Risk management and control in Maltese casinos : a study

Abstract

Purpose: The author sought to acquire an in depth insight of the risks that Maltese casinos are exposed to, with the aim of formulating a comprehensive knowledge on the related risk management and control processes adopted to mitigate these to an acceptably low level. Design: The objectives of the study were to be addressed through the setting up of two interviews with financial controllers and managers within the various Maltese casinos as well as interviews with the Financial Intelligence Analysis Unit and the Malta Gaming Authority. Findings: The findings resulting from this study clearly suggest that the risk management and control processes implemented by Maltese casinos, especially the information requirements to gain entry into the premises as well as the security systems and safeguards in place, are very meticulous which allow casinos to adequately manage any threats which might be encountered. In addition, the casinos and the Malta Gaming Authority are consistently working hand in hand in a bid to prevent deviations from standard procedures. Conclusion: From the study, it can be ascertained that Maltese casinos operate very strict protocols to address the risks faced. Through the various directives, constant Malta Gaming Authority audits and casino safeguards applied, it can be unquestionably substantiated that Maltese casinos are in a position to address their exposure to a wide array of both financial and non-financial threats. Implications: In this day and age, a lot of focus has shifted towards remote gaming with landbased casinos being pushed to the sidelines. However, particularly within the context of the Maltese Islands, such casinos generate much needed injections into the economy through the taxation of gaming revenue. This study can be beneficial for the Malta Gaming Authority as well as the casinos in identifying any areas of weakness as well as for the casinos to benchmark their processes with their competitors.