MGA Issues New Capital Requirements Policy

Capital Requirements

The Malta Gaming Authority ("MGA") has published the Capital Requirements Policy ("Policy"). It shall be applicable to all Licensees and Licence Applicants and is meant to provide a foundation to financial soundness for MGA licensees.

It applies to both B2Bs and B2Cs, in different manners.

The Policy delineates minimum share capital requirements (which are not changed), obligations to maintain a Positive Equity Position, and the process which Licensees shall follow when they are at a Negative Equity Position in order to restore at a Positive Equity Position.

Licensees are expected to maintain a Positive Equity Position for the duration of the MGA licence, and this to ensure that all licensees are best financially placed to sustain their operations. Such assessment shall be conducted by the MGA through the consideration of the total assets versus the total liabilities as put forward by the Licensee in its audited financial statements.