Skill-Based Fantasy Sports Enjoy Formal Exempt Status In Malta

The daily fantasy sports ('DFS') industry has been a hot topic of debate in the United States market. Since US Law is not clear on the legality of DFS, individual states have adopted their own legislation on this topic. As a result of this, DFS operators in the US have started to explore the option of expanding to other markets, such as Europe. The main problem with the regulation of DFS in any jurisdiction, is that this is sometimes classified as a game of skill, and at other times classified as a game of chance.

In the wake of the publication of its Position Paper on Digital Games of Skill with Prize in December 2015, the Malta Gaming Authority ('MGA') has published its position on this activity, announcing that DFS operations would be exempt from licensing. This exemption is being granted on the basis of the element of skill and knowledge involved in fantasy sports, which warrants that such an activity should be differentiated from games of chance in terms of