Though, at the time of press, the MGA had not formally announced the promotion, it has updated the Board of Governors information on its official website. 

Pace had served as Deputy Chairman of the MGA since June 2020, when he was appointed shortly after Robert Abela became Prime Minister of Malta – despite apparently having no experience in the gaming industry. 

A lawyer by profession, Pace has served with Abela Advocates – the law firm of the current Maltese Prime Minister, Robert Abela – since securing his warrant in 2018. He studied at the University of Malta, obtaining a Bachelor of Laws degree (LLB) in 2014, a Diploma of Notary Public in 2015, and a Doctor of Laws degree in 2017. 

In addition to his close ties to the current Maltese Prime Minister, Pace is also an activist for the ruling Labour Party. Unsurprisingly, reports also say that those members of the Public Appointments Committee that are MPs for the opposition Natalionalist Party opposed Pace’s appointment. 

Despite Pace’s legal qualifications, some have also expressed reservations, pointing to his relative lack of industry-specific experience and knowledge. 

Independent Maltese news outlet, The Shift, quoted an unnamed “veteran gaming operator” as saying: “The appointment of someone who is a young graduate and has no experience in gaming does not increase the international respect that our jurisdiction has gained over the years.”

Another, again unnamed, operator is quoted as saying: “After leaving this important position vacant for more than six months, the best the government could come up with is an inexperienced young party loyalist. Surely, competence and knowledge of the industry were not the criteria used for this selection. Unfortunately, our industry is already under attack, and these partisan appointments are not getting us anywhere.”

In January, Dr Carl Brincat was appointed new Chief Executive of the MGA, following the departure of Heathcliff Farrugia – who is now facing criminal charges following an investigation into his links with disgraced business tycoon Yorgen Fenech

As previously reported, at the end of last month a body representing international gaming companies operating from Malta urged authorities in the tiny Mediterranean country to take “clear and decisive” action against corruption.

AYO.NEWS says:

With a snowballing corruption scandal rocking the Maltese political and business establishment, including the MGA itself, the regulator desperately needs to reassure the international gaming industry that it is competent and impartial. 

Of course, Malta faces its age old problem, in that in such a small country (its population is smaller than that of Sheffield), the choice for professional appointments is extremely limited, and almost every local will, by default, have connections to serving politicians or business interests. 

Still, promoting someone with such close links to the serving Prime Minister sure as heck won’t do anything to help allay suspicions of cronyism. 

The Esports Integrity Commission has, over the past few years, mistakenly been accused of working for the esports betting industry or being an organisation formed by the betting industry for the betting industry’s purposes. Whilst we have historically tried to address this misconception privately, it has now surfaced again in a way that damages the integrity of esports and the Commission in a way that needs to be publicly addressed.

BACKGROUND CONTEXT OF STATEMENT

First: In Nevada a Bill being sponsored through the State Senate by Senator Ben Kieckhefer, SB 165, seeks to establish an Esports Commission for the regulation of esports related activities in the State. In the sponsoring process, the Judiciary Committee considering SB 165 were told that ESIC, (who has worked with the Nevada Gaming Control Board since 2016 and was a founding member of the Nevada Esports Alliance) was in favour of the Bill. This is false. ESIC opposes SB 165 and has now taken steps to provide explanations to the Committee relating to its position. However, quite apart from certain parties purporting to speak on our behalf without authority, an underlying narrative emerged that: ‘ESIC’s views should be dismissed because the Commission is a servant of the betting industry’.

Second: The same false narrative was put forward to the Entertainment Software Association (“ESA”), the body representing most video game publishers and developers and all of those who publish titles prominently used in esports, by some of its members urging the ESA not to engage with ESIC because ESIC was alleged to “work for the betting industry”.

