crucial that we remain a regulator who listens and engages closely with the industry, ensuring that our policies and frameworks are both supportive of business growth and reflective of the dynamic nature of the market. This approach will allow us to sustain the regulatory environment that has made Malta the home of operators of good will, while also positioning the MGA to adapt to future challenges and opportunities.

How can SiGMA support or enhance MGA’s strategic goals under your leadership?

SiGMA plays an important role in the broader ecosystem of the gaming industry.  Its global reach and network can contribute to strengthening Malta’s reputation as a premier jurisdiction for gaming by attracting talent, investment, and innovation.

Malta offers a business-friendly environment that attracts gaming operators from around the world. Our strategic location, extensive double taxation treaty network and skilled workforce make Malta an ideal base for gaming companies.

The ecosystem we have cultivated over the years, composed of industry players, regulators, and service providers, is underpinned by a stable political outlook that supports the industry’s presence in the country. This synergy allows Malta to continue playing a pivotal role as the home of the gaming industry, fostering an environment where innovation, compliance, and economic growth can coexist.

How do you measure success in your role, and how has your leadership shifted MGA’s direction?

I measure success by our ability to maintain the integrity of the gaming sector while simultaneously fostering a supportive environment for businesses. It’s about achieving the right balance between robust regulatory oversight and creating a landscape that allows the industry to thrive.

Rather than shifting direction, I am focused on building upon the existing strategies that have made the MGA a respected authority in the global gaming landscape. My goal is for the MGA to be recognised as a regulator that not only sets high standards but also supports the industry in achieving them in a timely and efficient manner.

Ultimately, I want the MGA to continue being seen as a proactive, forward-thinking authority that both understands and anticipates the needs of the industry, ensuring that Malta remains a leading jurisdiction in the global gaming landscape.

How are emerging technologies like AI, big data, and virtual reality impacting the gaming industry, and how is MGA preparing for these changes?

Such emerging technologies can present a number of opportunities if harnessed correctly.

Committed to attracting and developing local talent

We support the use of AI and machine learning by gaming operators to help recognise patterns in player behaviour. AI, for instance, can flag unusual gaming habits, such as increased frequency of play or significant changes in betting patterns. By detecting these signs early, operators can intervene effectively, offering support and resources to players who may be at risk. This proactive approach not only helps in promoting responsible gaming but also strengthens the overall integrity of the industry.

However, one should note that online gaming operators may not be able to detect all signs of problem gambling through site access alone and, in some cases, human judgement may be necessary. We advocate for a holistic approach to addressing problem gambling, combining education and support programmes, access to responsible gaming tools, and encouraging self-awareness and self-monitoring. Together, these measures form an effective strategy for identifying and addressing potential issues.

What are the biggest regulatory challenges MGA faces in an evolving global gaming industry, particularly in areas like cryptocurrency and blockchain?

The MGA has always been at the forefront of innovation, ensuring that we stay ahead in the field of gaming regulation. Our proactive approach led us to be among the global pioneers in regulating the use of cryptocurrencies as a means of payment, as well as the use of innovative technology arrangements (ITAs) – including blockchain and smart contracts – into gaming operations. This commitment is reflected in our dedicated Policy on the use of Distributed Ledger Technology (DLT), which solidifies our stance on the acceptance of virtual financial assets (VFAs) and the use of ITAs within our regulatory framework.

Each jurisdiction has its unique approach to regulation and while some jurisdictions might appear more accessible, they may not offer the same level of security, consumer protection, and long-term sustainability that operators and players have come to associate with an MGA licence.

As the MGA, our focus remains on maintaining the high standards that have made Malta a preferred hub for reputable operators. We believe that our approach to regulating new technologies, which includes a thorough understanding of both the opportunities and risks, offers a solid foundation for sustainable growth. Our sandbox framework, which preceded our DLT Policy, allowed us to learn and adapt our regulations, ensuring that they are both comprehensive and flexible enough to accommodate innovation.

