In a recent development, the Malta Gaming Authority (MGA) has taken the decision to revoke Totup System’s license to operate in Malta due to significant regulatory breaches. The MGA issued a notice of cancellation on April 10, 2023, granting Totup System a 20-day window to present evidence justifying why enforcement measures should not be taken. However, the company failed to submit its arguments within the stipulated time frame.
Immediate Suspension of Gaming Operations:
Consequently, Totup System is required to suspend all gaming operations with immediate effect. Furthermore, the company is prohibited from registering any new players. Additionally, Totup System must settle all outstanding fees owed to the MGA, amounting to a total of €79,570/ $85,574, within a three-day period starting from the date of publication of this communication on the Authority’s website (April 17).
License Breaches:
The decision to revoke Totup System’s license stems from two significant breaches. Firstly, the company repeatedly failed to pay the MGA the requisite license fees for the years 2022 and 2023, resulting in outstanding fees totaling €50,000 that remain unpaid to this day. Secondly, Totup System also failed to meet the deadlines for paying the applicable compliance contribution fees due to the MGA.
Appeal Process:
Despite the revocation of its license, Totup System has been granted a 20-day period to appeal against the MGA’s decision. This offers the company an opportunity to challenge the enforcement measures and present additional evidence or arguments to support its case.
Implications for Totup System:
With the revocation of its license, Totup System faces significant repercussions. The immediate suspension of gaming operations will impact its ability to generate revenue and serve existing customers. Additionally, the obligation to settle outstanding fees within a limited timeframe adds financial strain to the company’s current circumstances.
MGA’s Regulatory Measures:
The Malta Gaming Authority has consistently emphasized the importance of regulatory compliance within the gambling industry. By enforcing licensing fees and compliance contribution fees, the MGA ensures that operators adhere to their financial obligations, thereby supporting the integrity and stability of the gaming sector. The decision to revoke Totup System’s license serves as a clear message that non-compliance will not be tolerated.
Recent Licensing Awards:
In contrast to Totup System’s license revocation, the MGA has recently awarded licenses to GameArt and EveryMatrix. These companies have demonstrated adherence to regulatory requirements, fulfilling their financial obligations promptly. The MGA’s endorsement of GameArt and EveryMatrix showcases the authority’s commitment to supporting compliant and responsible operators within the Maltese gaming industry.
The revocation of Totup System’s license by the Malta Gaming Authority due to regulatory breaches underscores the importance of compliance within the gambling sector. The failure to pay applicable license fees and compliance contributions within the designated time frames has resulted in immediate suspension of gaming operations and the need to settle outstanding fees. While Totup System has the opportunity to appeal the decision, the repercussions of the license revocation and associated penalties are likely to have a significant impact on the company’s operations and financial standing. The MGA’s commitment to maintaining regulatory integrity and supporting compliant operators is further exemplified by its recent licensing awards to GameArt and EveryMatrix.