iGaming Capital 2024

2024

OFFICIAL PARTNERS

2024 EDITION CONTENTS

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IS MALTA’S ALLURE BEYOND ITS FAVOURABLE TAX REGIME?

With an overhaul of Malta’s corporate tax regime in the pipeline, the first since 1994, possible impacts on the iGaming industry are explored.

30 STANDING UP TO SCRUTINY: THE CASE OF BILL 55

Malta’s controversial law is explored in depth, bringing together insights from leading figures in the regulatory, legal and industry space.

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ONWARDS AND UPWARDS, FOR THE LONG HAUL

Head of HR Commercial and Operations at LeoVegas Group Stefania Curmi delves into the company’s growth plans, while remaining an employer of choice.

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A CROSS-BORDER PAYMENT SERVICE WITH A REMARKABLE DIFFERENCE

FinXP CEO Jens Podewski shares how the firm’s new cross-border payment service is revolutionising the iGaming industry’s payout process.

56 CREATING THE ‘BROADER CHURCH OF GAMING’

GamingMalta CEO Ivan Filletti paints an exciting digital future for Malta which sees the video gaming, eSports and other immersive tech ecosystems thrive alongside each other.

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66 WHERE THERE’S A WILL, THERE’S A WAY

With all the challenges the past years have brought, why does Malta’s remote gambling industry keep thriving?

61 CALENDAR 114 REMOTE IS HERE TO STAY. ARE YOU MAKING IT WORK? 026

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THE ART OF SYNERGY

Bjorn Kristensen, Real Estate Residential and Commercial Consultant at Dhalia CRE on how the firm is continuing to build partnerships in the corporate space.

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74 HOW SHIFTING WORKPLACE TRENDS ARE SHAKING UP THE PROPERTY MARKET

With remote work and hybrid solutions firmly here to stay, three experts weigh in on how this trend is shaping the property market.

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BUILDING TEAMS, MOULDING BUSINESS

Exacta Solutions Founder Christopher Vella and Head of M&A Mark O’Sullivan on what drives the recruitment, M&A advisory and management consulting experts.

96 THE ELEPHANT IN THE ROOM

Two stakeholders share their first-hand experiences with the challenges of local banking, while Economy Minister Silvio Schembri talks solutions.

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84 ADAPTING TO A SHIFTING RECRUITMENT ENVIRONMENT

Placing the scope of the challenge into context, and outlining solutions, three seasoned professionals provide frank insights on the evolving battle for talent.

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AN EXERCISE IN CREATIVITY AND INNOVATION

Forward Architects’ Michael Pace and Anna Scigacz walk us through the rewarding process of designing MrQ’s new workspace, set within the historic Brewhouse.

118 HOW MOBILE GAMING IS CHANGING THE GAME 027

Photo by Karl Paul Baldacchino - Unsplash

2024 EDITION FOREWORD

PUBLISHER Content House Ltd

Content House Group 3, Level 2, Mallia Buildings Triq in-Negozju, Zone 3, Central Business District, Birkirkara CBD 3010 Tel: 2132 0713 info@contenthouse.com.mt www.contenthouse.com.mt EDITOR Helena Grech BRAND SALES MANAGER Wanaha Camilleri OPERATIONS AND CLIENT RELATIONSHIP MANAGER Sue Ann Pisani CREATIVE DIRECTOR & DESIGN Nicholas Cutajar

Content House Ltd would like to thank all the protagonists, contributors, advertisers and the project team that have made this publication a success.

Articles appearing in this publication do not necessarily reflect the views of Content House Ltd. All rights reserved.Reproduction in whole or in part without written permission of the publishers is strictly prohibited. iGaming Capital is distributed to iGaming companies operating in Malta and to relevant business and commercial stakeholders in Malta, including leading law firms, financial services companies and business consultancy firms, as well as to local auditors, accountants and accountancy firms. It is also distributed to Government ministries, entities and departments, as well as to IT and software development companies, recruitment agencies, business centres, car showrooms, yacht marinas and architecture firms.

Beyond the free distribution network, iGaming Capital is sold at leading newsagents around Malta.

An industry in a state of flux The iGaming industry is undeniably in a state of flux. Regulatory developments from all over the world mean that industry players must constantly keep up to date to capitalise on the opportunities that abound and ensure their operations continue to be compatible with the requirements being laid out by the markets and jurisdictions they serve or hope to serve.

The good news is that the industry has also matured tremendously, and a core and vital group of iGaming professionals have now gained enough experience to be able to navigate the road ahead with confidence. As for the Malta-based sector, the industry continues to strengthen, albeit growth being registered at a more subdued rate.

In this edition of iGaming Capital, we shed light on a range of topical issues, starting with Malta’s controversial adoption of Bill 55, exploring where the criticism stems from and why it is so vital for the Malta-based industry. Here, we bring together the insights of prominent regulatory, industry and legal figures to weigh in.

Elsewhere, the issue of banking is explored, as well as the possible solutions when faced with a risk-averse banking sector.

This edition also tackles the situation vis-à-vis recruitment and staffing, understanding how iGaming companies are managing to stay attractive in the current environment that favours remote working. Finally, we zoom in on Malta’s commercial property market, gauging whether there is still strong demand for highly attractive office space as was the case prior to the pandemic.

With this and much more, we hope you enjoy this latest edition of iGaming Capital!

Helena Grech

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Standing up TO scrutiny: Bill 55 T H E CA S E O F

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Throughout the years, Malta has nurtured and developed its remote gambling industry through a series of legal frameworks and regulatory action that have allowed the sector to flourish, changing the economic make-up of the nation. Regulatory changes throughout Europe have brought new challenges and threats – prompting swift action from the country’s authorities. Helena Grech explores that action, bringing together the legal, regulatory and operator views on the road ahead.

alta’s iGaming success story is rooted in its boldness to create a legislative framework that allowed the jurisdiction to become a global leader in the remote gambling industry early on. In 2004, it was the first in Europe to regulate remote gambling, and since then the country has nurtured the sector, seeing it grow and change. Today, the nation hosts around 10 per cent of the global remote gambling industry, an impressive feat for a small island in the heart of the Mediterranean with few natural resources to speak of.

When Malta’s remote gambling licensing and legal framework was established, it

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tax regime is set to receive its first major overhaul in years, in line with EU and global moves to avoid a proverbial race to the bottom, however this is not the challenge that has mainly preoccupied the board rooms of the major operators based in Malta.

Photo by Burdun Lliya - Shutterstock

Countries around Europe which either had no regulations for remote gambling, or held a monopolistic system, have over the years adopted a multi-licensing system for online gambling products. Indeed, around 25 of 29 European nations have adopted this licensing framework, 21 of which offer full multi-licensing for all online gambling products regulated by the Government in question.

Today, practically each European nation has its own licensing requirements, which can be expensive for operators to navigate.

The strength of Malta’s remote gambling licensing framework was that companies had to go through the expense and familiarise themselves simply with one regulatory framework – that of the MGA. Based on EU rules covering the Single Market and free movement of services, operators were provided with legal certainty and clarity allowing them to continue investing in the product or service offered.

As some European countries introduced laws that required operators to seek licences to be able to serve customers within their territory, MGA B2C licence holders were left with no choice but to secure multiple licences to ensure the continuity of their operations in those territories.

2021 was a major year in this respect. The Netherlands lifted its ban on remote gambling, requiring operators to obtain a licence from the country’s gambling authority. In the same year, Germany underwent a regulatory overhaul, which likewise required operators to obtain a local licence in several instances when offering online gambling products. On the other hand, Austria still applies a monopolistic regime which translates into a reality where Malta-based operators cannot obtain a licence to offer their gaming services to the Austrian market. In both countries, several court cases have been instituted against Malta-licensed operators by players who have lost money over the years while making use of the companies’ remote gambling products and services.

In a nutshell, players are looking to recoup losses on the premise that such operators were not licensed in the country where the bets were placed at the time.

was crafted as a point of supply licence, allowing operators and suppliers to provide their services across Europe and beyond.

Operators had to strictly adhere to the Malta Gaming Authority (MGA) licence conditions, while a justifiable legal reason needed to be present for operators to provide their services in foreign jurisdictions.

Added to the robust framework is a highly advantageous tax framework, which effectively sees foreign companies established in Malta obtain a 6/7 refund on tax charged to the associated Maltese trading company, effectively paying five per cent corporate tax. The country’s corporate

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“GIVEN HOW TECHNICAL AND SPECIFIC THE GAMING SECTOR IS, THE MALTESE LEGISLATOR DECIDED TO CRYSTALLISE INTO LAW THE LONG-STANDING PUBLIC POLICY OF MALTA IN RELATION TO THE GAMING SECTOR SPECIFICALLY.” Carl Brincat, CEO, Malta Gaming Authority

For instance, in a June 2021 judgement, the Austrian Supreme Court confirmed the decisions of two lower courts, which found that Flutter-owned PokerStars operated in violation of the federal gambling monopoly. In practice, the court found that all of PokerStars’ gambling contracts were null and void, ultimately upholding the plaintiff’s request for reimbursement of the money lost by the players.

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In essence, Bill 55 prevents enforcement action from foreign judgements in the case when such action runs contrary to or undermines the provision of gaming services in Malta, and when activities by an operator subject to a foreign challenge relate to activities that are permitted under the local Gaming Act.

In reaction, Malta’s authorities forged ahead with another bold step. In this latest legislative twist, the Maltese Parliament, in June 2023, approved an amendment to the country’s Gaming Act in the form of Article 56A. Better known among industry stakeholders as Bill 55, the amendment reads as follows:

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conflicts with or undermines the legality of the provision of gaming services in or from Malta by virtue of a licence issued by the Authority, or the legality of any legal or natural obligation resulting from the provision of such gaming services; and ii. relates to an authorised activity which is lawful in terms of the Act and other applicable regulatory instruments.

The Court shall refuse recognition and, or enforcement in Malta of any foreign judgment and, or decision given upon an action of the type mentioned in sub article (a). i.

56A. Notwithstanding any provision of the Code of Organization and Civil Procedure or of any other law, as a principle of public policy: no action shall lie against a licence holder and, or current and, or former officers and, or key persons of a licence holder for matters relating to the provision of a gaming service, or against a player for the receipt of such gaming service, if such action:

The legal amendment essentially protects MGA licence holders from enforcement action that stems from foreign judgements and foreign regulatory authorities in specific circumstances. It allows the Maltese courts to refuse recognition and enforcement of such enforcement notices related to the online gaming sector.

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With this unprecedented legal protection came heavy criticism from stakeholders across Europe. Among the critics was the German gambling regulator, the Gemeinsamen Glücksspielbehörde der Länder (GGL), which argued that Bill 55 conflicts with the Brussels I Recast Regulation, an EU law regulating the jurisdiction, recognition and enforcement of legal judgements between EU Member States, regulating questions of transnational litigation across the Union.

Locally, authorities have stood firm, while the European Commission responded to a series of questions posed

by German MEP Sabine Verheyen, a member of the Christian Democratic Union and the European People’s Party, by confirming the institution is assessing Bill 55’s compatibility with EU law. A subsequent European Parliament debate on the matter uncovered concerns that, apart from debate about how the amendment would fit with EU law, issues were also raised about potential ties between the Maltese Government officials and iGaming operators which could, they claim, lead to undue influence.

On its part, the Malta Gaming Authority has stressed that through the legislative instrument, it sought to “enshrine into law the long-standing public policy of Malta in relation to the gaming sector.” The MGA stressed that the law does not create “additional or separate grounds” for refusing to recognise or enforce judgements to those already established under EU regulations (Regulation (EU) 1215/2012). “It is simply an interpretation of the ordre public grounds for refusal envisaged in said EU regulation.”

to provide services, as enshrined in the Treaty for the Functioning of the European Union; however, the Court of Justice of the European Union (CJEU) has, through jurisprudence, clarified what justifiable restrictions may be imposed on such a freedom to provide services. This is what is meant by Malta’s long-standing public policy, which has been enshrined in law by means of the introduction of Article 56A [Bill 55].”

Essentially, the CEO argues that the launchpad of any argument surrounding Bill 55 should be the freedom to provide services across the Single Market, and imposing any restrictions to that freedom must conform to EU law. In

Photo by Inigo Taylor

Asked to expand on what is meant by ‘long-standing public policy,’ MGA CEO Carl Brincat remarks that while Malta’s online gambling licensing framework was devised as a point of supply licence, “in the case of EU Member States, the law of the respective Member State must be taken into consideration.”

Here, Dr Brincat adds that “the starting point must necessarily remain the freedom

“IT IS VERY IMPORTANT THAT MALTA’S GOVERNMENT PROTECTS THIS BILL.” Enrico Bradamante, Chairman and Founder, iGEN

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“Given how technical and specific the gaming sector is, the Maltese legislator decided to crystallise into law the long-standing public policy of Malta in relation to the gaming sector specifically. The new amendments to the law provide additional detail by defining specific elements that must first be fulfilled before that law can be triggered, thereby providing more clarity.”

It can therefore be said that, whether Bill 55 ultimately stands up to scrutiny will ultimately depend on whether it can be viewed as justifiable public policy. For the Malta-based industry, however, the stakes are higher, considering that major operators would be ordered to pay back years of losses of several customers in jurisdictions like Austria and Germany should the legal amendment need to be dropped.

instances where restrictions to that freedom to provide services are not deemed as justifiable, MGA-licence holders are free to provide their services, in line with the conditions laid out by their licence.

Expanding further, Dr Brincat adds that “the Brussels I Recast Regulation establishes the grounds for refusing to recognise or enforce a judgement emanating from another EU Member State. These include situations where recognition runs contrary to a member state’s public policy. However, it is up to each Member State to determine what constitutes their public policy, and therefore interpretations of the Brussels I Recast Regulation vary from country to country.”

Asked about the repercussions of Bill 55 and how Malta’s iGaming players view the situation, Enrico Bradamante, Chairman and Founder of iGEN – an association of leading iGaming companies based in Malta and operating in Europe, categorically states that “it is very important that Malta’s Government protects this Bill.”

Expanding, he remarks that “in essence, it is reinforcing EU law” in that “it allows services to be offered across EU Member States – in this case digital services – across the Single Market.” Describing Malta as a “pioneer” for how it leveraged the EU Single Market when it first regulated remote gambling, he comments that “right now, there is a conflict

“THE SCOPE OF ARTICLE 56A OF THE GAMING ACT IS TO TRY AND ADDRESS THIS ANOMALY, ESPECIALLY, BUT NOT SOLELY, BY MAKING REFERENCE TO THOSE FUNDAMENTAL RIGHTS EMANATING FROM THE TFEU SUCH AS THE FREEDOM OF MOVEMENT OF GOODS AND SERVICES.” Antonio Ghio, Partner, Fenech & Fenech Advocates

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between EU law, which is protecting Malta and MGA-licensed operators, and the legal framework in Austria and Germany. One law says one thing, and another law says another, and when this legal discussion is taken to its end, it will come before the European Court of Justice.”

“Despite the lack of harmonisation of the underlying substantive (gaming) law across Europe, Malta is being subjected to a substantial number of applications whereby judgements emanating from other Member States, typically related to players who register an account with a Maltese operator and lose their money, are claiming their money back and are attempting to enforce those foreign judgements against the Maltese operators here, even if those judgements were based on the gaming law provisions of another Member State.”

“One needs to point out that it is the same Brussels I Recast Regulation that provides an exception (amongst others) that recognition and enforcement of a foreign judgment emanating from another Member State can be rejected on the basis of ‘a manifest breach of public policy’ of the receiving Member State. The argument relating to public policy should be stronger in those situations (like the gaming vertical) where the underlying substantive law is not harmonised at all. The scope of Article 56A of the Gaming Act is to try and address this anomaly, especially, but not solely, by making reference to those fundamental rights emanating from the EU Treaty such as the freedom of movement of goods and services.”

And, while Austrian and German courts have found in favour of the players, Mr Bradamante stresses that “the big danger we see as an industry, is that we have done nothing wrong in the context of EU free movement of services.

Companies feel very strongly about their case.”

He further outlines that ultimately, “this is an economic argument, as on the one hand it costs more to fight these cases in court, eventually taking it all the way to the ECJ, and on the other, operators naturally contemplate whether to settle the claims.”

