LeoVegas Group appoints former Malta Gaming Authority CEO Carl Brincat as Director

A lawyer by profession, Former Malta Gaming Authority CEO Carl Brincat has been appointed to the role of Group Director at LeoVegas Group.

Dr Brincat resigned from his post at the helm of Malta’s betting and gaming regulator in January 2024 and will begin his new role with LeoVegas Group in August 2024, translating into a short seven-month gap between his role as regulator and his entrance into the regulated iGaming private sector.

LeoVegas Group is a major, mobile gaming company and provider of online casino and sports betting services that was acquired by major global betting and entertainment conglomerate MGM Resorts in 2022.

Dr Brincat served at MGA for a period of nine years in various legal roles and held the position of CEO for his last three years and one month with the regulator.

In a statement by LeoVegas Group, the company said that Dr Brincat will be joining in August as the new Director of Policy and Regulatory Affairs at the group’s Sliema offices.

He will be reporting directly to the Chief Legal and Compliance Officer, Abby Cosgrave, and he will be tasked with managing and overseeing relationships with new market regulators and authorities across LeoVegas’ future international markets.

He will also be tasked with spearheading the group’s policy efforts and coordinate relationships with industry trade bodies to support the company’s “rapid global expansion”.

In a statement by LeoVegas announcing the appointment, Dr Brincat said:

“I have witnessed firsthand the Group’s growth from a newly founded challenger company into a leader in iGaming.”

Does the appointment breach Malta’s revolving door legislation?

The appointment comes as a surprise when considering Malta has an active revolving door directive in place, which regulates movements of individuals between roles as public officials and positions in the private sector.

The legislation is designed to prevent conflicts of interest and maintain integrity within public administration by ensuring that former public officials do not unfairly leverage their previous positions for personal gain in the private sector.

The law was introduced in Malta in 2020 and applies to some public officials, mainly those that are involved in regulatory or inspectorate functions. According to a list of roles covered by Malta’s revolving door directive, the chief executive of the MGA, the position previously held by Dr Brincat, is covered by the rules.

The policy bars such officers from having a relationship of profit with a private business or non-government body with which they dealt with during a period of up to five years. The legal provision bars such a for-profit relationship for a cooling off period of two years.

The cooling-off period may vary and is intended to mitigate the risk of conflicts of interest and the misuse of confidential information acquired during public service.

For persons who occupied positions covered by Malta’s revolving door policy in September 2019, according to directive, the cooling-off period is reduced to six months. In September 2019, Dr Brincat occupied the post of Chief Legal Counsel at the MGA, and the following month, according to his LinkedIn account, he was appointed Chief Legal and Enforcement Officer. The latter role is covered by the revolving door policy, but it is unclear if Chief Legal Counsel is also subject to the directive. The role is not expressly listed.

As the former CEO of the MGA, Carl Brincat would have had significant influence over the regulation of the gaming industry in Malta. Moving to a senior position in a major gaming company like LeoVegas Group could raise concerns about conflicts of interest, especially if he had any regulatory dealings with LeoVegas during his tenure at the MGA.

Additionally, his direct transition from a regulatory authority to a regulated entity may present a conflict of interest, which is precisely what such legislation aims to prevent.

During his tenure as MGA CEO, he was ultimately responsible for the functioning of the regulator, which involves regulating all licensed iGaming companies in Malta, including LeoVegas.

While it does not appear that Dr Brincat is technically in breach of the rules, determination of a breach would depend on a formal review by the relevant oversight body, such as the Revolving Door Policy Governing Board or the Commissioner for Standards in Public Life.

According to a news report by BusinessNow.mt in 2022, the board only conducted one investigation since the rules were issued in June 2020. Joyce Cassar, chairperson of the board was quoted as saying that at the time, it was meeting regularly, but only one formal investigation had been conducted.

The report further stated that after receiving feedback from multiple legal and recruitment experts, general consensus was that the revolving door policy was not being enforced rigorously.