Gross value added generated by the gaming industry grew by four per cent in 2023, reaching €1.34 billion, according to the Malta Gaming Authority’s (MGA) new annual report for the year.

Published last week, the MGA’s report reveals insights about Malta’s important gaming sector, which makes up as estimated seven per cent of the country’s economy and contributes over 16,000 jobs, representing approximately 5.2 per cent of the total workforce.

Despite the increase in economic activity, the number of new licences issued by the MGA has dropped by half over the previous year, falling to 15. There were 31 new gaming licences issued in 2022, and 46 in 2021.

MGA Annual Report 2023

The drop must be seen in light of the regulatory changes in other jurisdictions that have led to a shift in the make-up of Malta’s iGaming sector, with an increased focus on B2B activities leading such licences to constitute over half (50.6 per cent) of all active iGaming licences – up from 32 per cent in 2019.

Although the number of B2B licences has increased significantly over the last years to stand at 159, the number of B2C licences has dropped, falling from 187 in 2022 to 155 in 2023.

MGA Annual Report 2023

“These economic developments are in line with the sectorial development strategy pursued by the MGA over the past few years,” reads the report. “The authority sought to re-balance the risk profile of the sector by encouraging the further growth of business-to-business activities through a specific licensing regime.”

The MGA added that the shift builds “on a more diversified skills base consistent with B2B activities.”

On the B2C front, there were just short of 37 million active player accounts registered on MGA-licensed websites, up by 1.7 per cent on 2022. However, new active accounts decreased by 3.8 per cent, to 17.4 million, while new registrations dropped by 14.7 per cent.

Although males remain the largest category of players, accounting for 67.7 per cent of the total, there was a notable increase in the number of female players, from 20.5 per cent in 2022 to 24.7 per cent in 2023.

Casino

Malta’s four land-based casinos benefitted from the record number of tourists coming to Malta in 2023, registering major increases in both new player registrations (+32.4 per cent) and total player visits (+17.0 per cent).

There were 925,088 players’ visits to casinos in 2023 – a figure that remains short of the 940,766 recorded in 2019.

“Following the significant growth in 2023, the number of visits to local casinos is reaching levels close to those recorded before the COVID-19 pandemic. This is primarily attributed to the strong recovery of the tourism industry in Malta, with the number of visitor nights growing by 21.9% in 2023,” said the MGA.

Outlook

The MGA noted that the gaming industry remained “an important pillar in Malta’s economic landscape” in 2023, while the authority itself generated €80.6 million in compliance contribution, licence fees, levies, and consumption tax in 2023, topping the €80.4 million generated in 2019.

“Furthermore, the gaming industry, together with the tourism and leisure and artificial intelligence sectors, is expected to continue to be a key driving force behind Malta’s economy over the next five years,” it said.

The authority noted that despite the sustained positive performance exhibited by the gaming industry in Malta, the global environment has continued to present several challenges.

“Indeed, over the past year, the global gaming industry has been characterised by a significant trend of layoffs and strategy changes, influenced by shifts in consumer behaviour, technological progress, and economic pressures.

“The industry also operates in an environment of constantly evolving regulations and emerging trends, such as generative artificial intelligence and technological convergence, that continue to revolutionise the industry.”

Malta’s gaming sector nonetheless remains optimistic, it said, with 72 per cent of operators surveyed expecting revenue growth in 2024, and 62 per cent projecting further increases in 2025.

Employment prospects are also positive, with over half of the respondents forecasting workforce expansion during this period. However, operators anticipate rising costs, particularly in legal, IT, and marketing expenses.

The MGA touched on the technological advancements reshaping the sector, with innovations like AI-driven personalised storytelling, cryptocurrency integration, and metaverse applications redefining gaming experiences.

“With such strides in gaming innovation, it is important for industry players to keep pace with these emerging trends and for regulators to intensify their efforts in ensuring a balance between leveraging innovation and ensuring that the next generation of gaming platforms is trustworthy by design.”

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