iGaming Capital

THE INDUSTRY ONE YEAR ON FROM THE NEW GAMING ACT

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HUMAN RESOURCES AND THE BATTLE FOR TOP TALENT

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TECHNOLOGICAL SHAKE-UPS SHAPING THE IGAMING AND USER EXPERIENCES

€8 (WHERE SOLD)

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OFFICIAL PARTNERS

WINTER 2019/2020

WINTER 2019/2020 CONTENTS

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LET’S TALK ABOUT: THE IGAMING JOBS MARKET

Understanding the industry’s HR requirements and the struggles of sourcing top talent.

30 THE NEW GAMING ACT ONE YEAR ON: HAS THE BAR BEEN RAISED?

Investigating the impacts of the new legislation through industry stakeholders.

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IS IT CRUNCH TIME FOR MALTA’S IGAMING SECTOR OR NOT?

Do the recent lay-offs and bank account closures signal troubling times ahead for the industry?

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A YEAR OF GROWTH, SUCCESS AND CHANGE

The figures, findings and future predictions for the industry laid down in the Malta Gaming Authority’s 2018 annual report.

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FROM SOUTH AFRICA TO MALTA: A HOME AWAY FROM HOME

IT’S ALL ABOUT THE CUSTOMER

Betsson Chief Product and Tech Officer, Peter Frey, discusses harnessing change and being at the forefront of ever-changing industry demands.

Kirsten Openshaw, Head of Social Media at Mr Green, talks life, work and community since moving to Malta.

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72 ON EMBRACING CHANGE AND DRIVING FUTURE GROWTH

Following the merger of Jackpotjoy Group and Gamesys, the new Gamesys Group’s Chief Human Resources Officer, Michela Borg, discusses the benefits of combining strengths.

78 THE FUTURE OF LETTING IN MALTA IS HERE

With the launch of the RE/MAX Lettings Malta franchise, the property experts let us in on the latest development in their rental offering.

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FROM AI TO AR – THE TECH TRENDS SWEEPING THE IGAMING SECTOR

Delving into the biggest technological shake-ups within the iGaming sector.

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WHAT’S IN STORE? ASSESSING THE FUTURE OF MALTA’S PROPERTY SECTOR

Are property prices truly beginning to decline? Real estate professionals discuss the current state of Malta’s property industry.

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KING OF THE JUNGLE

Greenery, a lion mascot and a fun jungle theme are among the many highlights at the LeoVegas offices at The Plaza, Sliema.

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132 COMPLIANCE VS INNOVATION: HOW WILL REGULATORY CHANGES AFFECT THE INDUSTRY’S INNOVATION IN THE LONG RUN?

Industry players gauge the realterm impacts of the changes.

WINTER 2019/2020 FOREWORD

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WINTER 2019/2020 FOREWORD

An ever-changing landscape The Malta Gaming Authority’s (MGA) 2018 annual report, published last July, revealed that Malta’s iGaming sector is estimated to have generated just over €1.4 billion to the local economy in 2018, making it the third-largest contributor among all economic sectors on the island. 2018 was also a year of considerable change for the industry, following the introduction of the new gaming law and changes in regulations in various EU jurisdictions, which many companies have had to adapt to.

In this issue of iGaming Capital, we explore the state of the industry in light of all this. Parliamentary Secretary for Financial Services, Digital Economy and Innovation, Silvio Schembri, addresses recent developments in the industry following a series of lay-offs and the closure of bank accounts of some Maltabased gaming companies. Stakeholders share their thoughts on the impacts of the law one year after it was implemented, its benefits, as well as the challenges it posed to various companies operating from Malta. Experts weigh in on how they’re juggling compliance and innovation to ensure their longterm success.

While the local iGaming landscape is changing, many are saying it’s maturing; a sentiment echoed by various industry players, some of which have been present in the Maltese iGaming scene since its earliest days. With all this and much more, we hope you enjoy this issue of iGaming Capital.

Martina Said PUBLISHER Content House Ltd

EDITOR Martina Said DIRECTOR OF SALES AND BUSINESS DEVELOPMENT Matthew Spiteri

Content House Group 3, Level 2, Mallia Buildings Triq in-Negozju, Zone 3, Central Business District, Birkirkara CBD 3010 Tel: 2132 0713 info@contenthouse.com.mt www.contenthouse.com.mt

CORPORATE SALES & BUSINESS DEVELOPMENT EXECUTIVE Lara Gail Dougall OPERATIONS & CLIENT RELATIONSHIP MANAGER Elena Dimech CREATIVE DIRECTOR AND DESIGN Nicholas Cutajar COVER ILLUSTRATION Cover illustration by Nadine Noko, created exclusively for iGaming Capital

Content House Ltd would like to thank all the protagonists, contributors, advertisers and the project team that have made this publication a success.

Articles appearing in this publication do not necessarily reflect the views of Content House Ltd. All rights reserved.

Reproduction in whole or in part without written permission of the publishers is strictly prohibited. iGaming Capital is distributed to all iGaming companies operating in Malta as well as to relevant business and commercial stakeholders in Malta, including all law firms, financial services companies and business consultancy firms, as well as to all local auditors, accountants and accountancy firms. It is also distributed to all Government ministries and departments, as well as to the waiting areas of all private and public hospitals.

Beyond the free distribution network, iGaming Capital is sold at all leading newsagents around Malta. iGaming Capital is also distributed in London to major business and financial consultancy firms, as well as to UK-based investment and venture capital firms.

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WINTER 2019/2020 COVER STORY

T H E N E W G A M I N G A C T O N E Y E A R O N :

Has the bar been

raised?

On 1st August 2018, the new Gaming Act came into force, thus introducing a regulatory framework to further stimulate innovation in the sector on the island while ensuring adherence to international anti-money laundering and de-risking requirements. But, over one year on, did the legislation hit a home run? Rebecca Anastasi speaks to three stakeholders to find out.

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n 2004, Malta enacted legislation to regulate online gaming, putting the country in pole position – ahead of every other EU member state – to attract a spate of iGaming firms to the island and build an industry based on favourable taxation and corporate conditions. The island was, thus, also able to woo a workforce of thousands looking for good jobs, great weather and a Mediterranean lifestyle, boosting ancillary sectors such as property, hospitality and retail.

But, 14 years on, in 2018, it was evident that the local and international landscapes had changed and there was a need for regulatory reform to allow the sector to continue flourishing. On 1st August last year, the new Gaming Act, ratified by the Maltese Parliament five months earlier, came into force, setting a standard at which the industry could operate over the next few years. The Malta Gaming Authority (MGA), in its report published in July this year, specified that the aim was to establish “objective-oriented standards as opposed to prescriptive requirements, thereby encouraging innovation and development,” and to empower the Authority further, thus strengthening “its activities” so it can “continue being a thought leader for years to come”.

To this end, the legislation allocated more resources to the MGA; prioritised “riskbased” approaches and was, therefore, formed to be “fully in line with concurrent developments relating to AML/CFT”.

Moreover, the Act also reworked the role of the Key Official – employed by iGaming firms – into “various key functions within a licensed activity” and shifted from a multilicensing regime to offering a singular B2B or B2C umbrella licence. The raft of new rules also increased protection standards and responsible gaming measures, and launched a fiscal structure which is more in line with companies’ operations. But have these changes solidified Malta as a leader in the sphere?

“The new law has strengthened the MGA and the value of being licensed by the Authority,” says Enrico Bradamante, Chairman of the industry trade association iGEN, which represents the interests of the iGaming sector. “The regulator is now able to exercise greater functions and, therefore, the value of having a Maltese licence has been strengthened. Indeed, the positives are that the MGA now has more enforcement powers and it is using these enforcement powers,” he asserts. >

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“THERE IS NO OTHER HUB LIKE MALTA AND IT IS THE HOME OF IGAMING TODAY. SO, THE REGULATOR – AND MALTA AS A COUNTRY – HAS AN INTEREST IN DRIVING THE AGENDA FORWARD.” Enrico Bradamante, Chairman, iGEN

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Mr Bradamante also points to the positive effect the new legislation has had through the introduction of new licence categorisations. “So, there is now this differentiation between B2B and B2C licences which has clarified some of the grey areas, though I don’t think the law itself has dramatically changed the way operators have had to work. I’ve not heard of any major difference, at any rate,” he attests.

So, considering the attention Malta has given to refining the regulations locally, could it take more of a role in creating a framework for the sector supranationally? “Malta has been the pioneer in this sector and has definitely paved the way. The MGA was the first regulatory body of its kind and Malta, as a jurisdiction, remains the one which is driving the industry internationally. There is no other hub like Malta and it is the home of iGaming today. So, the regulator – and Malta as a country – has an interest in driving the agenda forward,” says Mr Bradamante.

Indeed, he notes that one of the biggest issues facing the entire sector at the moment is the lack of harmonised legislative regimes across European states. “In general, the industry itself is over-regulated, in that there are so many different standards set in different countries in Europe where firms from Malta are doing business. So, these iGaming companies need to adhere to these different rules, across countries, which is then being translated into additional costs, such as technical expenses, licensing fees, and so on. Uniformity of regulation is something which the industry would love to see, ideally on a European level,” he notes.

And so, he believes, Malta can spearhead such change, though he warns that he doesn’t see the situation changing anytime soon. “As iGEN, we’ll be meeting with the Maltese MEPs and this is one of the issues we will raise on behalf of the industry.

But, as far as I’m aware, there is no programme, no effort, which is being done on a European level to harmonise the regulations of the iGaming industry,”

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he points out. “The reason is historical.

Since every country on the continent has a different background, it’s all contextual and there’s no one size fits all,” he explains, adding that, nonetheless, the changes as a result of the new law, together with the open approach by the authorities, has ensured that this economic sector on the island has a promising future.

Echoing much of Mr Bradamante’s thoughts, Reili Suzi, Senior Compliance Manager at Betsson Group, says that “the Act has also brought about several changes that allow for better clarity as to the expectations of the regulator. In fact, it is a very comprehensive piece of legislation and we now have a single rulebook across the sector.”

She also refers to the licensing structure as a positive development, “where you can now make use of common B2C licences across different brands and gaming systems”. >

Photo by Alan Carville

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Moreover, Ms Suzi underlines that the transparency of the new legislation has proven beneficial over the past year. “Player protection is vital in our business and having this level of clarity is a good tool to generate consistencies across the sector,” she states. Further reasserting Mr Bradamante’s views, the Betsson Compliance Manager notes the strengthening of the MGA, saying that this “is noteworthy, of course,” since it helps Malta keep “up its jurisdictional reputation and ensure that sufficient scrutiny is being carried out.”

“The changes have challenged the operators, given the different layers of regulations and because the spotlight is not only on regulating the core gaming business but also different horizontal aspects of the business – the payment providers, the game providers, and so on,” she explains. Indeed, “the spotlight on regulating and re-regulating various aspects of the business has led to an environment where it has become challenging to get into the swing given there is always a next large-scale change in the pipeline,” she outlines.

“B2C operators to be flexible in their game offerings and, at the same time, allowing for a speedier time-to-market from B2B operators”.

As a result, the new law permits B2B operators to “grow their business with speed, without, however, compromising on their compliance requirements”.

Thus, he says that B2B operators may perhaps be the category that mostly saw significant improvements to their business model. “The streamlining of licence categories did not only benefit them directly, in terms of only requiring them to hold one singular B2B licence, but they can now engage with a wider B2C audience given the relatively easier process granted at law for a B2C operator to offer games from B2B platforms,” he explains. >

As a result, iGaming firms have borne the brunt of additional costs and have had to invest in more human resources.

“Our compliance managers, developers, commercial and operations teams have been kept busy. The influx of changes has been sudden and, since it was a rewrite of an older framework, one which we were used to, it took some effort to train personnel within the new way of doing things. There is always something new we have to deal with,” she says.

Looking ahead, it’s essential for the scrutiny to be “evidencebased”, permitting “the right level of agility given that this is such a dynamic industry”. Ms Suzi admits that “more can be done on this front” and “further guidance on the interpretation of some of the requirements would be useful for the operators”, though she underlines that the industry has “already seen some of these coming to the fore slowly”.

Re-affirming these views, Reuben Portanier, Partner at legal firm Afilexion Alliance, says the aim of streamlining licence categories through the B2B and B2C categorisation has simplified compliance, while allowing

“THE CHANGES HAVE CHALLENGED THE OPERATORS, GIVEN THE DIFFERENT LAYERS OF REGULATIONS.” Reili Suzi, Senior Compliance Manager, Betsson Group 034

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“FROM A GAMING REGULATORY PERSPECTIVE, MALTA WAS ALWAYS CONSIDERED TO BE A JURISDICTION OF REPUTE.” Reuben Portanier, Partner, Afilexion Alliance

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So, with Malta having been under the spotlight over the past few years – with concerns having been raised in the arena of money-laundering – has the new law improved Malta’s standing? “From a gaming regulatory perspective, Malta was always considered to be a jurisdiction of repute,” Mr Portanier stresses. He notes that Malta was the only EU member state that issued specific guidelines for the gaming industry on “how to apply the risk-based approach in accordance with the 4th EU AML Directive and was the only EU state to issue gaming industry guidelines when Europe’s General Data Protection Regulation (GDPR) came into force in 2018”.

Moving on to the increased powers allocated to the MGA, Mr Portanier says that the Authority has “continuously demonstrated that it has exercised the responsibility and powers afforded to it effectively”, even prior to the changes in legislation. “I do not solely judge MGA’s supervisory effectiveness based on the number of enforcement actions taken or the number of compliance visits – which have increased – but also on how it is open to educate licensed operators on the importance of compliance and, in this regard, the MGA did a sterling job,” he asserts.

Additionally, obtaining an MGA licence is not at all a walk in the park, Mr Portanier notes.

“The requirements imposed on applicants are very high, both from an AML perspective and from a technical and financial perspective.

However, as in any regulated industry, a regulator’s challenge is that of recognising how past risks change and new ones come into play. Controls are stringent only if they are effectively addressing the right and current risks,” he underlines, going on to express his belief that “the existing controls are in the main addressing the right risks”.

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While it is possibly too early to determine which important changes will be required, Mr Portanier states that, with the changing technological developments, new requirements will arise, specifically as a result of Artificial Intelligence (AI) and DLT technology. “Looking into a crystal ball, one may see a not so distant future where SupTech (supervisory technology) and RegTech (Regulatory Technology), both based on Distributed Ledger Technologies and Artificial Intelligence, will become a regulatory requirement for gaming operators so as to allow the MGA to exploit AI coupled with DLT in its supervisory functions,” he concludes.

WINTER 2019/2020 IN DEPTH

L E T ’ S T A L K A B O U T : T H E i G A M I N G

Jobs

The iGaming market remains one of the most competitive in the recruitment sector, but what is the very latest from this exciting sphere and how is it changing? Jo Caruana chats to the experts to seek up-to-the-minute advice for both candidates and companies.

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very growing tech company knows one key thing: the right, highly-trained talent is likely to be the key differentiating factor in your success or failure.

However, sourcing top talent is one of the major issues for the sector and expertise in everything, from app design to compliance, is absolutely crucial.

As a result, the iGaming sector – which now contributes a whopping 12 per cent of the total value of the Maltese economy – has completely

Market revolutionised human resources on the island.

Aside from setting standards in benefits for its team members, it has also created one of the widest ranges of jobs in Malta due to its global, tech-savvy, customer-focused and heavily-regulated nature.

Explaining the latest human requirements of the sector and the biggest demands of the moment, Ben Pace Lehner, Director of Broadwing Recruitment, highlights that, historically, customer service jobs were the most common roles in terms of volume and that these were the easiest to recruit as they

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“IT AND DEVELOPER ROLES ARE IN HIGH DEMAND WITHIN THE IGAMING SECTOR, ALONG WITH LEGAL AND COMPLIANCE ROLES.” Ben Pace Lehner, Director, Broadwing Recruitment

“For example, when we are hiring at Broadwing Job Placement Agency, we give more importance to the ability to prioritise, the soft skills, the interpersonal and communication skills.

On the other hand, when recruiting for our Rocksteady Digital Agency, we give more importance to attention to detail, problem solving skills and working under pressure.”

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required little or no expertise. “However, these roles see very high turnover, partly because of the large number of younger foreign recruits that go for them and who may not settle in Malta fast enough,” he says.

