MGA Raises Concerns Over Recognition of SGA B2B Licence Framework

Following the introduction of the Swedish Gambling Authority’s (SGA) B2B licence regime on 1st July 2023, the Malta Gaming Authority (MGA) has received numerous applications from entities seeking a Recognition Notice (RN) to recognise their SGA B2B licences. In contrast to SGA B2C licence holders, SGA B2B licensees have not, to date, experienced the same success in obtaining an MGA RN certificate.

In a significant development, following a thorough assessment of the SGA B2B licence framework, the MGA has started reaching out to SGA B2B Licence holders who have applied for an RN Certificate with the MGA. While no official position has been published, communications from the MGA suggest that the regulatory safeguards of the SGA’s B2B framework are not necessarily being considered equivalent to those required under Maltese law, its subsidiary regulations, or directives.

The MGA has specifically flagged a number of components of the SGA’s due diligence processes and areas of supervisory oversight of B2B licence holders, particularly the following:

• Source of Wealth (SOW) / Source of Funds (SOF) checks;
• Fitness and propriety assessments;
• Statutory compliance checks; and
• Obligatory reporting requirements.

Applicants may opt to address the areas highlighted by the MGA, however, should the additional information not satisfy the MGA’s standards, Regulation 12(b) of the Gaming Authorisation Regulations may be invoked as grounds to refuse such applications. This regulation allows the MGA to refuse to grant an authorisation that does not align with the regulatory objectives set out by the Maltese Gaming Act.

Industry stakeholders and operators are advised to carefully consider this potential development when planning cross-border operations involving the SGA and MGA jurisdictions. While the MGA continues to emphasise its commitment to maintaining stringent regulatory oversight and safeguarding the integrity of the Maltese gaming industry, further updates on the matter are expected as the situation evolves.

How can ARQ Group help?

ARQ Group is well-positioned to assist entities navigating the complexities of the MGA and SGA regulatory frameworks. Our team of experts offers comprehensive advisory services to ensure compliance with both Maltese and Swedish regulations. We provide tailored advice and alternative solutions to confidently pursue your RN certificate and maintain seamless cross-border operations.

For any queries, concerns, or additional help, please contact our Partner, Kris Baron, Regulatory & Advisory.