Connect with us

iGaming

MALTA’S IGAMING INDUSTRY URGES URGENT ACTION AGAINST CORRUPTION

Published

on

A body representing international gaming companies operating from Malta has urged authorities in the tiny Mediterranean country to take “clear and decisive” action against corruption. 

IGEN (iGaming European Network) has warned that corruption in Malta is now causing real damage to the sector, with the island’s high-profile corruption cases attracting international media and political attention, resulting in “higher costs, an increase in operational complexity, loss of business and substantial reputational damage.” 

IGEN’s membership includes Aspire Global, Betsson Group, GiG, Kindred, Catena Media, Mr Green, LeoVegas, Entain, Casumo, Raketech, Bethard Group, VideoSlots, ComeOn, Tipico, Betway, NetEnt, Genesis, SuprNation, Trustly, Microgaming, Hero Gaming, Greentube, Gamesys Group, Singular, and Relax Gaming.

The association said it backs the Maltese police and judiciary in their efforts to investigate corruption, and has urged authorities to prosecute any guilty parties to the fullest extent of the law, with iGEN Chairman, Enrico Bradamante, saying: “We are satisfied to see that the relevant institutions have started to take decisive action against these claims, but much more remains to be done. Anyone who is or was involved in corruption and graft must be held accountable, and a clear message must be sent to demonstrate that the law applies to all without fear or favour.”

 

Down the Rabbit Hole on Corruption Island

Though Malta has long been known as a hotbed of political and commercial corruption, the past year has seen investigators uncover shocking levels of crime, involving some of the island’s most prominent business people and officials. 

From the arrest of business tycoon Yorgen Fenech in November 2019 in connection with the murder of investigative journalist Daphne Caruana Galizia (who uncovered extensive Maltese connections to the so-called ‘Panama Papers’ scandal), as he attempted to flee the country on his yacht, to the recent criminal charges levied against former Malta Gaming Authority (MGA) CEO, Heathcliff Farrugia, for his dealings with Fenech, the country is facing a growing corruption crisis. 

Indeed, Farrugia isn’t the only official who has been accused of being far too close to Fenech. Local newspaper The Times of Malta also revealed that former head of the Malta Financial Services Authority (MFSA), Joseph Cuschieri, had gone on an all-expenses paid trip to Las Vegas with Fenech. Cuschieri, who was forced to resign after details were made public, had previously been head of the MGA. 

If that wasn’t bad enough for the MGA, it has also emerged that the MFSA’s legal counsel, Edwina Licari, who previously served with the gaming regulator, had drafted a letter for Fenech, regarding an application to expand his Casino. Licari also accompanied Fenech and Cuschieri on their Las Vegas trip. Despite this, Licari is denying any wrongdoing and is still with the MFSA. .

However, the web of corruption in Malta expands far beyond gaming. Keith Schembri, former chief of staff to former Prime Minister, Joseph Muscat, along with ten others have also been charged with corruption and money laundering, among other things, after police traced millions of dollars in dodgy transactions and backhanders relating to the sale of printing machines. 

And, things could get a whole lot worse as investigators continue to follow trails. Vincent Muscat, who is now serving a fifteen-year prison sentence after confessing to murdering Daphne Caruana Galizia, has alleged that a former Maltese government minister has also involved in a plot to murder the journalist. 

All of this comes at a time when Moneyval is deciding whether or not to greylist Malta, which as previously reported, could effectively destroy the nation’s financial services and remote gaming industry. 

 

AYO.NEWS says:

Malta really is on a knife edge. For years it has enjoyed incredible economic growth, driven by mass tourism, iGaming, and financial services. Indeed, until last year, the iGaming industry contributed around 13% of Malta’s GDP. However, since the utter decimation of the country’s tourism sector due to the COVID-19 pandemic, its relative importance has no doubt increased significantly.

At the same time, the iGaming industry is changing, and Malta’s inherent appeal is facing other challenges too. Firstly, as more countries regulate and introduce their own gaming licenses, the value of a generic license like Malta is undeniably diluted. 

Secondly, Malta’s long-time rivals are upping their games. In the Caribbean, Curacao is forming a new regulator and vowed to bring its standards in line with the Netherlands. Though this may scare off dodgy operators, it could make it more attractive to legitimate players, like those currently based in Malta.

Meanwhile, in the Irish Sea, the Isle of Man, which has handled the COVID crisis far better than Malta, and has a much better reputation in terms of integrity, is investing heavily in infrastructure and services, for example setting up Digital Isle of Man – which has resulted in a significant increase in license applications over the past year. 

Thirdly, even before the COVID-19 crisis, Malta-based iGaming companies were starting to find recruitment challenging. With rents rocketing, infrastructure buckling, and the local environment being destroyed, companies found they couldn’t easily tempt and keep talent from elsewhere in Europe with the promise of a cheap, relaxed life in the sunshine anymore.