In the next few years, Ben predicts a shift will take place, with several companies moving their English-speaking customer service reps overseas, where it may be easier to recruit and offer lower salaries. “However, language jobs and, specifically Scandinavian and German speaking candidates, will always be in high demand and will pay significantly higher than the equivalent English-speaking roles. And, aside from that, largely because of our island’s drive towards an increase in the tech industry, IT and developer roles are also in high demand, along with legal and compliance roles because of regularity changes which are always improving and accommodating the country’s infrastructure.”

Those keen to join the sector can certainly benefit from a variety of abilities, although it transpires there is no one-size-fits-all skillset. “As always, companies look for different requirements, depending on the role and the employer’s values,” Ben continues.

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However, there remain some serious pitfalls to finding the right candidate and this is something that Francina Moisa, Director of IGaming Elite, knows all about. “The biggest snag to avoid when trying to hire the right people is a haphazard, scattered approach,” she stresses.

“Having worked with both established and start-up gaming businesses across Europe for over eight years, we can absolutely say, with full confidence, that the whole recruitment process – from start to finish – is what makes or breaks your top hire. But companies sometimes have little choice in changing this and it’s up to industry service providers, such as ourselves, to raise the bar and present solutions that are designed to reduce hiring risks, commercial downtime and overall costs.”

But by helping companies redesign their recruitment process and incorporate better assessment criteria – such as personalised key competencies questions that are particularly targeted to core skills areas necessary for the new employee to perform the role – a recruitment company could add value in this way. “This is underpinned by >

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personalised and integrated behavioural and psychometric profiling, designed to assess cultural, commercial and corporate behaviour compatibility between the business and the potential employee. In doing this, businesses can achieve not only better engagement from top talent but superior retention rates. Together, this really helps us to find and bring the very best clients to the process and to ensure the right people make it to the positions that need to be paid,” Francina continues.

Ben, meanwhile, focuses on the fact that hiring companies sometimes take too long to process and respond to candidates, which can also prove to be a pitfall. “This primarily happens when companies try to bring in too many applicants and they don’t embrace technology such as video chatting to speed up the interview process,” he says.

“WE CAN ABSOLUTELY SAY, WITH FULL CONFIDENCE, THAT THE WHOLE RECRUITMENT PROCESS – FROM START TO FINISH – IS WHAT MAKES OR BREAKS YOUR TOP HIRE.”

“Beyond that, companies often forget the value of using recruitment agencies to speed up this process, because of the costs involved, by not factoring in the time and cost of processing and filtering all applicants before interviewing. They also neglect the fact that agencies are also able to be more objective and to build a personal connection with candidates without the pressure of an interview, allowing them to get valuable information on and insights into candidates before pushing them forward to a client,” he adds.

David Mcdonald, Client Relationship Manager of the IT and iGaming team at Konnekt, explains that, on the topic of interviews, there are also a few things that iGaming candidates themselves should be aware of when making a first impression on their potential employer.

“Although you can never know what to expect from an interview and there is always the possibility of an incompatibility of characters, skills and other factors, there are a number of basic dos and don’ts that should be observed.” >

Francina Moisa, Director, IGaming Elite

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David suggests that the top mistakes he and his team frequently encounter relate to the candidate arriving late for an interview with no explanation, not doing prior research on the company or going into an interview without understanding the job function.

“Another mistake candidates often make is to not ask any questions during the interview that will help them understand the role, their function within the team, or the company products better,” he says helpfully.

“So, if you are going for a job in gaming, avoiding these mistakes could greatly increase your chances of moving to the next stage of the recruitment process. After all, in iGaming, the level of competition is so high that having good technical knowledge in the sector is not enough to ensure you stand out anymore. If you want to be successful, you need to be one step ahead of the competition to create a lasting impression on employers.”

Finally, when it comes to what the iGaming sector will need from its employees in the years to come, it is becoming clear that the future of recruitment will hinge on linking modern technology with the human aspect of recruitment to achieve the highest level of service and professionalism.

“Recruitment will remain an everchanging industry in itself but it does also need to adapt to the various changes within other sectors if it is to remain relevant,” David stresses.

“Advancements in AI, big data, business intelligence and automation will enable recruiters and employers to source the right talent at a much faster pace and streamlining the process will make it more cost-efficient.”

“Are we saying that technology will be enough to replace recruiters? Definitely not.

The human aspect will always remain one of the most important pillars of recruitment, through which you can understand a candidate’s motivation, aspirations and story. Building relationships and trust with both clients and candidates will remain the recruiter’s goal, so we can ultimately bridge the gap between quality talent and industry players – and that is what recruitment success will continue to look like,” he concludes.

“THE HUMAN ASPECT WILL ALWAYS REMAIN ONE OF THE MOST IMPORTANT PILLARS OF RECRUITMENT.” David Mcdonald, Client Relationship Manager - IT and iGaming, Konnekt

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A Y E A R O F

growth, success

A N D

change

2018 saw the gaming industry consolidate its standing as the third largest contributor to Malta’s economy while aligning itself with new and improved compliance and regulatory legislation brought about by the Gaming Act. Emma Mattei takes an in-depth look into the MGA’s Annual Report to highlight its key findings.

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he Malta Gaming Authority’s (MGA) annual report and financial statements for 2018, published on 1st July this year, are the first from the Authority following the introduction of the new Gaming Act, which came into force on 1st August 2018 and is the governing framework legislation that regulates all gaming services in and from Malta.

On the back of a year of change for the industry, both locally as a result of the Gaming Act and internationally following a series of regulatory changes in various European jurisdictions, the MGA’s annual report sheds light on and tracks

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THE GAMING INDUSTRY IS ESTIMATED TO HAVE GENERATED JUST OVER ¤1.4 BILLION IN TERMS OF GROSS VALUE ADDED TO MALTA’S ECONOMY IN 2018.

added by 10.4 per cent year-on-year. As a result of this momentum, the gaming industry’s share in economic activity over the past years has increased, to stand at around 13.2 per cent by 2018.

movements taking place within the industry on account of new laws that have been implemented to strengthen the Authority’s position, together with a medium-term outlook on future developments within the industry. Here’s a closer look at some of the report’s key findings, coupled with an overview of the trends and concerns within the gaming sector, and how they relate to the local economy.

The growth of the industry in numbers

The gaming industry is estimated to have generated just over €1.4 billion in terms of gross value added to Malta’s economy in 2018. This represented a 12.1 per cent growth over 2017, when the industry had already increased its gross value

During 2018, the industry generated almost oneeighth of the total value added, and directly employed around 6,800 persons. It continued to complement and generate activity for other ‘new economy’ activities in Malta, such as ICT and higher value-added activities, and also helped the process of economic diversification and growth.

Over 3,000 additional jobs are estimated to be supporting the gaming industry in other sectors. Thus, the gaming industry directly contributed 2.8 per cent of total employment in Malta, and around 4.1 per cent when supporting activities are also taken into consideration.

Impacts of the new Gaming Act

Heathcliff Farrugia, Chief Executive Officer at the Malta Gaming Authority, stated “2018 was a remarkable year for the Authority, predominantly because of the coming into force of the new law on 1st August. The new framework strengthened the MGA’s supervisory role, specifically in the areas of compliance and enforcement, enabling it to focus efforts on areas which present a higher risk profile.” >

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“THE NEW FRAMEWORK STRENGTHENED THE MGA’S SUPERVISORY ROLE, SPECIFICALLY IN THE AREAS OF COMPLIANCE AND ENFORCEMENT, ENABLING IT TO FOCUS EFFORTS ON AREAS WHICH PRESENT A HIGHER RISK PROFILE.” Heathcliff Farrugia, CEO, MGA

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The MGA’s main focus – the implementation of the new Gaming Act – is to ensure that regulatory oversight is strengthened. Several internal and external initiatives were introduced, with the aim of improving supervision and focusing on the regulatory compliance of these innovations. The new Act simplifies regulation, while simultaneously rendering it more effective, allowing for the development of new activities. It has also been pivotal in ensuring the Authority could become more agile in its decision-making.

Strengthening oversight

“Malta adopted the EU’s 4th Anti-Money Laundering Directive, which saw online gaming companies becoming obliged entities for the first time. This was challenging, both for licensees and the MGA, which together with the FIAU, started conducting on-site AML inspections,” said Mr Farrugia.

Together with the Financial Intelligence Analysis Unit (FIAU), the MGA issued the ‘Remote Gaming Implementing Procedures – Part II’, and both authorities participated in cooperative initiatives to strengthen the oversight of the gaming sector.

Anti-money laundering (AML) and combating financing of terrorism (CFT) were given prominence within the MGA’s agenda, whose role as supervisor was strengthened to ensure effectiveness in the mitigation of the risks related to gambling services.

A total of 33 AML/CFT full-scope examinations were conducted, eight of which were done jointly with the FIAU.

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An updated licensing system

In line with the new licensing system, operators that are already in possession of a gaming service licence or critical gaming supply licence and wish to offer an additional type of game are now required to apply for the necessary approval instead of applying for an additional licence. As a result, fewer applications for a gaming licence are being received by the Authority. This is already apparent in the lower number of applications received in the second half of 2018, which stood at 82, bringing the total number of applications received between January to December 2018 to 209.

Consequently, the number of licences issued was lower than in the previous year and stood at 93 for 2018. Operators that applied for multiple gaming licences prior to the introduction of the new Gaming Act are now able to operate through the same B2C or B2B licence. During the year under review, 63 individuals or companies were deemed unsuitable for a licence, or for a significant role in a licensee. 37 of these were related to those considered as not having satisfied the integrity and reputation pillars of the fit and proper criteria. >

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The Authority’s Enforcement Unit suspended four licences and cancelled another eight licences due to regulatory breaches. 16 notices of reprimand were issued, as well as 73 notices of breach. 139 administrative fines were imposed on operators following regulatory breaches and 2,000 criminal probity screenings were conducted.

Addressing consumer protection and the skills gap Two major surveys were conducted to analyse the skills gap in the gaming industry, and the threats and opportunities associated with the consumption of gambling and gaming services

by Maltese residents.

In order to support its commitment towards consumer protection, the MGA carried out a survey via a questionnaire on the consumption of gambling services by Maltese residents, and published the results in the last quarter of 2018. Another survey was carried out in the first quarter of 2018, on the ‘skills gap affecting the remote gaming industry in Malta’. The results were published with the aim of assisting the education sector to better understand, and service, the industry and its needs. The skills gap data is being collected by the information management team on a six-monthly basis to monitor the effectiveness of initiatives undertaken at national level to address the existing skills shortage. The Authority felt that, in order to address the skills gap effectively, further research work is required in this area.

Upcoming developments and future goals

In terms of understanding consumer trends during 2018, the total number of self-exclusion requests by players on the remote gaming websites licensed by the MGA amounted to 1.3 million, part of which can represent multiple exclusions by a single player on more than one website. The Authority is assessing the suitability of a range of technical solutions to launch a single, unified self-exclusion system for companies holding MGA gaming licences, which would incorporate both online and land-based operations.

Digitisation efforts were continued, including further updates to the licensee relationship management system to cater for the submission of the monthly licence and compliance contribution report, while additional functionalities will be added on the portal.

In 2018, the Authority set up a commercial communications committee, as required in terms of the new regulatory framework, to ensure due process in the assessment of regulatory breaches stemming from requirements relating to commercial communications.

During the year, a total of 14 cases were evaluated, out of which seven decisions determined that there had been a breach of the regulations.

Looking ahead, the MGA will continue to reinforce these functions in order to achieve the regulatory objectives required by law. Mr Farrugia said “the MGA’s focus will be that of consolidating what has been built so far, and continue building on its regulatory powers, to ensure holistic regulatory oversight focusing on the integrity of market participants and the protection of consumers, while also embracing technological innovation without prejudicing the attainment of its regulatory objectives.”

IN LINE WITH THE NEW LICENSING SYSTEM, FEWER APPLICATIONS FOR A GAMING LICENCE ARE BEING RECEIVED

BY THE AUTHORITY.

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WINTER 2019/2020 CURRENT

Is it crunch time

FOR MALTA’S iGAMING SECTOR OR NOT?

With more than 100 job losses announced over the past few weeks, and news of bank account closures affecting dozens of iGaming firms – including some Malta Gaming Authority licensees – many are wondering, what’s going on within the sector in Malta? Rebecca Anastasi speaks to Parliamentary Secretary for Financial Services, Digital Economy and Innovation, Silvio Schembri, and iGEN Chairman, Enrico Bradamante, to get their views on the reported upheavals.

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ccording to the latest report published by the Malta Gaming Authority (MGA) in July this year, reviewing the sector up to the end of 2018, the iGaming industry in Malta has kept gathering momentum, as its share in the economy has edged up to approximately 13 per cent. Recognised as the third-largest economic sector on the island – and contributing to the profitability of myriad other businesses in retail, hospitality and property – in 2018 the gaming sector employed 2.8 per cent of the workforce, with another 4.1 per cent working in supporting activities.

sector, as part of its de-risking exercise. So, with a number of firms affected, is it actually game over for Malta as an iGaming hub?

“Like any other industry, iGaming companies go through restructuring exercises from time to time. But with a regulated industry of 289 operators, collectively employing more than 7,000 employees, together with an additional 3,000 employees working with service providers, this is understandable,” says Parliamentary Secretary for Financial Services, Digital Economy and Innovation Silvio Schembri, in response, countering claims of a crisis in the sector.

Yet, more recently, and over the past few months in the third quarter of 2019, media outlets have reported instability in the sector: the Malta-based Stars Group, part of TSG Interactive Gaming Europe Ltd, made 80 of its local staff redundant, while Multilotto made a similar decision, affecting some 15 of its employees on the island – half its workforce. Moreover, Bank of Valletta announced it would be closing the bank accounts of ‘high-risk clients’, some of which belonged to the iGaming

As proof, and in order to emphasise the current and continued health of the market, he points to the buoyant job vacancy numbers in the industry, underlining that, while some companies are ‘restructuring’, others are actively employing. “According to a study carried out by the Malta Gaming Authority,

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there are, at the moment, around 700 vacancies in the sector. And if one takes a look at the number of redundancies – arising mainly due to the duplication of posts – one notices that the supply does not surpass the demand sought by the operators,” he continues.

These redundancies, he says, are the result of mergers and acquisitions which have taken place in private enterprises geared up for change.

“Many times, this will result in the creation of new jobs and the removal of duplicated ones. But this is common in any other industry,” he states.

Moving on to BOV’s announced closures of some iGaming companies’ business accounts, Mr Schembri is at pains to emphasise that the bank’s

decision has nothing to do with the current health of the remote gaming sector in Malta. “BOV’s de-risking exercise involved other types of businesses, not just iGaming. From the information we have, less than 20 from the 289 MGA licensed entities were impacted with this decision,” he says, adding that he is “informed” that these companies are “already in talks with other local banks, who will be offering the services to them.”

Furthermore, he states that the cache and reputation of the MGA licence has not been affected by this decision taken by the bank, insisting that “the bank’s decision to stop offering its services is not related to the MGA licence. The two things are absolutely not related,” he says. However, apart from the 20 MGA-licensed firms mentioned

by Mr Schembri, media reports also announced that dozens of other iGaming companies have been hit by the decision. So, does the Parliamentary Secretary think the news has affected the mood in the industry as a whole? No, he stresses. “Whereas it is never an ideal situation to have a bank being forced to close banking services to any business, >

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“LIKE ANY OTHER INDUSTRY, iGAMING COMPANIES GO THROUGH RESTRUCTURING EXERCISES FROM TIME TO TIME.”

I am not informed that this had any major effects on the industry, in view of the fact that a very small number of licensed operators were affected,” he underlines.

Concluding, the Parliamentary Secretary stands firm in re-asserting the authorities’ championing of the entire sector, saying “as a Government, we will continue to support this industry”.

To emphasise this, he highlights interaction with key stakeholders. “I regularly meet trade associations representing this sector to make sure we are always listening and taking action where there is need,” he says.

Silvio Schembri, Parliamentary Secretary, Financial Services, Digital Economy and Innovation

One of these key stakeholders – and a representative of the sector – is Enrico Bradamante, Chairman of iGaming industry trade association, iGEN. Mr Bradamante echoes much of Mr Schembri’s thoughts on the current layoffs and the movement caused by the bank account closures.

With reference to the former, he notes that the announcements of redundancies are “a result of economic forces”, emphasising that “companies go through cycles during which they need to look at the costs.” Prioritising the bottom line, he says, has meant that some firms have decided to move their operations to lower-cost jurisdictions.

