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Gambling License Malta: Malta Lotteries and other Games Act

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Gambling License Malta: Malta Lotteries and other Games Act

PART VI – THE NATIONAL LOTTERY

26. (1) The Minister may operate the National Lottery or may decide to concede the operation of the National Lottery to another person in accordance with the provisions of this Act:

Provided that the Minister may not operate the National Lottery at a time while a National Lottery licence is still in force:

Provided further that the Minister may operate the National Lottery for such time during which a National Lottery licence is suspended in terms of article 35.

(2) Where the National Lottery is operated by the Minister, the Minister shall exercise all such powers as may be necessary or expedient for the purposes of such operation and the provisions of this Act relating to the National Lottery, other than those relating to licensing and the National Lottery licence, shall apply and have effect with any necessary modifications or adaptations as they apply and have effect in relation to the National Lottery as operated by a National Lottery licensee.

(3) Where the Minister decides to concede the operation of the National Lottery to another person, the Authority, and for the first time after the entry into force of this Part the Minister, may by licence authorise a person to operate the National Lottery. Only one person may be licensed to operate the National Lottery at any one time. No person, other than the Minister, may operate the National Lottery unless such person is in possession of a valid National Lottery licence.

(4) The functions of the Authority relating to the National Lottery and to the National Lottery licensee under this Act shall come into effect immediately after the grant of a National Lottery licence by the Minister for the first time after the entry into force of this Part.

27. (1) The National Lottery licence shall be issued for such term as the Authority after consultation with the Minister, and for the first time after the entry into force of this Part as the Minister, may specify in the licence, which term shall commence to run on such day as may be specified in the licence as the date from when the licence shall become effective. Such date may be subsequent to, but not preceding, the date of issue of the licence.

(2) Unless a National Lottery licence is previously cancelled, it may be renewed by the Authority for one further period as the Authority after consultation with the Minister may determine.

(3) The renewal of the licence by the Authority shall be subject to the compliance by the National Lottery licensee, during the original term of such licence, with the provisions of this Act and of regulations made thereunder applicable to it and with the terms and conditions of such licence and with any directive issued by the Authority in terms of this Act or of regulations made thereunder and applicable to such licensee, and subject to the acceptance by the Authority of the written application for such renewal made by the licensee to the Authority –

1. by such date before the expiry of the original term of the licence as specified in the licence; and
2. containing such information as specified in the licence to be necessary or expedient to enable the Authority to determine whether to renew the said licence.

(4) After the submission of an application for the renewal of a National Lottery licence, the Authority may require the applicant to provide such other information, in addition to that provided together with the application, as may be deemed necessary for the purpose of determining the said application.

28. (1) An application for a National Lottery licence shall be made by, or on behalf of, or in respect of a company registered or to be registered in Malta the sole object of which is or shall be the operation of the National Lottery pursuant to a National Lottery licence under this Act and the doing of all such other things as are incidental or conducive to the attainment of such object and the carrying out of other activities as may be authorised in the licence by the Authority and, for the first time after the entry into force of this Part, by the Minister. Such application shall be made in the form and manner required by the Authority, and for the first time after the entry into force of this Part by the Minister, and such application shall furthermore contain or be accompanied by such information, documents and particulars as the Authority, and for the first time after the entry into force of this Part the Minister, may require or as may be prescribed by regulations.

(2) In the case of an application for the grant of a National Lottery licence to a company which is not yet registered in Malta, the application shall be accompanied by an undertaking by the applicant to register a company in Malta as provided in subarticle (1) as soon as information is imparted by the Authority, and for the first time after the entry into force of this Part by the Minister, that the licence will be granted to such company when formed.

(3) After the submission of an application for the granting of a National Lottery licence, the Authority, and for the first time after the entry into force of this Part the Minister, may require the applicant to provide such other information, in addition to that provided together wi th the appl icat ion, as may be deemed necessary for the purpose of determining the said application.