He adds that “absolute reluctance to settle the claims is a strategy being employed by some, as this would fundamentally undermine the whole industry. The worstcase scenario is all players sue all operators for all the money operators have earned over the years while operating under the MGA licence. If you believe that the EU laws should supersede national legislation, then the MGA licence framework is safe. What will happen next will very much be decided on political grounds.”

Finally, prominent TMT lawyer Antonio Ghio was also asked to weigh in, specifically on the argument that Bill 55 in essence goes against the Brussels I Recast Regulation. Dr Ghio is a Partner at leading law firm Fenech & Fenech Advocates and heads its TMT and IP Law Departments. His main areas of expertise are TMT, Intellectual Property, Gaming, Privacy, and Litigation.

In the end, it will be legal and political wrangling that will decide the fate of Bill 55, however what is clear is that Malta’s Government and regulator will continue to defend it, or risk threatening the two-decades old remote gambling industry which has brought so much to the island. In the same way that EU law was leveraged to allow Malta to become an iGaming hub back throughout the years, today it is EU law that is being leveraged to threaten to take it all away. At this next juncture, authorities will await the outcome of the European Commission assessment, however it will be the courts that will ultimately settle this stalemate and decide on the way forward.

He starts by pointing out the impact of the existence of a fragmented patchwork of national gaming laws across the EU bloc, and the contrasting fact that the recognition and enforcement of foreign judgements within the EU is in fact harmonised through the Brussels I Recast Regulation: “This means that on the one hand we see that the underlying substantive law affecting decisions relating to the gaming industry vertical differ drastically from one jurisdiction to the other and yet the Brussels I Recast Regulation is being used as a tool for the enforcement of such judgements.”

Photo by Marg Johnson VA - Shutterstock

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IS MALTA’ S

allure favourable TAX R EG I M E? BEYO ND I TS

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With imminent changes to Malta’s corporate tax regime, Helena Grech explores how this could impact the island’s iGaming industry, which has historically been attracted to the island due to its favourable tax environment, a mong other factors.

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n 2022, Finance Minister Clyde Caruana made headlines when, while addressing a press conference to inaugurate the first home-grown mobile payments app, he revealed that the country will be carrying out its first major reform to its corporate tax regime in decades.

Indeed, he had shared that Malta would be moving away from the current imputation system, and when speaking more recently at a launch of the country’s new long-term strategy for the financial services sector, he said that the Government prefers to grab the bull by the proverbial horns rather than wait for the EU to impose changes.

Photo by Wanan Wanan - Shutterstock

For starters, let’s delve into what it is about Malta’s corporate tax system that makes the island so attractive to foreign companies, particularly remote gaming companies.

Under the current system, companies are subject to a corporate tax flat rate of 35 per cent, among the highest in the world. However, thanks to a series of rebates and other incentives aimed at spurring foreign investment, this is often brought down to an effective corporate tax rate of five per cent for companies with foreign shareholding. This, coupled with robust regulation created fertile ground for the continued growth of the sector, among a wide array of other factors.

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“HISTORICALLY, THIS ADVANTAGEOUS TAX REGIME HAS BEEN CREDITED WITH ATTRACTING A HIGH LEVEL OF FOREIGN DIRECT INVESTMENT.” Historically, this advantageous tax regime has been credited with attracting a high level of foreign direct investment. An annual survey by Big Four audit and consultancy firm EY Malta, known as the Malta Attractiveness Survey, consistently ranks the country’s corporate taxation regime as the most attractive feature for foreign companies. In 2018, a staggering 88 per cent of companies surveyed ranked it as the top pull factor, and, while this proportion fell to 71 per cent by 2022, it continues to rank in the top spot.

Despite the obvious benefits to Malta that this system has brought, especially in a country with limited possibilities for economies of scale and few natural resources to speak of, the imminent changes have been described as a “bitter pill to swallow” by Finance Minister Clyde Caruana.

Changes to the system stem from two distinct developments. Firstly, in 2021, a global minimum corporate tax of 15 per cent for Multinational Enterprises (MNEs) to be implemented by 2023 was agreed upon by the Organisation for Economic Co-operation and Development (OECD), with 136 jurisdictions, out of a possible 140 and including Malta, signing onto the OECD’s two-pillar solution, representing around 90 per cent of global GDP. The reform targets large multinational firms with a minimum annual revenue of €750 million.

2021, while the Council of the EU reached unanimous agreement in January 2023 for its implementation. The Directive requires Member States to transpose the rules into domestic law by 31st December 2023, with an option in specific circumstances to delay its adoption until 2029. The rules are expected to impact close to 700 multinational companies, some of which also have a base in Malta, and that employ around 20,000 people, as confirmed by Minister Caruana.

The second part of the overhaul relates to the Government’s desire to make changes now rather than wait for the EU to force its hand. Malta has repeatedly refuted calls for a harmonised corporate tax rate across the EU, while, on the local front, it has been under pressure to lower the corporate tax burden for Maltese companies, which are currently expected to pay the full 35 per cent. As part of its electoral manifesto, the Labour Government, which was ultimately elected to power, promised to lower the local rate from 35 to 25 per cent.

On top of this two-pronged discussion, Government has categorically stated that any changes to the corporate tax regime will be revenue-neutral for the country, meaning that it is not aiming to increase Government coffers through the incoming tax changes. Indeed, the focus appears to be on improving tax collection across the board, with the compliance rate of corporate taxpayers based in Malta or having a presence in Malta at a mere 55 per cent, according to the Government’s pre-Budget 2024 document. Here, the Finance Ministry emphasised that “during 2023, an analysis [was] carried out to reach out to corporate taxpayers, leading them to become compliant in the submission of their tax returns.”

Malta was signatory to this agreement, with reservations. At the time, Minister Caruana stated that while each country accepted the agreement, even though some disagreed with elements of it, other countries may still tax the variance between Malta’s local rate and the 15 per cent elsewhere.

For example, if Malta taxes a local branch of a company five per cent, other countries could potentially impose the remaining 10 per cent tax in their home jurisdiction.

Unprecedented global consensus on this OECD initiative led to the European Commission tabling a proposal to introduce the EU Minimum Tax Directive (Pillar Two) for large multinationals in

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Therefore, there is much room for the country to beef up its taxation revenue collection, while adhering to the various promises it has made and initiatives it has signed up for on the global and European stages. have gained extensive knowledge of the ins and outs of the remote gambling industry, whether in finance, audit, compliance, IT, HR, and more.

Now that the stage has been set, and with around 10 per cent of the world’s online gaming companies present in the country, it begs the question: does Malta’s allure go beyond its tax regime? And, will any changes in corporate tax for firms earning less than €750 million in revenue, or changes in tax collection on the island result in any iGaming firms leaving Malta as a jurisdiction?

In reality, there is a raft of other incentives available to the remote gambling sector that makes Malta an attractive base. Beyond corporate tax, tax incentives also take the form of the Highly Qualified Persons Rule and the Qualifying Employment in Innovation and Creativity Rules (applicable to Video Gaming).

The former is aimed at attracting experienced and senior professionals from all over the globe in the areas of financial services, virtual financial assets, remote gaming, and aviation. Eligible individuals benefit from a flat income tax rate of 15 per cent up to a maximum income of €5 million, and, within the iGaming sector, relates to professionals engaged with Malta Gaming Authority (MGA) licensed companies.

In addition, as a jurisdiction, Malta provides access to the protection of intellectual property in European and international markets, having fully incorporated the EU and World Trade Organisation rules on the matter into its national law. On the strength of robust legislation and a wide array of corporate service providers, the country’s intellectual property offering has been particularly relevant within the iGaming, software development, e-commerce, and pharmaceutical sectors.

The remote gambling sector is undoubtedly highly specialised, with workers requiring a niche set of skills to serve the myriad operators, suppliers and stakeholders within the ecosystem.

Equally, service providers hoping to net clients in the industry must be wellversed on the various intricacies and complexities that underpin the sector.

This is another area where Malta comes out on top, where both internationally recognised brands of service providers, as well as home-grown boutique firms

In addition to the service providers and supporting sectors that underpin the wider iGaming ecosystem, with the remote gambling sector having been regulated on the island since 2004, several foreign and local industry professionals have sustained roots in Malta, creating a specialised pool of personnel and a scenario that is hard to replicate overnight in another jurisdiction.

And, as private industry has gained a wealth of knowledge about the sector, so too has the country’s regulator, the MGA, which has built a solid international reputation and is widely recognised as a leading regulatory authority in the world within this space. It is credited with paving the way to provide online gambling users worldwide with a high level of safety when consuming digital gambling products and services. Ongoing reviews and updates to Malta’s remote gambling laws and regulations have shown the country’s commitment to the sector, with the MGA, in its 2022 Annual Report, stating: “The relationship between the regulator and its regulated sector is always complex. With this in mind, we strive to ensure a positive and transparent relationship between us and the key industry stakeholders, as we genuinely believe that creating a sustainable industry requires a high level of collaboration between all affected parties. This approach underpins our strategy for policymaking, which in our view, should always be based on consultation and collaboration.”

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“POLICYMAKERS HAVE LONG SEEN THE NEED TO PROVIDE OTHER INCENTIVES AND PULL FACTORS FOR DOING BUSINESS IN MALTA.”

On a national level, the country has shown it is keen to protect local enterprise from developments that are further driving up costs.

In 2022, it took the decision to freeze energy and fuel prices in response to international prices ballooning. This policy remains in place, with Prime Minister Robert Abela stating that the ongoing energy subsidies are an “important measure” of the country’s national Budget in 2024. He highlighted its importance in supporting the economy and is undoubtedly welcome by the remote gambling sector. According to the operators that submitted valid responses in the MGA’s Industry Performance Return, “most operators” expected costs to surge in 2023, including legal and professional expenses and marketing costs.

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As an onshore jurisdiction and an EU Member State with a high degree of political stability, led by a Government keen on supporting the business community, and the widespread use of the English language, even at a state level, there are various reasons supporting the country’s status as an iGaming hub in Europe and the world that go beyond the tax regime. Indeed, discussions surrounding the country’s favourable tax environment are not new, and despite Malta defending its position by asserting its right to boost its competitiveness on the world stage, policymakers have long seen the need to provide other incentives and pull factors for doing business in Malta.

By the end of 2022, there were over 300 remote gambling companies in operation on the island, according to official figures.

In a scenario where Malta concentrates its corporate taxation efforts on lowering the burden for locally-owned firms while continuing to offer a favourable rate to foreign companies earning less than €750 million in revenue annually, and at the same time beefing up collection efforts to seriously ramp up compliance in this area, it appears unlikely that a significant number of companies will give up on the jurisdiction.

2024 EDITION BUSINESS

Onwards

upwards, long haul AND

Photos by Alan Carville

FOR THE

LeoVegas Group, recently acquired by MGM Resorts International, continues to eye growth while winning praise as Employer of Choice for the year 2022. Stefania Curmi, Head of HR Commercial and Operations, sits down with Julian Micallef Tagliaferro to discuss the Group’s most valued resource, its employees.

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n a high-stakes environment where competition is tough, finding a winning formula is critical for any business operator to achieve success. And, once on a growth trajectory, the search often requires making the difficult decision to prioritise the right values.

LeoVegas Group knows this all too well. The premier iGaming company has been on a rapid growth trajectory for some time.

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In 2022, it was acquired by MGM Resorts International, the prominent global brand operating in the entertainment, hospitality and gaming sectors. A year later, it entered into an acquisition agreement with digital game producer and content provider Push Gaming, a supplier of online and mobile games to hundreds of operators across the world. Indeed, LeoVegas has continued on its path of planned growth as a leading international player in the iGaming sector.

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Founded 11 years ago, Head of HR Commercial and Operations Stefania Curmi points out that “LeoVegas Group has been on quite a journey! It has grown to over 1,200 employees with 12 offices across Europe – all with the aim of providing the world’s greatest iGaming experience.”

Following its acquisition by MGM, the prospects of significant opportunities and possibilities for the Group have increased considerably, and “its sights are set on achieving great things together,” Ms Curmi shares. “With MGM’s invaluable support, we will continue to invest in our product and technology, and to attract talent.”

The collaboration between MGM Resorts International and the LeoVegas Group has resulted in what Ms Curmi describes as “an exciting new project”: the launch of the BetMGM brand in the UK, which is an international offering that “leverages the proprietary technology and platform” of the LeoVegas Group.

The brand’s foray into the UK market also marks the launch of an internationalisation strategy as planned by MGM Resorts, with a view to replicate the success it has attained in the US and Canada. Undoubtedly, there is much more to come from the disruptive BetMGM brand.

“But there’s more,” continues Ms Curmi, as she expands on the LeoVegas-led majority stake acquisition of Push Gaming. The game developer has an award-winning catalogue and is one of the industry’s leading and most innovative developers. As Ms Curmi asserts, “this is testament to all that we have achieved so far together with MGM Resorts, and what is yet to come!”

“WITH MGM’S INVALUABLE SUPPORT, WE WILL CONTINUE TO INVEST IN OUR PRODUCT AND TECHNOLOGY, AND TO ATTRACT TALENT!” 049

As LeoVegas Group continues to plan for sustained growth, it has embarked on a strong recruitment drive to power its ambitious goals. The Head of HR Commercial and Operations provides further insight, noting that “the MGM Resorts acquisition has brought with it significant growth opportunities for us as a business, and for our people – it’s an exciting time. As we continue to strengthen our brand globally, we continue working towards recruiting the best talent.”

Talent retention is also high on the agenda, explains Ms Curmi, with the company offering numerous benefits to ensure that “the best working conditions are offered,” reflecting a win-win strategy that serves the company and its ‘lions’.

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“THE COMPANY’S APPROACH IS TO PLACE PEOPLE AT THE CORE OF ITS OPERATIONS, NOT THE OTHER WAY ROUND.” She goes on to list what’s on offer, highlighting “hybrid working arrangements, Monday breakfast, a health and well-being monetary allowance, as well as a focus on mental health through our Employee Assistance Programme.”

In addition, Ms Curmi notes that “fully paid private health insurance, sports allowances and fitness classes are some of our most appreciated benefits.”

LeoVegas Group prides itself on being considered an Employer of Choice and underlines its commitment to equality, diversity and inclusion. Indeed, Ms Curmi attests that “at LeoVegas Group, the most valued resource is its employees.”

The company currently has a complement of over 1,200 individuals working in its offices around Europe, with various backgrounds and coming from 60 different countries. “The company’s approach is to place people at the core of its operations, not the other way round,” she underscores.

This drive to create the right environment for diversity to flourish reflects the leadership style adopted by the company. Ms Curmi contends that “one of the aspects that is highly valued by the team is the environment that the company has managed to create and maintain. The LeoVegas Group is an entertainment company and whilst we are professional in everything we do, we also value the fun and friendly culture that we share with one another and with our customers.”

Personal growth is another area that’s encouraged by the company. Ms Curmi shares that “we believe in offering opportunities for employees to build on their skills. Over the last couple of years, we have seen many employees move towards their career goals, whether that is to gain leadership experience or to specialise in a certain area of work.” This philosophy bodes well, as she attests that “as an employee at LeoVegas, we are trusted and we are expected to take initiative.”

LeoVegas Group has supported EuroPride Valletta 2023 held in Malta in September; a high-profile event celebrating the values of equality, diversity and inclusion.

LeoVegas Group’s sponsorship was an exciting partnership which the company is particularly proud of: “The popular festival not only celebrates the LGBTIQ+ community, but also provides a platform for dialogue and awareness,” Ms Curmi enthuses, also noting that the Group has sponsored the local Malta Pride event multiple times.

EuroPride 2023 attracted over 40,000 participants and featured concerts, art exhibitions, panel discussions, and the renowned Pride Parade. The world-famous music celebrity, Christina Aguilera, who is also the festival’s ambassador, delivered a memorable performance in celebration of EuroPride 2023.

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Another talk was organised by the LeoVegas Group’s Newcastle office and addressed by experts Lucy Malarkey and Karen Faulkner, who delivered an informative session with several employees within the LGBTIQ+ community, sharing their experiences.

Both events were broadcast to all employees working within the Group across Europe.

Moreover, Ms Curmi continues, “our dedicated Office and Employee Experience Teams also hosted a number of events to engage with all colleagues, through colourful breakfasts, sweet treats and a karaoke after-work event.”