So, picking up a familiar refrain, is Malta too expensive even for iGaming firms? “I’ve started to see signals from the housing market that we’ve reached the top, and prices have started to come down and that’s positive for the long-term health of Malta’s economy.” He refers to the new Bill to regulate the rental market and states that the public consultation is “a great start” to mitigate some of the issues related to the cost of living on the island.

Moreover, he says, “the industry is still very dynamic.

Bet365 are starting to move in,” with the net influx of jobs and firms still retaining buoyancy.

“It is still positive. There are plenty of vacancies in the iGaming sector and what we’re starting to see, in actual fact, is industry consolidation.” Thus, the layoffs are the result of firms merging and acquiring smaller companies, in his view.

“The industry is maturing. Growth rates are slowing down; profits are being squeezed – mainly because of all the compliance and regulations we need to adhere to – so there are changes. But, the industry, on the whole, is still increasing revenues, and boosting staff, so all this is still positive for Malta,” he underlines. >

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“THE INDUSTRY IS MATURING. GROWTH RATES ARE SLOWING DOWN; PROFITS ARE BEING SQUEEZED – MAINLY BECAUSE OF ALL THE COMPLIANCE AND REGULATIONS WE NEED TO ADHERE TO – SO THERE ARE CHANGES.” Enrico Bradamante, Chairman, iGEN >

Moving on to the bank account closures, Mr Bradamante is also at pains to point out that the iGaming sector was not “singled out” in this exercise, even though “this is how it was represented in the media.” He underlines that there were other industries which were affected, though he does add that BOV’s decision did not come out of the blue. “It was expected. There were rumours following the Moneyval report and arising from the broader scrutiny Malta has been subjected to. So, the bank had to de-risk and BOV is a critical bank for Malta. They had to address this as part of a broader conversation and actions being taken as a result of certain investigations,” he specifies.

However, the iGEN Chairman expresses his disappointment with the way the news was communicated. “It could have been done in a better way, in a less damaging way.” Despite this, he reasserts that it is understandable that the bank – like all private businesses – needs to assess its business. “From a profitability and compliance perspective, there are elements which need to be taken into consideration.

The fact, however, that a number of MGA licensees received the letter announcing bank account closures was also disappointing, but banks need to conduct reviews,” he notes.

Despite this, his outlook remains positive, even in this regard. “Overall, the Government has been proactive and there’s been a real attempt to foster an environment where new banks can come in. Having a bank account for any company is indispensable. But the good news is that there are other banks on the horizon, some of whom already have an electronic banking licence and are in the process of getting a full banking licence. These are able to service any industry, including iGaming,” he concludes.

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Malta in numbers

TIME

POPULATION

475,700 GMT +1 (94 per cent Maltese, 6 per cent foreign) INTERNATIONAL DIALING CODE

AVERAGE YEARLY TEMPERATURE

+356

23OC (day)

AREA

316 KM²

MALTA’S ECONOMY GDP GROWTH Expected to reach

4.7

GOVERNMENT DEBT

45.8

per cent in 2019

per cent of GDP in 2018

GOVERNMENT SURPLUS

ANNUAL RATE OF INFLATION

1.9

per cent of GDP in 2018

1.41 per cent

(as at September 2019)

GAMING IN NUMBERS APPLICATIONS FOR A LICENCE

LICENCES ISSUED TO GAMING OPERATORS

COMPANIES IN OPERATION

VALUE ADDED BY THE GAMING INDUSTRY TO THE MALTESE ECONOMY

in 2018

in 2018

both online and land-based in 2018

per cent

209

93

Sources: Malta Gaming Authority (MGA), National Statistics Office (NSO)

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059

13

FULL-TIME JOBS

6,794

WINTER 2019/2020 EXPATS

FROM SOUTH AFRICA TO MALTA:

A home away from

Photos by Luke Azzopardi

home

Four years ago, Kirsten Openshaw, Head of Social Media at Mr Green, moved to Malta from her Cape Town home. A 100-year-old house, adopted cat and “endless Cisks” later, she sits down with Sarah Micallef to talk life, work and community in Malta.

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W

hile South African Kirsten Openshaw calls Malta home today, her first years were spent in altogether different surroundings. “I grew up on my family’s safari farm, so my childhood was surrounded by African wildlife, running around barefoot, cooking pancakes with grandma and climbing trees,” she recalls.

But, while the Head of Social Media at Mr Green jokes that she knows “more about rifles and making fires than the difference between primer and foundation,” you can’t tell that by looking at her, seemingly perfectly in her element at the gambling company’s stylish Sliema offices.

Kirsten proves her adventurer credentials pretty instantly though. Before settling in Malta, she did her fair share of travelling, having flown to Peru to live with a tribe in the Amazon after college, spending a couple of years in Asia, living and travelling across Europe and backpacking through South Africa. “I don’t quite know where I belong, but I know where home is and where I am from,” she smiles. And while she loves to socialise, make friends and meet interesting people, she considers herself very career-driven above all, admitting, “my job is my life, and I love it.”

“IF YOU HAVE A PROBLEM, THERE IS ALWAYS SOMEONE WHO KNOWS A GUY WHOSE FRIEND’S UNCLE’S COUSIN CAN FIX IT FOR YOU.”

So what brought her to Malta? “My boyfriend and I were living in Cape Town, in a stunning flat right on the beach. We had everything you could want – in the morning I would open the doors to our terrace overlooking Table Mountain and watch the dolphins and seals play in the waves while I drank my coffee.

South Africa has a lifestyle like no other, but our country is not in the best situation. We had to face the fact that it was offering us no future, and we needed to consider our next steps,” she laments, looking back on their decision to leave.

Together with her partner Oliver, Kirsten decided to move to Malta. “The decision to move here wasn’t one that we thought about for ages and planned out, as one might or should. Malta suited his needs of being by the sea for his line of work, and the working language being English plus the lure of an island lifestyle suited us both.

Four years later, one 100-year-old house, a seven-year-old adopted cat called Maya, and endless Cisks, and we’re both still here,” she smiles.

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Speaking about what she likes most about living in Malta, Kirsten lists how easy it is to be social, the fact that everywhere is reachable on foot or within a short drive, as well as the community feel. “If you have a problem, there is always someone who knows a guy whose friend’s uncle’s cousin can fix for you. Everyone is always so willing to help,” she says, adding that this has really come into play since she and Oliver bought an old house which they are renovating in Gzira. “Our neighbour is the best CCTV and security you could ask for, and there is a lovely old man who lives opposite who always loves a quick chat and friendly hello.

Charlie, our mechanic, never hesitates to jump start the car when I forget to turn the lights off, and the corner store man always informs me of the football score, even though I don’t watch football. And that’s not to mention my friends! I think that because not many foreigners my age have family here, we forge our own little families and everyone is always happy to support each other.” >

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There are a few pet peeves though, as ever. Listing the pollution, construction, litter and lack of greenery among them, Kirsten maintains, “Malta has so much to offer. I wish everyone would pause, stop and take a look at what they are doing and think, is what we are doing bettering our lifestyle and our country, or just lining pockets?” Strong in the belief that Malta could be a true little paradise in the Med, she adds, “I really want to see this little island that I now call home reach it. I’m hoping that Malta can hold onto its beauty but still progress without losing its soul and culture.”

Switching over to work, I ask, what attracted Kirsten to the gaming industry. Having worked in iGaming for close to two years but with 10 years of experience in digital marketing, she considers the industry itself to be the best thing about iGaming. “I am able to build digital strategies for international markets, focusing on acquisition and retention, touching all points of the customer journey and developing creative campaigns, while meeting some very interesting people along the way,” she asserts, adding that the fast-paced nature of it means that you always need to be ahead of the curve.

“I’M HOPING THAT MALTA CAN HOLD ONTO ITS BEAUTY BUT STILL PROGRESS WITHOUT LOSING ITS SOUL AND CULTURE.”

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“Without sounding cliché, it’s never boring, every day brings new challenges and it’s up to you to find a solution, and fast,” Kirsten says, affirming that while there are a lot of opportunities and the possibilities are endless, nothing comes easy. “Social media never sleeps, and neither do I,” she jokes, and if you do well, you will be recognised. In fact, Kirsten was recently nominated for an award for Women in Gaming and won Industry Pride.

She has also been a speaker at an Affiliate conference, filmed interviews, and while she admits to having put herself in situations that she would normally find uncomfortable, it’s all worthwhile: “I am growing so much as a person and I don’t think any other industry could offer you so much.”

And the fact that she loves her job as much as she does is what keeps her going to work every morning with a smile. “I am very passionate about digital marketing and social media, and the fact that I get to learn something new every day and push boundaries makes my little marketing heart very happy. Over and above is my team – they are irreplaceable, and each one of them has a special place in my heart.

Seeing them on a Monday morning always brings a smile. Watching them grow and be better than me is all that I can ask,” she says.

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As for life outside of work, Kirsten enjoys walking around and discovering Malta’s hidden spots and historic sites. “The forts, churches, tunnels and houses are very impressive and deserve attention.

Malta is full of history; it would be ignorant to ignore what this island and the people have been through and achieved,” she maintains, adding that the theatre scene is also fantastic considering the size of the island.

“I’m always looking for something artsy to do and it fills my needs of being a little cultural every now and again. Otherwise you can find me in a very low-key unpretentious bar that overlooks the sea.”

“[MY WORK] IS NEVER BORING, EVERY DAY BRINGS NEW CHALLENGES AND IT’S UP TO YOU TO FIND A SOLUTION, AND FAST.”

And if she had to choose, what would her favourite location on the island be? “There are many and it greatly depends on the time of year,” she admits, mentioning a few seasonal spots. “In winter, I enjoy the cities more, like Valletta, Mdina and Birgu.

They are lovely to stroll around and grab a coffee, people watch and think about life,” Kirsten says, although the start of spring is her favourite season. “Walking around Dingli Cliffs or Golden Bay, where there is more space and nature, and the flowers have come out, is magical.” When summer rolls around, it’s a different story. “My first couple of years here, I would flock to Sliema or Armier beach, but now I enjoy late night BBQs and an afternoon swim in Ta’ Xbiex or a remote little bay that probably doesn’t even have a name.”

K I R ST E N ’ S FAVO U R I T E S

Still, there are always things that expats inevitably miss about home. Kirsten lists the greenery, the nature and animals, the food and the people among her own. “South Africa has such an amazing and youthful energy – it shows in our art, language and music. Braais on the beach, camping in the bush, the expansive sky, and my grandma’s Chelsea buns. We have a lot of problems in South Africa, but we have a hell of a lot of good things too,” she smiles.

Listing her passions as her career, her cat and good whiskey (in that order), Kirsten says that the locals are the thing that surprised her most about living in Malta.

“I have some wonderful Maltese friends that are what we’d call back home ‘salt of the earth’ people. Just wholesome, true and honest. They genuinely care about you as a person, and I hope that I am as good a friend to them as they are to me. Shout out to my Maltese peeps! You know who you are.”

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Movie: Indiana Jones and the Last Crusade, or anything with Leonardo di Caprio (literally anything) Restaurant: Street food in Vietnam Thing to order at a bar: Old Fashioned or Bloody Mary Place for a weekend getaway: Anywhere with cheap flights. I try to go somewhere new every time, but I love Spain as a solid go-to Artist: Cy Twombly and Pollock Maltese expression: “Jekk joghgbok”, because it’s the first thing I learnt from the ATM Sport: Rugby to watch and squash to play, or horse riding Designer: Whoever designs jeans that fit me!

WINTER 2019/2020 INTERVIEW

It’s all about the

customer A changing iGaming landscape and the awareness this has brought about have necessitated a perseverance among gaming companies to achieve the best user experience for the customer. Caroline Curmi sits down with Betsson Group’s Chief Product and Tech Officer, Peter Frey, to discuss his vision for securing and extending the company’s reign at the top of the iGaming sector.

I

n terms of structure and design, the Betsson office in Ta’ Xbiex stands out among most local workplaces. Bright, modern and airy, its attributes go beyond the pleasing qualities of good architecture. There is a certain energy about the place, a vibrancy that acts as the company’s driving force. For Chief Product and Tech Officer (CPO/CTO) Peter Frey, this dynamism proved to be a key element that spurred his decision to leave his previous role in Sweden and relocate to Malta.

As a youngster, Peter aspired to become a professional football player but, as he grew older, his ambition shifted to becoming a rock musician and, eventually, his interests settled on computer science during his university years. After some years working as a consultant and developer, Peter was appointed CTO for Sweden’s biggest newspaper, Aftonbladet. His first experience in management and development on a global scale, the venture saw Peter take charge of the digital transformation of the newspaper and raise it to new heights.

Through building up the development, product and tech departments, the staff count there soared from 10 to 80 at the time of his departure.

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After seven years, Peter made the controversial decision to switch companies and opted for a similar role with Expressen, Sweden’s second largest newspaper. Despite the storm surrounding his move, Peter defends his decision and explains that when you stay in one environment for a long time “there is always the danger of becoming the fat cat, just sitting there and thinking that you are the best.” He adds that there’s little room to grow and evolve when you’re at the top of the game, while going to the second best provides the necessary space and motivation to do so. For Peter, comfort is not a welcome commodity: “I’d rather work with the knife against my throat and be the chaser rather than the maintainer.”

His move to the island was not a premeditated one. In fact, Peter admits that he was content in his role, however, everything changed when he got in contact with Betsson. “It was very clear that this was a huge challenge and a big opportunity,” Peter admits, adding that seeing an organisation in need of developing the product and tech department fuelled his competitive spirit. He also points out that the prospect of working with so many talented people through a complex global network further ignited his interest but also highlighted the need for clear strategies to be implemented.

Photos by Inigo Taylor

The shift from the media to the iGaming industry involved a considerable amount of research, especially when it came to acquiring domain knowledge. “I have spent countless hours playing our games, betting on sports, getting to know the industry and familiarising myself with our competitors,” he reveals. Apart from being an advocate for speed, efficiency and high adaptability, Peter admits that his awareness of the input he needed to contribute coupled with his personal interest in sports saw him fly through it. “I like to learn new things, that’s also why I decided to move to another industry,” he says.

While both sectors share the same fundamentals, one main difference is that the iGaming industry is more global, which results in more market availability. Peter insists that when it comes to a global organisation, quote: “communication is crucial.” He proceeds to illustrate this point: “when we deliver things together as One Betsson, we’re unstoppable but when we adopt a silo mentality we build walls, which goes against the principles of communication,” he says, adding that this is an issue

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that is prevalent across all industries. “Instead of being siloed between commercial and product and tech, we focus a lot on working together,” Peter says.

This thought process is a direct contribution to Peter’s professional pursuits. He believes that following traditional business hierarchies and procedures might bear fruit initially but, eventually, it leads to a very inflexible structure with lots of employees working in silos. To counter this, he banks on the fact that change is not an option: “the only constant is change and you need to have the mindset that you should always embrace it and the changing environment.” He proves his point by referring to camera technology company Kodak and social network MySpace, both one-time giants in their fields and now blown out of the market. “If you don’t innovate and if you don’t listen to the customer, you will be put out of business,” he states simply.

Peter’s track record proves that he not only talks the talk but also walks the walk. By moving into the joint role of CPO/CTO he has spearheaded a movement built on teamwork and end-to-end responsibility. “The only thing that matters in the end is what we deliver to the customer,” he says, adding that, in order to do so, “we should work as one unit not separate units”. The industry is moving at an extremely rapid pace and one needs to constantly adapt to be at the forefront, a mentality which Peter seeks to implement further into the company mantra.

Together with Betsson’s management team, Peter settled on the philosophy ‘faster delivery, higher quality’ as the most important priority. “We need to have even higher quality in our products,” he says, noting that while development speed needs to improve, the >

“I HAVE SPENT COUNTLESS HOURS PLAYING OUR GAMES, BETTING ON SPORTS, GETTING TO KNOW THE INDUSTRY AND FAMILIARISING MYSELF WITH OUR COMPETITORS.” 069

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“THE ONLY CONSTANT IS CHANGE AND YOU NEED TO HAVE THE MINDSET THAT YOU SHOULD ALWAYS EMBRACE IT AND THE CHANGING ENVIRONMENT.” >

quality should not suffer. Peter has full faith in his team and admits that meeting the “great people on board at Betsson has been the most rewarding experience” of the past half year. “We have so much power behind us, being a big global group,” he says.

