ADVERTISEMENT
The Malta Gaming Authority is officially the first gaming regulator worldwide to launch an ESG Code. How is this expected to impact the industry? Ramona Depares reports.
A couple of years ago, the iGaming industry was united in concern over the EU’s proposed Corporate Sustainability Reporting Directive (CSRD). Initial submissions appeared to place a substantial reporting, KPI and disclosure responsibility on a vast range of organisations operating within the EU. The Directive would have affected the majority of gaming companies based in Malta, with small and medium-sized outfits concerned that the one-size-fits-all approach would spell disaster.
Eventually, the proposals were scaled back, removing approximately 85 per cent of companies from its scope. But the growing importance of ESG was undeniable, and it was around this time that the Malta Gaming Authority (MGA) saw an opportunity to anticipate the shift by creating a framework specifically tailored to the realities of the gambling sector.
A process of stakeholder consultation kicked off and – eventually – Malta’s iGaming ESG Code was born, alongside a dedicated hub. In a landmark move for the industry, the regulator issued the first-ever ESG Code Approval Seals to 14 gambling operators, with the first insights report published in May 2025.
The Code positions sustainability, social impact and responsible governance as core elements of business resilience and credibility. It introduced two tiers of engagement – a basic level for companies that are just starting their ESG journey, and a more aspirational tier for those ready to go further.
But what do the results from the first reporting cycle say about the state of the industry? For starters, what stands out is that 14 companies stepped up to participate voluntarily, despite the many regulatory demands already placed upon them.
The insights revealed some recurring themes. Many companies are already active in areas like responsible gambling and employee well-being, but when it comes to topics like diversity at leadership level or formal ESG governance structures, there’s still room to grow.
Of course, Malta’s role as a leading jurisdiction for online gambling brings with it both responsibility and opportunity. The MGA is highly aware of its role in the sector.
The drive towards sustainability reporting is global – in 2023, a research paper published by the Wharton School found that an increased focus on ESG that was directly relevant to business activities can boost a company’s value by 1.4 per cent. It’s hardly any wonder that many iGaming companies are making it part of their core strategy. What about those that aren’t?
Antoine Fenech, Director at Deloitte Malta, believes that “operators should carefully assess the reputational cost of not opting in”.
“The Code is an innovation in the industry, being relatively new and disruptive. The adoption curve of any type of innovation suggests that early adopters gain competitive advantages, while those who lag behind risk exclusion from key markets. This could result in diminished trust, potentially impacting financing opportunities and market access, as clients and even financing partners could soon establish due diligence processes based on operators’ ESG credentials,” he notes.
By contrast, early adoption positions operators competitively in markets with increasing ESG scrutiny, with possible benefits including lower capital costs, enhanced partnership opportunities and improved public perception.
“The reputational boost from adopting the code can reduce regulatory and market risks, and attract B2B partners, payment providers, and affiliate networks seeking transparent and responsible operators. Becoming pioneers in adopting the ambitious second tier can further amplify these advantages,” Mr Fenech adds.
He uses FDJ United as an example of the gaming sector’s first wave of CSRD reporters, with the company making its report publicly available and even adopting Forest Stewardship Council (FSC)-certified paper for its scratch tickets.
“This was a visionary move that drove industry standards towards environmental responsibility, enhanced its brand reputation and strengthened supply chain resilience for cost-effective procurement and competitive advantage,” he continues.
And there are lessons to be learnt from other industries like finance, which initially was subject to voluntary recommendations to identify ESG-related risks and opportunities from authorities like the European Banking Authority.
“These recommendations eventually evolved into a whole regulation dedicated to the financial sector – the Sustainable Finance Disclosure Regulation (SFDR).”
Does this mean that the Maltese code could potentially become the de facto ESG benchmark for the global sector? Potentially, yes.
“The framework is quite comprehensive as it establishes a strategic blueprint covering 19 ESG topics across environmental, social and governance domains, all crafted through extensive peer review, materiality assessments and consultation. It has been tailored to guide all types of stakeholders on best practices for iGaming. It offers a solid basis. More endorsement, especially from investors in the industry, can help accelerate the process to transform it into an industry baseline,” Mr Fenech concludes.
This interview first appeared in the iGaming Capital 2026 edition. For more information on the iGaming Capital 2026 edition or on www.iGamingCapital.mt, get in touch via email on info@contenthouse.mt or on +356 2132 0713. Additionally, readers can visit the iGaming Capital portal at www.iGamingCapital.mt to stay updated on the latest developments in Malta’s iGaming industry.
Featured Image:
Antoine Fenech / deloitte.com