LeoVegas Group is geared to continue seeking growth, including through its recruitment drive, while also retaining talent and holding on to its hard-earned reputation as an employer of choice.

The company, Ms Curmi elaborates, “is continuously working hard to provide the best employee experience with the right values and culture. Maintaining that internally will strengthen our approach when recruiting. We are proud that our employees act as company ambassadors.”

Over the 10 days of EuroPride in Malta, LeoVegas Group hosted two engaging talks. The first featured Rebecca Buttigieg, Malta’s Parliamentary Secretary for Reforms and Equality, who joined a panel discussion on topics including LGBTIQ+ rights, equity and EuroPride. She was accompanied by Maria Azzopardi, President of the Allied Rainbow Communities. “The event took place in LeoVegas Group’s office in Sliema, which we were honoured to host,” Ms Curmi shares.

Whether this is through the company’s referral programme, and, “what’s better than talent recommending talent?” quips Ms Curmi, or through its media and social media channels regularly sharing insights into ‘Life at LeoVegas’, potential employees can get a glimpse of what it means to work for a leading iGaming company which forms part of the international group MGM Resorts.

“WE ARE PROUD THAT OUR EMPLOYEES ACT AS COMPANY AMBASSADORS.” 051

2024 EDITION INTERVIEW

“WE ARE AWARE THAT THERE ARE NUMEROUS PAYMENT PROVIDERS ON THE MARKET, SO WE WANTED TO COME UP WITH SOMETHING TRULY INNOVATIVE THAT WOULD DIFFERENTIATE US IN THE CURRENT LANDSCAPE.”

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2024 EDITION INTERVIEW

payment

A CROSS-BORDER

service

remarkable WIT H A

DIFFERENCE

FinXP CEO Jens Podewski unveils the distinct features of the company’s new cross-border payment service, and explains to Edward Bonello how it is revolutionising the iGaming industry’s payout process.

F

inXP has handled billions in payments for thousands of clients since 2015.

Indeed, the FinTech company has evolved its offering considerably since it opened its doors, and though it has been an adventurous ride, the company is more than convinced that coming to Malta was the right move.

Photos by Inigo Taylor

“We have grown from the modest sevenperson start-up we kicked off with in our old offices in Pietà. Today, with a team of around 45 people in multiple countries, we are proud to launch an ambitious product that will revolutionise the way our clients use FinTech services,” says Jens Podewski, FinXP CEO. FinXP is launching a new cross-border payment service that simplifies the payout process for companies in iGaming and beyond. The new service will handle a variety of currencies, with payments being made in over 100 countries around the globe.

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“The ground-breaking aspect of this new cross-border payment service is that it will consolidate the different payout services a typical client would require into one ‘easy-to-deal-with’ solution,” Jens explains.

“Whereas previously a client would have needed to use various financial institutions and banks to process payments in determinate currencies, the new service by FinXP will cater for all of these, seamlessly and easily.”

In tandem with FinXP’s flagship product, IBAN4U, a dedicated Euro IBAN account service, the cross-border payment service can really make a difference for clients when compared to existing solutions on the market, Jens attests. IBAN4U is required to use the new cross-border payment service and together, both solutions are touted to set FinXP as the favourable choice in the highly competitive landscape of account pay-ins and payouts, as they do away with the need for multiple service providers. Although the new service

2024 EDITION INTERVIEW

“THE GROUND-BREAKING ASPECT OF THIS NEW CROSS-BORDER PAYMENT SERVICE IS THAT IT WILL CONSOLIDATE THE DIFFERENT PAYOUT SERVICES A TYPICAL CLIENT WOULD REQUIRE INTO ONE ‘EASY-TO-DEAL-WITH’ SOLUTION.” is relevant to any company that makes payouts, thanks to the vast experience FinXP has gained by working closely with the iGaming industry, it has designed its new cross-border payment service to fit the industry’s needs like a glove.

“We have evolved as a financial institution alongside iGaming operators. We have grown with them and know the pain points they experience in their daily operations.

That is why we feel that we are in an optimal position to help make their lives simpler.

Normally, they would need to use multiple service providers to affect their payouts, depending on whether they would be using

wire transfers or cards, or a variety of other methods.

With our new service this will be a matter of the past,” Jens elaborates.

In fact, FinXP’s new cross-border payment service is credited with saving time and reducing costs considerably for the user, since it will do away with several ‘middlemen’. Moreover, since client accounts are issued directly and exclusively with FinXP, risk is considerably reduced. “Having no third-party banks acting as intermediaries means that risks of client accounts being frozen or closed by financial institutions that might not have a direct relationship with the client, are completely eliminated.”

“We are aware that there are numerous payment providers on the market, so we wanted to come up with something truly innovative that would differentiate us in the current landscape. Our cross-border payment service will have a simple fee structure that will be considerably cheaper than other existing solutions clients may be using.

Moreover, since FinXP will be taking care of the entire process from beginning to end, it will also result in a faster service to clients, making them even more competitive with their customer base,” Jens asserts.

The new product will also do away with commercial banks, which, Jens explains, in the past have been reluctant to work with the iGaming sector.

“Unfortunately, commercial banks in Malta tend to take a rather conservative stance when it comes to choosing who to do business with. While being careful is of utmost importance in all industries, we find it hard to understand why certain banks refuse to open bank accounts for companies that have absolutely all their requirements in order. Nowadays obligations of AML and good governance place very onerous commitments on operators which in turn are taken extremely seriously. Once these are fulfilled to everyone’s satisfaction, and all documentation is evident and produced to show for it, it should not be a problem for a company to operate – yet we know they still find issues. This is something that we wanted to help with,” Jens explains.

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2024 EDITION INTERVIEW

“It is only natural that at boom stage you get several operators that open shop without perhaps fully understanding the entire complexities of the operation. Over the years we have seen how these outfits were slowly but surely being weeded out, and now the industry is practically made of reputable organisations that offer solid reliable services to their customers,” he continues.

Asked about the company’s experience being based in Malta especially in the aftermath of the 2021-22 FATF greylisting, Jens confirms that although it certainly was a hiccup, it served as an impetus for recollection and growth.

“Obviously no one enjoyed the setback, but we must concede that the situation was handled very well by all concerned. I noticed how the industry came together to support Government and work in unison to get out of the predicament as quickly as possible,” he argues. “In fact, I trust that the industry grew from this episode, because new and improved standards didn’t hinder operations. On the contrary, they helped cement the industry’s reputation for excellence and bring new trust, which is always crucial for doing business.”

FinXP continues to pride itself on having an intimate understanding of the iGaming business, placing the company at an optimal position to provide services that fully satisfy their clients’ needs.

“Further to our superior offering, we also develop tailor-made solutions for clients. We know that no one client is like another, and while there are several underlying similarities, they will require special solutions according to their needs. This, together with our vision of being a true one-stop shop for all payment needs for our clients, enables us to offer an unrivalled service,” Jens concludes.

Commenting on the financial services industry in Malta, Jens follows on the same argument, noting how the landscape is consolidating.

“WE HAVE EVOLVED AS A FINANCIAL INSTITUTION ALONGSIDE iGAMING OPERATORS. WE HAVE GROWN WITH THEM AND KNOW THE PAIN POINTS THEY EXPERIENCE IN THEIR DAILY OPERATIONS.” 055

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CR EATIN G TH E

‘broader church Photos by Inigo Taylor

OF

gaming’

As iGaming, video gaming, eSports and other immersive tech companies continue making Malta their home, GamingMalta CEO Ivan Filletti tells Ramona Depares how the foundation intends to help bridge these ecosystems together.

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2024 EDITION TECH

“WE ARE CASTING A WIDER NET, LEVERAGING THE CONVERGENCE OF TECHNOLOGIES LIKE AI AND AUGMENTED REALITY TO CREATE PARALLEL ECOSYSTEMS FOR VIDEO GAMING, eSPORTS AND OTHER IMMERSIVE TECH THAT WORK TOGETHER.”

W

ith Malta’s standing as the home of gaming excellence as solid as ever, the island’s reputation for offering a welcoming environment to the tech sector is seeing adjacent tech ecosystems experience a strong upward surge. This is no happy coincidence, of course. Driving a committed strategy at the heart of it all is GamingMalta, the non-profit foundation tasked precisely with consolidating and strengthening Malta’s pull as a jurisdiction.

He acknowledges that this is not without its challenges. Although adjacent, the fact remains that video gaming, eSports and immersive tech are all very different beasts. He adds, however, that GamingMalta is very well-positioned to facilitate the bridges that can see the three ecosystems thrive alongside each other.

“The foundation has the full support of the Government in helping us reach this remit. If we look at the video game industry, on a global level it’s even bigger than the film and music industries.

We are creating new ecosystems in the same way we created a home for iGaming,” he says. “In this multiverse, Malta is not hampered by its size. Today, most of us spend more and more time in digital worlds like video games, apps and metaverses.

Through GamingMalta, we are seizing the chance for our island to become a main player at this expanding digital frontier.”

I caught up with CEO Ivan Filletti to find out more about the foundation’s mission to help potentially high-yield companies feel comfortable doing business in Malta. He explains that the foundation was incorporated by the Government and by the Malta Gaming Authority (MGA) precisely to act as the promotional arm of the industry. The foundation also chairs the iGaming Council, which has helped strengthen the sector by offering advice on policy. Operating separately from the regulator, GamingMalta’s main priority is “the building of ecosystems”. I ask Ivan to elaborate.

Ivan describes this strategy as creating the “broader church of gaming”, and GamingMalta’s efforts are already yielding fruit. Its partnership with eSports giant ESL has led to the world-renowned eSports Pro League to take over the island twice a year.

The implications for Malta-based tech companies and for the economy in general are enormous as the $850,000 prize pool attracts more than 30 participating teams, each of which is accompanied by an entire entourage of professionals.

“Malta was the first European member state to regulate the gambling sector. Malta built that entire ecosystem from scratch, and we work to sustain it on a daily basis. Now we’re casting a wider net, leveraging the convergence of technologies like AI and augmented reality to create parallel ecosystems for video gaming, eSports and other immersive tech that work together,” Ivan explains.

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“Securing the partnership with ESL gave us a platform to deliver our message to the world, that Malta is open to doing business with these industries.”

Similar strides have also been made within the video game ecosystem. A quick tour around the GamingMalta ‘Base Camp’, reveals a number of high-yield companies that have indeed set up their base at the dedicated incubator facility, attracted by the high-tech facilities offered. I can see top talent at work literally bringing games to life before my eyes.

“We have built excellent relations with the industry and I’m not talking only on a global level. We place priority on supporting local organisations too. For example, GamingMalta offices offer an incubator space for start-ups that need studio space or other amenities.”

Meanwhile, GamingMalta forges ahead in its efforts to ensure Malta continues being the home of iGaming worldwide. What does he make of the criticism that the sector is known to attract? He smiles and brings out a presentation that aptly tackles the issue while somehow managing to channel the ‘Queen of Soul’, Aretha Franklin.

“It’s all about respect. Or, R.E.S.P.E.C.T, as I like to put it. This is an acronym for responsible gaming, entertainment, speed, professionality, enhanced due diligence, consistency, and talent. These different elements tie in together to ensure that the industry attracts respect and maintains its standard of excellence,” he says.

I ask him what he believes iGaming has brought to Malta, apart from the obvious (12.4 per cent of the national GDP, in case you’ve missed out on the news in recent years). In fact, refreshingly, his reply does not focus on the financial aspect, though that’s hardly to be sneezed at.

Game design, he adds, demands a particular skill set that’s even more specialised than for typical iGaming roles. The foundation works hand in hand with Maltese academic institutions like MCAST and the Institute of Digital Games at the University of Malta to ensure that local talent is nurtured.

“Education is very much the key towards growing this sector, and we’re looking towards fostering home-grown and international talent. We organise boot camps, workshops, masterclasses, thought leadership sessions, etc. In short, we offer all opportunities to ensure strong foundations for this ecosystem,” Ivan explains.

“EDUCATION IS VERY MUCH THE KEY TOWARDS GROWING THE [GAMING] SECTOR, AND WE’RE LOOKING TOWARDS FOSTERING HOME-GROWN AND INTERNATIONAL TALENT.”

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“Granted, iGaming is part of the entertainment industry, but it’s heavily tech and data driven.

The ecosystem hosts the world’s innovators, data scientists, AML, and KYC specialists. And these have all found their home in Malta,” he replies.

2024 EDITION TECH

Moreover, he reminds me that the ‘cowboy’ days of iGaming have long been over, and that Malta is renowned for its comprehensive regulatory framework.

“The industry is heavily regulated and many of the companies are even publicly listed.

So, we’re looking at Malta being the base for all these highly-managed tech companies.

Moreover, we’re putting a huge emphasis on responsible gambling for obvious reasons, while also spearheading the drive towards ESG and the adoption of sustainable technologies and processes,” he says.

This, he adds, has brought about ancillary benefits.

The sector has catalysed advancements in technology, infrastructure and even education. On a national level, there has been a very noticeable shift in work culture and human resources management, and we now have relatively ‘new’ professions like employer branding take centre stage.

“We’re also seeing a multi-cultural workforce and a good number of Maltese companies that have found inspiration in this new approach to office culture.

We’ve seen female leadership take a surge forward, with equality and diversity becoming valued concepts. iGaming contributed significantly to these shifts.

And, the influx of professionals from various parts of the world has undoubtedly contributed to a diverse, cosmopolitan culture.”

I close off the interview by asking him what he’d wish for GamingMalta’s legacy to be. He confides that one

059

“IN THIS MULTIVERSE, MALTA IS NOT HAMPERED BY ITS SIZE.” of the foundation’s goals is for the three new ecosystems mentioned earlier – video games, eSports and immersive tech – to constitute one per cent of the national GDP by 2030.

“If we successfully manage to build these three ecosystems, while relentlessly sustaining the iGaming ecosystem and at the same time join the dots across all segments, then surely the future is now. They are all different animals. But together, they can grow into something magnificent for Malta,” he concludes.

2024 EDITION CALENDAR

iGaming Calendar The train never stops! Here’s a rundown of some of the most noteworthy conferences, networking events and summits happening worldwide in 2023 and 2024.

SiGMA Europe

NOVEMBER 2023

DECEMBER 2023

2ND-3RD

21ST-22ND

Stockholm, Sweden

Rio de Janeiro, Brazil

Tbilisi, Georgia

22ND-23RD

4TH-6TH

Scandinavian Gaming Show 8TH-10TH

SPiCE International Dubai, UAE

13TH-17TH

SiGMA Europe

Valletta, Malta

AIBC Europe

Valletta, Malta

14TH

Malta Baby

St Julian’s, Malta

EGR Power Latam Summit 2023 Eastern European Gaming Summit (EEGS) Sofia, Bulgaria

Balkan Entertainment and Gaming Exhibition (BEGE Expo) 2023 Sofia, Bulgaria

29TH-30TH

London iGaming LRC (Legal, Regulatory, Compliance) 2023 London, UK

EGR North America Fall Briefing Tennessee, USA

061

4TH-5TH

iGaming Crossroads Summit Global Symposium on Racing Arizona, USA

2024 EDITION CALENDAR

iGaming Calendar ew :N XT NE

5TH-7TH

SBC Summit Rio

6TH-9TH

6TH-7TH

London, UK

New York, USA

25TH-28TH

20TH-21ST

iGB Affiliate London 2024

iGaming NEXT: New York 2024 SAGSE Latam 2024

Dubai, UAE

Buenos Aires, Argentina

AIBC Eurasia

26TH

27-29TH

Lisbon, Portugal

Goa, India

Prague Gaming and TECH Summit

SPiCE India

20 24 .