Peter does not let this fact undermine the constant monitoring of the industry. “You can never relax and say you’re done and go into maintenance mode,” he explains, continuing that “the iGaming industry never foregoes its services as it is open 24/7, 365 days a year.” There are always new markets to conquer, a new service to build and a new way to entertain our customers, and this awareness motivates him to push further into the industry and bring down borders.

On the subject of mergence, Peter discloses that Betsson is also looking for more well-rounded people as well as specialists. “A change that I see happening is having people who are able to do many different things,” he says. “In tech we call it full-stack; when you’re a master of many trades but not an expert in one specific thing. You should be able to know the business, know the product and tech, and then forge them together.”

What’s in store for the future for Peter and Betsson? The Chief Product and Tech Officer plans to proceed onwards with inspiring and implementing time-effective, product-excelling and customer-satisfying strategies, and Peter points out that the company will always be looking for talented developers to support its evolution.

Peter states that resting on one’s laurels is not an option for him. “I like the thrill of always being able to make a difference,” he confesses, adding that for him work in itself generates happiness and enjoyment. Like the merging of his professional roles, different elements in life also fuse together. “I have been so lucky to combine the things I do professionally, working with great people and collaborating with great companies,” he says. “I don’t consider it work, this is what I do and I love it.”

Linking back to the individual roles of a Chief Product Officer and Chief Technology Officer, they are of vital strategic importance, yet their fusion was necessary to keep up with the times and the industry’s ever-changing demands. “Betsson was one of the first larger iGaming companies that joined the CPO/CTO role together,” Peter says, adding that a lot of good has been accomplished during this time and the company is at the forefront in this respect, but still, the journey has just started.

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ON E M B R AC I N G CHANGE AND

driving

future

Photos by Tyler Calleja Jackson

growth

After a busy summer navigating the merger of Jackpotjoy Group and Gamesys, the new Gamesys Group has formed and is now in operation. Helena Grech catches up with the company’s Chief Human Resources Officer, Michela Borg, to understand what it entailed to bring together over 1,300 people spread out across 19 offices globally.

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2

019 proved to be a year of continued growth coupled with new beginnings for gaming company Jackpotjoy Group, following a merger with long-time partners Gamesys – a move that took their long-standing and fruitful relationship to a whole new level.

In June 2019, the Board of Directors at Jackpotjoy Group announced it was acquiring Gamesys for £490 million (€567 million), resulting in a newly formed company, Gamesys Group. Between June and September 2019, the acquisition and merger of the two companies was successfully completed. Chief Human Resources Officer, Michela Borg, sheds light on the motive and reasoning behind the acquisition.

“The Jackpotjoy Group side of the business has been on a path of successful growth for years, reinforced by our goals to be customer-focused, to add capability to the business and to explore geographic diversification.

Our history of successful mergers and acquisitions has led us to where we are now – a united team of individuals with a shared mission; a pretty special place to be,” she says. “We were extremely proud to be the world’s largest bingo-led business, with a large customer global base and a portfolio of highly successful brands – but always on the lookout for new opportunities to benefit our company, customers, stakeholders and employees.”

“SHAKING HANDS ON A DEAL TO UNITE THE VENTURES FELT RIGHT. COMPETING AGGRESSIVELY HAD THE POTENTIAL TO DAMAGE BOTH PARTIES COMMERCIALLY.” About the merger, Gamesys Group’s Executive Chairman, Neil Goulden, has said “this combined business has the potential to blow the rest of the UK market out of the water”. Michela adds that it also made sense in view of Jackpotjoy Group and Gamesys sharing similar cultures. “We both want to behave in the same way towards our employees and customers – which was an extremely important consideration for us during the decision-making process.”

Jackpotjoy Group has enjoyed a long-standing relationship with Gamesys, after having acquired a handful of brands from the latter four years ago, which it continued to service under the terms of a long-term platform agreement. With an eye on the future, however, Michela states that, following in-depth discussion, both companies concluded that bringing the two together would reap benefits and create further opportunities.

After a hectic summer coordinating the merger, Michela says the newly formed company’s main focus is “on connecting everyone through a shared purpose, strategy and combined set of values.

We’ve started to see great collaboration between teams across offices and are looking forward to the benefits we’ll no doubt uncover through stronger connections.”

“Shaking hands on a deal to unite the ventures felt right. Competing aggressively had the potential to damage both parties commercially, and there is no significant overlap between the companies in terms of roles, territories and propositions, so unlike many such transactions, this one isn’t founded on big cost ‘synergies’ or staff savings, merely a shared vision of combined growth. Commercially, the decision was a nobrainer,” she asserts.

Navigating a merger between two companies with so many employees each is no doubt a challenging and daunting task, but, Michela says that operating with agility and responsiveness to change has always been one of their key strengths as an organisation. “We were confident that with the right leadership and the right attitude coming from top to bottom, we had a strong formula >

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to meet these challenges head on.”

Better still, employees were completely on board. “It is a coming together of strengths, so I can’t say that it’s been a hard one to sell internally – the vibe is a positive one and everyone’s ready to roll up their sleeves and get into it.”

As the person at the helm of the Jackpotjoy Group Human Resources unit, coordinating and navigating through this change was no easy feat. “I’d like to believe we were indispensable!” she quips. “Joking aside, it is common knowledge that change management consistently comes out as the top challenge for HR professionals on a global level and across any industry, and I would say this has rung truer than ever in the gaming industry.”

Michela asserts that her team has spent the past few years building a fun and professional HR function which is “responsive, pre-emptive and adaptable to change, so when this opportunity came knocking at our door, I felt it was natural to flex our strengths as change enablers and key decision facilitators. Our role was and will continue to be for us to bring value to all aspects of the business, maintaining a fair, calm and steady approach towards keeping the people agenda at the forefront,” she explains. “It would be a failure on our part to forget that we are drivers of inspiration and connection, and I’m proud to have seen this positive and determined attitude shine through during recent times of flux.”

“IT IS A COMING TOGETHER OF STRENGTHS, SO I CAN’T SAY THAT IT’S BEEN A HARD ONE TO SELL INTERNALLY – THE VIBE IS A POSITIVE ONE AND EVERYONE’S READY TO ROLL UP THEIR SLEEVES AND GET INTO IT.”

Turning to the future of Gamesys Group, Michela shares that it has set up a number of working groups to help pull capability and resources from different corners of the organisation. She adds that this is the case “regardless of country, tenure or background”. One of the groups is currently focused on creating the combined purpose, vision and value for the new company, by taking research on both sides of the organisation into consideration. Work carried out by the working group will hopefully be launched at Gamesys Group’s first all-company update in November.

In terms of the commercial goals of the new company, this has been made a priority, with “clear strategic goals” to be launched in November too. “We already know they will be centred around growth, player sustainability with a focus on putting the player at the centre of everything that we do, and building foundations for future success which involves developing and supporting people and technology,” she asserts.

While the iGaming industry has always been fast-paced, recent regulatory shake-ups in several European jurisdictions have forced companies in the space to be nimbler and more responsive than ever. While Gamesys Group has been getting its new house in order, it’s also been keeping an eye >

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on global developments in the sector. “At its core, it’s all about building relationships for the long-term.

Integrity breeds trust, and trust is important for both employees and our customers. We’re not only thinking about today but are eager to solidify this for the future.” She contends that Jackpotjoy Group had always been known for its focus on customers, but the company is taking this focus even further with the merger, “and our customer support has clearly become one of our major brand differentiators.”

Heightening the feeling of change and progress, the Malta offices for Gamesys Group have undergone a refurbishment. Michela says the company has “had so much going on within the organisation but not much has changed in terms of office locations, except we are now proud to be more widely spread globally – with colleagues from all around the world and across several continents.”

The largest employee base is now in the United Kingdom, and the London office is “located right in the heart of Piccadilly”. It’s followed closely by the Malta office, which has grown significantly in size since it moved to its new headquarters in Msida in 2016.

“We started off with one floor, and quickly expanded to four floors to cater for our ever-increasing workforce, with the most recent floor launched in September 2019. Office renovations and expansions are always a huge expense, but so important considering the amount of time we spend at work,” says Michela.

The company worked closely with Sean Cassar, an awardwinning designer from Design Hub, on its most recent Malta project. “We built a bespoke space, catering for the needs of our various teams, with collaborative open areas, social spaces, as well as noise-free booths for those of us who enjoy a moment of peace from time to time. It’s injected with plenty of greenery and warmed through with playful colours. It’s certainly proved to be a great setting for our many internal initiatives, and I’m happy to report that a revamp of more spaces is projected for 2020 too.”

“INTEGRITY BREEDS TRUST, AND TRUST IS IMPORTANT FOR BOTH EMPLOYEES AND OUR CUSTOMERS.”

In addition to the revamped office space in Malta, Gamesys Group has set in motion various initiatives to engage and uplift workers. Michela shares that the company has “a fantastic team in place which is constantly looking to shake things up internally.”

“Most of our initiatives centre around planet and community sustainability, employee wellbeing, their health and safety, as well as worklife balance – and our most recent initiative in Malta specifically is the first of its kind here.”

Gamesys Group “has partnered with Purina and is proud to be the first to launch an official Pets At Work policy for our employees.

The idea was born out of research that shows people and pets work better together, and we were keen to embrace and benefit from the practice of bringing dogs to work. We built a dedicated space for our office pets and their owners, which we’ve aptly called PAWker Palace.”

The team even implemented a fully-fledged policy to make sure everyone is comfortable with the initiative. “There are a few steps which owners and pets need to follow to ensure maximum safety for themselves and everyone around them. The EmBARKment process is closely supervised by a professional dog behavioural assessor, and if successful, dogs are awarded a PassPAWt to join our work family.”

Although new, feedback received on the policy has been highly positive. “We’re supporting those interested through the process at the moment and hoping to expand our opportunities by partnering with dog shelters to raise awareness on the very crucial topic of dog adoption.”

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The Future of

Letting Photo by Alan Carville

IN MALTA IS HERE

RE/MAX Malta has provided a helping hand to countless gaming companies over the years, assisting them to set up both their offices and residences on the island. Now, at this exciting time for the market, the company has honed its rental offering even further, with the launch of RE/MAX Lettings Malta franchise.

They tell Jo Caruana all about it.

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ver since the iGaming sector made landfall in Malta, it has revolutionised the island’s real estate sector. Those of you reading this today may be surprised to learn that just 15 years ago, the country barely had a rental sector to speak of. Even today, the Maltese prefer to buy, so, back then, rental apartments often lay empty for months, with very few property companies possessing the expertise to effectively handle potential leases.

It was at the cusp of the iGaming boom in Malta that things really began to change. As thousands of international workers joined the local workforce,

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A luxurious apartment in a prestigious complex

“HAVING AN AGENT THAT IS A ‘JACK OF ALL TRADES, MASTER OF NONE’ IS NOT THE WAY WE WORK.” lettings instantly became the obvious option and demand for rental apartments rose exponentially.

RE/MAX Malta was at the forefront of that change, right at the beginning. From the outset, the real estate company became a friend to the iGaming sector by choosing to specialise in this particular market and to delve wholeheartedly into understanding the sector’s often unique requirements.

Today, the company remains in pole position, both when it comes to expertly servicing the real estate sector and when it comes to the wider rental market as a whole. So much so that RE/MAX Malta recently announced that it was launching RE/MAX Lettings Malta, a franchise dedicated entirely to the rental sector, with lettings expert Edward Agius now at its helm as CEO. “RE/MAX Lettings Malta launched its new franchise system earlier this year and already has 12 franchises in operation, with between 12 and 15 agents in each branch,” Edward says, detailing that this new structure has helped to differentiate RE/MAX from its competitors once again. “Although RE/MAX Malta has been a lettings leader since day one, this new system has created a dedicated workforce of 120 lettingsspecialised agents; a definite first for Malta.”

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This office network stretches across Malta and Gozo. “From standard and middle-market accommodation through to luxury homes and commercial premises, we have one of the largest lettings databases in the country. We believe in providing clients with convenience and a stress-free environment. So, our new offices are all centrally situated in very prominent areas and seafront locations, and clients will be able to utilise this very convenient and cohesive service in the way that suits them best.”

The RE/MAX Lettings Malta strategy is not just about growing the lettings business but will also create the right kind of opportunities for experienced lettings agents and franchise owners.

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“We have long offered second-to-none service,” Edward continues. “But, we now have the chance to improve our services even further as our own brand with fully specialised offices that focus solely on rentals. Having an agent that is a ‘jack of all trades, master of none’ is not the way we work. This has always been our ethos with our agents but now we’reextending it further by having specialised offices.”

With this in mind, RE/MAX Malta now also has a dedicated real estate academy for its lettings team, giving agents the unique knowledge they need in this exciting but demanding sector. “We have hired a training manager to focus exclusively on the lettings market, giving them the time to cope with the anticipated growth within the industry,” Edward says.

“We know that expertise develops through the right training as much as through experience, which is why this training academy is tasked with training all our lettings agents. With the right kind of training and support, we can continue to improve both the quality of the services we offer clients and our closing rate.”

He goes on to highlight how RE/MAX Malta continues to receive regular requests from iGaming companies setting up in Malta, each with their own unique requirements.

“This is a great time to be setting up here, both from a tax perspective, as the regime is very advantageous for foreign investors, and because there are lots of exciting new projects on the market for investors to consider.”

“After all, the iGaming sector has really raised the standard of lettings properties since it came to Malta.

This is because the renters that came with it were looking for quality – bright and airy homes with plenty of space, modern furnishings and good connectivity. For a while, the property sector struggled to keep up and demand hugely outweighed supply.

Today, the good news is that that has evened out, so prices have even begun to go back down to a more sustainable level. There are some fantastic properties on the market for both commercial and residential renters.” >

“THE IGAMING SECTOR HAS REALLY RAISED THE STANDARD OF LETTINGS PROPERTIES SINCE IT CAME TO MALTA.”

Excellent facilities in a leading business centre

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Photo by Alan Carville

WINTER 2019/2020 PROPERTY

“RE/MAX LETTINGS MALTA LAUNCHED ITS NEW FRANCHISE SYSTEM EARLIER THIS YEAR AND ALREADY HAS 12 FRANCHISES IN OPERATION, WITH BETWEEN 12 AND 15 AGENTS IN EACH BRANCH.”

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Now, as the RE/MAX Malta team looks to the future, the stabilisation in the market can be seen as a great opportunity for those already based here as well as those making the move here to find properties at more advantageous rates. “This remains a very exciting time for the iGaming sector on the island and quality is very much our focus going forward. It’s simple: RE/MAX Lettings Malta’s success stands on the shoulders of every agent’s and client’s success, so a market-leading, top-quality service is paramount, and that is exactly what we are able to offer – now more than ever,” Edward adds.

Rental expertise: An exquisitely restored palazzino

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Photos by Rene Rossignaud

WINTER 2019/2020 LIFESTYLE

One clear vision Great advances in laser technology and eye surgery have been made in recent years and, these days, both reading and far-sighted glasses can become a thing of the past. Mariella Camilleri catches up with members of the Saint James Eye Clinic team to find out about their own personal experiences undergoing different procedures to eliminate the need to wear glasses.

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e don’t appreciate our vision until it begins to diminish and when it happens, we often unwillingly become dependent on glasses.

Whether needed for close or distant vision, glasses become the one indispensable accessory we cannot live without but, thankfully, that can be reversed. Over the years, Saint James Eye Clinic has built a stellar reputation for offering both eye laser treatment and refractive lens exchange – procedures that help to restore vision in the least invasive way possible. Both courses of action provide the opportunity to live life as nature intended – perfectly sighted and specs free.

The SMILE eye laser procedure, which corrects far sightedness, is the only available technique that does not make use of a blade. Unlike other treatments, which could cause damage to the cornea, SMILE is a very low-risk procedure because it is less invasive than most other interventions. Testament to this success lies in the staff of Saint James Eye Clinic – a number of members have had their vision restored thanks to the trustworthy surgeons and the services the clinic offers.

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Upon consultation, the surgeon will ensure that patients interested in the procedure do not suffer from any condition where treatment may be contraindicated. These include nursing and pregnant women, patients who suffer from uncontrolled diabetes and rheumatologic conditions, to name a few. Those eligible for treatment will also undergo tests to ensure they are in optimal health.

The surgeon will discuss the options available and help patients choose accordingly. In cases where both near and far sightedness need to be corrected, refractive lens exchange (RLE) may be recommended. During the surgery, the natural lens is replaced with an artificial intraocular lens, which corrects any refractive errors, achieving sharper focus.

