Understanding Shared Conduct Agreements in the Maltese Gaming Industry: A Recent Update

The Malta Gaming Authority (MGA) recently revised its requirements for Shared Conduct Agreements within the gaming industry. This article explores the concept of Shared Conducts, their characteristics, benefits, and the implications of the recent update.


𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐒𝐡𝐚𝐫𝐞𝐝 𝐂𝐨𝐧𝐝𝐮𝐜𝐭𝐬?

Shared Conducts are collaborative business arrangements between two or more companies. These partnerships involve sharing services or products to achieve a common goal. By combining expertise and resources, participating companies can:

• Reduce workload
• Maximise profits
• Gain access to superior resources and industry knowledge

Shared Conduct agreements are generally executed through:

1. 𝐅𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐚 𝐍𝐞𝐰 𝐄𝐧𝐭𝐢𝐭𝐲: The collaborating companies create a separate legal entity to manage the joint venture.
2. 𝐂𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐯𝐞 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭: The companies establish a framework for working together while remaining legally independent.

In both scenarios, the agreement outlines each party's contributions, profit-sharing structure, and responsibilities. This flexibility allows for customised resource pooling.


𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐚𝐧𝐝 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬

Shared Conducts offer several advantages:

• Access to broader resources and expertise
• Increased efficiency and cost-effectiveness
• Enhanced market reach and competitiveness

However, special attention to potential challenges should be noted:

• Differing goals and expectations between partners can lead to conflict.
• Effective communication and realistic planning are crucial for success.
• Legal liabilities vary depending on the agreement and jurisdictional laws.


𝐓𝐡𝐞 𝐌𝐆𝐀 𝐚𝐧𝐝 𝐒𝐡𝐚𝐫𝐞𝐝 𝐂𝐨𝐧𝐝𝐮𝐜𝐭𝐬

The MGA recognises Shared Conduct Agreements within the gaming industry. Licensees can seek approval for such arrangements through the MGA's online portal. It's important to note that the MGA's Outsourcing Policy applies to Shared Conducts. This means licensees must notify or seek prior approval from the MGA for activities related to Material supplies, Critical supplies and Key functions. The MGA also expects certain standard clauses to be included in the Shared Conduct agreement.



𝐃𝐢𝐬𝐜𝐥𝐚𝐢𝐦𝐞𝐫

This article provides a general overview of Shared Conduct Agreements in the Maltese gaming industry. It is not intended to be a substitute professional legal advice. For specific guidance regarding specific situation, please contact us at info@radixmalta.com.