Getting the house in order
The Lotteries and Gaming Authority recently took a necessary step towards dispelling lingering uncertainty vis-à-vis the future capability of Malta as a leading, dependable jurisdiction in the online gaming market. Through the selection of Reuben...
The Lotteries and Gaming Authority recently took a necessary step towards dispelling lingering uncertainty vis-à-vis the future capability of Malta as a leading, dependable jurisdiction in the online gaming market.
Through the selection of Reuben Portanier as permanent chief executive officer to take the reins from Michael Gonzi, who had been presiding admirably (albeit temporarily) over the authority since the sudden resignation of the previous CEO, the government has made a strong statement about the seriousness of its prowess to maintain the mantle of leadership it has donned since the industry's infancy - and to them I say an enormous well done!
While it would be easy to offer criticism towards the lethargy with which this situation was handled, it would be petty to do so. The powers that be need not be reminded of the challenge that confronted them in this instance, and surely will do well to heed past issues overcome to not repeat the same mistake twice. The reality now is that one of Malta's most lucrative industries can move forward in its evolution; constantly adapt and innovate to remain atop the global regime.
Solutions are, more often than not, attained through step processes and this was a major one, perhaps even a leap. Although many hurdles remain, this one attained task clearly defines the leadership structure's peak, not to mention conveys an image of stability from an outsider's perspective, which may be equally critical.
What is unclear, however, is how soon Mr Portanier will commence the duties appointed to him and what the first order of business will be. Based on information released regarding his employment background, he appears to be a strong fit for the post. With a strong, diverse skill-set in economics, business development, data management, strategic planning and information and human resources, he seems to be an ideal match for a job description that is equally wide-ranging.
As CEO he'll oversee an entity with myriad functionality, with departments such as compliance, inspectorate, legal and administration and also be the international figurehead for a jurisdiction seeking to expand its already supple business operations. Considering how popular and well-known his (permanent) predecessor was, these will be massive shoes to fill, but history will ultimately be the judge.
An additional kudos must also go to the chairman of the Board of Directors at LGA, Nicholas Xuereb, for his recent availability to comment on such concerns to the gaming industry in Malta. The fact that he has weighed in on issues such as the turmoil created by the eruption of gaming shops that are creating public dissent and the recent CEO announcement is encouraging.
He was quoted in The Times as saying: "After a period of building the authority's framework and operations, the LGA is now moving into its next evolutionary phase, where we are in the process of consolidating our legislative framework, streamlining our practices, and broadening our outlook to continue being at the forefront of industry developments."
If nothing else, it shows the people of the country and foreign investor prospects that this recent spate of uncertainty is merely a speed bump on the road forward to improving the igaming market landscape and not an infinite round about that would leave this vital industry segment (and crucial tax revenue stream) in a whirlpool leading to the drain. For a newcomer to the LGA and the world of gaming (which could be another positive), Mr Portanier will certainly require the staunch support of the board and the Finance Ministry to be successful and it appears they are poised to provide it.
For example, it has been noted recently by the temporary CEO, Michael Gonzi, that the authority is stretched too thin to accomplish its tasks with around only 45 people currently working there and less than a handful in compliance. Since the post of chief executive officer is now filled, perhaps the board can recommend to the Finance Ministry that further staff is required to "streamline" their "practices". With an estimated revenue from 2008 reportedly around €39 million, it seems reasonable to invest anywhere from €200,000 to €500,000 towards improvements, with a significant portion allocated for staff additions. As the old saying goes, "you need to spend money to make money". Since the powers that be have acknowledged the growing trepidation amid the sector, this would be a great way to take another step in the right direction.
Additionally, a rapid solution to the current backlog of applications is of paramount importance to existing operators and new applicants. A drastic change in the culture intertwined with the LGA would nicely compliment an increased labour force moving forward and allow the redefinition of the regulatory role here in Malta. Whereas in the recent past, they have hindered the business goals of igaming entities through intrusive, bureaucratic methods, a focus on efficiency could be spotlighted, easing the tension for prospective enterprises and retaining key assets already in place.
At least for now, they have made an excellent case for their commitment to one of the biggest tax providers on the island by selecting their new leader, and deserve a measure of applause.
