It is thought that a number of gaming machines in Malta are currently operating without the appropriate licence.
Around 10,000 gaming machines, that were previously located in clubs, are now appearing in arcades.
Mario Galea, Lotteries and Gaming Authority chief executive, has said that while some paid the licence for amusement machines, in reality the authority did not know the situation of most of these machines, as there was never a proper standard that defined them.
Finance Minister Tonio Fenech has admitted the arcades were exploiting the void within the legal framework, which was in transition, and opening under the guise of amusement machine outlets.
There are currently no regulations binding the use of these ‘amusement’ machines but street slot machines are prohibited. The Lotteries and Other Games Act, 2001, makes provision for VLTs (video lottery terminals) and the authority has finalised draft regulations in this respect.
The Maltese government is however attempting to tackle the problem and a consultation document aimed at responsibly controlling the gaming industry has been published.
These arcades should have a licence of some sort, but in reality they have none as they opened before the regulations were enforced.
"Because the operators found themselves cornered and realised the old regime will be out and new regulations will be coming in, they moved out of the clubs and some even invested in new VLT machines," said Galea.
Once the regulations are out, the VLTs will be linked to the authority, providing it with a real-time view of what is happening and who is using the machines, making for greater control.
Galea added that the authority will be adding a specific section in the law to regulate the arcades currently exploiting the legal limbo.