Rio de Janeiro, Brazil

SiGMA Eurasia Dubai, UAE

rk Yo

ICE LONDON 2024 London, UK

ng mi

6TH-8TH

MARCH 2024

iGa

FEBRUARY 2024

G&M Events Portugal 2024 26TH-27TH

Prague, Czech Republic

26TH-28TH

BiG Africa Summit

Johannesburg, South Africa

Cr ed i

t: i Ga mi ng

NEX T

APRIL 2024 8TH-11TH

Indian Gaming Tradeshow and Convention California, USA

9TH-11TH

Gaming and Technology (GAT) Expo Cartagena Cartagena, Colombia

17TH-18TH

East Coast Gaming Congress 2024 New Jersey, USA

18TH-19TH

iGX: iGaming Customer Experience Geneva, Switzerland

23RD-24TH

The Gaming Event Francophone Africa (GEFA) Abidjan, Côte d’Ivoire

23RD-26TH

Affiliados Latam 2024 São Paulo, Brazil

BET Expo

São Paulo, Brazil

Brazilian iGaming Summit | BiS SiGMA Americas 2024 São Paulo, Brazil

25TH

G&M Events Brazil São Paulo, Brazil SBC Summit. Credit: SBC Events / Official Photo Sponsor: Uplatform

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2024 EDITION CALENDAR

iGaming Calendar MAY 2024 7TH-9TH

SBC Summit North America New Jersey, USA

JUNE 2024 4TH-5TH

MARE BATICUM Gaming and Tech Summit

9TH-10TH

Tallinn, Estonia

Rome, Italy

iGaming Germany 2024

5TH-6TH

15TH-16TH

Munich, Germany

Valletta, Malta

PGS – Peru Gaming Show

iGaming NEXT: Valletta 2024

12TH-13TH

21ST-23RD

Lima, Peru

St Julian’s, Malta

All American Sports Betting Summit

Casinobeats Summit 2024

12TH-14TH

29TH-30TH

Kentucky, USA

Santiago, Chile

1ST-2ND

Sports Betting East Africa+ Summit

Kampala, Uganda

24TH-26TH

Online Casino Summit Italia

CGS Latam

JULY 2024

18TH-20TH

Canadian Gaming Summit Toronto, Canada

SPiCE Sri Lanka

Colombo, Sri Lanka

AUGUST 2024 6TH-7TH

iGaming Central America (iCA) Summit 2024 San José, Costa Rica

21ST-23RD

Sports Betting West Africa+ Summit Lagos, Nigeria

SEPTEMBER 2024 4TH-5TH

G&M Mercosur Summit 2024 Neuquén, Argentina

Gaming and Technology (GAT) Showcase Bogotá Bogotá, Colombia

24TH-26TH

SBC Summit Lisbon Lisbon, Portugal

NOVEMBER 2024 6TH-7TH

G&M Events Mexico

Mexico City, Mexico

iGaming NEXT: Valletta 2024. Credit: iGaming NEXT

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2024 EDITION ANALYSIS

WHE R E TH E RE ’ S A

will,

TH E R E ’ S A

way

2004 saw Malta take the bold first step into regulating the remote gambling industry, which forever changed the course of the country’s economic development journey. Here, Helena Grech delves deep into the reasons why Malta is likely to continue consolidating its position as an iGaming hub in Europe, and why the sector continues to register growth despite the challenges that abound.

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2024 EDITION ANALYSIS

R

oughly two decades old, and one of the most talkedabout industries in Malta, the remote gaming sector has undoubtedly proven its resilience over the years.

In 2022, the industry sustained its contribution towards Malta’s economic growth, at a time when persistent inflation, connectivity issues, supply-chain challenges and a shortage of workers threatened the country’s post-COVID recovery.

Indeed, the sector is credited with having generated €1.5 billion in Gross Value Added to Malta’s economy in 2022, according to the National Statistics Office. This represents around 9.6 per cent of the entire country’s GVA and illustrates the value of this important cog in Malta’s economic machine, especially as the country faces a serious national discussion on what its workforce and economic mix should look like for a more sustainable future.

The industry is at an exciting phase of its evolution.

Experience, growth and fierce competition have forced industry players to raise the bar from various aspects.

Locally, a tight labour market and a shortage of skills mean companies cannot afford to provide a substandard work environment or rely on weak HR practices, while a crowded marketplace means any product or service provided must have the hallmarks of innovation and quality.

Locally, a thriving ecosystem has been moulded over the years thanks to the legal certainty provided by Malta’s online gambling regulatory framework, which came into being back in 2004. Indeed, the Malta Gaming Authority’s (MGA) point-of-supply licence which allowed operators to provide their services across the world laid the foundations for the island to truly become a remote gambling hub.

Photo by Alex Sholom - iStock

With legal certainty came big industry players looking to capitalise on the island’s Mediterranean climate, Englishspeaking workforce, friendly tax environment and, when it all began, an accessible property market that could provide office space and rental homes with relative ease.

Today, the environment is quite different, and, while Malta continues to be an attractive destination for the sector for various reasons which will be explored below, challenges have undoubtedly emerged.

Locally, a conservative banking system, an overcrowded island and reputational challenges are very real issues that have challenged the sector and threatened its growth. Europe-wide, regulatory changes continue to turn the pressure up on Malta’s online gambling licensing framework, particularly on the B2C Malta Gaming Authority (MGA) licence.

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2024 EDITION ANALYSIS

SO, IN THE FACE OF ALL THIS, WHY DOES IT KEEP GROWING? When zooming into the breakdown of remote gaming licences, the numbers confirm a trend that has come about due to changing regulations across Europe. Indeed, 2022 saw fewer local B2C licences in operation than the previous year at 187, compared to 2021’s 197. However, the number of B2B Critical Supply Licences has continued to grow but at a more subdued rate. Indeed, it grew by 16 between 2021 and 2022 to reach 160, by 20 licences between 2021 and 2020, and by 30 B2B Supply Licences in the last year before the pandemic. This shows a pivot in the local gaming industry towards B2B business in the form of suppliers.

For starters, let us challenge the notion that the sector has indeed continued to grow. It all depends on how growth is classified. In terms of employment numbers and GVA, Malta’s gambling industry is certainly registering growth.

As mentioned, GVA from MGA-licence holders represented 9.6 per cent of the Maltese economy’s entire GVA in 2022, and when indirect effects are included, the industry’s contribution to the economic value-added amounts to just over 12.4 per cent. The National Statistics Office also found that Malta’s gaming industry is estimated to have registered a value growth added equal to 5.8 per cent compared to 2021.

As for the number of people employed with MGAlicence holders, the figures continue to climb. The year 2019 to 2020 saw an 11.8 per cent increase in full-time equivalent positions to reach a total of 8,292 people employed with MGA licensed entities.

From 2020 to 2021, a highly uncertain time for the global economy, licence holders increased employment by a staggering 28.9 per cent, to reach 10,685.

As for 2021 to 2022, the employment growth rate slowed to 5.2 per cent, reaching 11,245 persons. As at the end of the year, the NSO estimates that when factoring in those employed with MGA-licensed entities, or in association with the gaming sector in Malta, the number reaches 15,774 persons, representing around 5.5 per cent of the total workforce.

Indeed, the five years between 2017 and 2022 saw a 60.1 per cent increase in full-time positions with MGA licensees, but what about the number of licences in operation?

When looking at the number of new licence applications, the country has seen a slowdown for various reasons.

An MGA licence does not come cheap, and with national regulations having come into force in several key European markets, such as Germany and the Netherlands, the value to be gained from an MGA licence has been thrown into question.

So where does this leave us? The situation is that current established and experienced operators and service providers are on sturdy ground and moving forward, as evidenced by the high level of M&A activity and the recruitment practices by big players. As for the general health of the online gambling sector, it has all the hallmarks of an industry that is experiencing challenges associated with growth, maturity and added scrutiny.

SUSTAINING MALTA’S REMOTE GAMING ECOSYSTEM Now that we have established the industry’s growth, albeit at a more subdued rate, within a challenging economic and regulatory environment, let us next explore why the island is highly likely to continue consolidating its position as a major iGaming hub in Europe, and a gateway to the industry within a global context.

Photo by Ronald Balzan - iStock

The year 2022 saw 358 active licences – of which 338 related to remote gambling licences, just six more than the year before, and 72 more than in 2018, the last comparable year. Indeed, 2018 saw the regulatory shift from a multilicence system to a two-licence system.

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2024 EDITION ANALYSIS

ROBUST REGULATION Time and time again, Malta’s authorities and its gaming regulator, the MGA, have shown a political willingness to keep an open channel of communication with the industry, and have taken steps to overcome overseas challenges to the sector.

Since 2014, Malta has repeatedly refused to ratify the Macolin Convention, a Council of Europe treaty that aims to prevent, detect and punish match fixing in sport. The Government, in 2018, introduced the ‘Prevention of Corruption in Sports Act’ where it adopted the Convention’s anti-doping rules, but has vetoed the ratification of the treaty at Council of Europe level.

Its objection stems from a lack of definition on what constitutes ‘illegal gambling’, leaving it up to each country to come up with its own definition. Being that the MGA-licence’s selling point is that it acts as a point of supply, any potential adverse effects that the absence of such a definition could have on the entire regulated sports gambling industry operated from Malta has been a serious bone of contention for local authorities.

A MATURE INDUSTRY ENVIRONMENT From specialised service providers and the professionals who have gained invaluable experience servicing the iGaming industry over the past 20 years, to a network of foreign and local iGaming professionals that have made Malta and the industry, respectively, their home over the years, it is hard to replicate or engineer the scenario that exists on the island.

With a 60 per cent increase in full-time employment

by MGA-licence holders and organisations supporting activities by MGA-licence holders over a five-year period until 2022, there is undeniably a concentration of knowledge and experience of the remote gaming sector.

In today’s environment, the mix of foreign and local iGaming workers facilitates further recruitment on the island, evidenced by the number of iGaming-focused recruitment companies established locally. Post-COVID, it is not necessary for all employees to be physically based in Malta. This has created a scenario where iGaming operators and suppliers can continue to enjoy the benefits of being based out of Malta, while not being limited in recruiting workers to sustain their growing operations by the number of skilled workers on the island.

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And, while reports swirl that Malta is getting legal advice on the various impacts should it change stance and end its veto, another – perhaps more interesting – development is the Government’s most recent legal amendment to the country’s Gaming Act, better known as Bill 55.

Bill 55 protects locally licensed operators and suppliers from legal action by foreign courts that stem from activities covered by the entity’s MGA licence. Should an operator’s activities be deemed legal and appropriately covered by its MGA licence, local courts are now empowered to refuse recognition of foreign court judgements that challenge those activities.

The development is significant as courts in Germany and Austria, which have their own stringent regulations around remote gambling, have found in favour of players who have filed lawsuits over previous losses they incurred while using the services of Maltalicensed gaming companies.

Indeed, consumers of remote gambling products and services in Germany and Austria have instituted lawsuits against Malta-licensed operators to claim back losses

2024 EDITION ANALYSIS

Photo by viewingmalta.com

incurred when Germany was considered a grey market and, in Austria, for breaching the country’s gaming monopoly.

Therefore, Malta’s adoption of Bill 55 is a clear indication that it is actively defending its free movement rights within the EU single market and an indication that it is seeking to protect the industry when challenges are made against activities that are correct under the country’s gambling framework.

foothold in the Mediterranean and Europe.

According to the latest figures by a national skills survey undertaken by Government, a whopping 96 per cent of those residing on the island understand English, with more than 60 per cent reporting advanced proficiency in listening, reading, speaking, and writing.

LIFESTYLE

While living in Malta has clear and obvious challenges, the lifestyle remains appealing.

At just 316 kilometres squared, and the main island stretching roughly 27 kilometres across, the total shoreline of Malta, Gozo and Comino tallies up to little over 271 kilometres squared.

Indeed, you are never more than a 15-minute drive from the sea. And, on an island which experiences over 300 days of sunshine per year, there are ample opportunities to enjoy an after-work or weekend dip.

As for leisure and entertainment, the figures for 2022 estimate around 3,000 restaurants, eateries, snack bars and kiosks across the islands, meaning there is no shortage of opportunities to sample new and different cuisines.

Malta certainly packs a punch with a vibrant nightlife scene, restaurant scene, and a growing arts scene. For those who enjoy culture, Malta’s rich and varied history, thanks to its position between two major continents, also creates much room for exploration and learning.

Overall, the challenges Malta is experiencing due to a rapid population increase – a consequence of having many jobs available and not enough workers – must be taken into consideration, however the small size makes it easy to enjoy both beach life and urban living all in one day.

Additionally, while Maltese is the national language, English is also an official language, which was one of the major draws over the years for foreign companies looking for a

RELIABLE TAX REGIME

You may have been wondering why Malta’s taxation regime has not yet been analysed in a feature about why the gaming industry in the country has flourished and is poised to do so further. Many foreign companies have been drawn to the island, apart from the reasons laid out above, due to a friendly tax environment which effectively charges five per cent in corporate taxation to foreign-owned companies operating in the country.

This was a major pull factor in attracting big gaming players to Malta among big companies in other sectors, however, the Organisation for Economic Co-operation and Development (OECD) is now clamping down on aggressive tax practices that are seen as creating a lose-lose situation for the global economy.

The OECD has set a global minimum corporate tax of 15 per cent for companies with a minimum turnover of €750 million, and all EU countries must adopt the new rules by 2025 via the EU Minimum Tax Directive. Malta’s Government is also making some sweeping changes to its corporate tax structure but has made assurances that incoming changes to Malta’s corporate tax regime will be “revenue neutral,” meaning the state will not attempt to generate extra revenue from the new system.

Indeed, with Europe and the developed world set to be on more equal footing vis-à-vis corporate tax rates, Malta can rely on a network of professionals, robust regulatory oversight, a stable Government, an English-speaking workforce, and no shortage of sunshine to continue sustaining, and growing, its remote gaming sector.

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H OW S H I F T I N G

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With remote and hybrid work solutions remaining firmly in place within the iGaming professional landscape, and some companies looking to downsize their office space in line with this shift in trend, how is this impacting Malta’s property market? Helena Grech catches up with three experts in the sector to find out more.

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roperty has long been considered among the safest investments in Malta, going from strength to strength, with very few bumps along the way. Today, in the post-COVID era, with the enduring presence of remote and hybrid work solutions, the real estate sector faces new dynamics.

to hiring entire teams on a fully remote basis overseas, while others have strongly embraced the hybrid work set-up. So, how has this influenced the local property market? With employees spending more time at home, there is a noticeable trend toward seeking larger rental units, or homes with some form of outdoor space – whether it is a terrace or a back garden. Conversely, as office occupancy decreases, companies are increasingly exploring strategies to reduce their office space requirements.

Between an extremely tight labour force and the growing demand for workplace flexibility, many companies cannot afford to mandate that all employees return to the office. Some have resorted

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“SOME AREAS IN MALTA ARE BECOMING INCREASINGLY POPULAR DUE TO THEIR PROXIMITY TO OUTDOOR AMENITIES, SUGGESTING A PREFERENCE FOR A BALANCED LIFESTYLE AMONG PROFESSIONALS.” Alan Grima, CEO, Dhalia Real Estate Services

For Alan Grima, the CEO of Dhalia Real Estate Services, a leading local real estate firm that operates in both the residential and commercial property markets, the company is still witnessing “a notable shift in property preferences” since the pandemic, “with an emphasis on larger living spaces and outdoor areas.” And, in the absence of outdoor areas, he comments that “some areas in Malta are becoming increasingly popular due to their proximity to outdoor amenities, suggesting a preference for a balanced lifestyle among professionals. In this regard,” he adds “new commercial and residential projects are underway to meet the evolving demands, by offering larger spaces and access to outdoor amenities.”

Asked to comment further about this general trend, Philippa Tabone, Letting Division Manager at Frank Salt Real Estate – touted as the oldest and largest, family-owned property firm on the island – shares that patterns have evolved since the height of the pandemic. “This year,” she asserts, “we have seen an increase in iGaming employees from non-European countries.” This chimes with Malta’s extremely low unemployment rate, which has continued to break records in 2023, registering below three per cent month after month, according to national statistics, making it difficult to hire locally.

Ms Tabone adds that such iGaming employees have “budgets that are on the lower end, considering their requirements in relation to market trends.”

Therefore, the focus for such new iGaming workers relocating to Malta is not on finding larger spaces, which tend to fetch a higher monthly rental rate, but on ones that fit within their budget.

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2024 EDITION PROPERTY

“THIS YEAR WE HAVE SEEN AN INCREASE IN iGAMING EMPLOYEES FROM NONEUROPEAN COUNTRIES.”

