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Malta’s mature gambling framework has helped the country evolve into a B2B gambling hub, according to a panel of legal experts working for major gambling businesses, as the nation searches for a new identity in the modern world of local licensing.
With most of Europe and many other parts of the world opting to introduce their own laws and licences for online gambling, Malta is seeking to amp up its supplier sector to remain relevant.
Olga Finkel, a co-founder and partner at law firm WH Partners, explained that although B2C has been at the core of the development of the whole ecosystem around igaming, lately “it seems to me there has been a shift to the approach”.
“It looks like the country is developing more into a B2B hub,” she said, adding that there is now “more of a regulatory focus on B2B”.
Corinne Valletta, the general counsel of Betsson Group, said a key reason for Malta becoming a B2B hub is a legal framework recognising suppliers since 2004 and the country's well-established B2C sector, which means the right skills and infrastructure are already available.
“A lot of the companies are here. We are at a point where there is a lot of saturation in the market but we are diversifying at the same time. One of the consequences of that is there is more of a focus on B2B. I see it as a natural progression and a happy one at that. There is much more to do in that space I believe,” Valletta said.
She added that “in an increasingly competitive environment, diversification is key”.
Carl Brincat, the director of policy and regulatory affairs at LeoVegas Group, agreed that Malta has “evolved” as the gambling industry has evolved and that having a unique offering of games has become harder for operators as they become increasingly competitive.
“Nowadays everyone has essentially everything. All the B2Cs will have the most popular games. So where is the innovation happening? It's with the B2Bs. Additionally, in-house development gives exclusivity to some games,” Brincat said.
Yanica Sant, evoke’s legal director, said her company has begun to develop some B2B aspects in-house due to this “natural shift” caused by a desire to diversify offerings.
“We are seeing more and more jurisdictions regulate B2Bs, but it is a fairly new form of regulation for some of these countries. But Malta is in its second wave of legislation. The infrastructure is here, everything is here,” Sant said.
She added that it would be “really interesting” to see gambling regulators collaborate more on B2B elements as there are “fewer differentiating factors when it comes to regulating B2Bs compared to B2Cs”.
“Top of my wish list is some level of harmonisation of B2B regulations in various countries. It would make my life a lot easier … but also maybe make my job redundant,” Sant joked.
Brincat agreed more collaboration would be good, but believes standardising B2B regulations is unlikely, particularly given the different objectives of jurisdictions' gambling laws.
All the panellists praised Malta’s regulatory framework and the Malta Gaming Authority’s (MGA’s) “tech-neutral” approach, which has seen it explore a range of new technologies in recent years, including blockchain and crypto payments.
The regulator was also praised for its engagement with stakeholders, which is seen as key to the market attractiveness for both B2C and B2B operators, something Charles Mizzi, the MGA CEO, elaborated on in his keynote speech at the event.
“At the MGA, we are committed to an inclusive approach that champions collaboration,” Mizzi said, adding that “the robust ecosystem we have cultivated over the years — comprising industry players, regulators and service providers — continues to position Malta as a leading hub for gaming, fostering a thriving sector where innovation and compliance can coexist”.
Mizzi also expressed the importance of promoting ESG in the industry to ensure its long-term sustainability and the regulators need to continue their balanced, forward-looking approach to technology, which has helped establish the country as a “pioneer” in adopting new technologies.
