Malta has no option but to veto a Council of Europe convention on sports betting as this would jeopardise the entire industry in Malta, Ulrik Bengtsson, CEO and president of Betsson Group, has warned.
All member states would need to approve the Convention on the Manipulation of Sports Competitions, but if Malta were to veto it, there could be political ramifications.
Malta was the only country which raised opposition to the convention ratification when it was discussed in the European Parliament – and even this did not go down well, especially with the European People’s Party.
The Malta Gaming Authority executive chairman, Joe Cuschieri, tactfully said that this was “the government’s prerogative” while Mr Bengtsson said: “It is not up to me to judge”.
The convention has come up with a new definition of “illegal sports betting”, saying it is “any sports betting activity whose type or operator is now allowed under the applicable law of the jurisdiction where the consumer is located”.
Dr Cuschieri explained that the definition would effectively render illegal all operators who offer their services via an MGA licence in other European states.
Although not all the remote gaming companies in Malta are involved in sports betting, the number is still substantial enough to matter.
The Council of Europe’s intention was to protect consumers from match fixing but it is just as likely that other member states are protecting their own operators.
“I believe it is a mixture of both,” Dr Cuschieri said. “We are in favour of the convention and its objectives. What we are against is the definition of illegal sports betting which is beyond the scope of the convention.”
Mr Bengtsson is unconvinced that the convention would achieve the altruistic aim.
“This will have no effect on match fixing as it is designed for. Although the initiative to address match fixing is a good one, the phrase in question, ‘illegal sports betting’, means any sports betting activity whose type or operator is not allowed under the applicable law of the jurisdiction where the consumer is located. This particular phrase is just tucked in solely for the member states to protect their monopolies and restrict the options and product quality for the consumers,” he said.
If the convention were approved, then the value of a Maltese licence as a way to operate in other states would be greatly diluted, as companies would be forced to get separate licences for each jurisdiction. “If there already is a local licence in place then we could, of course, operate under that,” Mr Bengtsson said.
At this stage, the timeline and procedure is not clear and Dr Cuschieri said that the MGA was following it closely.
If the convention were to be ratified, what would actually happen? Dr Cuschieri said that it was too early to say because it depends on a number of factors.
“We are hoping that an acceptable solution for all parties involved can be found in the near future. Apart from that, the MGA is undergoing a major revamp of its entire regulatory framework in order to future proof the gaming sector’s continued development. Like that Malta will remain an attractive jurisdiction of choice for the foreseeable future,” he told The Business Observer.