Gaming Authority in Malta Examines Environmental, Social, and Governance Code for Online Gaming Industry

Gaming Authority Looks to Foster Sustainable Operations with ESG Code

The Malta Gaming Authority (MGA) is pushing to create an Environmental, Social, and Governance (ESG) Code of Good Practice, propelled by impending legislation for listed companies set to comply with the Corporate Sustainability Reporting Directive (CSRD) starting in 2024.

MGA Aims to Boost Transparency and Sustainability in the Industry

The CSRD mandates gaming companies to transparently share all relevant information concerning societal and environmental impacts and risks stemming from their operations. The MGA's announcement about the code comes after revising its Player Protection Directive at the outset of the year.

The new code caters to the needs of online gaming operators preparing for the upcoming ESG legislation, with the aim of also capitalizing on the potential benefits of running a "sustainable-minded business."

This fresh code will outline common priorities for ESG within the industry, taking into account the exact requirements of key stakeholders to minimize social and environmental footprints. Simultaneously, the move bolsters Malta's reputation as an attractive jurisdiction for gamblers. In line with its initiative, the MGA has dispersed a survey to all critical licensees, an essential step in transforming the gaming sector into a more transparent and sustainable domain.

Birth of the ESG Reporting Platform

Exploding public awareness surrounding ESG-related topics has been ignited by investors, consumers, and employees who've come to understand the profound impact of gambling companies on both the environment and society.

Malta's government officials have responded by introducing a dedicated voluntary ESG reporting platform, designed to encourage companies to disclose their ESG performance to public scrutiny, in an effort to attract more investments in sustainable businesses.

While the MGA has celebrated the "steady progress of the gaming sector" and applauded the work of operators using the ESG platform, they feel that further action is required for operators to maintain a competitive edge in innovation.

The MGA remains optimistic about an increasing number of gaming companies "implementing practical sustainability measures." They believe that by revealing their sustainability initiatives, operators will initiate positive changes within the sector and enhance the general public perception.

Last September, MGA published its regular annual report, reflecting a challenging and frenzied fiscal year while acknowledging the gambling sector's capacity to record significant growth.

MGA's CEO Dr. Carl Brincat explained that the organization successfully navigated all hurdles while emerging stronger and more resilient.

Key data reveals that the MGA's ESG strategy emphasizes going beyond routine compliance, integrating responsible gambling and ESG as separate but connected aspects, promoting environmental initiatives, uplifting social and community commitment, and reinforcing governance practices. The strategy aims to foster greater transparency by requiring operators to publicly disclose their ESG commitments and progress. This transparency facilitates trust among players, regulators, and stakeholders, drives industry-wide improvement, encourages innovation, and supports regulatory oversight. This comprehensive approach reflects a forward-thinking strategy that aligns the gaming sector with evolving global ESG standards and consumer expectations.

The Malta Gaming Authority (MGA) is encouraging online gaming operators to be ready for the upcoming Environmental, Social, and Governance (ESG) legislation in 2024, by introducing a new ESG Code of Good Practice.
Malta's government is promoting sustainable businesses by introducing a voluntary ESG reporting platform, which encourages companies to disclose their ESG performance to public scrutiny and attract more investments.
The Malta Gaming Authority's (MGA) ESG strategy focuses on integrating responsible gambling and ESG as separate but connected aspects, promoting environmental initiatives, uplifting social and community commitment, and reinforcing governance practices to foster greater transparency and trust within the gaming sector.