Mar 10 (newsonjapan.com) - By harnessing the opportunities in unregulated markets across Europe, the small Mediterranean island of Malta rose to prominence in the iGaming industry. However, recent developments in the online gambling space are posing concerns for Malta's future prospects.
Through well-structured regulation and favorable conditions, Malta has been able to attract some of the finest iGaming operators in the industry. But it's not just some elite members of the iGaming industry that call Malta home.
The Mediterranean island has also become home to operators from countries where the gambling industry has been subjected to restrictions that makes it difficult (or even impossible) for them to operate legally.
However, over the years, the online casino market has begun to gain a more favorable stance in certain regions across the world. The reasons for this aren't farfetched. One is the fact that the rapid growth of the online casino market has made its prospects more evident, especially in terms of economic contribution. The benefits of regulation continue to be evident in markets like the UK, where the gambling industry is a major contributor to economic growth.
As more countries regulate their gambling space, the MGA license faces an uncertain future. Although it's unlikely that increased regulation across countries of the world (especially those that have contributed to the MGA's success in the past) would eradicate its relevance in the industry, the MGA would be impacted by these changes.
As Europe becomes more and more receptive to gambling, Malta would have to rely on its reputation and pedigree to maintain its edge in the industry. And perhaps look to the growing market in Asia, where Japan is set to liberalize its gambling space. At the moment, the online casino market in Japan is a free-for-all for offshore operators since foreign sites are the only way citizens can access online casino games.
Japan is currently caught in intense deliberations as it relates to regulatory issues for the nation's gambling market. The discussions are around legalizing casino operations and allowing operations in certain parts of the country. The bill promoting this move, known as the casino bill has been subjected to intense deliberations for months.
The passage of the bill would upturn the current legislative framework for the country's gambling space and open up huge opportunities; opportunities some of the biggest brands in gambling are willing to bet on.
Another region where the MGA's prospects shine bright is Canada, where gambling is a popular pastime. But despite the fact that gambling is one of the favorite hobbies of Canadians, the gambling space has been under legislative red tapes for years.
But the case is quite different for online gambling. At the moment, there is no regulatory framework for offshore operators in Canada.
Although there's no law addressing offshore operators, operators based in the country are banned from offering online gambling services. Because there is no law addressing offshore operators, foreign casino sites have to rely on their reputation and the license they operate with.
When it comes to trusted operators in the online gambling realm in Canada, the MGA retains the top spot as the most trusted regulator.
Operators with an MGA license also represent some of the most popular casino brands in the market. Although there are more Curacao-licensed sites than MGA regulated sites, the latter boasts of a more robust catalogue.
The absence of regulation relating to offshore operators have given the MGA an edge in the Canadian market. This edge has been consolidated by its reputation and pedigree. An MGA license is the most respected license in Canada.
Another country with dynamics similar to those of Canada is Germany. While the situation in Europe is gradually moving towards country level regulations, the situation in Germany also allows international gambling jurisdiction like Malta to maintain its grip in the market.
The current legal framework for gambling in Germany is somewhat ambiguous. Although online casinos are banned in the country, citizens who gamble online are unlikely to be prosecuted, provided the site is based in the European Union.
Future Outlook
The iGaming market has been growing by leaps and bounds. The more the market continues on this growth trajectory, the more it attracts the attention of regulators.
As the economic prospects of a liberalized market becomes more obvious with this growth, countries are shifting posture on gambling. Although country level regulation is on the rise, it is unlikely that this would pose serious threats to international gambling jurisdiction like Malta.
The reputation and pedigree of jurisdiction like Malta would continue to give it an edge even in the face of increased country level regulation. It is also unlikely that the trustworthiness that is being attached to an MGA license would wane in the advent of increased country level regulation.