Third: Disaffected players banned by ESIC for betting related offences and some of their supporters have been reported to be coordinating a broad effort to spread this same false narrative that ESIC works for and serves the betting industry in an attempt to undermine the legitimacy of competitive integrity in esports. This coordinated effort has been reported to ESIC to include rhetoric such as ‘ESIC falsely asserting certain matches are fixed so that the betting operators don’t have to pay out the winning bets on those matches’. This is both an ignorant and damaging narrative not only to ESIC but to the integrity of esports broadly. Such assertions would be entirely antithetical to the purpose and demonstrated work ESIC has undertaken for the sake of competitive integrity in the esports industry for more than five years.

STATEMENT

Despite the differing points of origin and the various malicious motives of those propagating them, all of these narratives need to be addressed and resolved and so ESIC Commissioner, Ian Smith, has considered it prudent to make the following statements:

“ESIC is neither for or against betting on esports. We are not advocates for betting nor crusaders against it.

It is noted, however, that betting on esports is a form of entertainment for most bettors and drives sponsorship revenue and fan engagement for the esports ecosystem. Conversely, the existence of betting opportunities does also raise challenges including, of particular concern to ESIC and central to our mission, the incentive for punters to commit betting fraud by match-fixing. In this respect, our role is to protect the esports industry from that danger.

ESIC exists for the esports industry; primarily for the protection of the players who would be the first and main casualty of any match-fixing scandal (please refer to the detrimental effects that match-fixing has historically had on the competitive Starcraft2 esports scene following the 2015/16 match-fixing scandals in Korea).

When betting fraud is perpetrated, competitive integrity is tarnished (among other negative outcomes). Coincidentally, the legitimate esports betting industry also suffers loss when betting fraud is committed. Therefore, it is of common and synergistic interest to both the esports industry and the betting on esports industry to address the issue of match-fixing through ESIC.

In fact, it is impossible to combat match-fixing without working with the legitimate esports betting industry. Betting data is at the heart of determining whether or not a match might be fixed and betting data is the key evidence in any prosecution of a match fixer. Furthermore, every traditional sport works with the betting industry to combat match-fixing and relies upon such data in a similar manner. This approach is not unique to ESIC.

ESIC is a not for profit members association – we are owned by our members. We have two categories of membership: Our esports members (primarily Tournament Organisers) and our Anti-Corruption Supporters (primarily betting operators, but also government and state gambling regulators, law enforcement, monitoring companies, data providers and industry bodies). From a constitutional point of view, the two do not overlap. Only the Esports Members determine the strategic aims and priorities of ESIC. The Anti-Corruption Supporters participate in our Suspicious and Unusual Betting Alert Network in service of ESIC and our Esports Members. In other words, ESIC works with the betting industry on behalf of the esports industry; we do not work for the betting industry. Accordingly, this dynamic serves only to promote competitive integrity and legitimacy of esports competitions.

Contrary to some assertions, the betting industry does not use us to avoid making legitimate payouts. The primary benefit for betting stakeholders which engage with us is access to what our Suspicious and Unusual Betting Alert Network sees (a network which they also contribute data to).

Importantly, some players are asserting that their betting activity on the game that they play professionally was “innocent”. With respect, that is either naive or disingenuous. No traditional sport allows its professional participants to bet on the sport they play for a living. In the cases ESIC has dealt with, the players against whom we have taken action have bet on the game, league, tournament or match in which they have participated. There is no scenario in which this is acceptable and we will continue to prosecute players who do so where we have jurisdiction. At the highest level of any esports game, the players all know each other, have played with and against each other and have both inside information and the potential to influence each other in a way that gives them an unfair advantage in betting markets and undermines the perception of competitive integrity. In many countries it is also illegal or criminal. Consequently, we are unapologetic about our rule prohibiting betting on the game they play professionally or semi-professionally. This is for the protection of the esports ecosystem and the players in particular. It is not a service to the betting industry but a service to the esports industry broadly in the interest of youth protection, competitive integrity and commercial longevity.”