Philippa Tabone, Letting Division Manager, Frank Salt Real Estate Limited

She further elaborates that “many of [Frank Salt’s] clients that work in gaming and have been in Malta for a while, have decided to stay put, with many not wishing to move out of their rental unit, realising that compared to what is available currently, they have a good deal.” Indeed, a recent analysis, based on a Housing Authority study of prices for Q4 2022, a two-bedroom apartment in Sliema, a highly sought-after area for iGaming professionals, will set a tenant back an average of €1,218 per month; an increase of just over €160 from the average price of 2021.

Turning to questions on the effect on the commercial property segment, Dhalia’s CEO notes that “companies in the iGaming sector are often seeking expansive open-plan offices and high-end residential rentals for their professionals.”

He further notes that “one of the most notable trends has been the growing popularity of co-working spaces. We are now seeing more and more professionals working remotely, and co-working spaces hence offer a flexible and affordable solution for those who need a professional workspace outside of their home.”

Mr Grima observes another trend that aligns with the broader professional landscape – the growing emphasis on sustainability and environmentally-friendly practices. Indeed, as Environmental, Social and Governance (ESG) principles, and requirements, continue to be prioritised, this impacts not just the operations of companies, but also the spaces where they carry out their operations.

On this point, he notes, “as companies become more aware of their environmental impact, they are increasingly looking to rent or purchase properties that are more energy efficient. I believe that this trend is likely to continue in the coming years, as businesses become more focused on sustainability.” Overall, Mr Grima holds the belief that “the iGaming industry continues to have a positive impact on the Maltese property market.”

And, while companies do appear to be searching for a smaller footprint, what of the demand for offices in general? Mr Grima comments that “mixeduse developments, as well as other amenities, are seen as an opportunity for investors adapting to

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changing consumer preferences. The demand for commercial properties remains robust, which is, in fact, in line with our growth expectations for this sector. In 2021, offices were the most rented property type, whereas today we are also seeing growth in other commercial segments such as industrial, retail and hospitality.”

Ms Schembri was also asked about the resurgence of e-commerce, and whether this is impacting the kind of spaces being demanded in the commercial property market. She notes that the firm has “seen an increase in requests for warehousing and distribution, with demand exceeding supply, ultimately pushing the rental rates higher.”

He further notes that “as regards upmarket facilities, these seem to remain important for iGaming companies looking to rent office space post-COVID. New commercial projects like The Quad and Trident Park, as well as the Central Business District [formerly known as Mriehel], are being developed to cater specifically to employees, offering a range of facilities including office space, lounges, gyms, restaurants, cafes, and day-care facilities. Understandably, these changes might be directly linked to the shift in employee lifestyle preferences emphasising well-being.”

She further notes that “in Malta, where space is at a premium, we are witnessing a significant surge in prices.

With landowners demanding higher rates per square metre, and the cost of construction continuing to rise, there is a growing disparity between the higher rental ask and what importers are willing to pay.”

Taking our questions regarding the iGaming sector and the commercial property space back to Frank Salt, the firm’s Head of Commercial Division, Rita K. Schembri, weighs in, and echoes a similar experience to that highlighted by Dhalia’s CEO. Asked specifically whether iGaming companies are downsizing their office space requirements, she replies in the affirmative, and notes that such companies are “looking to rent more upmarket properties.”

Indeed, despite continually evolving trends within both the residential and commercial property space, and the iGaming sector, under this umbrella, both sides of the property divide are intrinsically linked, and, in the end, developers would do well to observe the changing needs of the people and companies operating in the sector, with the industry continuing to register growth despite the global and local challenges that persist.

She adds that “gaming employees find it very easy to work from home and companies make savings by downsizing their footprint. They save on rent, utilities, upkeep, and more. Most do want their employees to be present in the office at least twice a week, and are investing in creating a conducive and enjoyable workspace for them. This transition often involves upgrading their office facilities as they move to more compact spaces.”

“IN MALTA, WHERE SPACE IS AT A PREMIUM, WE ARE WITNESSING A SIGNIFICANT SURGE IN PRICES.” Rita K. Schembri, Head of Commercial Division, Frank Salt Real Estate Limited

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T HE ART OF

“ONCE YOU BROKER ONE DEAL, TYPICALLY, YOU HAVE FORGED A COLLABORATION.” 080

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2024 EDITION PROPERTY

As one of Malta’s most established real estate outfits, Dhalia has consistently built its success by fomenting long-standing relationships. And, today, through its commercial arm, Dhalia CRE, the property firm continues to build partnerships in the corporate space, aiding businesses unlock their potential. Rebecca Anastasi speaks to Bjorn Kristensen, Dhalia Real Estate’s Residential and Commercial Consultant, to find out more.

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with both the knowledge and background needed” to make the right choices for their organisations, while also providing, “continuous support throughout the commercial property lease or purchase process,” Bjorn continues.

ince 1982, Dhalia Real Estate has operated in the commercial industry, creating enduring alliances with corporate clients seeking a space from which to operate, and grow their business.

“When you’re working within this space, you’re not simply meeting one-off buyers, and finalising singular deals, but you’re partnering with your client – you’re helping them secure the success of their business,” says Bjorn Kristensen, Residential and Commercial Consultant at Dhalia CRE, the Group’s brand which specialises in commercial property leasing and sales.

This becomes invaluable, particularly when organisations are geared to grow their influence and footprint. “If you have clients who are franchising a brand, for instance, we would broker one place, and then help them continue to expand,” Bjorn states. At the heart of such a collaboration are shared values – trust, commitment and attention to detail – which the consultants at Dhalia CRE prioritise.

These are clients who always do “the math before making a decision,” and who are committed to scaling their enterprises, Bjorn says. “Once you broker one deal, typically, you have forged a collaboration,” the consultant attests, for, Dhalia CRE boasts a team of consultants who are “meticulously trained and selected to specialise in the commercial sector.” This guarantees that Dhalia CRE can “provide businesses

“I think the way we approach clients is unique; we don’t see them as just a number. Rather, every single one of their needs are important, and we treat them as such, whether we’re dealing with a business owner who wants to open a small take away, an SME looking for offices or a larger firm seeking a bigger

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“TECHNOLOGY INTEGRATION HAS BECOME CRUCIAL, ENABLING VIRTUAL TOURS, ONLINE LEASE NEGOTIATIONS AND DIGITAL MARKETING STRATEGIES.” space. We’re geared towards treating all businesses equally,” Bjorn explains, adding that their interest is not simply closing the deal but finding the right property for their clients.

To ensure such a consistent approach, Dhalia CRE launched a training programme on 1st December 2022, to accredit consultants in commercial property sales and leasing. Accordingly, Dhalia is, now, licensed by the Malta Further and Higher Education Authority, as a Further Education Institution and as an Official Training Centre for Licensing Real Estate Consultants as well as training for Commercial Real Estate Specialists.

Photo by Edward De Gabriele

The course, Bjorn attests – having taken it himself – consists of “a hands-on approach and detailed training, making Dhalia the benchmark to follow, always setting higher standards within the industry.” To this effect, it helps agents “be better informed and trained to give the best service to our clients,” by covering a range of topics such as commercial valuations, research and marketing, tailored to the particular industries within which its clients operate. This is all done in-house to ensure all of the Group’s agents “get the same, and the right amount of instruction, with everyone on board with the programme, and attentive,” he attests.

Bjorn has first-hand experience of these benefits, and indeed, the training programme launched his career within the commercial property sector.

“I have always worked in sales, and I moved to Dhalia in 2017. However, after taking the course, I started involving myself more and more with their corporate and business clientele.” He credits the programme for igniting his interest in this sector.

“During some of the sessions, we had company CEOs talking to us about what they look for in a property agent, and I found this fascinating,” he says, attesting to the effectiveness of such meetings to encourage the development of both soft and hard skills in the purchasing or leasing process.

Accreditation is beneficial to the industry and to the individual agents themselves, Bjorn continues. With regards to the former, it ensures a “minimum standard of competence and professionalism in the industry, protecting consumers from unscrupulous practices. It also enhances consumer trust and confidence, leading to more transparent transactions. It helps regulate the market, reducing fraud and misconduct.” In terms of the latter, “accreditation provides a competitive edge, improving agents’ credibility and marketability.

It promotes continuous professional development, fostering a culture of learning and up-to-date knowledge within the real estate sector,” he asserts.

“It’s vital to listen to clients such as these since most businesspeople don’t have time to waste. So, for instance, you cannot offer a space of 500 square metres when they specifically asked for 1,000 square metres. Agents need to be attentive to what the client is requesting,” Bjorn continues, saying that the course also “cultivates critical thinking, problemsolving and communication skills.”

Moreover, a consultant at the top of their game would also need to have a comprehensive understanding of the more technical aspects of the post – and this is something the course caters for. “The programme also instructed us on a wide range of topics, including property law, regulations, financing, marketing, negotiation, and ethics. Students learn about the real estate market

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enabling virtual tours, online lease negotiations and digital marketing strategies,” the consultant continues.

dynamics, property valuation and investment strategies. Finally, at the end, the course was rounded off with an assignment in which they gave us a fictional client for which we needed to find a property, creating a proposal and ensuring it matches the client’s needs and is financially viable,” he says, explaining that this was part of the practical training which also included “simulated transactions, property management exercises and field experience.”

Looking ahead, the consultants at Dhalia CRE are committed to remaining at the forefront of negotiating commercial real estate trends.

These are likely to continue to include “a focus on flexible workspaces, technology integration, sustainability, remote transactions, and hybrid spaces,” Bjorn continues. In addition, Dhalia “can address these trends by offering versatile leasing options, embracing advanced technology, incorporating eco-friendly practices, streamlining remote transactions, and exploring mixed-use developments.”

Such formative instruction is key, particularly in a post-COVID-19 world wherein corporate requirements for property have shifted and keep evolving. “Over the past few years, the commercial property service sector has experienced significant changes. The pandemic led to a shift in work patterns, with remote work becoming more prevalent, impacting the demand for office spaces. Many businesses downsized their physical footprint, leading to higher vacancies and reduced rental rates in some areas. On the other hand, there was an increase in demand for warehousing and distribution centres due to the surge in e-commerce,” Bjorn states.

Elaborating, Bjorn asserts that “most companies renting offices now have downsized so, whereas, beforehand they might have been looking for a space of 1,500 square metres, today, they would be demanding office space of 200 or 250 square metres – a space where meetings can be held and employees can go three times a week,” he says, confirming his experience of the way office culture has radically changed over the past few years.

In terms of its impact on the property market, “to adapt to remote work trends, there has been a focus on flexible office spaces and coworking environments, allowing businesses to scale up or down as needed. There’s also an increased emphasis on health and safety measures, with improved ventilation, touchless entry systems and sanitation protocols.

Commercial properties have also been repurposed, with vacant offices transforming into mixed-use spaces, including residential and recreational elements, to accommodate shifting demands,” Bjorn explains.

Moreover, he continues, there has been an uptick in investors looking to convert old homes into guesthouses. “These two types of business clients – on the one hand, those working in the corporate field and the other wanting to make a financial investment – need to be dealt with differently, so, when we create our proposals, we ensure we present a realistic view of what they can expect from the market,” he says.

Indeed, “by staying ahead of these emerging trends, Dhalia can position itself as an innovative and adaptive commercial real estate service provider, catering to the evolving needs of the market and clients,” Bjorn adds, concluding that, on his end, he hopes to continue to contribute to this endeavour by “improving on what I’ve already learnt, and creating new collaborations.”

“BY STAYING AHEAD OF THESE EMERGING TRENDS, DHALIA CAN POSITION ITSELF AS AN INNOVATIVE AND ADAPTIVE COMMERCIAL REAL ESTATE SERVICE PROVIDER, CATERING TO THE EVOLVING NEEDS OF THE MARKET AND CLIENTS.”

Dhalia CRE has adapted in more ways than one to this shifting landscape. “These changes have reshaped the industry’s landscape, emphasising flexibility and adaptability.

Technology integration has become crucial,

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2024 EDITION HR INSIGHTS

A DA PT I N G TO A

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As the challenges of recruitment show no signs of abating, with a shortage of skilled workers being felt across a wide range of industries, the iGaming sector – which traditionally offers above-market salaries and perks – continues to search for its winning formula in attracting the best talent. Here, Helena Grech speaks to two iGaming recruitment specialists, and a leading industry stakeholder, to understand the extent of the challenge, as well as how employers are adapting.

s employers worldwide continue to navigate this complex post-pandemic landscape, with the economic challenges and behavioural changes that have come with it, the iGaming industry joins other skilled sectors in struggling to recruit enough talent to sustain its growth.

Malta, regularly cited as a global iGaming hub, and holding the position of Europe’s leading iGaming hub, sees around 800 open vacancies in any three-month period within the sector.

The figures were revealed by GamingMalta CEO Ivan Filletti, who described the number as “no joke” while speaking during the island’s first national Techxpo in September 2023.

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A tight labour market in Malta, together with regulatory changes across Europe forcing Maltabased B2C operators to seek licences in the jurisdictions they serve, are just some of the pressures being faced by the industry. And, in the face of a highly dynamic environment where costs are rising, it can be viewed as unsustainable or short-sighted to rely solely on salary offerings to attract experienced and skilled talent.

Placing the scope of the challenge into context, Enrico Bradamante, Chairman and Founder of iGEN – an association of leading iGaming companies based in Malta and operating on the European and international markets – attests to the constant struggle of recruitment within the Malta-based sector. “I have been in Malta for 11 years, and the one constant that the sector at large has continued to observe is that it is still looking to recruit more people – hundreds of people.”

“There are a lot of job vacancies out there.

The fact remains, if we had more people, we could do more things,” he states, quite categorically. Asked about the mix of foreign and Maltese workers within the iGaming sector, Mr Bradamante contends that “the percentage of Maltese staff in the industry does not seem to increase. The majority are still foreigners, in spite of the sector having been on the island for 20-odd years, with average salaries being higher.”

Adding to why, in his view, the sector remains an attractive one, he points out two factors that should be enticing more local workers to join: iGaming firms operate in the digital economy and have proven to be recession proof. “Despite all this, we are still ultimately struggling to attract Maltese professionals to join us.”

The Malta-based iGaming sector has been sounding the alarm about a shortage of skilled workers for years, and clearly continues to do so post-pandemic. It can be argued, however, that the sector is on sturdier footing with regards to recruitment, as the need for workers to be geographically based on the island is no longer essential for many roles. That being said, HR costs continue to spiral – an expected outcome of the country registering historically low unemployment month after month – plummeting to 2.5 per cent in June 2023 according to the National Statistics Office, and an increased cost of living, which have caused salary expectations to increase.

“This dynamic continues. There is an acceptance that we have reached a threshold, and many local professionals are certainly aware of us, but prefer not to join.”

Enter COVID, and the dynamics at play are quite different from just a few short years ago, allowing the sector to make use of talent without geographically shifting people to Malta. Mr Bradamante notes that “the geographic location has become much less important” for the recruitment of staff. “We

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“A POSITIVE RECRUITMENT EXPERIENCE, WITHOUT EXCESSIVE WAITING TIMES IN BETWEEN INTERVIEWS, POSITIVE AND OPEN CONVERSATIONS WITH HIRING MANAGERS AND TRANSPARENT COMMUNICATION IS MANY TIMES SUPERIOR TO PERKS AND BENEFITS.” Channelle Demanuele, Recruitment Manager, Exacta Solutions

have a critical mass as an industry of people here in Malta, but ultimately, it is more important to get the right person in the company, then to get the person in Malta.”

Channelle Demanuele, a Recruitment Manager at Exacta Solutions – a recruitment firm that specialises in iGaming, among other skilled sectors, attests to the importance of providing a flexible arrangement. Indeed, she remarks that “offering a flexible work environment without strict working hours, and the possibility to work at least on a hybrid basis, is key.”

Prior to the pandemic, when the industry was already on an active drive to beef up its skilled workforce on the island, many companies opted for highly modern offices, kitted out with games rooms and large kitchens, as well as areas for staff to work in more comfortable settings. This was seen as a huge selling point among workers, especially on an island where many corporate spaces left much to be desired. With the prevalence of hybrid and remote roles, and the need for iGaming companies to hire on a remote basis due to a lack of options on the island, what tools do such firms have in their arsenal to maintain attractiveness?