29. (1) The Authority, and for the first time after the entry into force of this Part the Minister, shall not issue a National Lottery licence to a person unless such person is a company registered in Malta the sole object of which is the operation of the National Lottery pursuant to a National Lottery licence under this Act and the doing of all such other things as are incidental or conducive to the attainment of such object and the carrying out of other activities as may be authorised in the licence by the Authority and, for the first time after the entry into force of this Part, by the Minister, and unless the Authority or, as the case may be, the Minister is satisfied that –

1. all persons holding or owning a qualifying shareholding in the company are fit and proper to benefit from the operation by the company of the National Lottery and to exercise their rights of membership in such manner as to ensure the proper operation by the company of the National Lottery;
2. the director or directors of the company are fit and proper to manage the affairs of the company and to exercise their functions and duties as directors in such manner as to ensure the proper operation by the company of the National Lottery;
3. all persons who appear to the Authority to be likely to manage the business or any part of the business of the operation of the National Lottery are fit and proper persons to do so;
4. the company has, or will have upon the issue of the licence, the financial and technical means and the expertise necessary to properly operate the National Lottery and to fulfil all its obligations under this Act;
5. the company will take out, within seven days from the date of issue of the licence, and will thereafter maintain, the bank guarantee referred to in article 31(5) as provided and in accordance with the said article 31(5) and (6); and
6. the company is a fit and proper person to be the holder of the National Lottery licence and to operate the National Lottery, and will comply in all respects with the provisions of this Act and of any regulations made thereunder and applicable to it and with the terms and conditions of the licence and with directives issued by the Authority in terms of this Act or of regulations made thereunder and applicable to it.

(2) When the Authority, and for the first time after the entry into force of this Part the Minister, makes a preliminary decision to issue a National Lottery licence to a particular company registered in Malta, the Authority or, as the case may be, the Minister shall, before the issue of such licence, cause a notice to be published in the Gazette of the intended issue of the said licence, thereby calling upon any interested party to make representations, if any, objecting to the issue of the licence to such company.

(3) Such objection as is mentioned in subarticle (2) shall be in writing and shall contain a reasoned justification therefor, and is to be received by the Authority or the Minister, as the case may be, within twenty-one days from the date of the publication of the notice in the Gazette.

(4) The Authority or the Minister, as the case may be, shall consider any objection made and received by it as aforesaid before making any final decision as to the issue of the licence.

(5) The grant of a National Lottery licence shall not exonerate the l i c ens e e f rom o bt a inin g an y oth e r l i c enc e , p e rmi t or authorization which may be required under any other law.

30. The National Lottery licence shall be in such form as may be approved by the Authority, and for the first time after the entry into force of this Part by the Minister, and shall inter alia specify:

1. its date of issue;
2. its effective term;
3. the name, registered office and registration number of the licensee;
4. the address in Malta specified by the licensee for the purpose of the service of documents on it;
5. the name and address of the qualifying shareholders, directors and managers of the licensee;
6. the type and particulars of games that can be operated under the licence;
7. such matters relating to the gaming devices allowed to be used under the licence as the Authority considers necessary or expedient to specify;
8. the minimum number, specifications and type of places from where games that can be operated under the licence may be offered for sale, and the minimum number of opening hours of such places;
9. such other particulars as the Authority, and for the first time after the entry into force of this Part the Minister, considers necessary or expedient, or as may be prescribed in regulations.

The National Lottery licence need not specify any of the matters listed in paragraphs (f) or (h) when and to the extent that such matters are already specified in regulations made under this Act.

31. (1) In granting a National Lottery licence the Authority, and for the first time after the entry into force of this Part the Minis ter, may subject i t to such condi t ions as i t may deem appropriate, and after the grant of such licence the Authority may from time to time vary or revoke any condition so imposed, or impose new conditions:

Provided that the Authority may not vary any condition or impose any new condition in the National Lottery licence without the consent of the licensee if the licence provides that any such condition may only be varied, or that any such new condition may only be imposed, with the consent of the licensee:

Provided further that, without prejudice to the immediately preceding proviso, whenever the Authority deems it appropriate to vary any condition or impose any new condition in the National Lottery licence, the Authority shall, unless such variation or imposition of a new condition has been requested by the licensee himself, inform the licensee, by notice in writing, of its intention to vary the said condition or impose the said new condition, and call upon the said licensee to show cause, within such period as it may establish in the notice and which shall not be less than twenty-one days after the issue of the said notice, why such condition should not be varied or imposed, and it shall be the duty of the Authority to consider any response made by the licensee before varying the condition or imposing the new condition.

