The introduction of regulatory accounts within the Maltese online gaming industry

Abstract

PURPOSE: This study assesses how the use of regulatory accounts can improve regulatory oversight. It further examines the possible introduction of regulatory accounts within the Maltese online gaming industry, as well as the implications of regulatory accounts within the remote gaming sector in Malta.

DESIGN: Eleven semi-structured interviews were conducted with representatives of gaming companies and Malta Gaming Authority employees.

FINDINGS: This study established that, even though certain gaming companies did not have any understanding of regulatory accounting, the majority acknowledged that regulatory accounts are designed specifically for the regulator, with the aim of supplementing the statutory accounts. This study revealed that the implementation of regulatory accounts would benefit mostly the Authority, highlighting several benefits which could be derived from the regulatory accounting system. Findings further highlighted that the granularity of the detail involved in regulatory accounts would allow for benchmarks to be set thereby achieving data comparability and improved transparency. Finally, the repercussions that would have to be faced by gaming companies if regulatory accounting is adopted were also identified.

CONCLUSION: Although the possible implementation of regulatory accounts may cause MGA to be seen as overbearing when compared to other regulators, the industry’s dominance on the island makes it somewhat justifiable for MGA to be one of the regulators to introduce this concept. Notwithstanding this, it was established that gaming companies are concerned about the effort necessary to combat the need for additional resources to prepare the regulatory accounts.

VALUE: The study will be useful to MGA to ensure that a successful implementation of the regulatory accounting system is maintained. This study additionally highlights the necessary actions which need to be taken by the Authority prior to implementation in order to ensure a smooth transition.