MGA launches charter on ethical and responsible AI use in gaming

The Malta Gaming Authority (MGA) has launched an AI Gaming Charter in collaboration with the Malta Digital Innovation Authority (MDIA).

The document will act a framework for the sector, and aims to provide practical best-practice guidance for ethical and responsible use of AI across gaming operations. It complements existing legal and regulatory frameworks.

The charter highlights that AI is increasingly becoming embedded across gaming operations and supporting functions, including operational decision-making, player protection and risk management. It notes that the growing use of AI presents opportunities, but also challenges.

MDIA CEO Kenneth Brincat said that trust is fundamental to the responsible adoption of AI. “As its use becomes increasingly embedded across the gaming sector, organisations need practical ways to understand where AI is being used, manage the associated risks and ensure that accountability and human oversight remain firmly in place. The AI Gaming Charter translates these principles into practical, sector-specific guidance, bringing together MDIA’s expertise in AI governance and the MGA’s deep understanding of the gaming sector.”

Some of the key aspects covered in the charter include data governance, human oversight, transparency, non-discrimination, and stakeholder engagement. The charter is voluntary in nature, but the document reads that gaming licensees are “strongly encouraged” to adopt it as a means of demonstrating their commitment to ethical AI use and sound governance.

The 48-page document recognises that AI adoption across the gaming sector is still “uneven and generally selective rather than widespread.” It states that the most mature use cases are in operational optimisation and data analytics, customer support chatbots, and, to a lesser extent, recommendation engines, player profiling, fraud detection and AML, and responsible gambling behavioural modelling. It notes that “adoption appears far more limited in dynamic odds setting and risk management, regulatory reporting, player acquisition, HR-related uses, player onboarding and KYC, payments, and AI powered live casino applications.”

The charter includes a large number of recommendations. Among other things, it states that AI systems should be designed by gaming licensees in a manner that enables users to be clearly informed when they are engaging with AI systems for instance.

It also states that documentation of risks identified in the use of AI systems should be maintained, including regarding any potential impacts, especially regarding the impact on players, fairness, and compliance with applicable law.

Among other things, the charter also emphasises human oversight, describing it as the “cornerstone of responsible AI governance.” It says that licensees should ensure that AI systems are subject to meaningful human oversight and control, proportionate to their risk and impact.

Regarding AI algorithms, it states that licensees should maintain records explaining risk, controls, purpose, limitations and more regarding AI algorithms used in gaming operations. “Where an AI-supported decision materially affects an individual, gaming licensees should provide the affected individual with a meaningful, human-readable explanation of the outcome, the role played by the AI System, and any available channels for human review, challenge or redress, where required by applicable law or appropriate in the circumstances.”

The document stresses the importance of ensuring fairness and non-discrimination in the development and deployment of AI systems. One measure encourages gaming licensees to implement proportionate measures to detect and mitigate bias in AI algorithms, and stresses the need for continuous monitoring, evaluation, and updating of AI systems to ensure fairness and equity.

The charter also calls on licensees to ensure that a comprehensive AI governance framework is established and implemented to support the responsible use of AI in line with the charter.

Speaking at the launch event, Charles Mizzi, CEO of the MGA, said: “The AI Gaming Charter reflects a shared commitment between regulators, industry and technology experts to promote the responsible and transparent use of artificial intelligence. Our role as a regulator is not to stand in the way of innovation, but to help create the certainty and confidence needed for innovation to flourish responsibly.”