Two separate sets of regulation for the amusement and gaming industry have been introduced by the Government in Malta, which will come into effect on May 16, 2011.
Previous grey areas in the law have been clarified and games often described as ‘fruit machines’ will now fall under the gaming devices category and cannot be classified as amusement machines. Suppliers and location managers operating such machines must now apply for gaming devices’ licences under the set of regulations. Licences issued under the amusement machines category will be valid for one year but will be automatically renewable.
The new regulations also state that premises licensed for gaming devices must be a 75m radial distance from schools, centres for senior citizens, places of worship, playgrounds, sports facilities and so on.
Anyone who manufactures, assembles, places, distributes, supplies, sells, grants on lease, operates or owns amusement machines will need a class one licence, while managers of clubs, bars and amusement arcades will need to have a class two licence, both costing €2,000. Suppliers must also pay €1,000 per annum to have each machine licensed and the owners of the premises must pay €1,000 per annum to have their bar or gaming parlour licensed. Games falling under the ‘Other Amusement Machines’ category are subject to a €100 licence fee per machine per year.
The maximum price charged per game on amusement machines must not exceed €2, while games such as children’s rides, must not cost more than €1. These games must be paid for in cash or by tokens that have the price value on them and no prize redemption tokens can be given.
The second law, regulating gaming devices, will see four licence categories introduced, applying to game manufacturers, distributors, premises owners and those who operate central systems. Licences will be valid for a one-year term, but will not be automatically renewable (as are the amusement licences) and are subject to approval each year.
Premises may open between 11am and 11pm every day, responsible gaming notices must be displayed, transactions over €2,000 must be recorded, a €500 bank guarantee applies for every machine established and there is a minimum 85 per cent payout guarantee.
Each game must not cost more than €5 and the maximum prize must not exceed €1,000 or €2,000 in the event of a jackpot. Gaming parlours are also limited to 10 machines per location, should not serve food or drink or allow anyone in under the effect of alcohol.
Class one, two and four licences cost €2,000, while Class three licences for the premises owners are €500 - placement tax will also apply. Applications for licences under the amusement machines regulations can be downloaded from the LGA’s website.
