Malta to Issue Skill Game Licences to DFS Sites

Online gambling has been big business for over two decades now. In the last few years, a new contender appeared, named by Forbes as the fastest growing iGaming market in the industry. I’m talking about Daily Fantasy Sports, and while its generally been confined to North American and, more recently, European markets, DFS sites are about to spread worldwide.

Late last month, the Maltese Lottery and Gaming Authority (MGA) announced it will soon begin accepting applications for a “skill game licence” from daily fantasy sports operators. These new licences will differ from traditional gambling licences, as Malta has passed legislation defining DFS as a contest of skill. Therefore, the standard term “bet” doesn’t apply to money placed on the outcome of a fantasy sports contest.

When it comes to online gaming, Malta is one of the world’s most respected regulatory authorities. The MGA is banking on vast interest from the European DFS market, in particular, but it’s worth noting that its licencees are permitted to accept customers from a plethora of jurisdictions, including Australia.

Skill Game Licences In The Works

Malta announced its intentions to begin licensing DFS sites in a press release, reiterated with vigor by the region’s 2016 Summit of iGaming. According to reports, the MGA is currently working to script a framework for skill game licences, based on the recently adopted Fantasy Sports (Exemption) Regulations of 2016.

This newly added chapter in Malta’s gambling laws exempts Daily Fantasy Sports from gambling due to its definition as a game of skill. An excerpt from the text reads:

“Fantasy Sports” and, or “Fantasy Sports Game” means a contest played for money or money’s worth whereby the winning outcome is determined predominantly through the skill or knowledge of the player, and where the results are determined by the accumulation of statistical results of the performance of a number of individuals in sporting events, but shall not include the forecast of the score, point spread or any other future occurrence of one or multiple events, and for the avoidance of doubt, the definition of a “bet” as defined in the Act shall not be applicable.

The new skill games law went into effect on August 1, 2016, but the regulatory framework for associated licences isn’t expected to be finalized until later this year.

Prediction: DFS Sites Flock To Malta

With the Mediterranean island already being a haven for major online gambling operators, SiGMA predicted that daily fantasy sports operators will begin flocking there to host their head offices. As such, Malta is expected to become Europe’s largest hub for housing DFS operations, and will provide an opportunity for the regulator’s existing iGaming sector to delve into the exponentially growing realm of fantasy sports.

“This legal notice is the first step in a process that will see Malta become the first major European country to offer a real skill game licence,” said Valery Bollier, CEO of Malta-based Oulala.com. “It is therefore a very exciting moment for our industry and for Malta.”

Bollier believes Malta’s pioneering status, “will attract the attention of the entire European DFS market and place itself firmly at the forefront of the DFS revolution.”