The MGA publishes its Capital Requirements Policy – Malta Gaming Authority

Summary

The Malta Gaming Authority (MGA) has published a new Capital Requirements Policy that strengthens the financial framework for entities holding an MGA licence to offer remote gaming services or provide critical gaming supplies.

The Policy aims to protect the integrity and long-term sustainability of the sector by ensuring licence-holders maintain adequate capital resources. It introduces a Positive Equity Position requirement and a process to restore any Negative Equity Position as an early warning mechanism. The measure follows a broad consultation and has been notified via the EU TRIS process. The Policy is effective immediately, with transitional provisions for new and existing licence-holders. The full Policy can be accessed via the MGA link to the PDF.

Key Points

The MGA published a Capital Requirements Policy to reinforce licence-holders’ financial soundness.
The Policy adds a Positive Equity Position requirement on top of existing minimum nominal share capital rules.
A requirement to restore a Negative Equity Position acts as an objective early warning mechanism for the MGA.
The Policy resulted from an extensive consultation and has been notified under Directive (EU) 2015/1535 via TRIS.
The framework strengthens the MGA’s proactive oversight and remediation capabilities; it is in force immediately but includes transitional periods for affected licence-holders.
The full Capital Requirements Policy is available as a PDF from the MGA website.

Context and Relevance

This Policy is a regulatory step to reduce systemic financial risk within Malta’s gaming sector. By requiring a Positive Equity Position and mandating remediation of negative equity, the MGA increases early detection of financial stress and gives itself clearer powers to require corrective action.

For licence-holders, the Policy means closer capital monitoring and potential compliance actions if solvency indicators worsen. For investors, banks and suppliers, it signals a tougher regulatory stance on financial resilience in the industry, aligning with wider EU trends on stronger prudential rules for regulated sectors.

Why should I read this?

If you work in or with MGA-regulated businesses — stop scrolling and read this. It changes what counts as acceptable financial health, introduces an early-warning fix-it rule for negative equity, and takes effect now (with some breathing room via transitional measures). If you run a licence, advise one, or finance one, this tells you what to check on your balance sheet — pronto.