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Gaming Act (Cap. 400) Consolidated

CHAPTER 400

GAMING ACT

To make provision in place of the Kursaal Ordinance for the licensing of the Casinos, for the regulation of casinos and gaming therein by the Lotteries and Gaming Authority and for the purposes connected therewith or ancillary thereto.

30th April, 1998
7th August, 1998

ACT X of 1998, as amended by Acts XXIV of 2001 and III of 2004; Legal Notice 425 of

2007; and Act XV of 2011.

ARRANGEMENT OF ACT
Articles
Part I Preliminary 1-2
Part II Concessions 3-4
Part III The Authority and Inspectors 5-13
Part IV Grant of Casino Licence 14-20
Part V Operation of Casino 21-32
Part VI Provision of Money for Gaming 33-36
Part VII Financial 37-41
Part VIII Offences 42-48
Part IX Miscellaneous 49-52
SCHEDULE

PART I

PRELIMINARY

Short title. 1. The short title of this Act is the Gaming Act.

Interpretation. Amended by: XXIV. 2001.80.

Cap. 438.

Cap. 438.

2. In this Act, unless the context otherwise requires -

"author ised game" m eans a game specif ied by the Autho r ity under article 29 to be an authorised game for the purposes of this Act;
"authorised machine" means a machine used for the purpose of gaming as specified under article 31(1);
"A uth o rit y " mean s the Lot t eries an d G a mi ng Aut hori t y established under article 9 of the Lotteries and Other Games Act;
"casino" means such premises in relation to which the Minister has granted a concession under article 3;
"casino employee" means any receptionist, dealer, chef de table, cashier, supervisor, watcher, machine engineer, manager, or any other person who, in the view of the Authority, is involved in the gaming operations of a casino;
"casino licence" means a licence granted under article 15;
"chi ps" means an y to kens used o r capab le of bein g used in a casino in the con duct o f gamin g i n th e place o f mon e y and approved for this purpose by the Authority;
"gaming" means the playing of a game of chance for money or money’s worth;
" g aming e q uipment" means an y ele c trical, electronic or mechanical device, cards or any other thing, other than chips, used, or suitable for use, in connection with gaming;
"gaming machine" means any machine which is constructed or adapted for playing a game of chance or chance and skill combined as may be prescribed by the Minister;
"inspector" shall have the same meaning as is assigned to it in article 2 of the Lotteries and Other Games Act;
"junket" means an arrangement the purpose of which is to induce any person, selected or approved for participation therein on the basis of his ability to satisfy a financial qualification obligation related to his ability or willingness to gamble, or on any other basis related to his propensity to gamble, to come to a licensed casino for the purpo se of gambling and pursuant to w h ich, and as a consideration for which, any or all of the costs of transportation, food, lodging, and entertainment for the said person is directly or indirectly paid by a casino licensee;
"Minister" means the Minister responsible for finance.

PART II

CONCESSIONS

3. (1) It shall be lawful for the Minister to grant concessions to persons to open and operate casinos.

(2) A concession under this article shall be granted for such consideration including the payment of any sums of money to the ge nera l rev e nu es, for su ch p e ri od a n d up on su ch t e rm s a n d conditions as the Minister thinks fit.
(3) The grant of a concession under this article shall not di sp en se an y person o p en in g o r operating a casino from the requirement of any licence by the Authority under this Act.
(4) Notwithstanding the other provisions of this article, the Minister may from time to time designate a company owned wholly directly or indirectly by the Government as the Government Casino Operator and such company shall, whenever the Minister so directs, take over the operation of a casino owned directly or indirectly by the Government whenever the person to whom a concession has been granted to run such casino fo r an y reason aband ons such concession or has his licence revoked or suspended under this Act.

Concession to open and operate casino. Amended by:

XXIV. 2001.80.

4. Subject to the requirement of any other licence under this Act or any other law and to the other provisions of this Act, where a concession has been given by the Minister under article 3, or where the Minister has directed a company as therein referred to operate a casino, then, notwithstanding the provisions of any other law, it shall be lawful during the period of such concession -

(a) for the person to whom such concession has been granted or for any person to whom such concession has been assigned in accordance with the terms and conditions thereof, or for the company so directed, to permit the use of the premises specified in the concession as a casino for the playing therein of such games of chance for money or money’s worth and for such stakes as may be specified in the casino licence and to encourage the playing therein by such persons of any such games for any such stake; and
(b) for any person to take part therein in any such game for any such stake.

Playing of games in casino.

PART III

THE AUTHORITY AND INSPECTORS

5. The Authority shall carry out the functions assigned to it by the provisions of this Act or of any other law or of regulations made th ereunder and shall perform such othe r func ti ons as the Minister may from time to time assign to the Authority by order in writing and considered appropriate by the Minister in relation to the operation of this Act or of any other law.

Substituted by: XXIV. 2001.80.

Lotteries and Gaming Authority. Substituted by: XXIV. 2001.80.

Functions of the Authority. Amended by: XXIV. 2001.80.

6. The functions of the Authority shall be - (a) to supervise the operation of casinos;
(b) to issue licences to own and/or operate casinos under
article 15;
(c) to issue licences to the casino employees, including the managers thereof, and junket leaders, proposed to be engaged by a casino licensee to work in relation to gaming;
(d) to inquire into the suitability of -
(i) casino owners and operators, licensees or persons nominated as proposed casino licensees; and
(ii) the employees, including the management and junket leaders, proposed to be engaged by the casino licensee;
(e) to regulate by licence the importation, supply and maintenance of gaming machines and gaming equipment for casinos;
(f) to advise the Minister on the making of regulations, in accordance with the provisions of article 50, on matters relating to the control of casinos or of the operation of casinos, or, generally to gaming in casinos;
(g) to perform any of the functions that is or may be assigned to it by this or any other law.