RLE is ideal for patients with extreme far sightedness as well as those who are not eligible for other procedures. If one requires both reading and distance glasses, RLE could provide the desired solution. In RLE, the inserted lens is one that provides a sharper and a clearer focus. The natural cristalline lens of the eye is removed, therefore no cataracts can be developed in the future.

Today, the demand for precise vision has increased, particularly for those over 40 years of age, when swapping specs can be a real inconvenience. At Saint James Eye Clinic, the staff and surgeons are always ready to discuss the procedures available and help patients decide on the most suitable treatment, particularly those who have already undergone vision correction treatment, and are therefore able to offer first-hand support and encouragement to patients interested in perfecting their vision.

Jean Claude Muscat – CEO Procedure – Refractive Lens Exchange “I decided to opt for the refractive lens replacement treatment after having worn glasses for over 30 years. It wasn’t much about my appearance but rather about the inconvenience they caused, especially when I needed both far sighted and reading glasses. I had to swap these whilst driving or watching television which was impractical.

I opted for Refractive Lens Exchange with a multifocal implant rather than the laser treatment because I needed to correct both distance and close vision. This surgery allowed me to recover my eyesight to perfection since I can read and see from far without having to use specs.

On the day of the treatment, I was calm and not too concerned about the procedure itself. I was obviously well informed, however, the support of our superb nurses and doctors helped greatly.

Afterwards, I was impressed at how quickly I recovered.

I could see clearly from the next day, however, my vision became sharper and sharper over the next two weeks. For the first few days, I was sensitive to light but this problem resolved itself as the days went by. In fact, I only took one day off work after the surgery and was able to resume all routine activity the following day.

In my case, the surgery proved to be a life-changing experience. These days I feel more comfortable going through my daily life without needing reading glasses and far sighted ones. Every morning when I wake up and see clearly, I am thankful for the surgery that restored my vision.

Although I have encouraged lots of people to opt for this procedure, I always remind them that it’s crucial to read up and ask questions about the operation itself. One must always be informed about both the benefits and the risks that come along with lens replacement.” >

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Ali Shehzad – CFO Procedure – SMILE “I had worn glasses since I was seven years old and they became a part of me. However, having bad eyesight meant that I was totally dependent on wearing specs because my vision was very poor. Due to this, I always had more than one or two pairs just in case they broke or I misplaced them.

When I joined Saint James Eye Clinic, I obviously became very interested in this treatment. I knew that I would never see well without my glasses but the thought of living without them became more appealing as time went by. Not having to rely on glasses gives a person a lot of freedom, especially for someone like me who couldn’t function properly without them.

I was not concerned at all about whether the SMILE procedure would be painful or whether it would be successful. Thankfully, the treatment went well, just as I had expected. I didn’t experience any discomfort and soon after I left the theatre I was amazed to discover that my vision had already improved. Having eye laser treatment has really changed my life.”

Tanya Costa – Head of Quality Services Procedure – Surface Ablation “I have worn glasses since I was a teenager.

Back then, I used to play tennis and I loved scuba diving, however, having glasses was a great hindrance. Unfortunately, I was allergic to contact lenses and so had to wear glasses all day long.

I was working as a laser machine operator at Saint James when I finally decided to undergo the surface ablation procedure. Of course, seeing patients walk in with their glasses and leave without them played a big part. I think seeing how relieved they looked made me opt for the treatment sooner than I thought.

Honestly, I was very anxious about the procedure because I feared it would be painful and that I might not have been able to hold still. However, the procedure was completely painless.

At the time I had my eye laser treatment, only surface ablation was available. I did experience some pain and discomfort afterwards, which lasted around four days (Tanya had the procedure 14 years ago using an earlier generation laser platform. Today, the procedure is pain free). However, once the contact lens inserted during the procedure was removed, I was as good as new. Thankfully, these days I no longer need glasses and I can see clearly.” >

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Michelle D’Amato – Head of Housekeeping Procedure – Refractive Lens Exchange “I’ve always suffered from bad eyesight, but I resisted getting specs until I turned 16. By then, my vision had become so poor that I had no choice but to get prescription glasses.

I wasn’t comfortable wearing specs because I hated having a foreign object on my face.

Having +8 Dioptres of vision meant I was totally reliant on my specs and so very limited when carrying out certain activities. Later, I started using contact lenses, but these weren’t very comfortable either.

However, my determination to live specs-free was stronger than my fear, and this gave me the will to face the journey ahead.

Following the surgery, I was relieved to discover that I wasn’t in pain. For the first few hours my eyes kept watering, but I had already noticed an improvement in my vision. By the next day, my sight became crystalclear and now I can see all the tiny details that weren’t visible to me in the past.

I had considered laser surgery, however, having a high ‘plus’ prescription meant I was not eligible for the procedure. Eventually, I was advised to do the lens replacement procedure, as it would correct both close and far sightedness.

It’s truly amazing that my eyesight was corrected with such a short and rapid intervention. I urge anyone who is interested to take the plunge. I’m glad I did because my eyesight has never been better. The procedure has truly changed my life.”

Despite being well informed about the procedure, I was still terrified about the surgery and feared something would go wrong.

Janet Pisani – Head of Reception Procedure – Refractive Lens Exchange “At the age of 25 I needed glasses to see from afar. I hated wearing specs because I looked better without them and found them rather inconvenient. I had eye laser treatment done 15 years ago and it corrected my vision. Life is somehow a bit easier when one doesn’t need to rely on glasses.

I spent the next eight years without glasses, until reading became a problem, so I was prescribed specs once again. This time I opted for the refractive lens exchange with a multifocal implant because far sightedness was also becoming an issue.

The surgery meant that I would be completely specs-free.

I was naturally apprehensive about the surgery, but my colleagues were wonderful and offered full support. I wasn’t worried about the outcome as I had total faith in the surgeon who performed the procedure.

Post-surgery, I was amazed to discover that there was no discomfort and my eyesight improved instantly.

The procedure is amazing for people who are over 40, when both near and far sightedness begin to diminish.

I would recommend the surgery to anyone who doesn’t want to rely on spectacles for a better vision.”

Saint James Eye Clinic, Triq Dun Karm, Birkirkara Bypass, Birkirkara. T: 2247 2630/1; E: info@stjheyeclinic.com; www.stjheyeclinic.com

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WINTER 2019/2020 INTERVIEW

Cementing Malta’s future AS THE DEFINITIVE GLOBAL iGAMING HUB Malta’s reputation as the centre for iGaming in Europe shows no signs of waning and, according to Dr Deborah Vella, Client Relationship Manager and Head of Business Development at E&S Group, the future seems bright for those involved. Timothy Vella catches up with Dr Vella to find out where Malta’s iGaming sector is heading and what to expect in the years to come.

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he European market is the largest for the iGaming industry and Malta is at the forefront of the pack, proving itself, time and again, to be among the best locations for gaming companies to establish themselves. With a gross gaming revenue of €16.5 billion in Europe, expected to rise to a staggering €24.9 billion by 2020, the market is experiencing rapid growth. As Head of Business Development at E&S Group, Dr Deborah Vella believes that, by preparing for the future, companies can secure their interests for the long term. This includes preparing for outcomes related to Brexit, which she describes as a landmark event that will affect the iGaming industry in an unprecedented way.

“Brexit is an event that is going to have a significant impact on our gaming economy,” remarks Dr Vella. “It will result in an influx of gaming companies seeking to maintain their stakes in the treasured European market, leading to an increase in registration and relocation of foreign companies to our shores, enticed to come here because of the well-developed gaming ecosystem that Malta offers. Whereas other countries have unnecessary bureaucracy and complex licensing processes, Malta has recently enacted the Gaming Act, with improved amendments constantly enhancing the legislation, which is helping to eliminate the former and simplify the latter.”

In such a dynamic sector, flexibility is one of the biggest advantages a jurisdiction can have. “Being in constant close contact with industry players, both the relevant authorities and clients, it is easier for us to identify issues before they crop up and solve the problems which clients face. We ensure a degree of flexibility when catering to new start-ups as well as current clients in relation to adapting to new legislations or operating rules.”

Employees are the building blocks of successful companies. Dr Vella highlights the importance of training and investing time in employees as well as recruiting a diverse range of knowledgeable people, to keep staff up to date with relevant developments in regulations and industries, such as the recent developments in AI and esports.

“The fact that so many global tech labs are relocating to Malta means that law firms need to be well-versed in the requirements for setting up safe and secure IT solutions to protect players. Employees must adapt and learn new IT standards and player protection requirements so that all clients can be well informed when making crucial decisions. Businesses need to be proactive so that relocation to Malta is efficient and as effortless as possible.”

Despite the iGaming sector’s success, there are areas which Dr Vella believes need >

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Photos by Inigo Taylor

“EMPLOYEES MUST ADAPT AND LEARN NEW IT STANDARDS AND PLAYER PROTECTION REQUIREMENTS SO THAT ALL CLIENTS CAN BE WELL INFORMED WHEN MAKING CRUCIAL DECISIONS.”

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improving. “Banks, both locally and on an EU level, ought to work together for common goals and diligently provide a smoother process in opening both operational and client accounts for gaming companies set up in Malta or relocating here.

Adding to this, the Malta Gaming Authority (MGA) should continue to address certain improvements, such as ancillary service providers, ensuring that Malta remains an attractive jurisdiction for innovation.”

“I REALLY DO BELIEVE THAT NOT ONLY WILL THE IGAMING SECTOR GROW EVEN MORE IN THE COMING YEARS, BUT IT WILL GROW AT A RATE AS YET UNSEEN.”

Furthermore, rather than relying on technical experts from foreign jurisdictions, Dr Vella believes that, if the University of Malta and other educational institutions were to increase the number of courses they offer relevant to this field, a larger workforce of technically-versed local employees would help the industry retain its roots here in Malta. While the academic education of such employees is of utmost importance, practical, work-related experience and hands-on in-house training, conducted by large companies aimed at tackling the skills gap, is also a must.

“The rise of the gaming industry in Malta has been an indisputable success. The introduction of the mentioned Gaming Act set new requirements for Anti-Money Laundering and Counter Funding of Terrorism (AML/CFT) standards. This shift to a risk-based approach has made the regulators’ supervision more efficient, creating a more secure environment,” Dr Vella asserts. “Furthermore, the upcoming introduction of the fifth European Union AML Directive, in January 2020, will bring about further changes to the industry, increasing the compliance of gaming companies. The fact that, adding to all this, Malta has a sandbox in place for DLT and crypto technologies allows for an unprecedented level of innovation testing, leading to an environment which promotes future technological development within this sector.” >

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“BREXIT WILL RESULT IN AN INFLUX OF GAMING COMPANIES SEEKING TO MAINTAIN THEIR STAKES IN THE TREASURED EUROPEAN MARKET, LEADING TO AN INCREASE IN REGISTRATION AND RELOCATION OF FOREIGN COMPANIES TO OUR SHORES.” >

Dr Vella adds that Malta’s reputation as a reliable destination for various forms of gaming will continue to grow, “provided we make the process easier for clients. This can be done by identifying problems and using innovative technologies to come up with solutions.”

With the introduction of the second phase of the MFSA’s new regulatory sandbox, gaming companies may now test other innovative methods of payment. The regulatory sandbox intertwines the gaming industry with blockchain technology, envisaging a merger between the two industries in the future to create a far more secure system.

Improvements to the degree of flexibility regarding administrative requirements for gaming companies are, of course, welcome but what degree of protection can individual players themselves expect? Dr Vella lists a multitude of options available to them. “The MGA is putting into place a new self-exclusion system for players, which gives them the power to block themselves from all Maltalicensed iGaming operators. While these tools are already offered by operators licensed with the MGA, this is the first time that a unified system with upgraded protection will be available. In fact, we look towards the future with the vision of a unified self-exclusion system across all of Europe.”

Players will benefit from disclosure requirements on all pages on licence holder websites, as well as increased transparency measures such as a requirement to clearly display company links to organisations that aid persons with gambling problems on the gaming websites. “Changes to these websites and their agreements are fundamental to the protection of players,” says Dr Vella, “and the terms and conditions must be fair according to the Consumer Affairs Act, accessible at all times and any changes must be expressly agreed to beforehand.”

Players will also be able to see any commissions or fees charged to their accounts, which the business operating the service must include, and their balance and currency must always be visible. “This degree of visibility of player options and transparency is unprecedented in this sector.”

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“The businesses which have been and are still relocating to Malta today are the best pick of the bunch among all gaming businesses in the world, ensuring long-term success in a jurisdiction which has created the right framework for them to thrive,” she says.

“While it is certainly a possibility that the regulators will become more stringent in setting up policies and procedures, operators and developers who truly have this business at heart will push themselves to reach and surpass these targets. I really do believe that not only will the iGaming sector grow even more in the coming years, but it will grow at a rate as yet unseen.”

WINTER 2019/2020 LIFESTYLE

A Fresh

Start

Photos by Tyler Calleja Jackson

“WE OFFER A HOLISTIC SERVICE FOR CUSTOMERS; WE DON’T JUST DO LAUNDRY.” 096

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IN TERMS OF SERVICE CULTURE, PRESSTO+PLUS’S INTENTION IS TO IMPROVE THE SHOPPING EXPERIENCE BY OFFERING A SOLUTION FOR EACH NECESSITY.

With the Pressto chain having more than 400 establishments in 25 markets, Emma Mattei speaks to its Country Manager, Alan Azzopardi, about the new laundry franchise to hit these shores and what the future holds for it across the Maltese islands.

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he award-winning, international laundry chain Pressto+Plus has seen many changes since it opened its first dry cleaners in the district of Chamberí, in Madrid in 1994. From Qatar to Australia, from Peru to Angola, Pressto+Plus has been providing laundry-related services for 25 years, while successfully bridging cultural diversities through its cleaning, ironing and integrated care for all types of garments, using a system that is efficient and offering pricing that is competitive.

Upon entering the bright, newly-opened Pressto+Plus premises in St Julian’s, you’re immediately greeted by the giddy smell of fresh laundry and there’s nothing better than that, except perhaps that of brewing coffee! Alan Azzopardi descends from the upper levels, looking dapper and wearing a warm and welcoming smile. Not the usual run-ofthe-mill launderette, where one kills time while the load spins, this feels more like a co-working space that offers a pleasant and calming environment in which to work off your laptop, read or even hang out if you’re doing laundry with a friend.

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Alan shares his thoughts about addressing the gaps in the market. To catch up with evolving, fast-paced lifestyles, “we offer a holistic service for customers; we don’t just do laundry. We also offer Pressto+Plus, which includes dry cleaning, wet cleaning, pressing, tailoring, ozone cleaning, express services, bag and shoe cleaning, luggage lockers for people on the move, and other additional services such as free WiFi for customers. We’ll even print out your boarding pass should you need.”

The fast-growing expat community in Malta is largely a young workforce and there’s no doubt that Pressto+Plus is especially appealing to them. Alan explains: “expats usually create associations and communities to share all kinds of things and help each other out. We consider this an opportunity to make us well-known among their members and we have designed micro-marketing actions targeting these communities.” >

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Locally, we do not have a culture of outsourcing our laundry needs, though, in these changing times, the convenience of having your laundry washed, pressed and delivered might indeed catch on, not to mention being able to make use of the other services available and the turnaround time offered. “The local market is an important one to us,” says Alan. “So far, clients have confirmed that our service is easy, fast and reasonably priced, saving them time and money. This has been a positive response and makes our brand attractive – a trend we’re aiming to continue.”

In terms of service culture, Pressto+Plus’s intention is to improve the shopping experience by offering a solution for each necessity, to pleasantly surprise the customer upon entering the premises. Furthermore, Pressto+Plus is constantly striving to lessen its carbon footprint by introducing environmentally friendly materials across all services, such as ecological coat hangers, biodegradable plastics and materials which can be reused.

“WE TRY TO ADAPT TO THE GROWING DEMAND FOR DIFFERENT SERVICES, SUCH AS HELMET CLEANING, BABY’S ITEMS, RUGS – YOU NAME IT, WE CLEAN IT.”

“All our soaps are biodegradable, which also reduces the risk of allergic reactions. Little by little, we are removing all plastics from our stores by offering reusable products to our customers, such as laundry bags and sacks,” says Alan, adding “and, of course, our washers have automatic load-sensing, so just the right

amount of water and soap are added, based on the weight of the load. Thanks to the effectiveness of our soap programmes that use medium temperature water, we do our best to minimise our impact on the environment. All our washing processes, which have been designed by Pressto+Plus, run for an average time of 30 minutes.”

