IMGL Magazine July 2022

IMGL magazine

VOLUME 2 • NO.3 JULY 2022

PLUS: CALIFORNIA’S UPCOMING BALLOT, ONLINE CHOICE ARCHITECTURE , EUROPEAN TAXONOMY & AML REGULATION, NOVEL DIGITAL PRODUCTS, ONTARIO’S NEW REGULATED GAMING MARKET, MACAU MARKET UPDATE ...& MUCH MORE SPOTLIGHT ON MALTA

IMGL Magazine • April 2022 • 1

IMGL Officers

Cosmina Simion Secretary Simion & Baciu Romania +40 31 419 0488 [email protected] Diane Mullenex Assistant Treasurer Pinsent Masons London +44 20 7490 9250 [email protected]

IMGL Officers 2022

Marc H. Ellinger President

Ellinger and Associates Jefferson City, Missouri +1 573 750 4100 [email protected] Quirino Mancini Executive Vice President Tonucci & Partners Rome, Italy +39 06 322 1485 [email protected] Marie Jones First Vice President Fox Rothschild LLP Philadelphia, Pennsylvania +1 609 572 2259 [email protected] Marc Dunbar Second Vice President Dean Mead & Dunbar Tallahassee, Florida +1 850 933 8500 [email protected] Peter Kulick Treasurer Dickinson Wright PLLC Lansing, Michigan +1 517 487 4729 [email protected]

Susan Breen Assistant Secretary Mishcon de Reya London +44 20 3321 7434 [email protected]

Birgitte Sand Vice President, Affiliate Members Birgitte Sand and Associates Copenhagen, Denmark +45 24 44 05 03 [email protected]

Ernest C. Matthews IV Vice Presiden, Affiliat Members Internet Sports International, Ltd

Las Vegas, Nevada +1-702-866-9128 [email protected]

Kathryn R. L. Rand Vice President, Educator Members University of North Dakota Law School Grand Forks, North Dakota

+1 701 777 2104 [email protected]

IM G L

President’s message

iGaming, New Frontiers and More Regulation…Oh my! Marc Ellinger , President INTERNATIONAL MASTERS OF GAMING LAW W elcome to the newest edition of the IMGL Magazine. In the following pages, you will find outstanding

or for gaming in general as its growth explodes across the globe. Regulators are flexing their muscle across the world. In Europe, the regulatory march is at full speed. If you thought GDPR was a headache, wait until you read about the Digital Services Act and its ramifications for the gambling industry. First raised in these pages last year and discussed in a lively session at our conference in Seattle, this development is going to require us all, wherever we practice, to take on board a raft of online restrictions. Only the nimble will thrive and it pays to get up to speed early. Europe’s determination to take a lead in digital regulation will be a major talking point at our upcoming London conference, September 14-16, at the Landmark Hotel. You can read a preview of what to expect in these pages. Another event in London will be the unveiling of our new website. The new IMGL website will be launching this fall and the IMGL Magazine is going to play a major role. As always, we are looking for articles on innovative practices or critical events. Articles get global exposure, advance the mission of the IMGL, and help our industry understand what may be on the way, so they can get ahead of any looming problems. Please contact our Head of Publications, Phil Savage at [email protected] or our Editor-in-Chief, Dr. Simon Planzer. I cannot conclude without thanking our sponsors for their support. That support is critical to providing the resources for the IMGL to move our education mission forward. Thank you so very much! Until London in September…Cheers!! Marc

articles about the global state of gaming as only the IMGL can bring to the table. We now find ourselves at the 20th anniversary of regulated iGaming in Europe with Malta’s regulation being the first. Malta has been at the cutting edge of gaming and it continues to be in the news on a daily basis. While the Maltese experience is critical, this edition is full of new frontiers in regulation from around the world in line with IMGL’s international reach and membership. We have a review of the first 90 days of Ontario’s new licensing regime and an in-depth review of the choices facing the people of California as one of the world’s largest economies prepares to vote on the legalization of sports betting. Away from North America we look at the state of the market in Macau and ask whether the new concession regime can help gaming recover and the Special Administrative Region achieve its goals in what was once the world’s gaming capital. We are witnessing regulatory mission creep into novel products which have never attracted scrutiny before. From the “gamblification” of entertainment to trading platforms for unregulated “investment” products, if it looks like gaming regulatory interest is coming down the track. Whether gaming lawyers help clients design products which stay the right side of the law or remain outside the regulatory net, this is an area where our advice will be increasingly valuable. The articles in this edition are must- reads for anyone working in the iGaming area

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IMGL Magazine • July 2022 • 3

Editorial

Closing & opening doors Simon Planzer PhD , Editor in Chief O ur readers will be familiar with the saying: “When one door closes another one opens”. It is positive thinking at work! Staying positive is a must of occasionally moving at a slower pace. Considered regulation, regularly reviewed and updated, as well as draft amendments put out for public comment has provided stability for the industry and a big economic benefit to the Mediterranean island. This issue puts a spotlight on Malta with several contributions from expert authors.

and embodied by the gaming industry worldwide. It has been optimistic and nimble. Ready to take advantage of new opportunities. Willing to grab them wherever they arise. Amid closing doors during a Covid pandemic, the past two years have witnessed some huge doors opening across North America as states and provinces race to legalize sports betting. The most recent of these is Ontario which has been applauded as a rather positive model of effective regulation and is covered in this issue of the IMGL Magazine. North America’s decade-long prohibition of online gaming combined with the rush to legalize it now stands in contrast to Malta’s rather steady and long-term approach. Over two decades, it has shown the benefits

Amid opening doors, we cannot fail to ignore those doors which appear to be narrowing at least - if not closing all together. Europe has proven its determination to show regulatory leadership in online gaming for many years. Recent regulatory trends may be motivated by the best of intentions, but there is a real and substantial danger that these trends stifle innovation and consumer choice. Sometimes they may hinder the achievement of the goals they claim to achieve. As another saying goes: “The road to hell is paved with good intentions”. It is not just trends at a jurisdictional level that should invite us to thoroughly

Contents

7

Malta 20 years of fully regulated remote igaming Of big fish and little ones: Gaming M&A in Malta

10 14 17 21 26 34 38 42 47 53

Innovation in Malta: the use of player trusts to protect funds The growing tension between EU law and the gambling sector

Regulation of novel digital products

Digital game design and the changing regulatory landscape

Ontario’s first 90 days of regulation

The final countdown? Market update from Macau Sports betting in California: two initiatives on the ballot

Seattle conference report

IMGL London conference preview

4 • IMGL Magazine • April 2022

Editorial

IMGL magazine IMGL Magazine • Summer 2021 • 1 • WITH FEATURES & ANALYSIS OF • • THE EVOLUTION OF REGULATION IN SPAIN • • EXPLOITATION OF SPORTS >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58

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