Will Malta be the Next Online Gambling Hub?

Malta is riding high on the wave of UK-regulated online gambling, with 27 online gambling companies planning to shift their operational headquarters to the sunny Mediterranean island, according to a report carried by the Malta Times.

With the recent relaxation of online gambling advertising rules in Britain, the UK government created a 'white list' of localities from which online gambling companies would be allowed to tap into the lucrative UK market. Rather than follow the path of prohibition, the UK government has decided to regulate the online gambling industry, allowing more control of the quality of online gambling companies it allows to access the UK market. The US position of blanket prohibition forces online gamblers residing in the US to gamble at sites which are knowingly bending the laws. This can, somewhat ironically, result in gamblers being directed to less-than-respectable internet gambling websites, making online gambling in the US somewhat more dangerous than it was before the passing of the UIGEA.

The UK Department of Culture, Media and Sport (DCMS) recently published their 'white list'. Countries within the European Economic Area (EEA), such as Gibraltar and Malta, were automatically qualified as they already impose strict regulation of online gambling firms. The Isle of Man and Alderney were also placed on the White List as both jurisdictions were found to have a "rigorous licensing regime designed to stop children gambling, protect vulnerable people, keep games fair and keep out crime".

Alexander (a Canadian Reservation), Netherlands Antilles and Tasmania applied for the White List but were rejected. Costa Rica and Belize did not apply and therefore are banned from advertising in the United Kingdom.

Applications from Kahnawake (a Canadian Reservation popular with online gambling companies) and Antigua are still under consideration, but are expected to be added to the White List as both localities heavily regulate their online gambling licensees.

Making the White List does not allow companies to advertise permanently – DCMS will periodically monitor white listed jurisdictions to ensure they continue to meet the 2005 Gambling Act criteria.

The end result of the White List is ensuring that dozens of online gambling companies are rushing to establish operations in locations such as Malta, and thereby putting themselves under more stringent regulation and monitoring of their activities, creating a safer world for online gamblers.

A number of CryptoLogic-powered online casinos have already announced they will be transferring their online gambling operations from the Caribbean to Malta and Gibraltar to make the White List. The Chairman of the Malta Gaming Authority announced they are currently processing almost 30 application from foreign gambling companies wishing to be regulated by the Malta Gaming Authority.

Online gambling giant InterCasino, one of the world's largest and most popular online casinos, recently announced they are moving their operations to Malta, after having been granted a license from the Malta Gaming Authority.

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