Currently, Pressto+Plus offers delivery and pickup services in zones close to their shop in St Julian’s, with the aim of extending the service to other zones. A smaller outlet is due to open in Sliema, with new premises opening up in Bugibba too by the end of the year, where Pressto+Plus will indeed be able to extend their services to another part of the island. >

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“OUR WASHERS HAVE AUTOMATIC LOAD-SENSING, SO JUST THE RIGHT AMOUNT OF WATER AND SOAP ARE ADDED, BASED ON THE WEIGHT OF THE LOAD.”

While it might be a little overwhelming upon entering the laundry for the first time, where you’ll need to choose from a selection of services and bundles, staff is at hand to assist you, Alan explains. “While the customer is the one using the washing machines in the self-service section, the assisted service goes a step further: the customer only needs to deliver the garments to the shop and our staff take care of the cleaning process.” The local staff members are trained to ensure the customer is able to find the right services for them, as are the technicians who regularly service the machines.

In keeping with the millennial approach to living, an app is being created that will allow customers to order home pick-ups and deliveries, find the nearest store and follow up on offers, promotions and special services. It is due to be launched by the end of 2019, giving clients more control over how and when to use the laundry’s services.

Pressto+Plus’s can-do attitude means they try not to turn anything down. “We try to adapt to the growing demand for different services, such as helmet cleaning, baby’s items, rugs – you name it, we clean it. We want our customers to return, satisfied, so we customise our services and tailor them to the individual, who is our primary market. I believe the concept is good enough for it to take off on its own. It has now been introduced and I believe it will sell itself,” concludes Alan.

There’s a vibrancy to Pressto+Plus, also noticeable across its website and printed materials, which gives clients a good sense of how the brand achieved global success – by combining research and expertise with warmth and good humour, truly taking a load off our feet.

Pressto+Plus, 64, St George’s Road, St Julian’s. T: 2226 3900; E: deliverymt@pressto.com; www.pressto.mt

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WINTER 2019/2020 CALENDAR

iGaming Calendar Never miss an appointment! Here are some of the most important iGaming events, trade shows and conferences happening worldwide over the next few months.

Photo by SiGMA

FRIDAY 8TH

European Gaming Congress (EGC) Milan, Italy

TUESDAY 19TH

EEGS (Eastern European Gaming Summit) Sofia, Bulgaria

Responsible Gaming Academy | Totally Gaming Academy London, UK

WEDNESDAY 20TH

SAGSE 2019 Buenos Aires, Argentina

Balkan Entertainment & Gaming Expo (BEGE) Sofia, Bulgaria SiGMA

TUESDAY 26TH

KPMG Malta eSummit 2019 Hilton Malta, Malta

NOVEMBER 2019

Lottery Academy | Totally Gaming Academy London, UK

MONDAY 4TH

NYC Sports Betting Investor Summit

Malta Gaming Awards

New York, USA

Malta

TUESDAY 5TH

WEDNESDAY 27TH

Asia Gaming Summit, Taiwan

SiGMA (Europe)

Taipei, Taiwan

Malta

Award in iGaming – MQF Level 4 Malta

WEDNESDAY 6TH

DECEMBER 2019

TUESDAY 3RD

GSA Technology Summit: Focus Artificial Intelligence

SBC Awards 2019 (#SBCAwards2019)

San Diego, California, USA

Battersea Evolution, London, UK

THURSDAY 7TH

THURSDAY 12TH

EGR UK Summit 2019

Affiliate Marketing Conference Belarus

Twickenham Stadium, London, UK

Minsk, Belarus

Malta AI & Blockchain Summit Malta

Reputation Matters: The Gambling Sector in the Spotlight Soho Hotel, London, UK

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Photo by SiGMA

WINTER 2019/2020 CALENDAR

JANUARY 2020

MAY 2020

TUESDAY 14TH

SiG

MA

THURSDAY 14TH

Gaming Innovation Summit 2020

iGaming Germany (iGG)

Manila, Philippines

Berlin, Germany

FRIDAY 17TH

TUESDAY 19TH

AskGamblers Awards

Janspin Gaming After Party / Cyprus Gaming Show

Belgrade, Serbia

Nicosia, Cyprus

MONDAY 20TH

THURSDAY 21ST

EGR Nordics Awards 2020

Cyprus Gaming Show

Hilton Malta, Malta

Nicosia, Cyprus

SUNDAY 24TH

FEBRUARY 2020

iGaming BBQ by Bojoko / The 2020 IIHF World Championship Gzira, Malta

TUESDAY 4TH

ICE London 2020

JUNE 2020

ExCel, London, UK

WEDNESDAY 5TH

TUESDAY 2ND

iGB Affiliate London

Betting on Sports Europe (#boseurope)

ExCel, London, UK

Stamford Bridge, London, UK

Troxy, London, UK

Asia Gaming Awards

Lyceum Fire & Ice Party

SUNDAY 7TH

Conrad Hotel, Manila, Philippines

MARCH 2020

National Congress of American Indians (NCAI) Mid-Year Conference 2020

FRIDAY 6TH

Anchorage, Alaska

Prague Gaming Summit 2020 [RE:LOADED]

MONDAY 8TH

Vienna House Andel’s, Prague, Czech Republic

SiGMA (Asia)

TUESDAY 24TH

SMX Convention Centre, Manila, Philippines

CasinoBeats Malta (#casinobeatsmalta)

THURDAY 11TH

InterContinental, Malta

All-In Gaming Ukraine Summit

WEDNESDAY 25TH

Kiev, Ukraine

SPiCE India

WEDNESDAY 17TH

Goa, India

Gaming & Affiliate Marketing Expo Greece Athens, Greece Source: www.igamingcalendar.com

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WINTER 2019/2020 PROPERTY

What’s in

store?

ASSESSING THE FUTURE OF MALTA’ S PROPERTY SECTOR

Is the property sector experiencing a bubble? Is demand really outweighing supply? Or are property prices truly beginning to decline? Caroline Curmi speaks to four professionals in the real estate sector to clarify the current state of Malta’s property industry.

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n recent years, Malta’s structured landscape has undergone an unprecedented transformation, and today it encompasses a mix of charming old houses, tall apartment blocks and multilevel business spaces. Considering the influx of international businesses settling in Malta, is the possibility of the island running out of property spaces – both residential and commercial – a ticking time-bomb?

Although property has long been a topic of major debate in Malta, this past decade – which has witnessed a boom – has seen it trump issues such as health and safety, and top the list of anxiety-inducing stressors. The variables in this formula have evolved as time, and the economy, progressed, and current concerns are diametrically opposed to those that

“THE PROPERTY MARKET WILL CONTINUE TO DO WELL AS LONG AS WE DO NOT KILL THE GOOSE THAT LAYS THE GOLDEN EGG.” Douglas Salt, Director, Frank Salt Real Estate

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characterised the early years of the decade.

The exorbitant amount of vacant properties, for example, had long been an issue of intense discussion and speculation, but the lack of tangible studies often left one to rely on public narrative to source indicators on the topic, a situation which downplayed the matter’s urgency.

WINTER 2019/2020 PROPERTY

“I BELIEVE THAT THE MARKET IS IN NEED OF SMALLER RESIDENTIAL UNITS.” Henry Zammit, Franchise Owner, Ben Estates Even in present days, not much information is available in terms of comparable national statistics.

The last official study was published through the 2011 Census of Population and Housing, which provided a degree of insight into the local housing phenomenon in post-recession Malta. Figures at the time indicated that out of a total of 223, 850 residential structures, 71,080 were unoccupied dwellings.

While the quantity watered down to 41,232, or 20 per cent of all houses in Malta, over the summer period to reflect seasonal tourism and migration trends, the general unoccupancy rate stood at 32 per cent. The variance experienced between the two main islands provides an interesting observation. At the time, 71 per cent of buildings in Malta were occupied, a figure which lowered drastically when the focus was shifted to Gozo, where 46 per cent of its buildings were occupied.

While estate agents and property professionals are largely in agreement that Malta is wellequipped to deal with a population influx, Engel & Völkers Sara Grech Managing Director Benjamin Tabone Grech believes that the situation prevalent throughout the decade’s early years is far from being mitigated. “I urge you to embark on a small study,” Mr Tabone Grech says, while suggesting that a camera should be set up to point at Tower Road, Sliema. “You tell me for the hundreds of units, how many lights over a three-week period never turn on?”

For a population which had just exceeded the 400,000 mark, the figures may have appeared astronomical, but for the presentday population which is set to push past half a million by 2020, the tables have turned.

Anxieties have now shifted from vacant dwellings to the increasingly apparent lack of such structures. These stresses are being felt by locals and expats alike, with many currently experiencing difficulties in securing – either renting or purchasing – economically viable accommodation with the added assurance of a high quality of living.

If this is the case, then what makes it so difficult to find accommodation irrespective of earning a decent living? Despite the general narrative dictating that the financial packages being offered to iGaming industry workers are the root cause of the dramatic upward shift in property prices, Zanzi Homes CEO and co-Founder Steve Mercieca believes there’s another dimension to this predicament. He points out to what he believes are two crucial elements: Malta’s attractive tax incentives offered to foreign businesses and the island’s increase in popularity.

In reaction to current trends, the construction industry has capitalised on the situation and initiated multiple developments. Initially welcomed, these actions are now often being labelled as an overly excessive move by the general public and many environmental lobbyists, who are concerned over both the diminishing availability of green areas and the consequential side-effects of mass erection.

One of these consequences is a similar yet different take on the 2011 dilemma.

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WINTER 2019/2020 PROPERTY

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“Since the introduction of new apps such as Airbnb, Booking.com and Instagram, Malta’s popularity has soared,” Mr Mercieca says, while adding that “interviews with people like Nas Daily have revealed the Mediterranean’s best hidden secret.” This, according to Mr Mercieca, has led to a holiday letting business boom on local shores. He reveals that during peak season, many properties are put up for short lets to cater for the huge number of tourists that flood the islands: “In 2017 alone, 43 per cent of the 2.2 million tourists opted for private accommodation.”

“TO KEEP MALTA POPULAR WE MUST KEEP IT CLEAN AND ATTRACTIVE.”

Mr Mercieca continues that before, “properties were undervalued”. The huge demand generated from an influx of both international workers and tourists to the island did not meet the available supply, thus resulting in several lower-quality structures being let out at similar prices to more comfortable and luxurious ones. He is adamant that such properties will start being rented out at a more appropriate price point to reflect their true worth, while “new, modern apartments serviced by lifts will be rented out for around €1,200 per month.”

Steve Mercieca, CEO and Co-Founder, Zanzi Homes Director of Frank Salt Real Estate, Douglas Salt, believes that the problem encountered by some of not managing to find lodging at the right price is mostly down to some landlords’ greed. While he does not believe that this problem will ruin the market entirely, he concedes that such attitudes may prove to be a difficult dent to fix. “The property market will continue to do well,” Mr Salt says, but warns that this will only be possible if landlords “do not kill the goose that lays the golden egg.”

According to Mr Tabone Grech, it is now becoming clearer to landlords that past trends no longer apply. He believes that landlords who “have understood this have rented their properties and found good, reliable tenants,” but laments that there are still those who persevere in retaining high prices and as a result “either manage to obtain a tenant who can pay a high price but is less reliable or leave their property vacant without generating an income.”

According to Ben Estates Franchise Owner, Henry Zammit, the onus is not so much on realtors but on the construction industry itself. Demands have evolved from previous years and a distinction needs to be drawn to cater for property requirements for both locals and expats. In order to address this, contractors and investors need to be aware of current trends. “I believe that the market is in need of smaller residential units,” Mr Zammit states, while insisting that such a move would “help the pricing of the rental market.”

Noteworthy is the apparent lack of one-bedroom apartments, for which there seems to be an increasingly higher demand. Mr Tabone Grech expands on this as he makes reference to earlier observations that apartments with a smaller number of bedrooms would result in a more profitable endeavour for developers. While some developers paid heed to this advice, others did not and Mr Tabone Grech reveals that “we now see that larger, three-bedroom units cannot obtain the same prices per square metre as two-bedroom units.” >

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WINTER 2019/2020 PROPERTY

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The interviewees are all in agreement that although a dip in property prices does not feature in their market forecasts, fluctuations in property prices are currently heading towards a point of stabilisation. Mr Tabone Grech draws back to his previous comments on landlord and developer conduct: “those who build exceptional quality and are aware of what quality really is will be able to obtain much better prices for the property in comparison to others.”

Similarly, Mr Salt believes that a good supply is guaranteed to better ease the demands of the market, however, this ultimately depends on developers. “The biggest challenges will be ensuring affordability and convincing players to improve standards and design to cater for a growing middle class,” Mr Salt insists, adding that this would require “more outside space, even if communal, and more attention to environmental factors.”

“THE DEMAND IS NOWHERE NEAR AS NUMEROUS AS THE NUMBER OF UNITS COMING TO THE MARKET.” Benjamin Tabone Grech, Managing Director, Engel & Völkers Sara Grech

For Mr Mercieca, more awareness on sustainability and the environment are necessary for the industry to truly thrive and move forward in accordance with the times. He is mindful of the many steps such a direction would involve to implement, but is hopeful for better cross-industry regulations. While he acknowledges that large companies setting up a local base help the country attract further investment, Mr Mercieca draws attention to crucial factors – and their implications – that need to be observed: “to keep Malta popular we must keep it clean and attractive.”

Mr Tabone Grech builds on this, and calls for more cautious procedures to be implemented and respected. “The demand is nowhere near as numerous as the number of units coming to the market,” he reveals, adding that rather than focusing on building structures in a rash manner, the priority should be “the quality of the sale property portfolio.”

While it seems unlikely that the amount of available properties will diminish, the issues of vacant dwellings, rental mismanagement and flawed construction and design strategies are all contributors to the situation tenants are currently facing. What is clear is that professionals in the field need to pool together to meet consumer requirements, while the prospect of a more stable rental market and more stringent regulations will certainly facilitate the task of finding appropriately priced and viable accommodation.

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WINTER 2019/2020 WORKSPACE

King

jungle T H E

Photos by Alan Carville

O F

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WINTER 2019/2020 WORKSPACE

With an ever-growing complement and a constant need for more space, the team at LeoVegas had a tough few months ahead with an extensive office redesign – but they pulled it off, and to great effect.

Martina Said finds out what changed and what went into creating an elegant jungle-themed office.

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t this gaming company, the use of nature and nature-inspired elements are not just for decoration, they are an intrinsic part of the company’s values, although applied to the design of the office with flair and style. A walk around the offices of LeoVegas, spread across four floors at The Plaza, in Sliema, soon reveals a theme that is equal parts fun, motivating and sophisticated, which is just what the team set out to achieve with its recent and thorough refurbishment.

I meet Joshua Schembri, Office Development Manager, and Ernest Mercieca, PR and Communications Specialist, to find out what went into the design of their revamped office space, which they quickly say had been a long time coming.

LeoVegas came to Malta seven years ago and it instantly made itself at home at The Plaza, in Sliema – the only difference being that, back then, the company was made up of a team of 50 people located on level seven of the shopping centre while, today, it’s got a presence on four floors and employs 400 people in the Sliema office alone, with more staff in the smaller, Casino Grounds Valletta office located on Barbara Bastions.

“Sliema was always an obvious choice. It’s the gaming hub for Malta and ticked all the boxes for us,” says Ernest. “But we’re constantly trying to gain more space!”

LeoVegas occupies all of levels five and seven, and parts of levels eight and six at the shopping centre and, following a complete refurbishment of levels seven and eight, works are still in progress to update the rest of the floors, while ensuring that all teams can continue to work without excessive interruption. Before design changes could commence, however, Joshua had to begin with the basics.

“The refurbishment actually began with an internal exercise. I met with all team leaders to understand their requirements and which teams they work most closely with, so

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WINTER 2019/2020 WORKSPACE

“FOR THE MALTA OFFICE, WE CHOSE TO FOCUS ON THE ‘LEO’ PART OF THE BRAND, AT THE HEART OF WHICH IS THE LION AND THE JUNGLE THEME, WHICH WE EXPLORED IN A FUN BUT ELEGANT WAY.” Joshua Schembri, Office Development Manager

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that any new relocations would make sense for all teams involved,” says Joshua. “For instance, on level five, the customer-oriented teams are close to each other; these include customer support, CRM, VIP, outbound and the casino teams. Level six is the meetings area. Initially, there were three different teams and meeting rooms on this floor but we converted it into a large, communal meeting space.”