Conclusion

Individuals attempting to propagate the narrative that ESIC works for the betting industry either have their own adverse agenda or are naïve about the realities of betting and the relationship between esports and betting on esports.

ESIC accepts that the existence of betting in esports is a contentious matter for some people and that they would rather it didn’t exist, but that is not an excuse to ignore the challenges posed by its existence. Any extension of opposition to betting in esports which operates to prohibit or hamper ESIC from effectively engaging with and mitigating the issue of match-fixing through sourcing data from Anti-Corruption Supporters, however, should be entirely discouraged and expelled from the industry. The stark reality is that match-fixing poses a real and demonstrable threat to the youth, competitive integrity, and commercial viability of the esports industry globally. Accordingly, ESIC implores all stakeholders Interested in the common good of esports to work together to combat such threats. Indeed, that includes, of necessity, close cooperation, via ESIC, between the esports ecosystem and the esports betting industry.

NOTE: THIS STATEMENT DOES NOT CONSTITUTE THE INTENDED RELEASE RELATING TO THE AU CS:GO INVESTIGATION. A SEPARATE RELEASE WILL BE MADE RELATING TO THAT INVESTIGATION IN DUE COURSE.

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?

In line with FIFA’s overall vision of making football truly global, as well as its ongoing commitment to protecting and promoting the integrity of the game, the FIFA Global Integrity Programme is designed to improve education and build integrity capacity within all 211 member associations by sharing advanced know-how and resources with integrity officers. The programme also reflects the UNODC’s objective of supporting governments and sports organisations in their efforts to safeguard sport from corruption and crime.

With the objective of setting up successful and sustainable integrity and anti-corruption initiatives at local level, the new programme is organised regionally per confederation and includes a series of three-module virtual workshops to be delivered to all FIFA member associations. The first edition of the programme, dedicated to the member associations from the Asian Football Confederation, started with the first module on 4 March and will continue with the second module on 16 March.

Speaking about the FIFA Global Integrity Programme, FIFA President Gianni Infantino said: “Match-fixing is an issue that is very real and threatens the integrity and credibility of football in many countries around the world. Working in close collaboration with experts at the UNODC and alongside other ongoing efforts that FIFA is taking, the FIFA Global Integrity Programme is another important step by FIFA to protect the integrity of football and will play an important role in educating and building capacity within member associations to help fight match-fixing at a local level.”

Alongside the FIFA Global Integrity Programme, FIFA has also announced today that it will shortly be launching the FIFA Integrity Officers Community Platform. This will be the first-ever community-driven online platform dedicated exclusively to integrity officers across all member associations and confederations worldwide. This confidential platform will bring together a global network of integrity officers to share their experience and exchange best practice related to preventing and fighting match manipulation and promoting integrity in football.

FIFA’s Global Integrity Programme is in line with The Vision 2020-2023: Making Football Truly Global, which reaffirms FIFA’s commitment to fighting match manipulation by implementing integrity initiatives and reporting mechanisms, as well as setting up dedicated educational programmes. As part of its ongoing integrity initiatives, FIFA signed a memorandum of understanding with the UNODC in September 2020 to step up their joint cooperation to address the threats posed by crime to sport.

Farrugia resigned from the MGA in October 2020, shortly after being initially questioned by police over communications with Fenech. According to the Times of Malta, he was then formally charged in January 2021 – though news of the investigation and charges were apparently covered up because of its potential to damage the image of Malta as a gaming jurisdiction.

One of Malta’s most prominent business owners and former CEO of Tumas Gaming and the Portomaso Casino, Fenech was seized by police and the Armed Forces of Malta back in November 2019, while trying to flee the island on his yacht. 

He is suspected of being the mastermind behind the October 2017 car bomb that killed Daphne Caruana Galizia – the investigative journalist who exposed Maltese involvement in the so-called ‘Panama Papers’ scandal.

Reports suggest that Fenech and Farrugia had been communicating “at some length”, and had specifically discussed sensitive commercial information about other gaming operators, along with an anti-money laundering inspection at the Portomaso Casino.

