As the regulatory body responsible for all gaming activities in and from Malta, the Malta Gaming Authority ensures that the local gaming sector is fair, transparent, secured against crime and corruption, and protects vulnerable players. With a total generated revenue of €75.2 million and more than 165 employees, the MGA continues to safeguard the booming local gaming industry, with Heathcliff Farrugia now at the helm as Chief Executive Officer.

Heathcliff considers his appointment as one of his finest hours in an eventful career filled with milestones. “I have always loved managing people and working alongside a team with a shared vision and determination, and I’ve found that again as CEO of the MGA,” he explains.

“Being the CEO of the body regulating such an important industry for our country is a great responsibility, and we must ensure that we are constantly monitoring it, ensuring compliance.

“Of equal importance to that, I believe, is the people management aspect of my role and its link to bringing out the best in others. In my role, I focus on leading the employees towards achieving both the results that we need to attain as a regulator but also helping them achieve their own career objectives.”

Prior to joining the MGA as COO in 2014, Heathcliff worked largely within the telecoms industry in various managerial positions with Vodafone Malta but also in Italy. “My move to Milan was certainly a key milestone and a huge achievement in my career,” he admits. “That international experience challenged me to better myself, and it served as an opportunity to see if I could cope in that kind of managerial, high-octane environment.

“It proved to me that I could thrive in a role like this, and so I expressed interest in joining the gaming sector in Malta, and I do not regret it.”

Heathcliff succeeded Joseph Cuschieri as CEO of the MGA in April 2018, and has proven he is suited to the challenge of leading the regulation of one of Malta’s most economically pivotal industries.

“I am in a unique position where I can make a difference,” he remarks. “The MGA (previously the LGA – Lotteries and Gaming Authority) was originally set up in 2001 to do what it is still doing today – regulating the gaming industry. At the time, the industry was in its very early days, with operators accepting bets with no proper regulation, hence, no adequate protection for the players against gambling addiction, fraud or money laundering. Understandably, it is never healthy for an industry to grow unregulated.

“But, over the years, the gaming industry matured and flourished through regulation, and the MGA has evolved and grown alongside it.”

Indeed, the MGA is evolving, reflecting an everchanging industry that Heathcliff considers a key part of his role. “Usually, as regulators, we end up playing a catch-up game, especially in an industry where the use of cutting-edge technology is a must. Hence, we need to constantly focus on being innovative in how we regulate,” he explains. “It’s very important that regulators evolve as much as the operators they are regulating.”

One of his first challenges as CEO was the introduction of new gaming regulations in August 2018, completely overhauling laws that were initially written to serve the industry in 2004.

“After almost 14 years since the first regulations were issued, it was a huge achievement to see the hard work of many MGA employees come to life with the coming into force of the new regulations. The new Gaming Act reflects the industry we regulate today: mature, dynamic and properly regulated. Apart from modernising the rules governing this industry, the law has widened the MGA’s reach as a regulator, giving us more tools to strengthen the way we supervise our licensees. Overall, it has been a huge game-changer.”

Anti-money laundering (AML) regulation has also been radically updated. “Pre 2018, online gaming companies were not considered obliged entities for AML, hence, the level of scrutiny and monitoring on this front was not comparable to the AML obligations the industry has today. We now have a team of 10 AML officers who conduct extremely thorough on-site inspections, together with the Financial Intelligence Analysis Unit (FIAU). Such inspections are key to ensuring that those in possession of an MGA licence are in-line with their AML obligations.”

The protection of minors and vulnerable players is also high on Heathcliff’s agenda at the MGA. “We truly believe in supporting responsible gaming. If players want to gamble, we need to make sure they do this responsibly, guaranteeing their gambling does not become a habit. Our licensed operators have a number of obligations on this front but, as regulators, we mustn’t stop from constantly seeking ways to reduce harm through effective responsible gaming policies. Collaboration with the industry, but also with other regulators and key stakeholders, is key to achieving positive results.”

Heathcliff’s outlook for 2020 also has responsible gaming at its heart, and this includes a new self-exclusion system. “Our goal is to have a unified self-exclusion system,” he says.

“Today, licensed operators already offer self-exclusion to their players but currently this does not stop the same players from accessing another online casino. But with a unified self-exclusion system, a player would have the possibility to bar himself from playing on all MGA licensees’ platforms. It is not an easy project but we believe that it is doable, and we have already evaluated a number of solutions through the pre-market consultation we conducted.”

Another innovation on Heathcliff’s radar in 2020 is the Enhanced Automated Reporting Platform (EARP). “This central system will initially connect all land-based operators, giving automated reporting to the regulator. Eventually, the aim is to work on a similar solution for the online operators. This will give us instant data, allowing us to better supervise the industry and take action in a timely fashion.”

For the MGA, Heathcliff feels that the last five years, and the next, mark another period of significant change and growth as Malta’s gaming sector perpetually evolves.

“The past five years were very challenging for the industry but the next five will be even more so, as the industry keeps maturing and becoming increasingly regulated. Operators need to keep investing time and resources to make sure they are in compliance with the regulations governing this industry; and, at times, this can be very challenging and also costly. In my opinion, this was also one of the main drivers behind the number of mergers and acquisitions we’ve seen in recent years.”

As for the MGA, he views 2020 as the year of consolidation after such a time of significant change at the regulator. “The years 2018, 2019 and 2020 have gone hand-in-hand. The year 2018 was when the new gaming regulations came into force, while in 2019, we were very busy with the implementation of the same. This year, we are reaping the benefits of what we worked on in the past two years.”

Regardless of the ever-changing landscape of the gaming industry, however, Heathcliff sees MGA’s future role to be as steadfast and reputable as it has always been. “What we have been doing over the years was always a build-up to where we are now. For the MGA, being a reputable regulator is key and we firmly believe our role is pivotal in ensuring the evolution of this industry continues to be in full compliance with its own regulations.”

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