(2) Conditions in a National Lottery licence may impose such requirements as may be deemed to be necessary to be complied with by the licensee after the licence has ceased to have effect.

(3) A National Lottery licence may impose conditions requiring the licensee –

1. to obtain the consent of the Authority before doinganything specified, or of a description specified, in the licence; and
2. to refer matters specified, or of a description specified, in the licence to the Authority for approval.

(4) A National Lottery licence shall include a condition requiring the licensee to pay to the Authority, at such times as may be determined by or under the licence, such sums out of the proceeds of sale of any games forming part of the National Lottery and, or any other sums, fees, duties and, or taxes as may be so determined, which sums, fees, duties and, or taxes shall be in addition to those which the National Lottery licensee may be required to pay under any law other than this Act.

(5) A National Lottery licence shall include a condition requiring the licensee to take out, not later than seven days from the date of issue of the licence, a bank guarantee issued by a bank or credit or financial institution acceptable to the Authority, in favour of the Authority and on i ts own behal f and on behalf of the Government, in such amount as may be specified in the licence or as may be prescribed by regulations, for securing –

1. the payment and distribution of prizes by the licensee to winners of games forming part of the National Lottery;
2. the payment of fees, taxes, duties or any other sums payable by the licensee to the Authority in terms of the licence; and
3. the payment by the licensee of any fines or administrative penalties imposed on it under Part XII or under regulations made under this Act.

(6) Such bank guarantee as mentioned in subarticle (5) shall become payable to the Authority on its first demand and it shall not be incumbent upon the relative bank, credit or financial institution which issued the bank guarantee to verify whether such demand is justified. The bank guarantee shall remain valid until the expiry of one year after the expiry of the licence, and shall be subject to such other terms and conditions as may be specified in the licence or as may be prescribed by regulations.

(7) A National Lottery licence shall also include a condition requiring the licensee to submit to the Authority and, or publish, in such manner and at such times as may be specified in the licence, the audited accounts of the licensee and such other accounts, reports, returns and statements as may be specified in the licence.

(8) A National Lottery licence shall be deemed to include a condition that the licensee shall at all times during the period of operation of the licence have as its sole object the operation of the National Lottery pursuant to a National Lottery licence under this Act and the doing of all such other things as are incidental or conducive to the attainment of such object and the carrying out of other activities as may be authorised in the licence by the Authority and, for the first time after the entry into force of this Part, by the Minister.

32. (1) Without prejudice to the following subarticles of this article, it shall be the duty of the National Lottery licensee and of the qualifying shareholders and directors thereof to notify the Authority forthwith of –

1. any change in the Board of Directors or management of the licensee, or any material changes in the information and documentation provided in terms of article 28(1) and (3) or any other information or documentation provided by the licensee in terms of any other provision of this Act or of regulations made thereunder or in terms of conditions attached to the National Lottery licence; and
2. any resolution or intended resolution, or any application or intended application to the Court, or any other action, for the dissolution and winding up of the National Lottery licensee,

as soon as they become aware of such changes, resolutions or intended resolutions, applications or intended applications or actions.

(2) Where owing to a change as is referred to in subarticle (1)(a), whether the Authority has been notified of such change in accordance with the said subarticle or not, a situation arises that had it existed at the time of the application for the grant of the National Lottery licence, it would have disqualified the licensee from obtaining a licence in accordance with article 29(1), the Authority shall by notice inform the licensee accordingly, and if the situation shall not have been remedied to the satisfaction of the Authority within one calendar month from the notice given to that effect by the Authority, the Authority shall cancel the licence without complying with the provisions of article 35(1) to (3) and the provisions of article 35(4) and (5) shall mutatis mutandis apply in such circumstances:

Provided that the Authority shall not issue a notice as aforesaid later than three calendar months after being notified by the licensee or its qualifying shareholders or directors of the change in accordance with subarticle (1).