Asked how iGaming operators and suppliers, in her experience, go about remaining competitive throughout a recruitment drive, she adds that “some companies also go the extra mile, and allow people to work fully remotely, from anywhere, as long as they can be on a self-employed contract and look after their own taxes, in the relevant locations. These companies also sometimes offer additional cash benefits to make up for any benefits they are not eligible for when not based in a particular office location.”

This sentiment is echoed by Hilda Mamo – Manager, iGaming at recruitment experts Boston Link. The first point she underscores when discussing the attractiveness of the industry, is that firms must be flexible with both hybrid and remote working arrangements. “This flexibility allows employees to work from anywhere in the world, which is particularly appealing to those who value location independence. It’s proven that it works very well and that you can often hire for lower costs with the same, or even stronger, experience. To manage to keep employees fully in-house will be challenging in any online industry today, especially iGaming, which is developing and evolving rapidly.”

Adding to the pull-factors iGaming industry players must adhere to, she highlights competitive remuneration packages, an engaging office culture and the possibility of extra perks. “Offering attractive salaries that are in line with market value is another element that will attract new recruits, and potentially even incentivise the relocation

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“OVERALL, WHILE REMOTE AND HYBRID WORK CONDITIONS HAVE THE POTENTIAL TO WIDEN THE TALENT POOL, IT IS ESSENTIAL FOR iGAMING COMPANIES TO STRIKE A BALANCE BETWEEN FLEXIBILITY AND THE INDUSTRY’S SPECIFIC REQUIREMENTS TO ENSURE CONTINUED GROWTH AND SUCCESS.” Hilda Mamo, Manager - iGaming, Boston Link

of the right candidate for an in-house position. Career growth and development opportunities, like mentorship and training programmes are other avenues to attract talent,” she shares, adding the importance of “providing a dynamic and engaging work environment, and offering bonuses, commissions and/or equity.”

So, with most iGaming firms striving to poach and attract the best in the business, what is it exactly that makes one candidate choose an iGaming firm over another?

Many companies offer a good mix of a positive culture, perks, above-market salaries, and career development prospects, so how does one stand out?

On this point, Ms Demanuele contends that this mix of employee benefits remains critically important, however in her view, “above anything else, the overall experience is what differentiates one company from another.” Asked to elaborate, she explains that “a positive recruitment experience, without excessive waiting times in between interviews, positive and open conversations with hiring managers, and transparent communication is many times superior to perks and benefits.” Of course, offering competitive salaries and some extra perks, sweetens the deal.

When the pandemic hit, many experienced working remotely for the first time in their careers.

And, while the iGaming sector was ahead of the game in this respect, with many companies already resorting to remote hires before 2020 to meet their highly technical needs, the novelty around the concept has now worn off. Managers and employers are acutely aware of the challenges that such working arrangements bring, and remote workers are likewise conscious of the pitfalls with this set-up – such as the lines between work and home life becoming blurred, and the longer hours that these arrangements can bring.

Despite the challenges, offering such work options undeniably allows companies to tap into a broader range of candidates. On this point, Ms Mamo affirms that “the talent pool becomes larger, and companies can tap into regions and countries that may not have been accessible before.” This is particularly appealing to some iGaming employers, as it is “beneficial for finding niche skills and expertise.” Expanding on the benefits remote work arrangements can

And, while readers can look back to their own interview experiences to understand that a positive recruitment process is indeed a critical factor for any role, Boston Link’s Hilda Mamo confirms that ultimately, queries about hybrid and remote options are “definitely the questions and requirements” that are the most frequently encountered.

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offer organisations, Ms Mamo shares that “it also contributes to a more diverse workforce.”

Asked to shed light on the challenges that remote and hybrid work brings, beyond the realm of management and HR, she is quick to point towards issues with security and compliance. “Security and compliance are critical and remote work may require additional measures to ensure data protection and regulatory adherence. Overall, while remote and hybrid work conditions have the potential to widen the talent pool, it is essential for iGaming companies to strike a balance between flexibility and the industry’s specific requirements to ensure continued growth and success.

Adapting to these changing work conditions can be an opportunity to attract a diverse and skilled workforce, but it must be done with a focus on security and compliance.”

And, as regulatory changes within the iGaming industry in Europe and the rest of the world continue at breakneck speed, iGaming companies are observing increasing demand for compliance roles. Indeed, the number of vacancies within compliance has ballooned, without necessarily being complemented by increased commercial activity, placing further pressure on companies’ bottom lines.

to members of staff within operators, suppliers and other iGaming related businesses as the industry tries to keep pace with regulatory developments. For iGaming firms to be competitive when recruiting for compliance roles, she shares that employees appreciate when companies “offer budgets for learning and development opportunities” as it “adds value to their personal profile as compliance professionals.”

As the iGaming sector continues to mature, developing new opportunities for growth and its own specific challenges, skilled, digital and technical industries will continue to battle it out for the most skilled and competent workers. To be successful in recruitment during this modern era, employers must ensure a pleasant recruitment experience, flexible work arrangements, opportunities for career progression, and, of course, an attractive salary package.

“I HAVE BEEN IN MALTA FOR 11 YEARS, AND THE ONE CONSTANT THAT THE SECTOR AT LARGE HAS CONTINUED TO OBSERVE IS THAT IT IS STILL LOOKING TO RECRUIT MORE PEOPLE – HUNDREDS OF PEOPLE.”

Discussing the level of investment iGaming employers are needing to place on compliance training to keep up, Exacta Solution’s Channelle Demanuele says she has seen an increase in courses available

Photo by Alan Carville

Enrico Bradamante, Founder and Chairman, iGEN

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2024 EDITION BUSINESS

Building teams,

moulding BUS I NE SS

“I

Established in 2019, Exacta Solutions started life with a focus on delivering the right human resources to companies operating in the iGaming sector. Soon after, the business also branched into mergers and acquisitions, providing specialist M&A advisory and brokerage services to high growth betting, iGaming and video games companies. Here, Rebecca Anastasi speaks to Founder, Christopher Vella, and Head of M&A, Mark O’Sullivan, to find out more.

t’s already been almost four years since we set up Exacta,” Christopher Vella, one of the firm’s founders, smiles. “And, while we never planned for it to grow so big, so quickly, we’ve had a very busy time,” he attests. This may, in no small part, be due to the wealth of expertise upon which Exacta Solutions has been built. The firm was established in 2019 by Christopher, who had been working in recruitment and training within the iGaming sector since 2005, and his business partner, Anthony Hennessy, who, similarly, brought over a decade of human resource know-how, having overseen hires in the arenas of betting, iGaming, tech, and video games.

“Anthony and I set Exacta up as a continuation of the business relationship we had cultivated

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“MOST OF OUR PARTNERS ARE NOT THE LARGER iGAMING OPERATORS, BUT WE SPECIALISE IN HELPING START-UPS AND MID-SIZED COMPANIES THAT MAY NOT HAVE DEDICATED HUMAN RESOURCE OR BUSINESS SUPPORT TEAMS, IN-HOUSE.” Christopher Vella, Founder

working together on other projects; we decided to launch the company after realising there was a gap in the market,” Christopher continues, elaborating that, through their experience, they learnt that iGaming firms needed a trustworthy and reliable partner who could help them recruit and build their teams. Indeed, today, Exacta Solutions caters to the sector by providing human resource support, mergers and acquisitions expertise, as well as business-to-business referrals, and business consultancy to, principally, companies in the remote gaming industry. Moreover, in just four years, the firm has grown from a two-man operation to an 18-strong team, spread across five countries: Malta, Bulgaria, Spain, Greece and, even, Mexico.

Necessity is, indeed, the mother of invention, and in Exacta’s case, the spur which pushed the company to internationalise. “Four months after we had opened shop, COVID-19 was declared a pandemic, and, at the time, we scratched our heads wondering what to do. Anthony is the type who keeps pushing the envelope; he said, ‘let’s not worry, let’s keep going and we’ll look outside of Malta’. So, that’s what we did, and now our business is geared towards the international market, more than the local,” Christopher says.

As a result, the firm’s “staff is located in those places where we need them most, in other words, where our clients and human resources are based.

Therefore, it’s market-driven, as we have a mix of staff working remotely or on site; for instance, in Bulgaria, due to the growth of our operation there, we actually had to open a physical office,” Christopher asserts. The majority of the firm’s clients are in the US, across Europe, and stretch as far as Australia and some countries in Africa.

“Most of our partners are not the larger iGaming operators, but we specialise in helping start-ups

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and mid-sized companies that may not have dedicated human resource or business support teams, in-house,” the founder continues, adding that, while a good 90 per cent of their business comes from the remote gaming industry, Exacta nonetheless services some tech firms, keen to take advantage of their services. The founder does not see these trends shifting over the next few years. “Actually, I see us becoming even more international, although I expect our specialisation to remain firmly within the iGaming sector,” he continues.

And Exacta’s targeted attitude has been paying dividends for their clients, with the firm boasting a high recruitment success rate. “We’ve developed an active approach to searching for the right candidates for specific positions, so we don’t just wait for people to apply for jobs, and then send their CVs to our clients. Instead, our people – and this is why we have so many on our team – are constantly scanning social media, using their personal networks, going to conferences and so on, basically getting out there and getting to know the right people, so when the time is right, we’re able to match the opportunity to the right person.”

This can be a game-changer for those seeking employment, for Exacta’s clientele – SMEs in the iGaming sector – offer experiences which bigger firms are sometimes not able to. “When you’re working for a smaller company, like a start-up, you can really make a difference, and you can add value to the business. This can be exciting for many people – and it can be a strong reason for some to change jobs. Yes, it can be risky, but, normally, these risks are compensated for with a better package and a larger carrot, such as bonuses or equity shares,” Christopher explains. Despite this, larger firms also approach Exacta for help in recruiting certain high-profile roles. For instance, the firm was involved in the appointment of

2024 EDITION BUSINESS

Glitnor Group’s new Chief Executive Officer, Richard Brown.

However, finding the right people here in Malta – even for firms based locally – can often be challenging.

“Hiring locally has always been a bit of a problem, but it’s become worse after COVID-19. Firstly, this is because many foreign workers have gone back to their home countries and are now working remotely, so it’s very hard to get them back if our client wants them to work here, on the island. And I don’t see remote working waning in popularity anytime soon,” he says. Moreover, the island has changed over the past few years. “I must admit that Malta was an easier sell a few years ago. Now, it’s harder, with the higher cost of living and rising rents. Most would also need to share an apartment, so quality of life has decreased.”

Motivation factors have, therefore, shifted. “I remember those days when companies used to offer 1K more in salary, a gym membership and a cooked meal, but good candidates are often not enticed by these offerings anymore. Typically, today, applicants would be more interested in the company culture, in the project itself and in how exciting it is. Of course, at the end of the day, money still talks but it is not the only or primary factor. A more important consideration is the reputation of the company,” Christopher attests.

Roles, however, are becoming more specialised, as companies move into crypto, compliance, influencer marketing, AI, and data analytics, a shift which stands in stark contrast to the emphasis on numbers needed in the sector just a few years ago. “Before, we had a situation where we were trying to recruit many people in customer support; even small companies were recruiting dozens of staff in these roles. But this is changing, and opportunities are becoming more niche, and more technologically driven,” Christopher states.

In tandem, Exacta is moving with the times and ensuring it has the capabilities to fulfil this need.

Moreover, the firm, over the past two years, has been expanding its services into the mergers and acquisitions space, recruiting Irish native, Mark O’Sullivan, to head the emerging department in 2021, bringing with him knowledge acquired through his years at KPMG, where he “learnt the ropes” to the trade.

“WHEN YOU’RE WORKING FOR A SMALLER COMPANY, LIKE A START-UP, YOU CAN REALLY MAKE A DIFFERENCE, AND YOU CAN ADD VALUE TO THE BUSINESS. THIS CAN BE EXCITING FOR MANY PEOPLE – AND IT CAN BE A STRONG REASON FOR SOME TO CHANGE JOBS.” Christopher Vella, Founder

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“WE’VE GOT TRANSACTION EXPERIENCE AND CONNECTIONS TO THE KEY DECISIONMAKERS, SO, PEOPLE COME TO US TO RAISE INVESTMENT OR TO SELL THEIR COMPANY, WHEN THEY NEED TO CONTACT THE RIGHT PEOPLE. OUR BLACK BOOK IS INDISPENSABLE. IT’S WHAT WE LIVE AND DIE BY.” Mark O’Sullivan, Head of M&A

book is indispensable. It’s what we live and die by.

Once the contact is made, we get more involved than some other brokers, and we get into the nitty gritty of negotiations, supporting due diligence and lending our industry expertise. It, of course, takes a lot of effort, a lot of time, a few too many late nights pitching,” Mark laughs, adding that “as with any good broker, we need to be in the right place at the right time.”

“Exacta specialises in the iGaming space, even when it comes to M&A, but we’re also getting into the video games industry and other tech niches, although at this point the latter only represent maybe 10 per cent of the business,” Mark says, going on to explain how he has built up the networks to help accomplish Exacta Solutions’ ambitions. “I’ve been to plenty of conferences, and met many of the key industry figures. As specialists, we’re able to be nimble, and institute lean processes.

Exacta is an agile agency, and we make sure we work with good, trustworthy clients.”

As M&A advisors, Exacta has access to investors and buyers, Mark attests. “We’ve got transaction experience and connections to the key decision-makers, so, people come to us to raise investment or to sell their company, when they need to contact the right people. Our black

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Through their ability to react swiftly, the team at Exacta are “quick onto projects; we have a lot of triangulation points, so if someone comes to us and asks us what we think they can sell their company for, we have the experience to give them a realistic view of what they can achieve. We also have the edge in the industry’s regulatory compliance space, and we like to get into it all on the granular level,” he continues. This is evidenced by the firm’s support to Neccton’s owners in their recent sale to the Tier 1 industry supplier in OpenBet, which is owned by Endeavor (NYSE: EDR).

“We offer the full service: we help our clients develop intriguing pitch decks, realistic financial models and aid them in building data rooms, in which we place all the documentation about that company including employee contracts, financial statements and so on, so that there is absolute and full transparency,” Mark attests.

Looking ahead, Christopher explains the firm’s drive towards further international growth, both in terms of onboarding new clients from across the globe, in the recruitment space, as well as identifying M&A opportunities. “It’s a tough job,” Christopher smiles, “but extremely rewarding and, who knows, we might end up on the next big international M&A project.”

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IN THE ROOM

Despite Malta’s removal from the grey list of the Financial Action Task Force (FATF) in June 2022, the country’s major banks continue to take a risk-averse approach, leading several local players to turn to alternative banking solutions. Three leading figures from the industry and Economy Minister Silvio Schembri share their views with Julian Micallef Tagliaferro on the current situation and emerging solutions, and call for the remaining stumbling blocks to be tackled.

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Photo by Shutterstock

here seems to be consensus within the local business community that Malta’s year-long inclusion in the FATF’s list of jurisdictions under increased monitoring was a watershed moment for the country’s economic path. And some would say that indirectly, positive elements did emerge from the development.

Now that it can be considered as water under the bridge, however, negative side effects continue to linger. Among these is a reduced appetite for risk among financing circles, with the gaming industry bearing some of the brunt.

Joonas Karhu, CEO of the affiliate website Bojoko, concisely captures the situation, when he says, “when the greylisting hit in 2021, the major Maltese banks opted to close the accounts associated with iGaming companies. It was clear that these banks were not taking any risks and viewed all companies in our sector as a liability. Using Bojoko as an example, we are an affiliate gambling site that only works with licensed operators and undergoes yearly audits,” and yet, he remarks, a major bank in Malta simply closed their account after a decade-long relationship.

In fact, Malta’s biggest bank, Bank of Valletta, had embarked on a major de-risking exercise prior to the country making it onto the list of countries under increased monitoring, and, between 2019 and 2020, proceeded to close business accounts of entities associated with the iGaming industry.

Once Malta was added to the grey list in 2021, all the country’s major banks – which were already viewed as conservative – took a highly cautious approach towards the sector.

Nikolai Livori, CEO and Founder of iGaming operator Kanon Gaming, agrees, noting that “the FATF greylisting was essentially a red flag for many banks, creating a compounded hesitancy to deal with the iGaming industry, especially companies relying solely on Malta Gaming Authority (MGA) licences. Those operating mainly in grey markets found themselves disproportionately affected, as financial institutions became wary of potentially risky transactions.”