Level seven is the operations floor and includes the IT, HR, legal and compliance, communications and office team, as well as Royal Panda teams, the latter being a subsidiary company of LeoVegas. “The operations and technical teams are all located on this level, while, on level eight, there’s the finance team and the creative team, with around 30 members in each. This floor also has two main meeting rooms which are used for high-level business meetings and it’s also the floor we use for organising office events and get-togethers.”

The team engaged local architecture firm, Forward Architects, for the design of the two refurbished upper floors, while the in-house team project managed the internal works and carried out the soft refurbishment throughout the rest of the office. “All services and flooring were replaced throughout the offices. This was a must. But beyond this necessity, we wanted to offer a new experience and a pleasant environment to all employees,” says Joshua. “After six years, the space starts looking tired and people get tired of it too, so a makeover was overdue.”

The team split up works according to what was needed most. While some floors called for a complete overhaul, others required minimal interventions, such as changes to the flooring, improved lighting, a new electrical system and a new data system, all of which had to be carried out during and after work hours. And while colour was used to liven up certain areas of the office, namely the communal parts, others are neutral, giving the team the flexibility to apply details and décor as they go, which are relevant to the team working within that space.

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WINTER 2019/2020 WORKSPACE

“For our Stockholm office, the team of architects focused on the casino feel, the ‘Vegas’ part of the brand. For the Malta office, however, we chose to focus on the ‘Leo’ part of the brand, at the heart of which is the lion and the jungle theme,” says Joshua. “We took off with the idea of exploring the jungle theme in a fun but elegant way.”

A leafy green colour dominates the palette, seen predominantly on the walls, along with a concretefinish and a rich, walnut wood that, together with the green, leaves you feeling enveloped by nature.

On certain walls, a jungle-themed wallpaper was used and, for one of the break-out areas, customprinted tiles affixed to one of the walls create a mural depicting life in the jungle, where monkeys, birds and big cats interact with each other in a densely green environment.

Inspiration for the aesthetic of the refurbished floors was drawn from the theme of the LeoVegas brand, which incorporates the lion and the element of pride, all within the context of the city of dreams.

“The furniture used is minimalist and modern, as are the desks and various other furnishings. We used bronze, black and dark wood finishes, along

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WINTER 2019/2020 WORKSPACE

This is evident early on during my tour of the office with Ernest and Joshua. Present on every floor is their mascot, a lion, as well as framed pictures on the walls of two lions that the company adopted in South Africa. “The Leo Initiative was founded three years ago to celebrate our five-year anniversary since LeoVegas moved to Malta,” says Ernest. “In 2017, LeoVegas adopted two lions in South Africa, Bruno and Omar, and, every year, the company sends four volunteers on a two-week trip to contribute to the two organisations the company supports: Wildlife Conservation Network and Emoya Big Cat Sanctuary.”

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with lots of greenery – with more on the way – all of which contribute to the jungle theme,” says Joshua. “We were after a clean finish without excessively bulky items, so that the space is used and filled well but is still cosy and comfortable.”

Joshua adds that they wanted the new office to look fun and elegant, without appearing childish. This was a crucial part of the brief. “It was an important message that we wanted to convey to our employees but also to others in the industry,” he asserts. As for the greenery, it was an integral part of the design to execute the jungle theme effectively “and, besides using it extensively inside the office, it’s also a part of our Corporate Social Responsibility initiatives outside of the office as well.”

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Moving on to the musts of the newly refurbished office, Ernest says that the mentality at LeoVegas is to work openly and the changes needed to reflect that.

“We have an open office environment here – in fact, even when the co-founders are here, they sit wherever they find an available desk rather than in their own office. Even employees move around.

They might start their day in one part of the office and end it in another. This encourages employees to integrate, which isn’t always easy with 450 people in an office!”

The refurbishment wasn’t without its challenges. Joshua and Ernest assert that lots of teamwork was involved, both with the architects and contractors, as well as with all employees. “We often had to carry out works at night or on weekends and we had a strict timeline to adhere to but the biggest challenge is having the office still operational with people >

WINTER 2019/2020 WORKSPACE

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working as usual, while ensuring that all the health and safety standards are met, both for the workers but also for Leo employees.”

Last June, the revamped office was inaugurated to much internal acclaim and, although works are still ongoing, Ernest says that, in truth, they’ll never really stop. “We have 19 meeting rooms and colleagues often tell us that there aren’t enough and, already, some teams are outgrowing their newly enlarged office space. So, there might come a time when space will be an issue again, but it comes with the territory,” he smiles.

Meanwhile, the ever-expanding LeoVegas team has much to enjoy and look forward to thanks to the operations team’s attention to detail. Breakfast is served every Monday, lunch on Friday, and Fika time on Wednesday, where employees can tuck into a sweet treat every mid-week afternoon. There are well-stocked bars and kitchens on every floor for maximum comfort and the team also gets to make use of the two outdoor terraces on levels seven and eight that offer stunning, sweeping views

“WE HAVE AN OPEN OFFICE ENVIRONMENT HERE – IN FACT, EVEN WHEN THE COFOUNDERS ARE HERE, THEY SIT WHEREVER THEY FIND AN AVAILABLE DESK RATHER THAN IN THEIR OWN OFFICE.” Ernest Mercieca, PR and Communications Specialist

of Malta, ideal for informal meetings, recreational activities, events and even work.

Asked to choose their favourite aspect of the upgraded office, Ernest begins by saying that the brand-new reception area gives an excellent welcome to anyone who sets foot inside LeoVegas, but the top floor probably takes the cake. “On level eight, the design and décor create an amazingly relaxing vibe, which, for a 24/7 gaming company, is quite a feat. Every job has its stresses and the idea was to create pockets of peace in the office where people can switch off and take a break. We encourage this, in all offices, and tried to create the feeling of a second home at work.”

Joshua agrees and while he too thinks that the reception area is one of the most satisfying outcomes of the refurbishment, the whole space offers something special. “The breakout areas, the terraces, the reception, they all encourage employees to find a balance between productivity and relaxation, even if just for a few minutes.

So picking one part of the office is tough, I’d say all of it looks great.”

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WINTER 2019/2020 TECHNOLOGY

FROM

AI to AR

T H E T E T R E N S W E E P I T H E i G A M I S E C T

While technology continues to shape every facet of modern life, this statement rings truer in the innovation-driven iGaming sector.

In view of the rapid pace of change, Helena Grech reaches out to an iGaming operator and two technology companies for their thoughts on the biggest technological shake-ups in the sector, and what to expect in the near future.

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C H D S N G N G O R

WINTER 2019/2020 TECHNOLOGY

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n 2018, around 273 online gaming companies were based in Malta, employing upwards of 5,000 workers who provide online services, based on the most recent figures published in the Malta Gaming Authority (MGA) annual report.

According to Gambling Insider, globally, the iGaming sector is projected to be worth $80 billion (€72 billion) in 2019. Casino.org, a portal aimed at providing gamingspecific information to operators in the space, reports that Europe leads the way in online gambling globally. Figures it cites from 2015 show that the EU market made up 47.6 per cent of the €34.6 billion of online gaming gross wins (stakes minus winnings) generated.

“While the success of online gambling in Europe is pretty well known, what’s helping the continent be seen as the leader in gambling is its level of innovation, especially through the growth of successful casino platforms,” casino.org writes.

Joonas Karhu, Chief Business Officer at Good Games – an international group of dedicated gaming environments with all the latest game products – points towards a technological development within the sector that uses bank accounts to verify players as one major advancement in the space.

It saves time on a number of lengthy processes such as Know Your Client (KYC) procedures and registration onto a gaming platform.

Mr Karhu believes that “the most significant development in recent years has been Trustly’s Pay N Play technology, which has proved to be particularly popular in Scandinavian markets.” He explains, “by using online bank accounts to verify players, it has disrupted the user experience by exponentially improving registration, depositing, and KYC. Operators that can roll out the same kind of product in the UK will be creating a lot of value for players and shareholders.”

In his view, this technology is having a positive impact on the sector at large because “it significantly improves KYC and compliance for operators, with the added benefit of frictionless registration and depositing.” Mr Karhu cautions, however, that “it is essential for operators opting to use this technology to significantly increase investment in their brand’s mass advertising because registration without email or phone is possible, which makes retention activities more challenging.” >

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“PAY N PLAY TECHNOLOGY SIGNIFICANTLY IMPROVES KYC AND COMPLIANCE FOR OPERATORS, WITH THE ADDED BENEFIT OF FRICTIONLESS REGISTRATION AND DEPOSITING.” Joonas Karhu, Chief Business Officer, Good Games

WINTER 2019/2020 TECHNOLOGY

“AI SIEVES THROUGH CUSTOMER DATA, RECOGNISING PATTERNS IN CUSTOMER BEHAVIOUR THAT ALLOWS GAMING INDUSTRY PLAYERS TO PRESENT THEIR CUSTOMERS WITH PRODUCTS THAT ARE MORE TO THEIR LIKING AND THAT ARE MORE INTUITIVE TO USE.” Antoine Bartolo, CEO, Megabyte >

Pressed for any other technological shake-ups which are impacting user experience and the sector in general, Mr Karhu muses that “another interesting development has been lottery products that allow players to participate in local lotteries across the world with synthetic tickets, also known as betting on lottery.”

Mr Karhu asserts that there are a number of ways in which AI solutions could be used to improve the user experience and, more importantly, create value for players. For instance, AI that is programmed to suggest games and slot tournaments that might be of interest to the player based on what the player and his/her network of players has previously engaged in. The Chief Business Officer adds that what he is describing is “a little bit like Netflix and how it uses algorithms to suggest TV shows, documentaries and movies to its users based on what they have previously viewed.”

When discussing technological shake-ups in today’s modern world, it is impossible not to refer to the recent wave of blockchain technologies and associated cryptocurrencies. With the advent of cryptocurrency around the world, questions are raised as to how widespread its use within iGaming platforms could be.

On the one hand, Governments around the world are heavily regulating the iGaming sector – Malta just revamped its legislation through the Gaming Act, and jurisdictions such as Sweden, Italy and the United Kingdom have all recently effected regulatory changes to their iGaming industries. On the other hand, the use of cryptocurrencies is diametrically opposed to the notion of a highly regulated iGaming industry, as the former guarantees anonymity and leaves out institutions required to process such a financial transaction.

While such developments have certainly piqued Mr Karhu’s interest and provide a fuller picture, he adds “as an operator, I would take caution, however, as these big lottery wins are insured with third-party insurance agreements.

Questions will arise, such as what will the insurance company say in the event of a $1.5 billion Powerball win? And what is the liability for the operator if the insurance company finds a reason not to make the payment? These questions should be asked and answered before considering offering this product to players.”

Asked how he believes cryptocurrencies will impact the iGaming sector, Mr Karhu is cautious and not entirely convinced yet about their widespread use. “I believe cryptocurrencies, in general, will remain niche in the mid- to long-term period – maybe even forever.

Blockchain is great but as it requires cryptocurrencies in order to work, there would be little to no incentive to use it if cryptocurrencies aren’t broadly accepted. If the incentive to use blockchain because of its qualities and benefits is enough to generate mass usage, then it could have potential, but I remain sceptical.” >

Artificial Intelligence (AI) has been touted as a breakthrough within the iGaming sector in recent months for its potential in machine learning, to improve back-end processes and also the user experience. The impact of AI has already been observed on a smaller scale, where users have come into contact with AI chat bots filtering customer service-related requests, AI betting assistants and automated sports traders.

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WINTER 2019/2020 TECHNOLOGY

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Mr Karhu refers back to Pay N Play technologies as a major tech shake-up in the future of this sector, where online bank accounts are used to verify individuals, providing compliance information to the specific Gaming platform which a customer is making use of.

“The roll-out of Pay N Play technologies in all markets will be the next big thing. We will also see the use of modern technologies in other industries integrated into online gambling. This is what we are doing with Bojoko. com. We scrutinise and benchmark the features that provide the most value to users in other platforms, such as TripAdvisor, Airbnb, and Hotels.com, and rework them for our site. We combine this approach with our mission to make online gambling safer, more mainstream, and more fluid for players around the world.”

Echoing similar projections for the sector is Antoine Bartolo, CEO at IT solutions company, Megabyte, who believes that Business Intelligence aided with new AI algorithms are having a significant impact on the iGaming sector.

Megabyte’s CEO continues that from a user experience perspective, if the implementation of technologies such as chat bots, AI betting assistants and automated sports traders “is based on the results of Business Intelligence system findings, the likelihood of them being embraced by customers is high since they are the direct result of customer wishes at the time,” adding “gaming companies deploying such systems would be more likely to retain their volatile customer base and potentially attract new customers to their platform.”

Elton Azzopardi, a manager within the software applications department at software company SG Solutions, believes that API-driven products within the iGaming sector have been paramount to improve the user experience for iGaming customers, while also improving efficiency and providing value-added services.

These, he believes, are among the greatest tech shake-ups in the industry, aimed at improving the user experience for customers.

Mr Bartolo says that, together, these “are helping the gaming industry profile their customers more efficiently and accurately,” adding that “AI sieves through customer data, recognising patterns in customer behaviour that allows gaming industry players to present their customers with products that are more to their liking and that are more intuitive to use.”

“IMAGINE HOW MUCH MORE POWERFUL IT WOULD BE TO BRING A LIVE DEALER OUT OF THE SCREEN AND INTO YOUR HOME.” Elton Azzopardi, Manager, SG Solutions Sharing his thoughts on the use of AI in iGaming, Mr Azzopardi says “it can help minimise errors and improve the overall efficiency of a company, thus giving the visibility, control, tools and management practices necessary to drive greater operational effectiveness.”

New developments in this sector are never far away, and Mr Azzopardi believes that one of the most exciting emerging technologies that may have a big impact on the sector is augmented reality. “This technology could introduce a wide range of new features. Imagine how much more powerful it would be to bring a live dealer out of the screen and into your home, or anywhere else for that matter!”

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WINTER 2019/2020 PRESS

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WINTER 2019/2020 PRESS

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ASK THE COACH TA C K L I N G D I V E R S I T Y I N T H E i G A M I N G I N D U S T R Y

Marion Gamel is a C-level executive with over 20 years of experience. Having started her career as an entrepreneur, she then worked for Google and Eventbrite and was Chief Marketing Officer of Betsson Group.

Marion has been coaching entrepreneurs, founders and C-executives around the world since 2015. In this regular column, she provides advice to business leaders to empower them on issues ranging from improving efficiency to driving transformation and international growth within the company.

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iversity is a hot topic for companies in gaming and beyond. While many leaders are concerned about diversity, it means different things to different people. Sadly, some companies only tackle diversity in a superficial way, giving it a bad name because embracing it like they do yields no real benefit.

WHAT DIVERSITY IS NOT Diversity is often reduced to gender, ethnicity and sexual orientation, which is tempting as it couldn’t be easier to implement: reporting on the number of women or nationalities, hanging a rainbowcoloured banner in the canteen. But what is this really achieving?

GENDER

In my 20+ years career, I have seen equal percentage of efficient, hard-working and innovative men and women. I have heard all sorts of ‘truths’ about women in the workplace that I find patronising to women and disrespectful to men. Not all women think more long-term! Not all women are highly collaborative! People are multifaceted and complex, summarising their attributes to their gender is shockingly reductive.

There’s no tiptoeing around the fact that gaming is not a leading industry when it comes to diversity. Why is that?

What companies need is better contributors and leaders regardless of gender. When focusing on gender, it’s easy to cut corners: I see many >

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companies in gaming ‘improve’ their gender diversity results by hiring a female Chief of HR or Chief Marketing Officer, departments where the percentage of women is naturally higher. Such companies wouldn’t attempt to appoint a woman Chief of Engineering or Chief Commercial Officer. Too hard to find.

My advice when it comes to gender diversity is twofold: first, ignore gender completely when it’s time to hire; take names off CVs if you have to. Focus on skills, capabilities and values. Let the best win.

Second, level the playing field by being as generous with paternity leave as you are with maternity leave.

ETHNICITY

Ethnical diversity often is a politically correct metric that enables companies to camouflage the fact that most of their Asian employees are cleaners and the only person of African origin is the handyman.

In all fairness to companies, minorities in the workplace reflect the chances that society gives immigrants today. If no coloured immigrant gets a chance to study at the University, then it’ll be next to impossible to hire a black accountant. It’s as simple as that. So before claiming that your company’s minority ratio is ‘strong’ or ‘weak’, put it into context in your region or industry.

