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Joseph Zammit
In a joint effort with the Malta office PKF is again holding a day conference in London in collaboration with eGaming Review Magazine. George Mangion gave a good overview of the situation and the opportunities Malta can benefit from the sector.
Mr Mangion explained that the conference will be focusing on key issues arising from changes to regulatory regimes for issues concerning remote gambling. With the change to UK gambling laws one has to re-think offshore locations.
These locations are the Isle of Man, Alderny, Gibraltar, Dutch Antilles, Finland, Latvia and Malta. Each jurisdiction is doing its utmost to bring quality I-Gaming operators. Each has promulgated laws to regulate and attract the on-line betting and gaming business. Critics question whether Malta has joined the race in time, or is it too late, and if we are still in time what are our chances of attracting blue-chip companies. A positive step taken last year was the promulgation of a comprehensive set of regulations in a legal notice amending the Lotteries and Gaming Act. This updated legislation has opened the path for the regulation of lotteries and gaming operations reflecting current trends. The business sector is a very delicate one and has to be dealt with with great care and dedication to persuade the blue-chip companies to invest in Malta because it is conservatively estimated that over two billion dollars can be channelled through our banking sector within the next five years and more than 800 jobs can be created.
The idea of this day-long conference is to create discussions on the latest implications of the advertising rules in the UK Gambling bill and compare various jurisdictions by giving key information on telecommunications, infrastructure and facilities, company law, taxation, specific licensing facts and the latest news on the UK gambling bill after the UK budget 2005. Mr Mangion says that a reliable source in the industry predicts that if the bill receives royal assent in May, the new Gaming Commission is unlikely to be operational before 2007. If this truly happens a huge window of opportunities can open for Malta as this time span would allow a small jurisdiction like Malta to develop its own online business. The UK is evolving at a rapid pace to become one of the most trusted and respected online gaming jurisdictions in the world. Malta, like all the other jurisdictions would gain by consolidating its own position in the e-commerce and e-leisure markets, Mr Mangion truly believes that with a little effort we can move forward.
Following the issue of remote gambling regulations a number of licences were made available such as online casinos, casino-style games, betting exchanges and lotteries. The authorities have seen how other competing jurisdictions have legislated and marketed aggressively to attract quality players to be able to generate sustainable employment and tax revenue. Mr Mangion also indicated that government agencies have to do their part and he confirms that support has been given to PKF when it launched its private initiative to host the regulation, taxation and location conference in London next June to show case Malta among number of competing Jurisdictions.
Mr Mangion also explained that Malta charges 0.5 per cent betting tax on turnover and a monthly charge of Lm 3,000 for class 1 gambling licence on a five year renewable licence. This tax is capped and this rate is irrespective to turn over. The remote gaming regulations 2004 offers four classes of remote gaming licences: Class 1 is a remote gaming licence, Class 2 is a remote betting office or a remote betting exchange office licence, class 3 is licence to promote or bet gaming from Malta and class 4 is a licence to host and manage remote gaming operators, excluding the licensee himself. Special concessionary rates apply for those software vendors applying for a class 4 licence. Notwithstanding that promotion was sparse; it is evident that an increasing number of investors have started showing interest in locating to Malta.
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