Lotteries and Gaming Authority - quo vadis?

The Lotteries and Gaming Authority (LGA) is a public regulatory body that is responsible for the governance of all forms of gaming in Malta, including remote gaming. The LGA's contribution to the local remote gaming industry over these last four years was critical to the industry's impressive growth and to transforming Malta into a premier jurisdiction that currently is estimated to host around 10 per cent of the world's online gaming operations.

Those of us who have been in this industry for a number of years remember the LGA's ongoing participation in all the international leading exhibitions and fairs in Europe, the Americas and Asia.

Through its untiring efforts over these last four years, the LGA managed to capture the operators' attention, understand their needs and concern, develop a robust framework, and promote Malta as a viable and serious jurisdiction within the European Union.

The efforts of the LGA were, of course, supplemented by those of other stakeholders, not least the different service providers who, over the years, have striven to promote Malta and provide cost-effective and valued added services to operators.

These efforts have borne fruit and today there are currently 305 licence holders in Malta and 124 pending applications. Licensed operators include global entities that are leaders in their sectors. According to recent press releases, the remote gaming industry in 2008 contributed more than €16 million directly to the government coffers and accounted for more than 4,500 employees.

Until his resignation, the LGA was inextricably linked to its former CEO Mario Galea. His resignation in the last quarter of 2008 was met with mixed reactions, but overall was a source of concern to the industry due to his well-known profile within international circles and for the uncertainty changes at the helm usually bring about.

There is no doubt that Mr Galea contributed in no small way to the success achieved to date in the remote gaming sector. It is also a fact, however, that an industry's and national regulatory body's fate do not depend solely on one person, no matter how critical.

The board of directors of the LGA immediately stepped in to temporarily fill the vacuum created by appointing an acting CEO. Efforts are now under way to fill the post permanently. This matter should be dealt with with care but with expediency to remove speculation and the inevitable uncertainty. The government has stated on a number of different occasions that it considers a well-regulated remote gaming sector to be an important pillar in our economy, and has clearly declared its intention to continue to support this industry.

The LGA has in its rank and file competent and qualified management and staff, some of whom have today gained extensive experience in the remote gaming sector. Dr Gonzi together with this team are stepping up efforts to process an ever-increasing number of applications, some of which have been there for many months.

The current situation was in part 'inherited' and certainly not of the current incumbent's doing, but this is of little consolation to the operators where each day's delay in the issue of a licence or resolution of an impasse may cost several thousand euros.

There are sufficient competencies within the Authority (although probably not sufficient resources) to identify pressure points that are creating the backlog within the application and licensing processes and solutions thereto. What seems to be lacking, at least to the outsider, is the taking of timely decisions to remedy the situation. This is the case not only with regard to the processes mentioned, but also to other matters (such as certification process, approval of shared services agreements) that have been 'on hold' for several months now.

It falls on the authority to give the necessary peace of mind to the different stakeholders that it is 'business as usual', and that it will continue to serve the industry in the best possible manner to reinforce the success achieved to date.

One of the first 'tests' the authority will have to face on the international front, post-Mr Galea's era, will be the ICE exhibition in London. This is the best attended gaming fair in Europe and includes a specific section dedicated to remote gaming. This venue is regarded by most stakeholders as one during which to promote the jurisdiction to the several (hundreds) potential investors who visit the remote gaming section. It is the feedback and results from this fair that are said to 'set the tone' for the rest of the year.

As in the past, the LGA will be taking up this challenge seriously, with participation expected from its chairman, board members, CEO and management staff. We wish them well and augur that their commitment, capabilities and efforts will help to sail the ship into port, provide the necessary peace of mind and allay any uncertainties that recent events could have created in the market place.

For more information, write to editor@igamingprofiler.com or visit www.igamingprofiler.com.