In January 2021, the Malta Gaming Authority (MGA) appointed Dr Carl Brincat as its new Chief Executive Officer. 

AYO.NEWS says:

Obviously, it is inappropriate to comment on specific ongoing criminal proceedings, but judging from Maltese media reports, it does seem that Fenech had extensive political and regulatory connections. 

For example, former Planning Authority chairman and current Malta Tourism Authority CEO, Johann Buttigieg, is also now facing calls to resign over his links to Fenech. The former Chairman of the Malta Financial Services Authority (MFSA), Joseph Cuschieri, also resigned ahead of an investigation into a free trip he took to Las Vegas with Fenech in May 2018. Interestingly, Fenech and Cuschieri were also reportedly joined in Vegas by Edwina Licari, who was a senior official at the MGA at the time, and is now with the MFSA.

And, yes, people are now screaming “Muscat” and innumerable other names at the screen. But, we really don’t have the time (or security budget) to go down that rabbit hole. Of course, the list could go on and on, but if political intrigue and corruption in Malta is of interest, you might want to check out local independent media like theshiftnews.com.

We’ll just say, the whole Zimbabwe-Malta gaming regulator relationship seems more fitting now. 

Bulgaria-based esports data provider SportsModule, and its tournament organiser subsidiary 247 Leagues, will now follow the ESIC integrity programme, and 247 Leagues will be integrating ESIC’s integrity codes and standards into its operations and platform. 

Commenting on the news Commissioner at ESIC, Ian Smith, said:

“We are excited to welcome 247 Leagues as a member of ESIC. 247 Leagues’ commitment to ESIC is reflective of their pledge to maintain integrity in their esports operations.

“We believe it is important to collaborate with tournament operators such as 247 Leagues in order to facilitate the continual harmonisation of competitive integrity efforts in esports.”

While Founder of SportsModule, Robert Verschoyle, added:

“We are delighted to start a partnership with ESIC, which fits perfectly with our ambition to be a leading international esports organiser with a trustworthy and transparent brand.

“247 Leagues aims to cater perfectly to the high integrity requirements of all our customers. We welcome a more regulated esports market and see our membership with ESIC as vital in helping to support this process.”

AYO.NEWS says:

The work of organisations like ESIC becomes ever more important as the esports industry continues to grow, and esports betting involves ever-great sums of money. So, it’s great to see companies like SportsModule, and 247 Leagues, which are on the frontline of tournament organisation, sign-up to its programmes.

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2019-2021.

According to Kommersant, Marsalek managed to use Bitcoin (BTC) to move funds from Dubai to Russia, where he is now hiding from international law enforcement agencies. He is said to be staying at a house somewhere near Moscow, under the protection of the Russian authorities. 

Given the documents leaked earlier this month, in which Marsalek bragged of connections to the Russian intelligence services, and the reports of him hiding under Russian protection, it now seems clear that the former Wirecard COO was working in collusion with the Kremlin. 

As previously reported, the drama started in late June when auditors from EY discovered $2.1 billion that couldn’t be accounted for. Wirecard top brass said the missing funds were held in Phillipine banks, and Marsalek departed on a mission to ‘find them’ – a mission he never returned from.

Some are now speculating that Russia’s Federal Security Service helped make it seem like Marsalek had entered the Philippines, but really squirreled him away to Moscow. 

Shortly after Marsalek’s disappearance German police arrested the firm’s CEO, Markus Braun, and Wirecard collapsed, filing for bankruptcy. 

This led to the suspension of several crypto cards, like those issued by Crypto.com and TenX, which were clients of Wirecard. However, those cards were reactivated shortly afterwards, when it became clear the Wirecard’s UK operations were not affected by the scandal, and clearance was given by the Financial Conduct Authority. 

AYO.NEWS says:

With tensions between the west and Russia now higher than at any point since the Cold War, it seems likely that Russia is actively trying to destabilise critical economic and financial infrastructure through subversion. 