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The situation has not been easy, with Mr Livori remarking that “this has narrowed banking options and curtailed growth, compelling such companies to reconsider their strategic planning.” For Kanon Gaming specifically, focusing “on white markets and jurisdiction-specific licensing has given us a level of insulation from these challenges.”

On his part, Mr Karhu continues that “it has been over a year since the greylisting was lifted, but we have not seen any notable changes or improvements in this respect. The companies that chose to still do banking in Malta had to rely on smaller and, thus, less reputable banks. This is not a great situation to be in as it is not financially advisable to trust small banks with large funds. It limits growth and makes operating from Malta significantly harder.”

Indeed, Mr Karhu expresses both frustration and concern, stating that “we have not seen anything that indicates that the banking sector or the Maltese Government are working on rectifying the situation. This is very surprising given the size of the Maltese iGaming sector and its impact on the local economy.” Indeed, the latest official figures say that the gambling sector in Malta contributed 9.6 per cent of the entire economy’s Gross Value Added, and that the sector, together with jobs supporting the sector, represents 5.5 per cent of the entire country’s workforce.

Acknowledging the importance of scrutiny, accountability and transparency, Mr Karhu stresses that this cannot come at the expense of lawful business: “It is important to fight financial crime, and we fully understand the concerns of the FATF, but it has to be possible to do this without penalising legitimate businesses.”

Photo by Inigo Taylor

Despite the concerns among industry players, difficulties faced by stakeholders within the sector are acknowledged by the respective authorities. Indeed, Minister for the Economy, EU Funds and Lands Silvio Schembri highlights the continuous dialogue that is being undertaken among all sides to facilitate solutions: “The Ministry for the Economy, EU Funds and Lands, on behalf of the Maltese Government, is in continuous talks with bank representatives in a bid to facilitate banking-related services for, but not limited to, iGaming companies.”

“GIVEN THE HESITANCY OF MALTESE BANKS, WE’VE HAD TO INNOVATE.”

Minister Schembri elaborates further, listing a number of endeavours being undertaken in this regard. He notes that “the right to a bank account is one of a string of measures being discussed and includes access to a range of banking services, such as being granted a bank account, other credit facilities and payment services.”

Nikolai Livori, Founder and CEO, Kanon Gaming

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“THIS IS NOT A GREAT SITUATION TO BE IN AS IT IS NOT FINANCIALLY ADVISABLE TO TRUST SMALL BANKS WITH LARGE FUNDS. IT LIMITS GROWTH AND MAKES OPERATING FROM MALTA SIGNIFICANTLY HARDER.” Joonas Karhu, CEO, Bojoko

“The setting up of a Credit Review Office is also in the offing whereby the office will serve as an arbiter between commercial banks and their clients when it comes to the refusal of loan applications initially applied for by businesses or self-employed,” the Minister adds.

He continues that “when it comes to scrutiny, the concept of shared due diligence will be introduced in the form of a single portal to help reduce bureaucracy.”

To ensure that these measures are implemented and monitored, Minister Schembri also notes that “a Steering Committee appointed by the Ministry for the Economy, comprising various entities including the Financial Intelligence Analysis Unit (FIAU), the Central Bank of Malta, the Malta Financial Services Authority (MFSA), and the Malta Business Registry, is roped in so that such entities can coordinate accordingly and implement the string of measures under discussion.”

Despite the ongoing challenges, one adage certainly rings true: an entrepreneurial spirit shines in adverse conditions. Attesting to this, Mr Livori categorically states that “given the hesitancy of Maltese banks, we’ve had to innovate.” Here, Mr Livori delves deeper into outside-the-box solutions that had to be identified to overcome Malta-based iGaming companies’ banking challenges. He explains that “adopting multi-jurisdictional banking solutions or relying on decentralised financial technologies to circumvent bottlenecks allowed us to sustain our liquidity and player trust,” although he admits that “companies relying solely on MGA licences have it tougher and are exploring similar alternative financial avenues, albeit with less success due to their risk profile.”

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Mr Livori notes how his company’s strategy is paying off. “Our strategy to seek licences in specific jurisdictions and to segregate operational costs and player funds across banks in those regions has been a gamechanger. This not only mitigates the risks associated with Maltese banking constraints but also positions us more favourably in the eyes of global financial institutions.”

2024 EDITION FOCUS

“THE MINISTRY FOR THE ECONOMY, EU FUNDS AND LANDS, ON BEHALF OF THE MALTESE GOVERNMENT, IS IN CONTINUOUS TALKS WITH BANK REPRESENTATIVES IN A BID TO FACILITATE BANKINGRELATED SERVICES FOR, BUT NOT LIMITED TO, iGAMING COMPANIES.” Silvio Schembri, Economy Minister

Natalia Kolesnikova, Head of Partnership and Communication at international money service Blackcatcard, observes that “the current situation in the iGaming industry, particularly in Malta, presents challenges for both operators and players.

We believe that addressing these challenges requires innovative solutions.”

“Market players, operators, and casinos acknowledge the existing challenges. That’s precisely why they are – slowly, but steadily – trying to shift the focus from traditional payment solutions to something more innovative and iGaming-friendly,” she notes.

Blackcatcard offers solutions tailored to the needs of industry players and is positioned as a solution to some of the banking challenges faced by the iGaming sector. She explains that their “payment gateway solution, known as BCC Pay, has been recognised for its ability to resolve the prevalent issues in the market. Not only does BCC Pay provide a comprehensive solution for gaming enthusiasts, but it also addresses various concerns faced by traditional banking institutions, such as settlement fees, chargebacks and limited MCCs to name a few.”

Ms Kolesnikova indicates that feedback from local operators and iGaming stakeholders has been positive. She adds that the payment gateway solution “has been instrumental in streamlining inter-bank transactions and ensuring transparent interactions between casinos and players. The system’s emphasis on thorough verification processes ensures a secure and reliable platform for all transactions, instilling confidence within the industry.”

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From an industry perspective, Kanon Gaming’s Mr Livori points out that “FinTech firms have emerged as important partners for many, albeit they are not a one-size-fits-all solution. They’ve stepped in where traditional banks have retreated, but there are limits to what they can offer, particularly in terms of large-scale capital flows and institutional trust.”

Ms Kolesnikova contends that Blackcatcard “strives to reassure the market that there’s nothing to fear in high-risk industries. Our solution aims to provide a secure banking account for users, minimising the risk of account suspension. It’s a user-friendly approach that aligns with legal compliance and fosters a seamless experience for both casinos and their users.”

2024 EDITION FOCUS

As challenges remain, solutions need to continue coming into play. Here, the Bojoko CEO does not mince his words when he states that the iGaming industry “has been a cornerstone of the Maltese economy for decades at this point, and this is quite a blow against further growth and development.

While the companies that have roots here and opted to stay through the greylisting, will likely continue to do so, Malta will struggle to attract new iGaming companies unless the banking challenges are tackled.”

An insight into the strategies adopted by Kanon Gaming is volunteered by Mr Livori, noting that for so-called white market jurisdictions, where the focus is on country-specific licences, “our strategy of obtaining jurisdiction-specific licences has proven effective in these regions.” In the case of grey markets, characterised as being “fluid and subject to rapid regulatory changes” and “are where most MGA licensees operate,” the situation is different. He shares that national legislation in specific countries may “put many companies in a precarious position.

The inability to conduct robust due diligence on players amplifies the risk.”

With a mix of innovative solutions, legislative and policy support, as well as business mitigation strategies, one can sense that industry players are seeking a way forward. These will likely need to continue addressing matters beyond the issues that were brought up following the FATF’s greylisting. Indeed, there is a shared sentiment, also among other stakeholders to maintain a focus on strengthening the overall ecosystem supporting the gaming industry in Malta.

As developments continue, it remains of interest to note the results further down the line.

“THE CURRENT SITUATION IN THE iGAMING INDUSTRY, PARTICULARLY IN MALTA, PRESENTS CHALLENGES FOR BOTH OPERATORS AND PLAYERS. WE BELIEVE THAT ADDRESSING THESE CHALLENGES REQUIRES INNOVATIVE SOLUTIONS.”

Natalia Kolesnikova, Head of Partnership and Communication, Blackcatcard

Photo by Olga Poluektova

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2024 EDITION WORKSPACE

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innovation

Forward Architects’ Michael Pace and Anna Scigacz take Sarah Muscat Azzopardi through the challenging yet rewarding process of designing MrQ’s new workspace, set within the historic regenerated Brewhouse.

Photos by Ramon Portelli

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estled within the iconic Brewhouse in Malta’s Central Business District, a series of contemporary workspaces that use the unique architecture of the brewery are making easy work of drawing employees back to the office following the much-documented post-COVID appeal of working from home.

MrQ, who engaged Forward Architects with the fitout of their new offices.

Architects Michael Pace and Anna Scigacz formed part of the team and describe the project as unique – primarily owing to the challenging parameters posed by the rigid layout and limitations of the architecture.

The result, which necessitated a creative and largely custom approach, is perhaps more successful for this.

Among the brands that have recently moved to the site is online gaming operator

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“IT WAS PARAMOUNT FOR US TO ACHIEVE AN AMBIENCE THAT APPROXIMATED NATURAL DAYLIGHT IN AN OTHERWISE DARK SPACE.”

“The architecture we were presented with forms part of the old brewery, so it was very rigid in terms of its layout,” Michael says, describing the area as consisting of two primary spaces built to house rows of fermentation vats for the production of beer. The fermentation vats needed to be retained, and “were made accessible by the architects of the building by inserting a floor within them,” he notes, further explaining, “the vats are square with rounded corners, and a cut-out slice within one of the walls makes them easily accessible.”

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Speaking of their design brief, Michael says, “the client came to us with a brand which was clearly successful, but not necessarily with a strict brand guideline. So, we were lucky to have a degree of flexibility when it came to creating a brand identity for the office.”

Having communicated their needs – a workspace that is casual and fun, yet which is nonetheless a work environment – the architects describe the project and client relationship as a very smooth and positive one that ultimately made for a successful outcome.

“Apart from the fantastic collaboration with the client, I must say that the teams of different disciplines on site, the collaboration and coordination, and mutual understanding of how complex this project is and that things needed to be done differently, were also very helpful to develop it to this standard,” Anna adds.

“IN GENERAL, THIS WAS A CHALLENGING PROJECT BECAUSE WE WERE CREATING AN OFFICE SPACE WITHIN SOMETHING WHICH WAS NEVER INTENDED TO BE AN OFFICE.” For what would become MrQ’s new workspace, Forward Architects were presented with two almost identical spaces which were subdivided with rows of fermentation vats with access to each, both of which are separated by the central atrium of the complex. The floor was finished and needed to be kept as is, which the architects describe as “limiting in a way, because we couldn’t do anything about it, but also challenged us to create an opportunity out of what we had.”

Luck had it that the dimensions of the vats happened to be ergonomically correct to work as cubicles, so the team created an open space compartmentalised according to the vats and installed desks within each cubicle using bespoke carpentry. “We then needed a meeting room and social spaces, so we inserted a ‘box’ within one of the vats, and that became the meeting room,” Michael continues.

Connecting the two spaces is the kitchenette and an informal meeting space where employees can have a casual chat or coffee

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Looking back on the challenges posed by the project, he points out the limited natural light within the main spaces as a factor that needed careful consideration.

break. “Here, we needed to create a clever way of installing a table which can only be accessed from one side, so we custom designed a table which could split open in the middle so that someone at the far end of the table could get up without disturbing others,” they say.

“The project surrounds a closed atrium, and the amount of natural light coming in wasn’t something we could depend on as sufficient. We also chose to go for colour, which reduces that further, so we really needed to substitute natural light with artificial lighting, without making the place feel closed or stuffy. It was paramount for us to achieve an ambience that approximated natural daylight in an otherwise dark space. We opted for customised LED panels that provided the intensity, colour temperature and diffused light that we needed. They are also dimmable, enabling the light intensity to be regulated according to the time of day,” he explains.

The project also comprises a connecting corridor that was originally not part of the brief. The fire strategy for the building dictated that the space could be used, provided the corridor was kept clear and free of loose furniture.

“We chose to capitalise on this space and it turned out to be a real success. Sticking to the parameters dictated by the fire engineers, we were able to create a space with a different vibe. It features a great source of natural light through a large bay window, which posed a lovely opportunity and ended up being one of the most successful parts of the project,” smiles Michael.

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element of research, however, the design concept in this case was mainly dictated by a clear client brief and the site itself, with its limitations and parameters. So, ultimately, the inspiration came from within. We also wanted something which reflects the brand – young, fun, quirky, and colourful.”

Another element the design team had to work with was the way in which the space is airconditioned – using a flexible fabric duct which hangs along the length of the space. “This had been designed by the building architect as the main source of air conditioning, so we had to work with it,” Michael affirms, detailing the team’s decision to change the colour of the sleeve into a colour which would feel integrated into their design, as well as some routing alterations for the private meeting room.

Speaking of the defining elements, he adds, “the vats defined the ribs and the shape of the desks, as well as the shape of the meeting area – they pretty much dictated every decision we made in the design of the space. Everything in the project is made up of geometric shapes with soft, rounded edges.”

“In general, this was a challenging project because we were creating an office space within something which was never intended to be an office,” says Anna, highlighting soundproofing and insulation as particularly important, as well as ventilation.

Meanwhile, a soft colour palette incorporating raw wood, pastel pink and terracotta softens the signature orange of the custom light fittings and the air conditioning sleeve, while everything except for the loose furniture was custom made to respect the shape of the vats.

“Office spaces need to incorporate different areas – from meeting rooms to areas dedicated to more relaxed workspaces, as well as social areas like a kitchenette – and we managed to incorporate all of these things while also softening the feel of what the space was before through the use of a pastel colour scheme and soft curves,” she adds.

The result, the pair agree, is bang on the client’s brief: “a casual working environment that aims to stimulate a positive attitude to working hard.”

In fact, looking back on the design stage, Michael affirms that, “at the outset, there is always an

“THE VATS DEFINED THE RIBS AND THE SHAPE OF THE DESKS, AS WELL AS THE SHAPE OF THE MEETING AREA – THEY PRETTY MUCH DICTATED EVERY DECISION WE MADE IN THE DESIGN OF THE SPACE.” Forward team: Anna Scigacz, Zoe Mizzi, Michael Pace Main Contractor: Key Contractors Lighting supply: Light Design Solutions (LDS) Joinery: Mattermake HVAC: Panta Fire: CPI Loose furniture: Studio Moda Wall tiles: Vogue Ceramica

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Remote

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IS HERE TO

work?

ARE YOU MAKI NG IT

In this regular column, Executive Coach Marion Gamel, with her 20+ years’ experience in corporate settings – including working for Google, Eventbrite and Betsson Group – explores the importance of trust in a landscape where flexible working arrangements are firmly here to stay, forcing managers to sharpen their skills or face losing touch with their team.

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one are the days when managers physically sit among the team they manage. Whether it’s due to employees preferring to work from home, or companies sourcing talent wherever it is easily available, remote work has been embedded in today’s corporate culture.

The concept is no longer a novelty, and now, with some experience, many managers continue to grapple with how to prevent a gradual drop in productivity or efficiency, and avoid having to ‘scrap it all’ and start again.

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VUCA We live in a VUCA world: Volatile, Uncertain, Complex, and Ambiguous. In short, the world is experiencing change at a faster rate than we’ve seen before, sometimes going from one end of the spectrum to the other. In this climate, remember: • In the mid 2010s, a leader in Silicon Valley famously said: “I fear that if I can’t see you [in the office], I don’t know what you’re working on. It’s a distrust of your own workforce.” Indeed, I subsequently

2024 EDITION COACH

“REMOTE TEAMS THAT BENEFIT FROM A HIGH LEVEL OF PSYCHOLOGICAL SAFETY FEEL UNITED AND ACCOUNTABLE TO EACH OTHER, BECAUSE IT’S IN THE DNA OF THE TEAM TO SAY THINGS OPENLY.” They know that a ‘reorg’ is always a possibility, and that their team could change. The company and/or its offering could drastically change. Even customer expectations can change, driving an operational re-think.