For more information visit www.igamingprofilermalta.com or e-mail editor@igamingprofiler- malta.com.
• The author is editor at igamingprofilermalta.com.
Through the selection of Reuben Portanier as permanent chief executive officer to take the reins from Michael Gonzi, who had been presiding admirably (albeit temporarily) over the authority since the sudden resignation of the previous CEO, the government has made a strong statement about the seriousness of its prowess to maintain the mantle of leadership it has donned since the industry's infancy - and to them I say an enormous well done!
While it would be easy to offer criticism towards the lethargy with which this situation was handled, it would be petty to do so. The powers that be need not be reminded of the challenge that confronted them in this instance, and surely will do well to heed past issues overcome to not repeat the same mistake twice. The reality now is that one of Malta's most lucrative industries can move forward in its evolution; constantly adapt and innovate to remain atop the global regime.
Solutions are, more often than not, attained through step processes and this was a major one, perhaps even a leap. Although many hurdles remain, this one attained task clearly defines the leadership structure's peak, not to mention conveys an image of stability from an outsider's perspective, which may be equally critical.
What is unclear, however, is how soon Mr Portanier will commence the duties appointed to him and what the first order of business will be. Based on information released regarding his employment background, he appears to be a strong fit for the post. With a strong, diverse skill-set in economics, business development, data management, strategic planning and information and human resources, he seems to be an ideal match for a job description that is equally wide-ranging.
As CEO he'll oversee an entity with myriad functionality, with departments such as compliance, inspectorate, legal and administration and also be the international figurehead for a jurisdiction seeking to expand its already supple business operations. Considering how popular and well-known his (permanent) predecessor was, these will be massive shoes to fill, but history will ultimately be the judge.
An additional kudos must also go to the chairman of the Board of Directors at LGA, Nicholas Xuereb, for his recent availability to comment on such concerns to the gaming industry in Malta. The fact that he has weighed in on issues such as the turmoil created by the eruption of gaming shops that are creating public dissent and the recent CEO announcement is encouraging.
He was quoted in The Times as saying: "After a period of building the authority's framework and operations, the LGA is now moving into its next evolutionary phase, where we are in the process of consolidating our legislative framework, streamlining our practices, and broadening our outlook to continue being at the forefront of industry developments."
If nothing else, it shows the people of the country and foreign investor prospects that this recent spate of uncertainty is merely a speed bump on the road forward to improving the igaming market landscape and not an infinite round about that would leave this vital industry segment (and crucial tax revenue stream) in a whirlpool leading to the drain. For a newcomer to the LGA and the world of gaming (which could be another positive), Mr Portanier will certainly require the staunch support of the board and the Finance Ministry to be successful and it appears they are poised to provide it.
For example, it has been noted recently by the temporary CEO, Michael Gonzi, that the authority is stretched too thin to accomplish its tasks with around only 45 people currently working there and less than a handful in compliance. Since the post of chief executive officer is now filled, perhaps the board can recommend to the Finance Ministry that further staff is required to "streamline" their "practices". With an estimated revenue from 2008 reportedly around €39 million, it seems reasonable to invest anywhere from €200,000 to €500,000 towards improvements, with a significant portion allocated for staff additions. As the old saying goes, "you need to spend money to make money". Since the powers that be have acknowledged the growing trepidation amid the sector, this would be a great way to take another step in the right direction.
Additionally, a rapid solution to the current backlog of applications is of paramount importance to existing operators and new applicants. A drastic change in the culture intertwined with the LGA would nicely compliment an increased labour force moving forward and allow the redefinition of the regulatory role here in Malta. Whereas in the recent past, they have hindered the business goals of igaming entities through intrusive, bureaucratic methods, a focus on efficiency could be spotlighted, easing the tension for prospective enterprises and retaining key assets already in place.
At least for now, they have made an excellent case for their commitment to one of the biggest tax providers on the island by selecting their new leader, and deserve a measure of applause.
For more information visit www.igamingprofilermalta.com or e-mail editor@igamingprofiler- malta.com.
• The author is editor at igamingprofilermalta.com.