Finance Minister Tonio Fenech yesterday warned gaming operators that they would have their licence withdrawn immediately with no chance of renewal if they did not act responsibly by infringing the conditions of their licence to operate gaming parlours.

Winding up the debate on the Bill to amend the Lotteries and Other Games Act, Mr Fenech said the gaming sector was being tolerated under very strict regulations.

Both sides of the House did not see this sector in purely economic terms but were also attentive to the social implications. There were suggestions for stricter regulations.

He said that the bill belonged to Parliament and the truth had triumphed even though there were people who tried to implicate him personally in the matter. Parliament was giving a clear message that Malta could not be turned into a casino but was tolerating certain gaming activity.

The government never conceded that one could take the law in one's own hands. It had no obligation to permit these outlets to open. It was not liberalising the sector but was protecting society through strong regulations.

Minister Fenech declared that various proposals had been presented to the Cabinet even under the previous legislature but these were discarded because the Cabinet was not comfortable and requested more consultation.

Among the people consulted was the Archbishop who was presented with the regulations last June. The opposition was given a copy of the regulations when it made such a request.

Suggestions made by other authorities and the Social Affairs committee were considered. The Cabinet had given him and the Minister of Justice clear direction to close down illegal outlets.

The government, added Mr Fenech, never changed its position even before the elections. There were some who assumed responsibilities which the law never gave them and did not have government authorisation.

Mr Fenech referred to the court judgment on the closure of the gaming outlets mentioning the 2007 Legal Notice which had declared illegal VLTs - gaming machines that allow gamblers to bet on the outcome of video games.

No documentation was presented in court to justify the allegation that the operators were exempted by the former CEO of the Malta Gaming Authority. The former CEO could never give such concession. He did not agree with the former CEO's opinion, who resigned six months before his contract expired. The court ruled that as from 2007 unlicensed VLT operators were doing so illegally.

Charles Mangion (PL) asked the Minister to explain why these operators were allowed to operate in 2007 when they were doing so illegally.

Minister Fenech answered that the legal notice was clear. However, the government had to see how to regulate the market and consultations were held. This could not be interpreted as giving permission to operate.

The Police were never given instructions not to take action. They sometimes lost cases before the courts when they had requested confiscation of gambling machines. The MGA did not issue any licence. The majority of outlets did not have Mepa permits and some did not even have a trading licence.

Mr Fenech denied that the government or the Gaming Authority ever gave any discount on licences for such outlets.

The age limit was set at 18 years of age in line with regulations permitting online gaming. He said this sector was not contradictory and companies had to observe social regulations in respective countries.

Monitoring was to be implemented through an electronic central open system. Mechanical machines had therefore to be phased out. A period of transition would apply.

Licences would be granted for one year but would be renewed if operators acted responsible and observed the regulations to the letter. Those who would not comply would have their licence withdrawn, warned Minister Fenech.

A responsible gaming fund with representatives from various sectors would be set up. Funds would be used to help agencies treat gambling addicts and to support education campaigns, concluded the Minister.

At thye start of yesterday's sitting, Leo Brincat (PL) accused the Finance Minister of trying to attribute to the opposition the government's faults and mistakes with regards to the gaming legislation.

He was proud to having liberalised the casino sector in 1997 establishing proper regulations and setting up a Gaming Board in March 1998 removing also the monopoly in the sector. He added that the labour government had given proof that it was always in favour of clear, unequivocal and just regulation.

The government was under pressure to move the Bill because of criticism from Caritas, Sedqa and the House Social Affairs Committee. For seven whole months, the government had refrained from giving him an answer to a parliamentary question on government action to curb gambling.

The first draft of the Bill gave a blank cheque to the minister who wanted to regulate through legal notices. The opposition did not want to be an accomplice to this and had shown its intention to vote against. This situation had now changed.

The government had changed its strategy out of convenience because there was resistance from its backbenchers also. Certain people tried to put pressure on MPs from both sides of the House to exercise caution in legislating.

Interjecting, Mr Fenech said the opposition was given the regulations as originally proposed to which the opposition agreed.

Continuing, Mr Brincat said the saga of events leading to the Bill was a black mark on the government which showed its political opportunism devoid of any morality. Before the 2007 election, the government used its power of incumbency and en-couraged investors in the gaming sector to change gambling machines by offering discounts on registered fees for imported equipment.

An operator was reported in the media claiming that in 90 per cent of cases the Malta Gaming Authority had not objected to the issue of trading licences to gaming outlets. He added that a "Mafia semi-culture" was flourishing in Malta and this was not only limited to gambling.

The Bill was unanimously approved and passed to the Standing Committee on Consideration of Bills.

Other speakers will be reported tomorrow.