The question now is, just how far does the Wirecard web reach? 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

The online betting operator will replace Standard Bank as leading sponsor of the series, despite the ongoing COVID-19 disruption, which has forced CSA to suspend its series.  Though CSA has no idea when it will be able to return to the field, Betway has agreed a three-year sponsorship deal, delivering much needed certainty and financial security 

Standard Bank terminated its contract with CSA in April in response to the suspension of CSA CEO Thabang Moroe on charges of corruption. It resulted in CSA facing an estimated annual deficit of around R100 million (€5.22), for the next four years. With the South African economy already even struggling before COVID-19 hit, and sports sponsorships all over the world being put on hold, the future was looking grim for CSA. 

However, according to acting CEO at Cricket South Africa, Jacques Faul, the signing of a new sponsor should change that deficit into a profit of between R50 million (€2.61M) and R80 million (€4.18M) for the 2019/20 financial year. 

Commenting on the agreement Betway CEO, Anthony Werkman, said:

“We are thrilled to have partnered with Cricket South Africa. We already have a wide-ranging sporting portfolio and this showcases our commitment to cricket. The South African team are due back in action at the end of the year and we’re excited to see how the team perform across all codes of the game.”

While Cricket South Africa’s Chief Commercial Officer, Kugandrie Govender, explained:

“We are extremely proud to welcome Betway as headline partner to Cricket South Africa as we progress our already successful relationship to a new level.

“This partnership will enable us to connect with our fans on a broader scale, and signing on this global giant is the equivalent of hitting a six to win the match. It is pleasing to have a mutually beneficial relationship with an organisation of integrity that will contribute towards the game of cricket in this country while we deliver on their objectives. We are beyond thrilled that in these challenging times, Betway reciprocates the belief in us that we have in them.”

AYO.NEWS says:

Considering the COVID-19 crisis shows no real sign of going away, we’d say that’s a gutsy move by Betway! Let’s hope CSA can clean up its act and take to the pitch sooner rather than later. 

Staying with Betway, last month the operator announced it would be removing player transfer markets as the English Premier League resumed. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

Cyber.Bet currently offers esports betting in three languages and hosts esports events across Asia, Europe, and Latin America. Its partnership with ESIC will see the bookmaker provide information to help monitor and investigate possible integrity breaches. 

Discussing the news a Cyber.Bet representative said:

“Joining the Esports Integrity Commission is another big step for Cyber.Bet to become one of the most reliable and respectful esports bookmakers. For us, it is not only an honor but also a very important collaboration with such an experienced and reputable organization.

“Since we are not just a bookmaker but a part of big esports community and also tournament organizers, we are deeply interested in keeping our events and the esports industry clean from match fixing and other undesirable factors.”

While Commissioner of the Esports Integrity Commission, Ian Smith, added:

“It is an honour to welcome Cyber.bet as an Anti-Corruption Supporter of ESIC. By joining ESIC as an Anti-Corruption Supporter, Cyber.bet has displayed its commitment to playing its part in maintaining the integrity of esports.

“Cyber.bet joins a long list of Anti-Corruption Supporters who together make it easier for ESIC to investigate suspicious betting activity, assisting in our mission to fight cheating and betting fraud in the esports industry. We look forward to working with Cyber.bet to continue to protect the integrity of esports.”

ESIC is building an extensive network of partners across the esports industry, with both specialist esports-only, and traditional bookmakers joining up to help stamp out corruption. Other partners of the commission include Betway, BLAST, LOOT.BET, Midnite, Parimatch, Rivalry, Sky Bet, and Unikrn. 

AYO.NEWS says:

Well done to Cyber.Bet for joining the good fight! With esports betting seeing phenomenal growth, it is imperative that operators and bodies like ESIC work together to stamp out corruption before it gets the chance to reach the levels seen in some traditional sports, like tennis. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020