Malta gambling regulator abandons foreign licence reforms

Malta's gambling regulator drops key foreign licence reforms after industry pushback

The Malta Gaming Authority set out in April to tighten the Recognition Notice framework, the arrangement that lets Maltese-based gambling companies operate under licences issued by regulators in other EU and EEA countries rather than obtaining a separate MGA licence. The original proposals included expanded corporate disclosures, more detailed financial reporting, and a standardised legal opinion requirement for foreign licence applications. By late October, most of that had been withdrawn.

Industry opposition was one factor. The regulator's own legal ceiling was another. The MGA acknowledged that several of the proposed requirements exceed its current statutory authority and cannot be imposed without the Maltese government first amending the legislation underpinning the Recognition Notice system.

Malta entered the Financial Action Task Force grey list in 2021 and was removed the following year. The AML concerns that prompted that listing have not been resolved by the climbdown. Some operators currently benefit from Recognition Notices without the MGA's knowledge, and certain foreign jurisdictions offer weaker anti-money laundering controls than Malta's own framework requires.