The Maltese government is considering lifting the seven-year sports betting embargo in order to achieve a positive anti-money laundering rating in the Moneyval test conducted by the Financial Action Task Force (FATF).
Reports in Malta suggest that the FATF is postponing its latest decision to list Malta as a risky financial jurisdiction, a decision that could have devastating consequences for the island's financial and gaming industry.
The FATF is expected to make a decision on Malta's rating on June 15 based on a report from the Council of Europe's anti-money laundering committee, known as Moneyval.
Malta failed a similar test of its anti-money laundering rules in 2018 and a subsequent test failure could result in the island being placed on a FATF greylist. However, newspaper Malta Today reported that as a result of the decline of the Maltese government, the island would receive a positive rating.
The embargo is based on a 2014 veto on the Council of Europe Convention on the Manipulation of Sports Competitions, commonly known as the Macaulin Convention.
The Macolin Convention is the only legally binding international instrument against match-fixing. It aims to combat illegal betting, mismanagement, insider information, conflicts of interest and the use of clubs as shell companies.
Finally, it aims to inform the sport's governing bodies of the importance of proper management and training of athletes in match-fixing.
While many EU countries chose to join the convention, Malta did not, voicing concern about the definition of illegal sports betting contained in the convention itself.
This decision delayed the adoption of the Macaulin Convention in all 28 EU member states.
This definition would make any sports betting activity illegal in one signatory state if the laws in which the player resides recognize it to be so.
Malta stated that, if ratified, the island's operators would not be able to expand into other jurisdictions unless they applied for separate licenses in each jurisdiction.
The Maltese licenses were used by operators to enter other jurisdictions, which would end with the signing of the convention.
In October 2020, a Maltese government statement regarding the veto stated: "Malta's concern about the convention stems from the fact that there is no generally accepted definition of what constitutes 'illegal gambling' or 'illegal sports betting' under EU law or international law. .
“Each state is free and duty bound to determine and regulate gambling in the best interests of its citizens and has the responsibility to ensure that its regulation protects gambling from crime, and to protect its citizens from any harm that may result from the consumption of gambling products. and services,” the Maltese government explained.
“Malta has always been concerned that if a definition of gambling is included in the match-fixing convention, it will pave the way for the regulation of non-harmonized sectors through legal instruments designed to regulate the individual sector as a whole.
“Malta remains of the view that any discussion of agreed terms, definitions and practices for gambling regulation should be discussed and agreed upon within ad hoc groups and under sectoral legislation,” the Government of Malta added.