New policy requires Maltese licence-holders to maintain positive equity position

The Malta Gaming Authority (MGA) has published its updated Capital Requirements Policy, introducing a binding obligation for all licence holders to maintain a positive equity position at all times.

A positive equity position is present when a company’s assets exceed its liabilities, as reported in its financial statements. This includes the minimum share capital and any other reserves classified as equity.

According to the MGA, the new requirement is aimed at ensuring that licensees are financially equipped to sustain their operations, promoting long-term stability within the gaming sector.

If a licence holder ends its financial year with a negative equity position, it will be required to restore positive equity within six months, regardless of whether further losses are incurred during that time.

For B2B licence holders, this restoration requirement only applies if the negative equity exceeds €3 million, unless otherwise directed by the MGA on a case-by-case basis.

This policy serves as an early warning mechanism, enabling the MGA to intervene at the first signs of financial distress. It is a proactive measure designed to enhance transparency, promote sound financial management and strengthen the resilience of Malta’s iGaming industry.

The Capital Requirements Policy document is accessible here.