Maybe the COVID-19 crisis, which may still have a long way to go before its over, will serve as a wake-up call for Malta to clean up its act and reassess its economy? To ensure a long-term future for the gaming industry, the country needs to focus on creating a better environment in every way. But, is it too late?

 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

iGaming

INDIA SUPREME COURT REJECTS JUNGLEE REVIEW OF STATE GAMING BANS

India’s Supreme Court has dismissed review petitions led by Flutter-owned Junglee Games against its ruling upholding Tamil Nadu and Karnataka’s bans on online games played for stakes.

Published

on

India Supreme Court online gaming ruling headline card

India’s Supreme Court has dismissed review petitions led by Flutter-owned Junglee Games against its May ruling that upheld Tamil Nadu and Karnataka’s bans on online games played for stakes, closing off one of the industry’s remaining routes to restore state-level protection for skill-based real-money gaming.

A bench of Justices J.B. Pardiwala and R. Mahadevan rejected the petitions in an order dated 15 October that was published on the court’s website on 26 October. The court condoned the delay in filing but declined oral hearings and decided the matter on the papers, finding no grounds to revisit its judgment. Several connected review petitions from other gaming companies were disposed of in the same order.

Who challenged the ruling

The lead case was Junglee Games India Pvt Ltd v State of Tamil Nadu and others. Alongside Junglee, review petitions were filed by Games24x7 and Head Digital Works, and by industry bodies the All India Gaming Federation and the Federation of Indian Fantasy Sports, according to reporting by Gambling.com.

The petitioners argued that games of skill form a separate class from games of chance and fall outside the powers of state governments to ban.

What the May judgment held

The court’s judgment of 27 May reversed earlier decisions of the Madras High Court, which had struck down Tamil Nadu’s amendment, and the Karnataka High Court, which had quashed that state’s ban.

It held that once money is staked, the activity amounts to gambling regardless of the skill involved, and that betting and gambling sit outside protected commerce, so no fundamental right to carry them on can be claimed. It also found that states can legislate on public order grounds where online real-money games cause harm, and that the two laws were supported by empirical evidence.

That reasoning was a significant setback for the Indian real-money gaming sector, which for years had relied on the distinction between skill and chance to operate rummy, poker and fantasy products in most states.

Little practical change, but a door closes

The dismissal has limited immediate commercial effect because federal law has already shut the market. The Promotion and Regulation of Online Gaming Act received presidential assent on 22 August 2025 and bans online money games nationwide, including those offered from outside India. Junglee stopped real-money operations in the country the same day.

Before the Act, Flutter had expected India to contribute around $200m in revenue and $50m in adjusted EBITDA in 2025, and Junglee employed more than 1,100 people.

What the review order does is remove the possibility that the state bans might be struck down if the national law were later diluted or overturned. Challenges to the Online Gaming Act itself are being heard separately and are unaffected by the order. A curative petition, an exceptional remedy the court grants only on narrow grounds, is the only step left in the state-ban proceedings.

Wider implications

For international operators and suppliers that once viewed India as one of the largest untapped real-money markets, the combination of a national ban and a Supreme Court ruling that skill does not shield staked games from gambling laws means any reopening would need new legislation rather than a court victory.

The outcome also strengthens the hand of other state governments that may want to legislate against online gaming in future, regardless of what happens to the federal Act.

Continue Reading

iGaming

RUSH STREET INTERACTIVE Q3 REVENUE RISES 39% TO $385.9M

Rush Street Interactive grew Q3 revenue 39% to $385.9m, lifted net income 93% to $28.7m and reiterated 2026 guidance of $1.56bn to $1.60bn.

Published

on

Rush Street Interactive Q3 results headline card

Rush Street Interactive grew third-quarter revenue by 39% to $385.9m and almost doubled net income, the US-listed online casino and sports betting operator said on 28 October, as it reiterated its full-year guidance.

Net income rose 93% to $28.7m from $14.8m in the same quarter of 2025, while adjusted EBITDA increased 73% to $62.2m from $36.0m, according to the company’s results release filed with the SEC. Adjusted sales and marketing spend came to $54.7m, or 14.2% of revenue.

The figures show profit growing much faster than revenue. Adjusted EBITDA margin widened to around 16% of revenue from roughly 13% a year earlier, and net income margin rose to about 7.4%, as RSI spread its marketing and platform costs over a much larger player base. Management pointed to that operating leverage in its commentary on the quarter.

Users up 42%

Monthly active users across the group rose 42% to 907,881. In North America, MAUs increased 34% to 300,572, a quarterly record for the region. Latin America, which includes Mexico and Colombia, grew faster, with MAUs up 46% to 607,308.

The two regions remain very different in value per player. Average revenue per monthly active user was $309 in North America and $58 in Latin America, reflecting the higher spend of US and Canadian online casino customers.

“Online casino remains the engine of our profitability,” chief executive Richard Schwartz said. On Latin America, he said revenue growth “continues to be strong on both a gross and net basis.” The company said customers who joined during the football World Cup in the summer are continuing to play across its products.