WHAT DIVERSITY IS Diversity is having a healthy variety of ways of thinking: prioritising topics, assessing opportunities and risks, dealing with crises, envisioning the future and questioning the status quo. Diversity of thoughts is what I look for when leaders I coach want to move the needle. I don’t ask how many women they have on their board or how many minorities they have among their workforce.

Here’s what gaming companies can look for when they set their heart at bringing diversity to their leadership and workforce.

AMBITION VERSUS STABILITY

It is indeed wonderful to work with ambitious professionals who push boundaries for the company and for themselves. As ambition turned into a virtue a few decades ago, companies today tend to forget that some people who want to ‘stay put’ are immensely valuable. If everyone in your company wants to be the next CEO, 99 per cent of your workforce will be disappointed and leave within a couple of years. While Google focused for years on ‘shooting stars’, Apple equally rewarded ‘rock stars’: people who are amazing at what they do and happy to stay where they are. A company needs both ‘shooting stars’ and ‘rock stars’ and attracting only one kind of profile would be a massive oversight.

If a company really wants to make a difference and welcome minorities in the corporate world, a solution is to put in place an apprenticeship programme that gives a real chance to all. You’ll soon realise that people who deserve a better chance come in all shades.

SEXUAL ORIENTATION

I have never understood why we need to discuss or even know the sexual preferences of employees. To me, it’s 100 per cent private and, once capabilities have been assessed, I don’t need to know more. If an employee shows up at work dressed like Elton John on tour, there’s a dress code issue, not a sexual orientation one. Sponsoring the local Gay Pride is the equivalent to putting a plaster on an infection – it doesn’t change the attitude of the few hardcore homophobes in the office who’ll continue to discriminate against any behaviour they deem ‘suspicious’. Companies don’t need to celebrate LGBT members; they need to implement a zero-tolerance policy on homophobes.

ACADEMIC EDUCATION VERSUS STREET-WISDOM

Among successful entrepreneurs and leaders, there are people who have high academic diplomas and people who have never benefited from secondary education. We’ve all seen colleagues with shiny elite-school degrees slowly rot in a dull job as well as leaders who have reached their intellectual limits. What does this tell us? We need a bit of both in any company. I would therefore encourage leaders to value equally a university diploma as five years spent defending your country; to rate a PhD as highly as having reached Olympic-level in sports. Resilience, for instance, a much-needed attribute in times of flux, is a character trait; it cannot be taught at school. >

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INDUSTRY BACKGROUND

GETTING STARTED

The question of industry experience is predominant in gaming where many companies seek candidates with gaming experience. However, when it comes down to excellence, sometimes the best talent comes from outside our industry. Companies must decide which roles should be filled by individuals who know the industry and the product inside-out and which roles will be better filled by specialists who have learned their trade from the best, be it FMCGs, tech or other heavily regulated industries. In a fastchanging environment, companies equally need people who know the past and people who’ve been exposed to the future.

Tackling diversity solely to comply with the zeitgeist means it’s rarely well executed because following a trend is not a strong enough motivation to invest substantial efforts or funds.

Diversity cannot be seen as a box to tick; it means deep transformation in an organisation.

Indeed, it is first and foremost about having the foresight and courage to make changes and welcome a wider range of employee profiles and backgrounds to impact the way business is conducted.

The first step for diversity to become a reality is to understand what is tangibly at stake for the company in the mid to long run. I often ask leaders I coach questions such as: what could diversity change, grow or improve? Which recent business drawbacks could have been impacted by diversity? For diversity to become a reality, leaders must first understand how it impacts revenue and share price, the metrics that matter most.

DISABILITIES

There is a group of people that is largely untapped when it comes to recruiting a diverse workforce: the disabled. Given similar education or experience, I would not hesitate to give a chance to someone who has had a much more challenging journey due to a disability. Disabilities are not commonly taken into consideration when it comes to hiring. Yet, consider the benefits of having an engineer who is not only brilliant but who also had to navigate a career with autism. Imagine the added value a legal mind can bring, if this person has had to navigate the world in a wheelchair. When it comes to real diversity of thoughts, disabled talent represents an untapped wealth of resilience, courage and agility.

In order to define the opportunities that diversity represents and the shape it must take in your company, gather data from studies and examples from other companies outside of your geographical area or industry, study aspirational case studies, then create your unique version of diversity that will fuel the growth of your business.

Got a question for Marion? Email her on marion.gamel@gmail.com

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Compliance Innovation: HOW WILL REGULATORY CHANGES AFFECT THE INDUS TRY’S INNOVATION IN THE LONG RUN?

Jurisdictions all over Europe have recently introduced a slew of regulatory and compliance changes for iGaming companies, the medium- and long-term impacts of which are still being assessed and understood.

Helena Grech catches up with industry players to gauge their real-term impacts.

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alta, Italy, Belgium, the UK and Sweden are just the latest European countries to enact changes to gaming regulations, and while some jurisdictions introduced welcome policy change others have frustrated operators in the space.

Malta’s new Gaming Act came into force in July 2018 and was, by and large, met with praise due to the simplification and streamlining of gaming licensing classes.

However, 2019 saw operators in Italy blindsided by an increase in taxation on revenue generated by gaming operators and, more recently, a blanket ban on advertising for gambling. Sweden officially opened its market to private operators while regulators in the UK have clamped down on high-stakes betting.

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Within the context of a changing regulatory framework, questions arise as to how operators are faring and whether the associated costs have had a negative impact on companies’ abilities to innovate.

While technological advancements have heralded improvements within the sector, they have also posed challenges for regulators to keep up. Such challenges are further underscored by the need for legislators to strike a balance between fair taxation and the creation of a safe environment for gamers and gamblers.

WINTER 2019/2020 GLOBAL

“NEW PRODUCTS, NEW REGISTRATION METHODS, NEW WITHDRAWAL TECHNIQUES ARE ALWAYS IN THE PIPELINE AND, FORTUNATELY, THIS FORCES COMPETITION AND THE MARKET TO CONTINUE TO THRIVE.” Corinne Valletta, General Counsel, Betsson Group

The General Counsel at Betsson Group, one of Malta’s largest gaming companies, Corinne Valletta, observes, “the iGaming sector has become one of the most regulated ones. Besides the gaming-specific regulations, which do not apply across different markets but are nowadays largely promulgated specifically in each country, there are also horizontal rules applying to the sector.”

She observes that “the rationale for the applicability of such rules to the sector is solid but it does come at a price. The sector has had to invest heavily in compliance and operations and, in companies such as ours, where our reach is international, this is even more true.”

Dr Valletta says that Betsson’s compliance team now makes up over 20 individuals, a number which increased more than threefold in just five years. The operations teams dealing with antimoney laundering (AML), fraud and responsible gaming are made up of 100 individuals.

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“All this is apart from the several costly automated monitoring and checkpoint systems we have had to implement and the several audits we are subjected to on a yearly basis. This year alone, Betsson Group has been through over 10 technical and compliance audits,” Dr Valletta states. “Another clear impact is increasing competition we face in countries with highly restrictive rules, which are not enforced consistently by regulators, meaning that we have to compete with operators who do not obtain the available licence.” >

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In light of this, Dr Valletta observes that nobody could argue with the “fact that increased regulation of the sector has impacted levels of innovation” and this is not just because of the additional costs needed to be compliant but also “because of the little leeway that is left when a market is regulated restrictively”.

To put into context what it means for operators when new regulations are levied, Dr Valletta explains that the compliance team needs to prepare its interpretation of that rule, the technical team needs to embed it in its system and the operations and commercial teams need to determine how they will run it.

“FORWARD-LOOKING OPERATORS ARE SEEKING HOW TO FURTHER INNOVATE IN ORDER TO OVERCOME THE COMPLIANCE AND OPERATIONAL COST BASE CHALLENGES THAT THEY ARE CURRENTLY EXPERIENCING.” Reuben Portanier, Partner, Afilexion Alliance On the other hand, however, she also argues that the current state of affairs, taken within the context of added competition in any given market, “has also enforced innovation in some ways”.

Indeed, “companies must stay competitive and this is even more true on the internet. New products, new registration methods, new withdrawal techniques are always in the pipeline and, fortunately, this forces competition and the market to continue to thrive.”

Asked which international changes in regulation have been the most cumbersome in Betsson’s experience and which have made the most sense, Dr Valletta identifies one change which, in her view, meets both criteria.

“I’m talking about GDPR and data privacy,” she explains. “There can be no argument against the fact that iGaming companies process large amounts of data and have the possibility to use that data in many ways to their advantage. In fact, they can indeed be likened to any other software or internet company that has become a household name.” She concedes that the need for rules surrounding the use of such data has long been there but “the challenge with this new law is that it brought about an entirely new way of doing things”.

“It has forced an altered way of thinking about business and data. Software companies have had to erase all they know about what they can or want to do with their customers’ data and start thinking and organising themselves in different ways,” Dr Valletta states, adding that once companies come to grips with how to handle GDPR “it’s quite straightforward to work with”.

On regulatory changes in Malta brought about by the 2018 Gaming Act, Dr Valletta says that the most sensible move forward for operators is to organise themselves under one umbrella licence within the framework – “a key matter which was long overdue”. >

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She adds that the 2018 Gaming Act “has done a lot of cleaning up of old rules which were no longer relevant to the industry because of developments in technology.

They are also now drafted in a more comprehensive way and there is virtually nothing which is not covered by the regulation.”

Dr Valletta views this as a “very positive aspect”, particularly because the law provides “guidance of standards which may be lacking in other jurisdictions”.

On the other side of the coin, however, lies the fact that such an approach makes “the regulation quite cumbersome to follow. There are many different levels of regulation which take some getting used to.”

Asked whether it is a good time to be working in iGaming, Dr Valletta contends that in her “strictly personal (and biased) opinion, there can never be a time that is not good to be working in the gaming sector”. With 10 years of experience in the industry, she has witnessed tremendous change but, despite the downsides of regulation, she says it has, in some ways, also “forced further innovation which keeps it interesting for operators, regulators and suppliers alike.”

Analysing the most unwieldly regulatory changes in Europe, Mr Portanier quickly points to the ‘welcome bonus’ restriction in Sweden, “as it did not properly achieve the policymaker’s responsible gambling objective whilst it also negatively affected Swedish licensees”.

Agreeing with Dr Valletta, Mr Portanier believes that Malta’s streamlining of gaming licence categories was the regulatory change that made most sense. Additionally, “the adoption of right-touch regulation with respect to start-ups was, in my view, a change which showed that the Malta Gaming Authority (MGA) understands the market and that start-ups need to be dealt with differently compared to established operators.”

Reuben Portanier, Partner at Afilexion Alliance, a corporate services provider and gaming advisory firm specialising in gaming licensing and advisory in the jurisdictions of Malta, Sweden, the UK, Denmark, Ireland and other EU jurisdictions, observes that the “traditional way of doing business has changed radically”. He says this while pointing towards regulatory changes in Malta, Sweden, the UK and Italy, as well as preparatory work being undertaken by regulators in Germany and the Netherlands.

“This is leading established and medium-sized operators to question their strategies and, consequently, we are seeing an unprecedented wave of operators voluntarily exiting certain markets or operators seeking further amalgamations in an attempt to gain economies of scale in operational and compliance costs,” he argues. “Forwardlooking operators are seeking how to further innovate in order to overcome the compliance and operational cost base challenges that they are currently experiencing.”

In view of the rising costs in relation to compliance, he says: “the innovation budget may initially be the first to suffer in the short term, however, the pressure to reinstate previous performances is igniting the need to innovate, especially due to advertising restrictions and the need to re-establish a position of strength in the market.”

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Speaking about Afilexion Alliance’s experience with serving gaming partners in any EU jurisdiction they intend to enter, Mr Portanier explains that this is quite an undertaking as it means investing time and resources in understanding various jurisdictions. He adds that keeping abreast of changes, however small or significant, to properly serve their clients is a challenging but rewarding job. >

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Head of Business Development at E&S Group, Deborah Vella, asserts that advances in the iGaming sector have brought “numerous opportunities in the EU for both players and operators but such opportunities increased money laundering detection,” which has resulted in “a much more complex environment in which gaming companies operate.”

Echoing concerns raised about differences in regulation between European jurisdictions, Dr Vella says: “the European Gaming and Betting Association (EGBA) is once again highlighting to the European Commission and numerous European member states their continued failure to provide a uniform online gambling guidelines rulebook and regulations on consumer protection for gamblers of EU-based sites.

However, I am of the belief that we shall soon have uniformity in the regulation of the iGaming industry across EU countries.”

Moving on to whether the regulations have hindered compliance, she too considers the long-term results of added obligations, “as this will be an opportunity to improve the perception and image of the iGaming industry of various stakeholders.” Dr Vella adds that “fines associated with non-compliance would mean a significant outflow of resources as well as a negative impact on the company’s reputation”.

Dr Vella points out that the most important change brought about

by Malta’s new gaming law is the replacement of the multi-licensed system by what are now two forms of licences: Business-to-Consumer (B2C) and Business-to-Business (B2B), thereby reducing unnecessary bureaucracy.

“On the other hand, a less favourable provision is that only applicants who are based within the European Economic Area are eligible to hold a licence. This may be considered as a safe approach by the MGA in order to safeguard Malta as a reputable jurisdiction.”

Looking ahead, Dr Vella concludes that “in 2019, iGaming companies are still struggling to meet all of the increased compliance requirements. I think that devoting resources to compliance should be seen as an investment in the company’s image while also promoting the business.”

“FINES ASSOCIATED WITH NONCOMPLIANCE WOULD MEAN A SIGNIFICANT OUTFLOW OF RESOURCES AS WELL AS A NEGATIVE IMPACT ON THE COMPANY’S REPUTATION.” Deborah Vella, Head of Business Development, E&S Group

Homing in on the issue of cumbersome regulation, Dr Vella wishes to see more open and inclusive dialogue take place between regulators and operators, as well as a clear set of unified guidelines in view of increased compliance obligations.

“Jurisdictions such as Portugal, France and Italy have aggressive regulations on iGaming which mainly relate to very high tax rates for online casinos. Players are also restricted to their regions, thereby reducing other gambling options. This is considered to be a negative and restrictive attitude towards the gaming sector and, rather than regulating the industry, it is creating an unfeasible environment for gaming operators.”

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WINTER 2019/2020 PAPARAZZI

PAPA RAZZI AMBASSADÖR EVENTS

From the coolest parties to the best company perks, iGaming Capital’s Paparazzi pages showcase everything that makes the iGaming industry in Malta so much fun to be part of.

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1-5. 2019 saw the launch of iGaming NEXT, a TED talk-style conference mixed with the production values of a tech keynote speech, led by the team behind the established iGaming Idol Awards show.

Industry heavyweights shared their views on the future of the iGaming landscape and tech innovation.

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BLEXR

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6-10. Poolside At the Blexr summer party, staff enjoyed a day by the pool at a farmhouse in Siggiewi, playing games, feasting on a BBQ dinner and dancing the night away.

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BLEXR

11-13. Football tournament Blexr hosted a charity football tournament, the Blexr Cup, between teams from the iGaming community at Luxol Sports Club, raising €4,000 for Hospice Malta. The Tipico team won the tournament.

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BLEXR

14-15. iGaming Idol Awards Blexr’s Head of Search, Koen Bongers, won SEO Idol of the Year.

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CONTENT HOUSE GROUP 16-19. Content House Group teamed up with Get Trashed Malta to clean up a substantial area of popular picnic spot, Mizieb. After getting their hands dirty, and cleaned, the Content House team, along with their partners and children, enjoyed a picnic together, including a delicious spread of home-made food.

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LEOVEGAS

20-21. Company Summer Event Summer Summit 2019 at the Corinthia St George, St Julian’s Malta.

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LEOVEGAS

22-24. Pride 2019 Malta, which LeoVegas were proud sponsors of.

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LEOVEGAS

25-29. Sports Day organised for all LeoVegas employees in July.

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LUCKY.IO

30-34. The launch of LUCKY. io’s LUCK token, hosted by its ambassador, legendary Brazilian footballer Roberto Carlos, on 11th September 2019 at the Malta Westin Dragonara.

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MEGABYTE

35-39. Megabyte celebrated the company’s 40th anniversary with a lavish reception held at The Villa, St Julian’s. Megabyte’s staff and clients enjoyed a black and gold themed reception, also attended by Prime Minister Joseph Muscat.

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