Malta: Gambling heaven or economical nightmare

This operation was thought to have serious consequences on Malta. The MGA (Malta Gaming Authority) immediately suspended the operating licenses of the main operators named in the investigation and started its own investigation. A month later three other operators voluntarily gave up their licenses rather than face further investigation. Another company mentioned in the Italian investigation, LB Group, had its licenses canceled. Court records imply that LB Group was managed by an even more powerful Cosa Nostra branch from Mazara del Vallo, a city controlled by Matteo Messina Denaro – the boss of all Cosa Nostra bosses, that has been in hiding since 1993.

Multiple gaming companies had confronted the MGA, threatening to leave the island unless it cleaned up the industry.

“Good” Neighbour

With all these events in mind, it is no wonder that the attention of many EU officials had been aimed at Malta. And not in a good way. “Malta has been put on a screen … having an address there now looks more dodgy,” said Sven Giegold, a member of the Economic and Monetary Affairs Committee. A French and German digital tax initiative had bee pushed, to make online giants like Apple, Amazon, Google – and by proxy best Malta online casinos – pay the taxes they are long overdue. If it would come into effect, those low tax rates Malta was attracting business with would be off the table.

While it is hard to dispute how much realMalta has done to build up the gambling sector on the international level and infuse it with structure and legislation. And what incredible benefits the county have reaped from it. It is equally hard to overlook all the severe complications that such a fast, money-flowing industry brings with itself if a lack of oversight leaves even the tiniest gap for foul play. We will watch with bated breath, how well Malta will manage to continue this delicate balancing act between sustained economic growth and lawless chaos.