Providing support services for a growing sector
RSM Malta, part of RSM International, was established by a team of partners with several years of working experience in the public accounting sector. Partner Vladimiro Comodini describes what RSM Malta stands for and its plans for the future
RSM is one of the leading firms specialising in financial and audit advice. How are you structured?
RSM was launched in Malta by a team of reputable partners who are Certified Public Accountants with decades of professional working experience. This year RSM celebrated its tenth anniversary since establishing itself in Malta as part of the global RSM International network.
RSM employs a unique talent pool of around 100 qualified full time professional staff in different disciplines including Audit, Tax, Outsourcing (accounting and payroll) and Business Advisory. RSM is well positioned to provide holistic service solutions to its clients, delivered by the best in class.
Specific to the gaming industry, we provide a one-stop shop helping our clients from inception (tax planning), to licensing (jurisdiction and licenses), to go live (IT advisory) and compliance thereafter. Audit and Accounting also come into play as soon as the company is operational. The feedback we receive from our gaming clients shows a high level of satisfaction with our services, mainly arising as a result of our in-house processes and resources, which bring the familiarization, planning, licensing and operational aspects under one roof. This is what we have been doing for the industry from the very early days of gaming companies setting up shop in Malta.
How are your employees specialised in ensuring that your clients get the best possible business and financial advice to succeed in the iGaming industry?
RSM has been an active player in the remote gaming industry ever since Malta established itself as a reputable gaming hub. Today, RSM is firmly embedded in Malta’s remote gaming ecosystem. We are regular participants in various conferences, road shows and discussion fora and our staff receive regular training to remain on top of their game at all times. This is even more important in an industry, such as remote gaming, where the regulatory landscape is ever changing. We have teams of specialized individuals in each of our business units who focus on specific areas including, but not limited to, IT security and audits, licensing and compliance, financial audits and accounting.
Being accustomed to providing a 360 degree service approach to remote gaming companies, our professional staff is equipped with the necessary skills and tools to grasp the issues that matter, to comprehend the implications and to design effective solutions for our clients. Our point of departure is always to understand our clients’ objectives and to help them get there – that is the power of being understood.
How is Malta¹s economy benefitting from the growing financial and iGaming services sector?
Malta is a prime location for foreign direct investment. The island’s accessibility, advanced, communication systems, adequate and flexible labour supply, high work ethics, tax and fiscal incentives, climate and lifestyle are some of the main advantages of investing and working in Malta.
From an iGaming perspective, Malta is considered to be one of the most reputable jurisdictions within the iGaming industry and has over the years created a strong local presence of remote gaming companies. As at the last statistics, there are close to 500 remote gaming licenses across more than 200 companies. The effect of these on the economy are amazing when one considers the direct input (employment, office space, taxes etc) as well, and probably more importantly the indirect benefits (indirect employment, professional services, property rental, entertainment etc.) All these have contributed substantially to the growth of the Maltese economy. Gaming is understood to be close to 12% of GDP with over 8000 individuals employed within this sector.
Most foreign companies welcome an A to Z service when they come here. How does RSM deal with these demands?
As explained already, RSM provides an in-house, one-stop shop service: Audit and Assurance, Risk, Tax, Technology and Business Advisory as well as Outsourcing and Consultancy. In each of these areas, we have specialized and trained people thus providing a complete and holistic approach to every client demand. This is of critical importance, in particular for the remote gaming companies.
Whether serving public sector organizations, owner managed businesses, private individuals or listed companies with overseas operations, our goal is to help our clients achieve their ambitions.
What are some of the risks and challenges that could have an impact on companies and investors in this industry?
This is a highly competitive industry where the regulatory landscape changes regularly. It is a well-known fact that player loyalty is minimal and the cost of acquisition is high. Thus one of the challenges is definitely to establish a market share and maintain it. Successful gaming companies need a strong financial backing, clear strategies and very importantly, a competent and knowledgeable workforce to drive the company to new heights.
From a risk perspective, we would place the regulatory framework in top position. The cost of licenses and the respective compliance costs are increasing, particularly in today’s age whereby each jurisdiction has varying requirements that all need to be met. This, together with the highly competitive market, is squeezing margins and only big volumes can provide a stable return. As a country, we need to ensure that remote gaming companies continue to find suitable infrastructure for the carrying out of transactions that are a natural result of their business.
Even though the local iGaming industry is experiencing a boom, should we expect it to reach a saturation point anytime soon?
Malta has been experiencing a boom and has been riding the wave for a number of years now. By their very own definition, peaks can, at some point, taper into troughs. We have seen over the last few years a great number of mergers and acquisitions through which the market is consolidating itself. Newcomers are fewer in numbers and the player community does feel saturated – nevertheless, we still see a number of licenses coming through as start-ups or operating companies expanding their operations. If Malta manages to maintain its competitive advantages and remains forward looking and innovative, the gaming industry is here to stay.