The chief executive of the Gaming Authority resigned on Tuesday along with his right hand man.
Heathcliff Farrugia stepped down from his position as CEO together with Karl Brincat Peplow - the chief officer in charge of authorisation.
The two are expected to set up a joint venture, sources said.
The Secretariat for Financial Services in a brief statement said Heathcliff was not renewing his contract and Peplow is 'seeking new ventures'.
The duration period when their contracts end shall be determined by the MGA Board in the coming weeks, the authroity said.
Attempts to contact Farrugia were unsuccessful.
Farrugia was appointed to the helm of the authority in 2014. He had succeeded Joseph Cuschieri, who was himself appointed chief executive officer of the Malta Financial Services Authority.
Last year Times of Malta reported that relations between the MGA board and CEO, had turned sour.
Farrugia has held various senior executive positions both within the private and the public sector.
Prior to joining the MGA, Mr Farrugia spent the largest part of his career in the telecoms industry, specifically with Vodafone Malta, where he occupied various managerial positions.