(3) In the circumstances mentioned in subarticle (1)(b), whether the Authority has been notified of such circumstances in accordance with the said subarticle or not, the Authority may issue such directives to the National Lottery licensee, its qualifying shareholders and, or its directors as it may deem appropriate in such circumstances.

(4) Failure by the licensee or the qualifying shareholders or directors thereof to comply with the provisions of subarticle (1), or with any directive issued to them by the Authority in terms of subarticle (3), shall constitute an offence against this Act.

(5) Notwithstanding anything contained in any other law, the approval in writing of the Authority shall be required before any person may lawfully –

1. acquire a qualifying shareholding in the NationaLottery licensee;
2. increase an existing holding which is not a qualifying shareholding so as to cause it to become a qualifying shareholding in such licensee;
3. increase an existing qualifying shareholding in such licensee so as to cause it to equal or exceed ten per centum or twenty per centum or thirty per centum or forty per centum or fifty per centum of the share capital issued by the licensee or of the voting rights attaching to such share capital, or to cause the licensee to become that person’s subsidiary;
4. reduce an existing qualifying shareholding in such licensee so as to cause it to fall below fifty per centum or forty per centum or thirty per centum or twenty per centum or ten per centum of the share capital issued by the licensee or of the voting rights attaching to such share capital, or to cause the licensee to cease to be that person’s subsidiary;
5. reduce an existing qualifying shareholding in such licensee so as to cause it to cease to be a qualifying shareholding; or
6. divest itself of a qualifying shareholding in such licensee.l

(6) The Minister may by order in the Gazette or by regulations vary or remove any of the percentages mentioned in subarticle (5)(c) and (d).

(7) Subarticle (5) shall apply whether or not any of the relevant shares are shares listed on any Stock Exchange.

(8) It shall be the duty of the National Lottery licensee and of the directors thereof to noti fy the Authori ty forthwith upon becoming aware that any person intends to take any of the actions set out in subarticle (5), and they shall refrain from registering the relevant action according to law or from taking any other action in respect thereof pending instructions from the Authority. Failure by the National Lottery licensee and the directors thereof to comply with the provisions of this subarticle shall constitute an offence against this Act.

(9) Notwithstanding anything contained in any other law, the approval in writing of the Authority shall be required before the National Lottery licensee may lawfully –

1. sell or dispose of its business in whole or in part;
2. merge with any other company;
3. undergo any reconstruction, division or any conversion of its status from a company into any other kind of commercial partnership; or
4. increase or reduce its nominal or issued share capital or effect any material change in voting rights.

(10) It shall be the duty of the directors and qualifying shareholder s of the Nat ional Lot tery l icensee to not i fy the Authority forthwith upon becoming aware that the licensee intends to take any of the actions set out in subarticle (9), and in default they shall be guilty of an offence against this Act.

(11) Any person intending to take any of the actions set out in subarticle (5) and the National Lottery licensee who intends to take any of the actions set out in subarticle (9) shall notify the Authority in writing in such form and manner, and such notification shall be accompanied with such information, as may be required by the Authority.

(12) Within two months of receipt of such notification or receipt of such information as the Authority may require, whichever be the later, the Authority shall issue a notice –

1. granting unconditional approval to the taking of the action;
2. granting approval to the taking of the action subject to such terms and conditions as the Authority may deem appropriate; or
3. refusing approval to the taking of the action, informing the person concerned or, as the case may be, the National Lottery licensee of the reasons of the refusal,

and if the Authority fails to issue any such notice within the said period of two months, it shall be deemed that the Authority has issued a notice in terms of paragraph (a).

