A banker’s perspective to the iGaming industry : analysis and recommendations

Abstract

The interim performance report published by the Malta Gaming Authority shows that the gaming industry contributed circa 13.6% between January to June 2019 (MGA, 2019). From the above statement, one cannot help but realize the significance of the gaming industry to the Maltese economy. However, due to the dynamic nature of the iGaming industry several stakeholders categorize this industry as high-risk. Due to this fact it has become arguably challenging for iGaming operators to secure banking services. Therefore, the aim of this study is to further understand the relationship between the iGaming Industry and the banking industry, to determine whether iGaming operators truly pose a high level of ML/FT risk to the banking industry. To do this one has to determine what minimum standards iGaming operators are obliged to satisfy. Adherence to regulatory requirements would mean an overall decline in inherent risk as effective control measures would be imposed. Three sets of interview questions are to be formulated and addressed to iGaming representatives, bank officials and regulatory representatives. Through this process, data on the subject matter can be collected and evaluated from different perspectives. From the data collected it was concluded that iGaming operators are subject to stringent regulatory requirements. These requirements are strictly followed which in turn decreases the overall risk of iGaming companies. In addition to this it was identified that both the interviewed bank and regulator have several policies and procedures to ensure good conduct by iGaming operators. Nevertheless, suggested recommendations are given in chapter five of this thesis.