Social Policy Minister John Dalli yesterday revealed his wish-list for drafting gambling regulations.
Speaking during the debate in second reading of the Lotteries and Other Games Act (Amendment) Bill, he said that, while leaving scope for the entertainment value of gambling, one must curb abuse and prevent players' addiction to betting.
He said that betting and gambling had always existed and, while most people acted responsibly, there were those who became addicted, putting their gaming needs before those of their own families.
Mr Dalli suggested that advertising promoting gambling activities should be banned outright. It was inconceivable, he said, to see flyers on electricity poles promoting e-gaming, media advertisements informing people that they could win €1 million in lotto, and having four-page newspaper supplements promoting gambling on football results. Social conscience dictated that such advertising be stopped immediately.
There should also be strict controls on internet gambling. The government should reserve the right to see who played on what. Audits should be carried out to get information about from which IP addresses gambling was being conducted and where gamblers were playing.
The authorities should also have accessibility to the so-called VLTs, the modern movable computers which have the software to play particular games. Mr Dalli said it was simple to control who was accessing the VLTs and ensure the parameters of such games. There were scientific studies on how best to administer such things. Would it be wise to have such machines scattered around the island or concentrated in one place, he asked, adding that one must seriously examine the propensity of people becoming addicts to gambling.
Age limits were of maximum importance because there were people who were more vulnerable than others and who lacked self-control. It made sense to have meaningful age limits.
Mr Dalli also suggested the introduction of a central control system to ascertain that regulations were adhered to. One had to resort to technical means to control that machines gave the percentage of takings in winnings according to law.
Central control would provide an indication of the addictiveness of each and every game, and the government would thus exercise better control in issuing licences.
This was of fundamental importance as it would also help in taxation: one would be able to know what each machine took in wagers and what it gave out in winnings. At least, he said, from this activity citizens would derive money in taxes which would be used to finance worthy social activities. This fiscal element was an important social consideration.
Minister Dalli also warned against the creation of monopolies in the gaming sector.
Earlier José Herrera (PL) said one could not discriminate between foreigners and Maltese gambling in a casino where the age limit was 25 years for Maltese gamblers but 18 for foreigners. He wanted to protect Maltese youth, but he feared that legal action could be taken on discrimination grounds.
The opposition agreed with the Bill but had its reservations. Parliamentary practice requested that the House legislate and not give the minister delegated powers. This was unacceptable and he invited Nationalist backbenchers to voice their opinions, adding that today these were more outspoken than those serving under previous PN administrations.
Parliament needed to reaffirm its sovereignty because it was playing a secondary role to the executive.
Dr Herrera said that, while a number of regulatory authorities had been established over the years in various sectors, the gambling sector remained mostly unregulated. Online betting from Malta involved billions of euros.
The government permitted gambling parlour operators to import gambling machines costing millions of euros, particularly in the months preceding the general election, but now was insisting that these be scrapped. The operators would now seek redress in court as the CEO of the regulatory body confirmed in court that he had told operators to import these machines because nothing would happen.
There had never been such uncertainty and suspicion in the gaming regulatory body, with some even doubting the minister.
Dr Herrera criticised the government for setting up so many authorities, denuding the civil service of certain functions while creating so many directorships. He claimed that civil servants had lost most of the prestige which their position had held in the past.
Labour MP Chris Cardona praised Minister Dalli for focussing on the social aspect. He declared that he had some conflict of interest because, as a lawyer, he had represented a number of gaming operators.
One had to harmonise the sector by building on a strong foundation and striking a balance among the government, the investors and the clients. This was a recreational activity which had a strong addictive element.
The government wanted to regulate gambling but had failed to regulate internet gaming, and allowed banks to lend money at such high interest that it amounted to usury. Under Maltese law, usury was heavily sanctioned.
The government should regulate the whole sector, including gambling halls, casinos, lotteries, Maltco and remote gaming. Those who invested in the gaming sector should not be treated differently from those operating other gambling sectors.
Dr Cardona criticised the government for failing to take action on gambling over the years. In the main square in Birkirkara, out of 20 shops, eight were gaming outlets and eight others were pastizzerias.
A Malta Gaming Authority brochure carried an advertisement by a company which was operating without a licence.
In October 2008 an MGA employee had written to an operator that his application on behalf of a British company to export gambling machines to Malta was being processed without even a hint that the government wanted to regulate the sector. He mentioned Mr Justice Magri's quoting of the declaration made by the former MGA CEO in the case by the gaming operators against the Commissioner of Police.
Dr Cardona said that instead of enforcing regulations, the government had given gaming operators a rope to hang themselves. The government had not set up any structure to help those vulnerable, to educate, to rehabilitate abusers, to acquire revenue and to ban advertisements. The government had not shouldered its social responsibilities, and its proposal only included heavy fines and the threat of confiscation of equipment. This social disaster had been created because so many gambling outlets were permitted to operate.
Dr Cardona declared that the opposition agreed with the main aims of the regulations. He requested information about the type of regulations to be drafted, adding that one needed to strike a balance among government, investors and clients. It was right to restrict gaming to certain places, but according to the proposals these could be situated in faraway fields or on the sea.
He said that the government was mediocre in the way it had acted about this sector since its inception. The police raids carried out a few weeks ago had been carried out under pressure and not out of conviction.
Concluding, Dr Cardona appealed for a single platform which applied to every gaming sector without any prejudice or discrimination.
Dr Michael Gonzi (PN) said he was still wondering if the opposition was really behind the government in its efforts to control illegal gaming. Gaming shops had mushroomed in just a few months, and both sides had been represented in the Social Affairs Committee when the subject had been discussed in the presence of all stakeholders.
The government and the opposition were in agreement that the Bill was necessary, and Parliament was now attempting to close a number of loopholes. Each social activity seemed to need an element of gaming for it to draw people.
Dr Gonzi said the government was seeking to enhance public awareness of the pitfalls of compulsive gaming. Addicts must be made to realise that even successful gaming would solve no problems. Operators, on the other hand, ideally had a duty to society and must guide and advise people at such risk, but in practice they evidently had no thought for the well-being of society. What mattered was for them to make money.
The Bill must give prominence to the control of such addiction. He himself had come across three cases of family breakdowns due to gambling.
The Bill would also control the minimum age for gaming, and this was crucial. The fund it was setting up to help families in distress would go some way towards addressing the tragic consequences on the families of addicted gamblers. The reduced accessibility to gaming shops would also help society.
Advertising had a huge hand in attracting people of every age and social standing to these shops. Even legal gambling was rampant.
Going into the details of the Bill, Dr Gonzi said it still left some loopholes which he felt should be addressed. Interjecting twice, Finance Minister Tonio Fenech said that nobody under 18 would be allowed into gaming shops, irrespective of whether they played or not. Gaming Authority licences would be required for anyone putting gaming machines on the market, anyone operating gaming shops as well as all shop employees, to ensure they fully understood legal requirements.
Dr Gonzi said that in its meetings the Social Accounts Committee had kept it permanently in mind that the family was the most important unit in the discussion of gaming and its consequences.
Mr Charlò Bonnici (PN) said that when legislating, Parliament had the duty to eliminate loopholes as there were several families who suffered because of gambling.
He praised the required minimum age of 25 to enter casinos. In this way, minors were being protected against gambling and he suggested there should also be limits on the age required to gamble in Super 5. When Super 5 prizes were excessive, the government should conduct a campaign against gambling, he said.
Mr Bonnici said that authorities needed to have adequate resources to be able to control abuses, and if it was difficult to control gaming machines, then there should be an effective digital system to monitor them.
He augured that the amendments would instil order in the sector.