The former CEO of the Lotteries and Gaming Authority yesterday testified that operators of gambling arcades were allowed to use certain machines because new regulations were not yet in force since the authority itself was not in a position to conform to them.
Mario Galea said discussions had been held between the operators, police and interested parties during the drafting of the regulations, however the deadline by which the operators had to conform kept on being postponed. This was because the authority itself had yet to come in line.
Mr Galea was giving evidence before Mr Justice Albert Magri who will decide whether to uphold a temporary warrant of prohibitory injunction stopping the police from elevating machines from eight gaming arcades to investigate possible abuses.
Mr Justice Magri had granted the warrant on August 6 on the request of the eight companies following a nationwide clampdown on gambling outlets. The companies are: Allied Games Ltd, Best Play Ltd, Gaming Operations Ltd, Media Gaming Malta EU Ltd, Laak Ltd, Vanguard Gaming Ltd, Zammit Videomatic Ltd and Silver Play Ltd.
Mr Galea yesterday said there were a number of reasons for lack of conformity to the new regulations by the authority, but only named one: the general election.
The postponement meant the operators were exempt from legal notice 271 governing video lottery terminals, commonly known as street machines. The legal notice lists a number of technical specifications on the use and on the monitoring of the machines by the government.
Mr Galea said that a roll-out plan had been devised for the terminals after the consultation process which started in 2005.
"Most of the operators had licences to work the machines but still had pending premises permits," he added.
Taking the witness stand, Superintendent Paul Vassallo said the police had received a report from the authority asking them to investigate the operators and see if they were operating without licences.
The government is to present new gaming laws for Parliament's approval after the summer recess. When it had made this announcement earlier this month, it also gave warning of immediate action to be taken against gaming shops operating illegally. The next day police fanned out across the island in a crackdown on the whole industry.