The late afternoon discussions at this year’s London Blockchain Conference (LBC 2023) saw the Systems Auditor at Malta Gaming Authority (MGA), Odhran Griffin, explain the way the regulatory body is monitoring and controlling the use of so-called distributed ledger technologies (DLT) and the way licensed gambling companies have implemented the technology in line with the latest innovations in the market.
Mr Griffin outlined the different approaches to gambling regulation as part of the talk before sharing more details on the application of blockchain technology in the gambling sector, as well as the additional aspects that regulatory authorities need to consider. He noted that every jurisdiction chooses a different approach. According to Mr Griffin, there are three distinct approaches that could be outlined – comprehensive regulation, non-comprehensive regulation, and full prohibition.
The MGA’s Systems Auditor placed Malta in the category of comprehensive regulation, which basically suggests that online gamblers trust the seal of approval granted by the country’s gambling regulatory body to licensed gambling operators. This could be especially true when the complexities of blockchain technology, and distributed ledger technologies in particular, are taken into account.
Odhran Griffin noted that there are many different ways distributed ledger technologies can be used in the gambling market, and jurisdictions such as the Malta Gaming Authority are willing to welcome new innovative technologies, but they had to be treated with caution.
DLT Use Could Be Among the Newest Trends in the Gambling Market
Distributed ledger technologies, also known as DLT, are the technological infrastructure and protocols giving concurring access, validation, and record updating across a database. It is also a blockchain-related technology. In theory, the available infrastructure in DLT provides users with the opportunity to view any changes and who made them, making sure that the used data is reliable and can only be accessed by people who need it.
Malta is among the leading jurisdictions on a global scale when it comes to the acceptance of distributed ledger technologies. The University of Malta started offering master’s degrees in blockchain and distributed ledger technologies back in 2019. Furthermore, the country’s gambling regulatory body has allowed its gambling licensees to use blockchain technology since 2018. Currently, there are 400 gambling licence holders in the country.
In December 2018, Mr Griffin and his associates from the MGA made version one of their Virtual Financial Assets (VFA) & Distributed Ledger Technology (DLT) Policy Paper public. In January 2023, the gambling regulator published another policy, called “Policy on the use of DLT by Authorised Persons”, which outlined the watchdog’s rules regarding the use of distributed ledger technology in the local gambling sector. Currently, casino operators in the country are required to feature such a policy in order to be allowed to receive virtual financial assets (VFA) to provide evidence that they are able to control the funds.
The Systems Auditor at Malta Gaming Authority shared the underlying principles on which the country’s gambling regulator operates. He highlighted responsible gambling as some of the specifics of the MGA policy as the most important principles forming the operation of the watchdog. Mr Griffin also noted that the collaboration between different parties was a crucial element of regulating and accounting for blockchain and DLT technology in the gambling industry.
- Author
Daniel Williams
