How Malta-based gambling companies are dealing with enhanced regulation

The Island state of Malta has long time been favoured by online casino operators, mainly due to its relatively low levels of taxation and the number of available business opportunities. However, with six-figure fines, increasing taxation and an increasing amount of what some consider to be excessive regulation in the UK, Canada and the EU, operators have witnessed a reduction in profit margins. 

CZ Holdings, for example, has chosen to voluntarily give up its license, purportedly to escape a UKGC inquiry. Casumo, amongst many others, received a six-figure fine for operating license violations. However, some operators have developed workarounds in an attempt to circumvent increasingly stringent regulations.

Genesis Global

Genesis Global is a prime example of an operator that has had to alter its business practises in the face of increased regulation. In 2020, within just three months, Genesis found itself barraged with a series of punitive measures. 

After a period of assessment, the United Kingdom Gambling Commission (UKGC) suspended Genesis' operating license. Genesis complied with all proposed measures in the wake of the suspension, and, after three months, their license was restored. However, the company subsequently received an official warning from the UKGC.

The operator was founded in 2014, initially owning one site known as Casino Cruise. In an effort to reduce costs and improve profit margins, Genesis Global launched a series of new brands in quick succession, including SpinIT, Vegas Hero, Casino Gods and others. At the time of writing, the number of Genesis casino sister sites stands at fourteen and there are probably more to come.  

The casino group is currently regulated by the Malta Gaming Authority, UK Gambling Commission and the Swedish government, and offers an online casino, Sportsbook and live casino.

Mr. Green

Mr. Green is another operator that has withstood the changing regulatory environment through innovative measures. It rose to fame in 2007, becoming one of the biggest standalone casinos in the industry. 

In a supposed bid to boost profit margins and reduce operating costs, the online operator later acquired Evoke gaming and four of its casino and sportsbook brands from Bonnier in 2017 — brands which, in fact, Bonnier had only acquired a few years earlier. 

However, in a twist of circumstances, Mr Green itself suffered the same fate in 2019, and was acquired by William Hill. After the William Hill acquisition, the company headquarters was moved from Stockholm, to Sliema, Malta. 

GiG (Gambling Innovation Group)

Gaming Innovation Group, or GiG, is a full-service iGaming software provider and media partner for online gambling operators. Over the last decade, GiG has penetrated the iGaming supplier value chain and now also runs a performance-based affiliate marketing programme. GiG holds licenses from the Malta Gaming Authority and the UK Gambling Commission.

In addition to supplying innovative services to online companies, GiG has acquired and operated a significant number of these companies. Gaming Innovation Group managed such consumer brands as Guts.com and Rizk.com, before divesting them to Betsson.

GiG is now widely known for providing cloud-based products and performance marketing in a business-to-business context. Apart from keeping itself buoyant in the face of increased regulation, GiG has also helped boost the profitability and sustainability of its partners.

Kindred Group

Kindred, another Malta-based company with overseas origins, is an online organisation that operates many popular online casinos, Poker and sports betting sites. With over 16 million customers, it is one of the largest online gambling companies in the world. The company was founded by Anders Strom, and, at its launch in 1997, was initially called Unibet Group PLC. Kindred is registered in Malta, but has principal offices in London, Gibraltar  and Stockholm.  

A raft of measures taken throughout the history of Kindred Group has helped it stay rooted, even amidst increasing regulations. Aside from some regulatory incidents — for example, their recent legal battle with the Norwegian Government — the company is not known to have been involved in any major scandals in its operational history.

At present, Kindred Group is known as a stable multi-brand company with eleven sites in its portfolio. It also operates innovative programmes such as Kindred Futures, where it forms mutually beneficial partnerships with upcoming entrepreneurs and companies.

Round-up

In the face of tighter regulations from the UKGC, MGA and Canada, numerous online casino brands have been slapped with hefty fines in the past few years. As such, most forward-thinking operators have resorted to multi-brand acquisitions to lower costs and secure their bottom lines. It appears that the days of standalone gambling operators are fast coming to an end, with, increasingly, only giants like Bet365 remaining feasible in the long term. 

Disclaimer: Play responsibly. For help, visit www.rgf.org.mt. Players must be over 18