MGA launches consultation on voluntary ESG code for iGaming sector

The Malta Gaming Authority has launched consultation with its licensees to gather their input and feedback on a draft voluntary Environmental, Social, and Governance (ESG) Code of Good Practice. The consultation window is expected to serve as an opportunity for MGA-licensed parties to "actively participate and further contribute" towards the development of this code, said the Authority on Tuesday.

The MGA first began exploring the development of a voluntary ESG code of good practice for the remote gaming sector last year. Underpinned by the Authority's objective of promoting "a sustainable gaming sector that safeguards players' rights," the code aims to guide and prepare licensees for upcoming ESG legislation, particularly the EU's Corporate Sustainability Reporting Directive. Starting in 2024, all large or listed companies will be required to report under the CSRD. 

Furthermore, the MGA says the code is set to help licensees "reap the benefits of running a sustainably-conscious operation," serving as an instrument for self-regulation. Through the introduction of the code, remote gaming companies are expected to align with best practices and maintain a position "that allows them to effectively meet the evolving expectations of key stakeholders in the sector."

"The draft ESG code is the result of a six-month journey, consisting of three extensive stages: the peer review and research phase, materiality assessment, and stakeholder interviews," explained the regulator in a statement. "The pre-consultation activities established a solid foundation for subsequent consultations, ensuring that the code is well-informed and reflective of the industry’s ESG priorities and stakeholder expectations. This is now ready for a final round of feedback from key stakeholders."

MGA Launches Consultation on Voluntary ESG Code of Good Practice for Remote Gaming Sector. Read more: https://t.co/6rbnNjo2fY pic.twitter.com/YlRsdn6Uiv

— MaltaGamingAuthority (@MaltaGamingAuth) July 4, 2023

According to the Authority, the code will set out the common priorities for ESG in gaming, taking into consideration the needs of key stakeholders, to reduce environmental, social and governance impacts “whilst continually enhancing Malta’s reputation as a leading Gaming jurisdiction.”

“Looking ahead, we expect to see more and more companies taking concrete actions towards becoming more sustainable, and we believe that reporting such efforts contributes positively to implementing change within the sector and improving its overall perception, while also addressing the increasing demand for transparency and accountability,” said the MGA in a statement earlier this year.

While the proposed code applies to remote gaming companies, the Authority said it is also exploring the possibility of extending it to the land-based sector in Malta, with a view to including such entities within scope in the future, and with ESG disclosures "being adapted as required."