Malta Fights European Council Point of Consumption Definition; Grants First Video Bingo License

Malta is fighting an initiative by the Council of Europe to introduce a new definition for place of consumption definition of illegal sports betting. Maltese officials say the new definitions would make Malta based online gambling companies offerings illegal in Europe. Meanwhile, the government has granted its first video bingo license to Zitro.

Maltese officials are fighting a move by the Council of Europe which they say would make betting at Malta-based online gambling sites illegal in Europe.

The Council is expected to introduce a new “place of consumption” definition of “illegal sports betting” which Malta Gaming Authority CEO Joseph Cuschieri says will hurt Malta-based operators.

Cuschieri told local media the proposed changes would effectively make all operators who offer their services via their Malta Gaming Authority license illegal in other European states.

The new definition is part of the Council’s submission on the Convention on the Manipulation of Sports Competitions, and reads:

“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.”

Cuschieri said online gambling accounts for 11 percent of Malta’s gross domestic product and employs 8,000 people. The new definition would be a threat to Malta’s economy he said.

“While in accordance with the jurisprudence which has developed in the EU since 2008, a number of EU member states are restricting the provision of online gaming services within the EU and imposing national licenses to offer gambling services within their territories,” Cuscheieri said according to a report on Yogonet.com “If the EU were to ratify the Convention of the Council of Europe, such a definition will have automatic EU applicability which effectively gives the ‘stamp of approval’ to the restrictions imposed by EU member states on the provision of cross-border services.

“This definition, taken with the enforcement measures which the Convention calls on the signatory states to take in respect of ‘illegal betting operators’, unfortunately prevents Malta from supporting the Convention, which, in general, has a very positive objective in line with its policy to force out match-fixing,” he said. “Malta participated in negotiations and made various proposals for amendments to the Convention which unfortunately were ignored.”

The Council of Europe is distinct from the EU and the EU Council of Ministers. The EU is seeking to ratify the Convention as an entire block, meaning consent is needed from each and every member state, yogonet.com reported.

Also last week, the Malta Gaming Authority granted Zitro Interactive a Class 4 gaming license for its video bingo games, making the company the first to acquire a license for this category of games.

Divisional Director Rais Busom said acquiring the Malta license gives Zitro access to other online casinos and markets, and he expects more content deals to be arranged. “Obtaining the Malta license is a real boost to our pride here at Zitro, especially for the online division. It’s an acknowledgement of a job well done, and is definitely a major step forward towards the new successes to come,” he said.

Zitro Interactive recently has received licenses from PWC, Deloitte and BMM. Its World of Bingo social app has broken all records with nearly 1.5 million registered players. In 2016 Zitro Interactive has focused on international expansion, supplying content for online casinos including those operated by Caliente, Codere in Mexico, Suertia, Playbonds and Betmotion.

Zitro Chief Executive Officer Sebastián Salat said, “Zitro is committed to its objective of being amongst the top companies in the gaming industry, and this includes expanding our presence online. The license granted by the Maltese authorities is a very significant advance towards this objective.”

Zitro and Zitro Interactive will demonstrate its products at the Global Gaming Expo, September 27-29 in Las Vegas.