The answer is trust. When trust exists within a team, when it is authentically prioritised by a company and its management, it acts as an invisible bond. With trust comes accountability, reliability, transparency, courage, and the ability to face VUCA changes as a united front, feeling understood and supported, even when physically separated.

WHEN ARISTOTLE BREATHES OXYGEN

Photo by Vlada Karpovich- Pexels

When it comes to managing a team remotely and instilling a climate of trust, there are two helpful management concepts that emerged in 2010 in two distinct research projects initiated by Google: Google Aristotle and Google Oxygen.

met countless leaders who were against remote working.

• Fast-forward to March 2020, when we all had to confine and work from home, being told by the same bosses that “it would all work out fine”.

In a VUCA world, we must often adapt by going from one extreme to the other within a short period of time. In such a fast-changing context, how can employees maintain a sense of stability and continuity?

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Google Aristotle: The goal of the Google Aristotle research project was to understand what makes a team outstanding. In a nutshell, it aimed to answer the question: “Why are some teams ‘killing it’ while others can, at best, deliver on target?

What’s the magic ingredient?”

“FOR LEADERS, IMPROVING THE LEVEL OF PSYCHOLOGICAL SAFETY AMONG THEIR (REMOTE) TEAMS WILL CREATE TRUST AND HIGHER ACCOUNTABILITY.”

This research, that keeps evolving, was initially started to highlight one of the most ground-breaking ingredients present in over-performing teams: psychological safety.

Psychological safety is the ability within a team to take risks; to innovate, ask questions, challenge the status quo, and have difficult conversations without the fear of being judged, punished, ridiculed, or ostracised.

With the current focus to drive diversity at the workplace, psychological safety is becoming paramount as it welcomes different approaches and views.

Concretely, remote teams that benefit from a high level of psychological safety feel united and accountable to each other, because it’s in the DNA of the team to say things openly.

Indeed, such as when the team may be feeling under-supported or under-represented, which are some of the reasons that could drive colleagues to feel disengaged from their remote boss, the far-away mothership, the company mission, and their role.

For leaders, improving the level of psychological safety among their (remote) teams will create trust and higher accountability.

Psychological safety is based on four quadrants: • Inclusion safety: Welcoming a different way of thinking or a different approach • Learner safety: Welcoming questions and the need for the support of people who are growing, adapting and learning in a (new) role • Contributor safety: Welcoming everyone’s voice, knowing that wisdom comes from the crowd and not from one sole ‘expert’ • Challenger safety: Making it safe for people to challenge the status quo, no matter how uncomfortable it can be to change something that has been ‘working fine’ until now Each of these quadrants caters for human needs that exist across demographics, geographies, cultures, industries, and personalities.

Much has been written about psychological safety and I actively encourage the leaders I coach to find the source they relate most to. One of mine is Kim Scott, who started the whole Radical Candor movement.

When I coach a leader who’s keen on instilling a greater sense of psychological safety in their team, we usually discuss these five steps: 1. Define what psychological safety is and what it could look like in your team. One size does not fit all and discussing how to adapt a broad concept to a specific team can be a transformative conversation.

This is a good opportunity to reassess the team’s Rules of Engagement, that describe how we behave towards each other.

2. Assess how close or far off the team is from achieving a good level of psychological safety. Find metrics and signs that could be monitored by all to keep a finger on the pulse and to guide their own behaviour.

3. Improve on communication clarity and transparency, and throw a bit of vulnerability in (especially coming from the team’s leader who sets the tone), because psychological safety is not about acting perfectly; it’s about acting in a way that is engaging, authentic, approachable, and relatable.

4. Be clear about topics that are best addressed inclusively with the entire group and topics that belong to one-on-one conversations.

5. Reframe ‘failure’ and ‘success’. As a boss, be ready to reward risk-taking (that helps everyone) as much as hitting commercial targets. Sometimes, psychological safety requires taking a step back to make a huge leap forward. A leader needs to create room for this.

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context and to the challenges they face. Coaching your own team is accepting that the solution they land on could be very different to the one you would have gone for a decade earlier.

A lot has been written about leaders acquiring coaching skills.

I always encourage leaders I coach to find the method they’re most responsive to. Here are six tips that can help a leader shift towards coaching their team:

Photo by fizkes - iStock

1. Ask questions rather than make statements.

Coaching is about exploring with the other person, with a curious and open mind. And, what better way to explore than to ask questions? There’s a book I love about the power and the art of asking transformative questions, called A More Beautiful Question, by Warren Berger.

2. Ask for feedback (on how helpful you were, on your leadership style) as often as possible. The time when we could function by receiving feedback only twice a year is long gone. People need feedback-in-the-moment to make positive changes in the moment. This will also encourage your team to do the same and share feedback organically with each other.

3. Help colleagues reframe challenges into opportunities, preventing them from getting stuck in a situation and instilling the idea that we’re never completely powerless.

4. Help your team members become aware of their superpowers, their strengths and their areas of development, and support them as they make a plan to continuously develop, improve and grow.

5. Make sure that small and big, short- and long-term successes are noticed and celebrated, in an appropriate manner.

6. Display compassion and empathy as no one opens up when they’re feeling judged.

Google Oxygen: The goal of the Google Oxygen research project was to understand what makes a manager outstanding, aiming to answer the question: “Why are some leaders bringing the best out of their team while others can at best steer them to barely deliver? What’s the magic ingredient?”

This research, which keeps evolving, started to highlight one of the most ground-breaking ingredients for transformative leadership early on: Coaching skills. Here, you may wonder why bosses need to know how to coach their direct reports and their team. This is due to a recent shift in the leadership paradigm.

While we have been on this fascinating VUCA journey, leadership has been shifting on its head: • OLD – We’ve left the old leadership paradigm behind. This paradigm was based on: command, comply, correct, conform, control, and coerce.

This old leadership paradigm worked very well when the boss would have climbed the corporate ladder step by step. As a result, the boss would know everyone’s job in their team and would tell people what to do and how to do it. Back then, the boss knew best and had offthe-shelf answers for any question.

• NEW – We’ve entered a new leadership paradigm, which is based on: collaborate, contribute, communicate, connect, co-create, and coach. This new leadership paradigm works today as leaders realise that it’s impossible, in our VUCA world, to know how to do everybody’s job because technological advancement is changing roles beyond recognition at a very fast pace.

Today, the main role of a boss is to empower others. Empowering others is to help them find the best solution on their own and solutions that are 100 per cent relevant to them, to their

Remote work is here to stay, and it comes with its own load of challenges for teams who can feel isolated and bosses that can feel out of touch.

Instilling psychological safety and acquiring coaching skills can help leaders inspire trust in their team and avoid the dreaded situation when a remote team starts to slack in productivity or efficiency. The leadership paradigm has shifted and is now all about leaders displaying great levels of empathy, curiosity and agility.

Got a question for Marion?

Email her at marion.gamel@gmail.com

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Photo by Gorodenkoff - Shutterstock

2024 EDITION TECH

mobile gaming game H OW

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The wide array of titles available on mobile devices has made gaming that much more accessible.

And as the market is still evolving, industry players are positioning themselves in this exciting space. Industry figures and the CEO of the national entity championing the sector share their views with Julian Micallef Tagliaferro on the impact of mobile gaming and what to expect next.

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s the technology underpinning mobile gaming continues to evolve, so does the experience, and the wide array of titles available to users. In terms of market share and revenue generation, various reports confirm that mobile gaming is firmly ahead of gaming consoles and PC. The BusinessOfApps, a leading B2B media and information platform, reports that mobile gaming surpassed PC and console in 2018, and accounted for 51 per cent of all gaming revenue in 2021.

including the varying degrees of technology available across the gaming population, the take-up of mobile gaming in comparison to other current formats, developments within the industry itself, as well as the legislative aspects, to earmark just a few.

LeoVegas Group, a multinational company with operations also based in Malta, aims to establish itself as a global market leader in the mobile casino segment, and is at the forefront of using state-ofthe-art technology for mobile gaming. Its Chief Operating Officer (COO), Noel Zammit, makes it clear that “our mission at LeoVegas Group is to deliver the world’s greatest iGaming experience to our customers – whether that be in casino, live casino or sports – and on their preferred device, whatever that may be.”

With this prized territory, the gaming industry is rising to the occasion. And with its ongoing drive to bring bigger and better mobile games to market, the sector is calling out for further development.

There are, however, still several challenging factors,

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2024 EDITION TECH

“THE INCREASED ACCESSIBILITY OF MOBILE GAMING HAS REVOLUTIONISED iGAMING, MAKING IT MORE ACCESSIBLE THAN EVER.” George Fil, Managing Director, Push Gaming Group

“That said, we have always been a mobile first provider,” he adds, sharing that the number of customers accessing the company’s products through mobile devices “has been increasing steadily” throughout the company’s 11-year history.

Indeed, Mr Zammit confirms that “the majority of [LeoVegas Group’s] customers – around 75 per cent – access [its] products via their mobile devices.”

Given these figures, it is not difficult to understand why LeoVegas continues to focus its efforts on mobile gaming. But there’s more to it than that, as Mr Zammit explains: “Within the LeoVegas network, a well-known story recounts how our cofounders, Gustaf Hagman and Robin Ramm-Ericson, conceived the concept of an online casino while observing a spinning iPhone at a summer barbeque in 2011. At the time, mobile technology was gaining traction in all aspects, and LeoVegas has consistently maintained its pioneering role in the iGaming industry through this technological revolution.”

And indeed, if that was the vision in 2011, fast-forward to the current years and significant strides have been made in the technological advancements in the hand-held devices sector.

Mr Zammit acknowledges this, adding, “the capabilities of our mobile phones today have evolved and progressed tremendously since then and at an astonishing pace – and this rapid development shows no signs of slowing down. Gaming is no different in this regard.”

GamingMalta CEO Ivan Filletti observes that “we are currently witnessing two distinct trends. Some companies are starting their foray into the world of iGaming with a strong focus on mobile products, reflecting their recognition of the platform’s vast potential for audience engagement. Others, on the other hand, are adding mobile products to their existing desktop offerings, as they recognise the need to adapt to changing user preferences and lifestyles.”

GamingMalta specifically promotes Malta as a global leading jurisdiction and a centre of excellence in the remote gaming sector. Set up as a partnership between the Maltese Government and the national regulator – the Malta Gaming Authority – it observes the sector from a wider perspective with a view to continue propelling it forward and increase its attractiveness for world-leading industry players.

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Mr Filletti, when asked about how mobile gaming developments are impacting the overall gaming landscape, remarks that “these trends are not only affecting product development, but also prompting regulators to adapt to the growing importance of mobile gaming in the industry.”

Push Gaming, recently acquired by MGM-owned LeoVegas Group, has been experiencing similar trends. Group Managing Director George Fil underlines that “players can now access their favourite casino games, sports betting, live casinos, and other forms of gambling from anywhere with an internet connection.”

“THERE IS A SUBSTANTIAL DESIGN COMPONENT TO CONSIDER, PARTICULARLY IN TERMS OF THE USER INTERFACE LAYOUT. THE USE OF APPS HAS ALSO BEEN A GAME CHANGER AND ADDED ANOTHER LEVEL OF COMPLEXITY.” Noel Zammit, COO, LeoVegas Group

“This expansion of the player base has intensified competition among operators and game providers, offering consumers more choice and improved offerings,” Mr Fil adds. He also pinpoints that “mobile gaming has introduced exciting features like Bonus Buy, enriching the player experience.” Indeed, when observing market developments over the years, Mr Fil affirms that “the increased accessibility of mobile gaming has revolutionised iGaming, making it more accessible than ever.”

The Managing Director adds that the company’s “primary goal is to ensure players have a seamless experience from start to finish, maintaining a consistent UI panel while continually enhancing its smoothness and functionality.”

There is a strong case to be made for mobile gaming developers and operators to be able to adapt to emerging trends at lightning speed.

LeoVegas Group’s Noel Zammit says that “it’s not a secret that smartphones and hand-held devices have disrupted and revolutionised a lot of industries, and our sector is no exception.”

“The product has had to change and adapt to the ever-increasing demands of the ‘online generation’ and those who haven’t focused on mobile to date are at a disadvantage today, particularly some of the more conservative operators who were more averse to embracing the new technology and took longer to adapt.”

Using mobile devices essentially requires adapting gameplay to a different set of playability rules. As Mr Zammit points out, “game

development is another area that has had to step up over the last years, to cater for the preferences and changing demographics of mobile gaming users. These include improvements in speed, mechanics and visuals, to name a few. Similarly, there has been an increase in payment options available to customers, giving them a broader range of choice while respecting regulatory requirements.”

For LeoVegas Group, the focus has been on “making sure that we have the technology to adapt to all of the regulatory requirements in order to ensure we provide a safe, fun and enjoyable gaming environment to our customers, and have sustainable growth.”

The growing prevalence of mobile devices has made it more challenging to provide the optimal iGaming experience “due to the need for product adaptation to fit within the limited screen space available on such devices.

Furthermore, there is a substantial design component to consider, particularly in terms of the user interface layout.

The use of apps has also been a game changer and added another level of complexity,” admits Mr Zammit. “However,” he continues, LeoVegas “has invested heavily in proprietary technology which is top notch”.

With such easy access, the discussion also turns to responsibility. Push Gaming’s George Fil provides insight as he notes that “the convenience of mobile gaming has prompted a greater emphasis on responsible gambling measures. Casinos like LeoVegas and BetMGM now provide tools to help players manage their gaming activity and set limits, recognising the potential for increased accessibility to lead to addictive behaviour.” GamingMalta’s CEO agrees that “the issue of responsible gaming takes on added

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Photo by Dragana Rankovic

2024 EDITION TECH

2024 EDITION TECH

“BY THE YEAR 2030, THE FIRST MEMBERS OF GEN ALPHA WILL HAVE TRANSITIONED INTO YOUNG ADULTHOOD, MARKING THEM AS THE NEXT GENERATION OF CUSTOMERS FOR THE GAMING INDUSTRY.” Ivan Filletti, CEO, GamingMalta

of reasons. Given the escalating importance of technology, it is crucial to have individuals with expertise in the specific technological requirements of mobile gaming. While the talent pool is good, it’s important that Malta as a country continues to invest in the education system and targets specific areas, so that future employers can find skilled professionals for the job – whether that be in data analytics, AML, software development, or any other field.”

importance in this mobile-centric landscape, given the heightened risk of continuous play due to the ubiquitous presence of smartphones.”

Turning to Malta’s position as the optimal platform for the mobile gaming industry, Mr Filletti highlights that “Malta has been exceptionally welcoming to gaming companies. It was the first EU country to license iGaming back in the early 2000s, which has led to the development of a dedicated support infrastructure, encompassing data centres, online payment processors, security auditors, gaming software developers, and platform providers, among others, all contributing to a business-friendly environment. This infrastructure caters to both mobile-focused operators and those with more traditional iGaming set-ups.”

As we anticipate the ongoing evolution of mobile gaming, there is a wealth of possibilities on the horizon. When conversing with these highly networked industry experts, it becomes evident that the current state-of-play only scratches the surface of the sector’s full potential.

In terms of recruitment to sustain the mobile gaming industry – whether it is from a game development or an operational perspective, Mr Filletti notes that “it is widely acknowledged that the demand for tech talent is soaring and there’s a consistent need for mobile-focused developers skilled in both iOS and Android systems.”

Mr Zammit, concurs, noting that “Malta has always been attractive to the gaming industry in general for a variety

GamingMalta CEO Ivan Filletti notes, “when discussing the future, a particularly significant element to consider is the emergence of Generation Alpha. These are the children of Millennials, born between 2010 and 2024. What sets Gen Alpha apart is their projected status as the generation with the largest spending power. By the year 2030, the first members of Gen Alpha will have transitioned into young adulthood, marking them as the next generation of customers for the gaming industry.”

Mr Filletti emphasises the significance of recognising the anticipated trends within this demographic. “They are maturing in an environment where platforms such as TikTok and Roblox are no longer newcomers but firmly entrenched, underscoring the necessity for the gaming industry to persistently evolve and innovate to align with the expectations and preferences of this technologically adept and digitally native generation. The evolving dynamics of this market will undoubtedly shape the trajectory of gaming developments in the years to come.”

There is certainly more to watch out for in the world of mobile gaming.

Photo by Inigo Taylor

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