(13) If any person or the National lottery licensee takes any action set out in subarticles (5) and (9) without obtaining the prior approval of the Authority in terms of this article, or takes any such action without complying with any term and condition specified by the Authority in granting such approval in terms of subarticle (12) (b) , he shal l be gui l ty of an off ence agains t thi s Act . Furthermore, if any person or the National Lottery licensee takes or intends to take any of the said actions without obtaining the said approval or without complying with the said terms and conditions, then, without prejudice to the power of the Authority to suspend or revoke the National Lottery licence in terms of article 35, where applicable, and without prejudice to any other penalty which may be imposed under this Act, the Authority shall have the power –

1. to issue a directive declaring the action to be void and of no effect, which directive shall be effective against all persons involved in such action notwithstanding the provisions of any other law; or
2. to issue a directive to such person or, as the case may be, to the National Lottery licensee –
   1. restraining the person or the said licensee from taking the action;
   2. requiring the person or the said licensee to take such steps or other action as may be necessary to restore the position existing immediately before the action was taken, within such period as may be specified by the Authority in the directive;
   3. restraining the person or the said licensee from exercising any rights resulting from the action, including the right to receive payments; or
   4. restraining the person or the said licensee from taking any similar action or any action within the categories set out in subarticles (5) and (9),

and such person or, as the case may be, the National Lottery licensee shall comply with any such directive issued to it by the Authority in terms of this paragraph (b), failing which it shall be guilty of an offence against this Act.

33. (1) A National Lottery licence may not be assigned or transferred by the National Lottery licensee to any other person.

(2) The National Lottery licensee may not surrender the National Lottery licence during the licence term.

(3) The transfer or assignment of the National Lottery licence by the licensee to any other person shall be considered null and void.

(4) A National Lottery licensee who acts in breach of the provisions of this article shall be guilty of an offence against this Act.

34. The Authority may order the cancellation or suspension of the National Lottery licence if –

1. (a) any qualifying shareholder or director or manager of the licensee is convicted of an offence against this Act or of theft, receiving stolen property, fraud or any crime affecting public trust, or is in breach of any directive issued by the Authority in terms of this Act or regulations made thereunder and applicable to it;
2. (b) the licensee contravenes any provision of this Act or of any regulations made thereunder applicable to it, or is in breach of any condition in the National Lottery licence or any directive issued by the Authority in terms of this Act or regulations made thereunder and applicable to it; (c) the licensee knowingly or recklessly supplies to the Authority material information that is false or misleading;
3. (d) the licensee fails to fulfil the licensee’s financial commitments when they become due and payable;
4. (e) the licensee fails to take out and maintain the required bank guarantee as provided and in accordance with article 31(5) and (6);
5. (f) the licensee is being wound up; or
6. (g) the Authority is reasonably satisfied that any person holding or owning a qualifying shareholding in the licensee is not, or has ceased to be, a fit and proper person to benefit from the operation of the National Lottery by the licensee or to exercise his rights of membership in such manner as to ensure the proper operation of the National Lottery by the licensee;
7. (h) the Authority is reasonably satisfied that any director of the licensee is not, or has ceased to be, a fit and proper person to manage the affairs of the licensee and to exercise his functions and duties as director in such manner as to ensure the proper operation of the National Lottery by the licensee;
8. (i) the Authority is reasonably satisfied that any person who is managing the business or any part of the business of the operation of the National Lottery is not, or has ceased to be, a fit and proper persons to do so;
9. (j) the Authority is reasonably satisfied that the licensee is not, or has ceased to be, a fit and proper person to be the holder of the National Lottery licence and to operate the National Lottery, or it reasonably deems it necessary in the national interest to cancel or suspend the National Lottery licenc

35. (1) Where a ground for cancellation or suspension of the National Lottery licence arises under article 34, the Authority, by notice in writing, shall request the licensee, and may request any other person who in its opinion has an interest in the licence, to show cause, within such period as may be established in the same notice being not less than twenty-one days after the issue of the notice, why the licence should not be cancelled or suspended on such ground as stated in the notice.

(2) The Authority shall consider any response made under subarticle (1) and –

1. where the matter is resolved to its satisfaction, it shall take no further action and shall inform the licensee in writing accordingly;
2. where, although the matter is not resolved to its satisfaction, it considers that no further action is warranted, it shall caution the licensee in writing; or
3. where the matter is not resolved to its satisfaction, and it considers that further action is warranted, it may –
   1. by notice in writing, give such direction to the licensee as it considers appropriate; or
   2. suspend for such period as it thinks fit, or cancel, the licence.