How is MGA balancing industry growth with ethical concerns, and what initiatives are in place to ensure safe gaming environments?

Ensuring the delicate balance between industry growth and ethical responsibility is at the heart of our mission. Player welfare remains our foremost priority, and we take significant strides to foster a safe and sustainable gaming environment.

One of the key initiatives we introduced last year is the integration of five markers of harm into our Player Protection Directive. These markers are specifically designed to help operators identify early signs of problematic gambling behaviour, enabling them to intervene in a timely and effective manner.

In line with this, we are adamant about addressing the misconception of ‘risk-free gambling’. Gambling, by nature, involves risk, and framing it as ‘risk-free’ can mislead players and downplay the potential consequences. Our stance is firm: any promotion that downplays the inherent risks associated with gambling is unacceptable.

This is especially pertinent in light of recent rulings in some EU jurisdictions, some of which have mandated that MGA licensees pay back players’ losses on the basis that the contractual relationship between the player and the licensee was deemed null and void. The aggressive advertising tactics employed by certain litigation financiers across the Union have further incentivised players to claim back losses incurred from operators duly licensed in Malta. This situation not only distorts the realities of gambling but also fuels unhealthy gambling practices, such as loss chasing, which can exacerbate issues for vulnerable players.

We acknowledge that litigation financiers, by purchasing players’ claims, may act within the legal frameworks of their respective jurisdictions. However, when this business model is applied to the gaming industry, it poses significant risks due to the inherent nature of gambling and the potential harm it can inflict on players.

Furthermore, the practice of litigation financiers purchasing players’ claims is not a standard approach within the Maltese legal system. As such, rulings that mandate MGA licensees to repay players’ losses are in conflict with Malta’s public policy regarding the gaming sector.

How is MGA positioning itself on the international stage, and what strategies are being explored to expand global influence?

I believe Malta holds a strong position on the global stage. We were one of the first movers in regulating online gaming back in the early 2000s, and that established us as a frontrunner. Our unwavering commitment to regulatory excellence, demonstrated by our robust regulatory framework and highly competent team, has earned the MGA licence global recognition and respect. This enhances the reputation and credibility of Malta-licensed operators in the eyes of players and other stakeholders.

A key aspect of any regulator’s role is to educate stakeholders about the regulations and policies they must adhere to. In expecting compliance from our licensees, we acknowledge that it is our responsibility to be clear as to what those expectations mean in practice.

This approach is crucial because the day-to-day implementation of regulatory requirements can sometimes pose challenges for licensees, and we therefore aim to strike a balance between helping a licensee understand how to be compliant, while being pragmatic in running their business.

The MGA has also intensified its focus towards business-to-business (B2B) operators, which can contribute more effectively to high quality job creation in Malta with lower risks.  By the end of 2023, there were 159 B2B firms licensed by the MGA. This represents an increase of 133.8% since 2018. This growth in the B2B segment was a key part of our strategy when we overhauled the Gaming Act in 2018, and we are now seeing the benefits of that foresight.

What are MGA’s initiatives to attract and develop local talent, and are there any educational partnerships or programs to ensure continuous talent development?

We are deeply committed to attracting and developing local talent through a wide range of initiatives. A significant part of our efforts includes close engagement with educational institutions and students. We regularly deliver guest lectures, offering insights into the gaming industry and its diverse career opportunities.

We also offer paid internships, allowing students to gain hands-on experience within the MGA, giving them practical exposure to regulatory work and industry practices. In addition, we actively participate in events such as Freshers’ Week, where we interact directly with students, and we sponsor and attend student conferences, contributing to discussions and sharing knowledge about the gaming sector.

Furthermore, we also host students at our premises, giving them an up-close look at the operations of the MGA. These visits provide students with a real-world understanding of how the Authority functions, its role in ensuring regulatory compliance, and the critical importance of responsible gambling. These experiences help to build connections between academic learning and industry practice, encouraging students to consider a career in the gaming sector.