Guidance held

RSI reiterated its 2026 guidance for revenue of $1.56bn to $1.60bn, implying growth of 38% to 41%, and adjusted EBITDA of $245m to $265m, implying growth of 59% to 72%.

The outlook includes only jurisdictions live at the time of the release and assumes current tax structures continue. That includes Colombia’s temporary emergency 16% tax decree, which the company has absorbed into its forecasts rather than assuming relief.

RSI did not break out revenue between online casino and sports betting in the release. The company operates under the BetRivers brand in most US states and in Ontario and Alberta, and under RushBet in Colombia and Mexico.

Alberta and the wider US picture

The company also pointed to Alberta, where it launched more than three months before the results and where management expects a gradual ramp. The Canadian province’s newly regulated market reported C$56.6m in igaming revenue for September in its first official report.

RSI’s growth stands out against a slowing US online casino market. Data covered by ayo.news this week showed US igaming growth slowing to a record-low 12% in the third quarter, as the established states mature.

Brazil, which weighed on several larger operators’ results this quarter, does not feature in RSI’s release, although CDC Gaming reported that the country’s betting turmoil led discussion of the numbers.

What comes next

With online casino the main profit driver, RSI’s growth outlook in the US depends heavily on whether more states legalise igaming, while in Latin America it is exposed to tax changes in markets such as Colombia. For now, a near-40% top-line increase and a sharp rise in profitability put the operator among the faster-growing listed names in the sector.

Continue Reading

iGaming

VEIKKAUS TO TAKE NEW VIABET BRAND INTO DENMARK IN JULY 2027

Finland’s Veikkaus will launch Viabet with Viaplay in Finland and Denmark on 1 July 2027, its first consumer brand abroad, timed to the end of its Finnish online monopoly.

Published

on

Veikkaus Viabet Denmark launch headline card

Veikkaus, Finland’s state-owned gambling company, will launch a new consumer brand called Viabet in both Finland and Denmark on 1 July 2027, marking its first direct-to-consumer venture outside its home market.

The brand is being built in partnership with streaming and sports broadcaster Viaplay Group. Viabet will be developed, owned and operated by Veikkaus, which will run it through its international arm, while Viaplay will supply selected media content, according to reports by Finnish public broadcaster Yle and the trade press.

“Viabet is a significant strategic step for Veikkaus,” president and chief executive Olli Sarekoski said, as reported by Yle.

Timed to the end of the monopoly

The launch date is no coincidence. On 1 July 2027 Finland opens its online gambling market to licensed competitors, ending the exclusive position Veikkaus has held for decades. The company will keep its own Veikkaus-branded products, but Viabet gives it a second, media-led brand to compete with international operators arriving in the market.

Those rivals are already lining up. Wildz Group said earlier this month that it was the first company to win a Finnish online gambling licence, and ComeOn and SuomiVeto have since joined the first group of licensed operators. Supplier deals are also being signed, with sportsbook providers announcing partnerships timed for the July 2027 opening.

The Finnish reform splits the old monopoly in two. Online casino and betting will be open to licensed private operators, while Veikkaus keeps exclusive rights over lotteries and land-based slot machines. Licensed operators will pay a gaming tax on their Finnish revenue and face marketing rules overseen by the new licensing authority, so Viabet will compete on the same terms as the international brands.

Until now, Veikkaus’s activity outside Finland has been concentrated in its B2B subsidiary Fennica Gaming. Viabet is the first time it will face customers directly in another regulated market.

Why Denmark

Denmark is a natural first target. Viaplay has a large sports audience there and holds key football rights: in April it said it had extended its men’s Champions League rights in Denmark for four years from autumn 2027 to 2031. A betting brand that can sit alongside that content gives Veikkaus a route to customers without building awareness from scratch.

The Danish market, regulated by Spillemyndigheden, is also mature and competitive, with a long list of licensed international operators. Neither company has said whether Veikkaus has applied for a Danish licence, which it will need before Viabet can take bets there.

Advertising rules in flux

The timing brings a regulatory complication. The Danish government has tabled a bill that would introduce a whistle-to-whistle gambling advertising ban and new curbs on affiliates. The proposed restrictions are due to apply from 1 July 2027, subject to parliamentary approval, the same day Viabet is meant to go live.

A tighter advertising regime around live sport could limit how far a broadcaster-linked brand can use match coverage to promote betting, which is a large part of the logic of a media partnership. How the final Danish rules treat sponsorship and in-programme promotion will matter for Viabet’s launch plans.

A hedge abroad

For Veikkaus, which is losing its online monopoly at home, finding revenue in a neighbouring regulated market is a hedge against the market share it is likely to cede to new Finnish licensees.

The deal will also be watched by other broadcasters weighing whether to move from selling betting advertising to holding a stake in a betting brand. Further details on Viabet’s product range and supplier line-up are expected closer to launch.

Continue Reading

Trending