Fenech’s new gaming regulations could lead to dreaded betting houses

Adds government's reaction

Finance minister Tonio Fenech has intentions to liberalise the present gaming licence operated by Maltco, and open up multiple licences for sports betting, MaltaToday reported on Sunday.

The move would inevitably lead to the reopening of the dreaded betting houses in villages and towns.  It would also mean that lotto receivers would have their earnings slashed dramatically.

On Saturday, asked by MaltaToday for his immediate reaction to the proposal for breaking up of the betting licences presently operated by Maltco which would lead to the liberalisation of sports betting and the eventual re-opening of new betting houses, the minister answered that the licence would not be split.

He however said: “We cannot give the new operator exclusivity on the sports betting (although it would entitle him for a licence), when sports betting had long been liberalised in the online gaming sector.”

But locally, Maltese residents are excluded from participating in online gaming which is registered in Malta.

Fenech – who had pushed for the closing of betting houses citing their impact on the social fabric of Maltese society – said: “Government does not see the risks of re-opening of new betting houses, since first these never opened, secondly any other betting operation would need a licence by the Lottery & Gaming Authority.”

Talking to MaltaToday, Alfred Muscat representing lotto receivers also voiced his concern that the new licence structure could give rise to betting houses and this was worrying to the lotto owners.

Currently, there are 240 lotto outlets and that this was already far too much, Mucat said. He also said that the opening of betting shops would impinge on the social fabric, even though they would be regulated.

Last June, MaltaToday had reported how an Italian betting company, Lottomatica, would bid for the license. The same business associate of Intralot who operates Maltco is Michael Bianchi - also involved with Lottomatica.

In fact, a report by Il Corriere della Sera in July 2010 had reported that Lottomatica planned to bid for a Greek video lottery terminal tender in Autumn in a consortium including Bianchi. Bianchi is also the chairman of a companies which consultancies on gaming to gaming companies and governments.

On Saturday, MaltaToday asked Bianchi to comment on the fact that he is associated with Lottomatica and Maltco, both contenders for the gaming licence in Malta.

However, Bianchi said he was travelling and could not talk.

Fenech also told MaltaToday that a Request for Proposal will be issued shortly. Whilst denying meeting up with any interested parties, Fenech added no one had shown interest so far.

The Minister’s decision to diversify the gaming licence is being captained by his  consultant Alan Caruana, who is arguing that the new licence structure would lead to more fiscal revenue from betting activities.  

Asked if Caruana had met up with any of the interested parties, a spokesman for Fenech denied that any meetings had taken place but insisted that there would be nothing wrong in doing so: “Since the RFP has yet to be issued, neither the Minister nor any official or consultant within the Ministry is precluded from meeting stakeholders or interested parties.”

Government's reaction

In a reaction, the Finance Ministry said that the Request For Proposals will not be splitting the license since the operator winning the concession would still be able to operate games which are not traditionally associated with the national lotteries but on a non-exclusive basis.

The Ministry also denied that the proposal would lead to the liberalisation of sports betting, adding that “sports betting is already open to competition through online gaming which is also available locally.”

The Ministry also said it was incorrect to say that Maltese residents are excluded from participating in online gaming on websites which are registered in Malta.

The Ministry’s spokesman also reiterated that the new measure will not lead to the proliferation of betting shops: “According to regulations approved by Parliament last year, gaming establishments offering these kind of games need to be located 75metres away from places frequented by children and young persons, including playgrounds, sports clubs and churches.

“Moreover, a number of other requirements, particularly on alcohol consumption within such premises, apply.”