(3) Where a direction given by the Authority under subarticle (2)(c)(i) is not complied with within the time limit specified in the notice, the Authority shall cancel the licence.

(4) The Authority shall immediately inform the Minister about the existence of a ground for cancellation or suspension of the National Lottery licence and keep him continuously informed of all measures being adopted in that regard.

(5) The Authority shall also immediately inform the Minister about its decision to suspend or cancel the licence and shall take all reasonable measures which are necessary or expedient to guarantee the uninterrupted operation of the National Lottery.

36. (1) No person may sell games forming part of the National Lottery unless such person is in possession of a valid permit issued by the Authority.

(2) Application for such permit shall be made to the Authority by the proposed seller in such form and manner, and shall contain or be accompanied wi th such informat ion, documents and particulars, including evidence of the authority or appointment of the applicant given or made by the National Lottery licensee to sell games forming part of the National Lottery, as the Authority may require or as may be prescribed by regulations.

(3) The Authority shall not issue any such permit unless it is satisfied that the applicant is a fit and proper person to sell games forming part of the National Lottery and that he satisfies any other requirement and has any other qualifications as may be prescribed by regulations.

(4) In granting any such permit the Authority may subject the permit to such conditions as the Authority may deem appropriate, and after the grant of such permit the Authority may from time to time vary or revoke any condition so imposed or impose new conditions:

Provided that whenever the Authority deems it appropriate to vary any condition or impose any new condition in any such permit, the Authority shall, unless such variation or imposition of a new condition has been requested by the permit holder himself, by notice in writing inform the permit holder and the National Lottery licensee of its intention to vary the said condition or to impose the said new condit ion, calling upon the said permi t holder and licensee to show cause, within such period being not less than seven days after the issue of the notice as may be specified in the same notice, why such condition should not be varied or such new condition should not be imposed, and the Authority shall consider any response made by the permit holder and the licensee within the period specified in the notice, before varying the condition or before imposing the new condition.

(5) Without prejudice to the provisions of subarticle (6), any such permit shall cease to have effect upon the revocation or termination of the authority or appointment of the permit holder given or made by the National Lottery licensee to sell games forming part of the National Lottery or in the event that a National Lottery licence ceases to have effect for any reason whatsoever and the holder of any new National Lottery licence issued in terms of this Part does not authorise or appoint the permit holder to sell games forming part of the National Lottery.

(6) The Authority may order the cancellation or the suspension of such permit –

1. if the permit holder contravenes any provision of this Act or any regulations made thereunder applicable to it, or is in breach of any conditionin the permit;
2. if the Authority is reasonably satisfied that the permit holder is not or has ceased to be a fit and proper person to sell games forming part of the National Lottery;
3. in any other circumstance prescribed by regulations made under this Act.

(7) (a) Where a ground for cancellation or suspension of the permit arises under subarticle (6), the Authority, by notice in writing, shall request the permit holder and the National Lottery licensee, and may request any other person who in its opinion has an interest in the permit, to show cause, within such period as may be established in the same notice being not less than twenty-one days after the issue of the notice, why the permit should not be cancelled or suspended on such ground as stated in the notice.

(b) The Authority shall consider any response made by the permit holder, the National Lottery licensee or any other person as aforesaid within the period specified in the notice, and –

1. if the permit holder contravenes any provision of this Act or any regulations made thereunder applicable to it, or is in breach of any conditionin the permit;
2. if the Authority is reasonably satisfied that the permit holder is not or has ceased to be a fit and proper person to sell games forming part of the National Lottery;
3. in any other circumstance prescribed by regulations made under this Act.
   1. by notice in writing, give such direction to the permit holder as it considers appropriate; or
   2. suspend for such period as it thinks fit, or cancel, the permit.

(c) Where a direction given by the Authority under paragraph (b)(iii)(1) is not complied with within the time limit specified in the notice, the Authority shall cancel the permit.

(8) A permit referred to in subarticle (1) shall be considered null and void if the holder of such permit assigns or transfers the permit to any other person.

(9) Any person who sells games forming part of the National Lottery in contravention of subarticle (1) shall be guilty of an offence under this Act.