Malta’s gambling regulator has introduced a new AI gaming charter in response to the growing use of artificial intelligence technology in the industry.
The Malta Gaming Authority (MGA), in collaboration with the Malta Digital Innovation Authority (MDIA), created the voluntary charter based on feedback from licensees.
The study revealed that while AI technology was being utilized in areas such as customer support, data analytics, fraud detection, and responsible gaming, formal governance of AI was struggling to keep up with its increased usage.
Only a minority of surveyed organizations reported having a formal AI strategy or roadmap, with many still in the development phase. Additionally, very few had established AI risk assessment processes or incident-response plans.
MGA CEO Charles Mizzi emphasized that the regulator aims to support innovation rather than hinder it.
“Our role as a regulator is not to stand in the way of innovation, but to help create the certainty and confidence needed for innovation to flourish responsibly,” he stated.
The charter does not impose new regulatory obligations and is intended to complement existing legislation such as the EU AI Act and GDPR.
Instead, it proposes a risk-based approach, recommending lighter controls for certain use cases and stricter measures for customer-facing functions involving fraud and responsible gambling.
‘Trust is Fundamental’
MDIA CEO Kenneth Brincat underscored the importance of trust in the responsible adoption of AI technology.
“Trust is fundamental to the responsible adoption of AI. As its use becomes increasingly embedded across the gaming sector, organisations need practical ways to understand where AI is being used, manage the associated risks and ensure that accountability and human oversight remain firmly in place,” he explained.
He added, “The AI gaming charter translates these principles into practical, sector-specific guidance.”
The charter also includes recommendations for companies to appoint a senior staff member responsible for AI governance and to establish an AI oversight or ethics committee.
Furthermore, companies are encouraged to implement rollback mechanisms and “kill-switch” controls for high-impact AI systems.
For AI-powered customer support and chat, operators should set clear guidelines for transitioning conversations to human staff based on factors like low-confidence responses, unresolved queries, distress signals, or customer requests.
The MGA stated that the charter will be periodically reviewed to align with technological advancements and regulatory changes.
Earlier this year, the regulator faced cybersecurity threats from a white-hat hacker who alleged connections between Malta’s iGaming sector and organized crime.