GAMINGmalta
2O18 EDITION
Responsible marketing is becoming ever more important. The UK has come down hard on iGaming companies and forced them to remove characters that could appeal to children. What’s your view on this?
I fully endorse this step, but operators also need to grow up and take on more responsibility, and be more ethical and prudent in what they do, as well as more savvy. If these criteria were followed, there would have been no need for the bad publicity dished on UK media, which is harming the whole gaming industry and a knee-jerk reaction to mitigate the damage. From our end, we always advised our UK-licensed gaming clients to fully respect advertising guidelines, and we are glad that our clients appreciated our advice, and consequently are not affected negatively by the recent regulatory moves. On a more general level, I’d like to emphasise that there could always be instances where certain issues are not clearly black or white in law. However, my advice would be that a gaming company should act prudently, reasonably and responsibly. Where something is wrong and disproportionate, even though not clearly illegal or unlawful, they should avoid it.
You are also a member of the Government’s blockchain taskforce. How do you believe iGaming companies can benefit from Malta’s ambition to position itself as a blockchain hub? In my view gaming companies, particularly given the highly technological background, stand to benefit immensely by tapping into the whole new ecosystem, which Malta wants to endorse and officialise. The benefits could be endless. Blockchain, given that it is foundational technology, may bring about a new paradigm in the gaming industry starting from innovative payment methods, and the day-to-day running of their business; to regulatory compliance, and innovative services, as well as more robust security and trust parameters.
BIO
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In terms of crypto-payments, what are the key challenges and opportunities for iGaming companies? Cryptocurrencies will undoubtedly bring about innovative facets for the gaming industry, for payments and settlements, intelligent and legitimate funding and innovation through ICOs, as well as massive cost savings. There are also however some challenges. Given that cryptocurrencies are not yet regulated and harmonised, nor are they seen as regulated legal tender, they create a grey area for operators, players and also authorities. When cryptocurrencies are used in a way where there is omission of an individual’s name, address, identification number and where coin mixers are used, this will make it harder to track each of the transactions made, source of funds and the individuals behind them. This also means it will be difficult for gaming operators to comply with AML regulations. There are also other factors which can have negative effects on the gaming companies, such as: the lack of a coherent ecosystem backing a crypto-economy, the high volatility of cryptocurrencies, the diverse altcoins in circulation, a nonharmonised and still developing crypto-community and service providers, certain operational limitations because of the nascent DLT and blockchain deployment; as well as transaction costs, network speeds and security issues.
How do you expect the industry to develop in Malta and globally in the coming years? I believe Malta will further develop its status as Europe’s most complete gaming eco-system; and as a gaming hub, it will become even more akin to what the City of London is to Financial Services. Irrespective of the myriad regulatory changes happening across Europe, I strongly believe that Malta’s pedigree of excellence will continue to attract industry operators to establish themselves, or grow further in Malta to serve their multi-jurisdictional operations.
In your opinion, what is most important in order to be successful in the iGaming industry today? Over the years the online gaming sector evolved and transformed itself. I see a lot of commonalities with sectors like telecommunications and the financial services industries. The online gaming industry has become more cut-throat, sophisticated and structured, as well as fast-paced. My advice to whoever wants to make a real positive impact in this industry today is to have a thorough understanding of the dynamics of the industry, as well as the regulatory terrain and new value streams. Plan well, build a strong knowledge of regulatory approaches and lead by innovation. n
Dr Ian Gauci is the Partner responsible for Communications, Media and Technology within GTG Advocates and one of the founding partners of Afilexion Alliance. He is also a founding member of the Maltese IT Lawyers Association & Blockchain Malta. Prior to joining GTG, he was the regulatory and legal advisor for the Malta Communications Authority (MCA) and co-authored the Maltese Electronic Communications Framework. Dr Gauci is a member of the Government’s task force advising on the implementation of Malta’s national blockchain strategy.