iGaming Regulatory Gossip – MGA Delays Crypto Framework, UKGC Sued & PA Opens to New Operators

Don’s miss out – heated legal dispute with the UK gambling regulator, MGA delays Crypto gambling framework & welcome news from the USA! (Photo by João Barbosa on Unsplash)

Today’s latest regulatory news covers the Malta Gaming Authority’s (MGA) new cryptocurrency framework. Did you know? MGA casinos currently do not accept payments using Bitcoin, Ethereum, Litecoin or other cryptos. That’s all about to change, but the new policy due to come into action is now delayed.

Over in the United Kingdom iGaming market, the UKGC is under fire from International Gaming Technologies (IGT). IGT has taken out a lawsuit against the British regulatory authority for awarding the National Lottery licence to Allwyn.

This is the second time legal proceeding have been filed for the same lottery dispute. Initially, Camelot began a legal battle with the UKGC, and that case successfully prevented the transfer of the National lottery licence away from Camelot. Later a judge ruled in favour of the UKGC. Now IGT, Camelot’s tech provider is having a run the British regulator saying the transfer has put the company’s ‘marketable goodwill’ at stake.

And over in the US Pennsylvania iGaming market, operators that missed out on getting in on the state’s new iGaming market once again have a chance to bid for a PGCB licence. It is an attractive market with over 13 million people in the state. In 2022 Pennsylvania, some monthly revenue reports recorded the highest revenues versus any other state. It’s certainly a market worthwhile for successful European operators like 888 Holdings which is currently operating in New Jersey and Delaware.

Looking for a more detailed analysis of these stories? Below we cover the MGA crypto licensing process, the UKGC’s response to IGT’s lawsuit and delve deeper into the Pennsylvania iGaming market.

MGA Delays Crypto Framework Until 28 February

If you are a fan of online casinos using the Malta Gaming Authority (MGA) licensing framework, and you were waiting for casinos to jump on the new crypto bandwagon, you’ll be disappointed to learn you will need to wait a while longer.

The ‘Sandbox Regulatory Framework’ has been put in place to regulate online casinos that want to offer players the option to deposit and play games using cryptocurrency. As per our crypto iGaming guide, you will see that there are no iGaming sites with the MGA licence that offer crypto deposits and withdrawals. In fact, our entire list consists of Curacao-based brands.

On 31 December, the new ‘Sandbox Framework’ was in place and the policy lined up to kick into action this month. However, the MGA informed all companies interested in applying will need to wait until 2023. The authority has said that it is still working through the ‘huge amount of feedback’ received and still has not managed to conclude its consultation process in regard to the policy.

In the meantime, the MGA will continue its crypto workshops put in place to educate employees and operators on how the regulations are to be enforced. Depsite the delay, there’s plenty to get hyped up about here because cryptos are coming to MGA casino.

The MGA is the most player protection focused iGaming regularity authority offering dispute resolution and mediation services. It also ensures responsible gambling tools are available to all players and has in place rules that ensure if a casino goes bankrupt, player balances are not counted as part of the casino’s operatoring business.

UKGC Responds to IGT’s Lawsuit Over National Lottery Dispute

International Game Technology has sued the UK Gambling Commission over awarding the National Lottery’s license to Allwyn Entertainment. The Italian gaming technology provider claimed the decision violated European human rights law. More specifically, the company says that the UKGC is in violation of Article 1 of the EU Human Rights Act. That law requires EU member states to uphold Section 1 of the ECHR. Therefore, IGT is claiming damages of up to PS600 million (about $714 million) in compensation.

In response to IGT’s claim, the Gambling Commission said the assessment process was fair. It also stated that it did not recognize IGT as a charitable organization. While the company’s charter for the National Lottery required it to use the revenue for charitable purposes, the Gambling Commission does not accept this.

The Gambling Commission has denied that its actions are in violation of the EU Human Rights Act. Instead, they have noted that the UKGC has been in a position to impose a legal obligation to enforce the ECHR, as part of its duties under Article 1. So, the court ruling that it should not be able to impose such an obligation will not be applied.

Nevertheless, the Court of Appeal has granted the Gambling Commission permission to appeal. If the court finds that the decision was a mistake, IGT could be entitled to damages of up to PS600 million, the same amount the Gambling Commission paid to Allwyn.

Despite IGT’s claims, it is still a long way from winning the legal battle. And its strategy may backfire in the end. IGT operates in the UK market, and a lawsuit may not help future expansion in the market.

Pennsylvania Gaming Control Board Launches Bidding Process for iGaming Licenses

The Pennsylvania Gaming Control Board recently launched a bidding process for interactive gaming licenses. This is the second time in less than two years that the state’s regulator has opened up the application process and will last 3 months running from 3 Jan to 3 Mar 2023.

One company that may be looking to enter the Pennsylvania market is Golden Nugget Online Gaming. Golden Nugget is owned by DraftKings, and it has received the necessary approval to operate in the state. If the state’s gaming board grants the iGaming license, the online casino would likely partner with Hollywood Casino or another land-based property.

Will 888Casino Enter Pennsylvania? With the current troubled stock market prices for 888, the company is likely looking to expand its existing US-based New Jersey and Delaware operations.