Proceedings. 7. Deleted by Act XXIV. 2001.80. Inspectors. 8. Deleted by Act XXIV. 2001.80. Identity cards. 9. Deleted by Act XXIV. 2001.80.

Rights of inspectors.

10. An inspector may at any time upon production of his identity card enter and remain in a casino for the purposes of -

(a) viewing gaming;
(b) observing any of the operations of the casino or, generally, of gaming;
(c) ascertaining whether the operation of the casino or, generally of gaming, is being properly conducted, supervised and managed;
(d) ascertaining whether the provisions of this Act are being complied with; and
(e) in any other respect, exercising his powers or performing his duties.

Powers of inspectors. Amended by: XXIV. 2001.80.

11. (1) An inspector may for the purpose of ascertaining that the provisions of this Act are being complied with and that the full amount of tax under this Act is being paid -

(a) require any person whom the inspector believes, on reasonable grounds, to be in possession or have under his control any gaming equipment or chips -
(i) to produce the equipment or chips to the inspector for inspection or testing; or
(ii) to attend before the inspector at a reasonable time and place specified by the inspector and there to answer such questions, or to supply such information, relating to the equipment or chips as the inspector specifies;
(b) require a casino licensee or a person acting on behalf of a casino licensee -
(i) to produce to the inspector for inspection such book or document in his custody or control relating to the operation of the casino as the inspector specifies; or
(ii) to attend before the inspector at a reasonable time and place specified by the inspector and there to answer such questions, to supply such information, or to produce such book or document, relating to the operation of the casino as the inspector specifies;
(c) inspect or test any gaming equipment or chips or inspect such book or document, and take copies of, or make notes in relation to, such book or document, relating to the operation of the casino as the inspector considers necessary;
(d) direct a casino licensee not to use any gaming equipment or chips that the inspector considers to be unsatisfactory for use;
(e) receive and, if the inspector thinks fit, investigate a complaint with respect to any aspect of the operation of a casino and to make a report of the result of such investigation to the Authority;
(f) call to the inspector ’s assistance - (i) another inspector; or
(ii) a casino employee who, in the belief of the
inspector, is competent to assist the inspector in the exercise of his powers or performance of his
duties; and
(g) require any person entering or to be found at a casino to produce identification documents.
(2) A requirement under subarticle (1)(a) or (b) or a direction under paragraph (d) of the same subarticle shall be made by notice in writing or orally as the inspector deems fit in the circumstances.
(3) An inspector shall be present in a casino at the opening and closing of any gaming table, when any adjustment is made to the table float, when the count of money and tokens is undertaken, and at the opening and closing of any gaming machine and to verify jackpot wins.
(4) Any person who, without reasonable excuse, hinders or fails to assist the inspector i n the discharge of his duties under
subarticle (1), shall be guilty of an offence under this Act.
(5) An inspector shall make a report on the exercise of his functions under this Act to the Authority.

Powers of the Authority. Amended by: XXIV. 2001.80.

12. (1) Without prejudice to any power exercisable by virtue of the preceding provisions of this Act, the Authority may at any time serve on a c asino license e a notice requiring hi m, in such manner and within such reasonable time as may be specified in the notice -

(a) to produce for inspection by or on behalf of the Authority books or documents relating to the casino, as specified in the notice which the Authority reasonably requires to inspect for the purpose specified in of article 11(1), and
(b) to furnish the Authority with information relating to the premises as specified in the notice which the Authority reasonably requires for that purpose.
(2) If without reasonable excuse any requirement imposed in relation to a casino by a notice served by virtue of subarticle (1) is not complied with, the casino licensee shall be guilty of an offence under this Act.

Professional secrecy. Amended by: XXIV. 2001.80. Cap. 377.

13. Without prejudice to the provisions of the Professional Secrecy Act, any information di sclosed to an insp ector, the Authority or any member, officer or employee of the Authority, and any document produced in pursuance of articles 11 or 12 shall be secret and confidential and may not be disclosed or produced other than for the purposes of this Act or any prosecution for an offence against this Act or an offence committed against or in a casino.

Requirement of licence. Amended by: XXIV. 2001.80.

Grant of casino licence. Amended by: XXIV. 2001.80; XV. 2011.3.

PART IV

GRANT OF CASINO LICENCE

14. No person may open or operate a casino unless he is in possession of a licence by the Authority.

15. (1) It shall be lawful for the Authority by licence to authorise a person to open and operate a casino in Malta.

(2) The Authority shall not issue such licence to a person unless that person is a company registered in Malta and unless it appears to the Authority that -
(a) the relevant voting share capital of the proposed casino licensee is owned, directly or indirectly, by a person or persons of integrity;
(b) the director or directors of the company or of any affiliate thereof are persons of integrity;
(c) the proposed casino licensee has the financial means and expertise available to operate the casino and to
fulfil all its obligations under this Act.
(3) A casino licence remains in force for up to ten years and shall be subject to the annual paym ent of a licen ce fee. Subject to compliance with the provisions of this Act, the licence, unless it is sooner surrendered or cancelled, may be renewed by the Authority. A casino licence shall, in all cases, be conditional to there being a concession by the Minister in favour of the licensee in accordance with the provisions of Part II of this Act.
(4) The casino licence shall be in a form approved by the Board and -
(a) shall specify inter alia:
(i) the date of its issue;
(ii) the date of its expiration; (iii) the name of the licensee;
(iv) an address in Malta specified by the licensee for the service of documents on the licensee;
(v) the address of the casino;
(vi) the maximum number of tables that can be operated under the licence;
(vii) the maximum number of machines allowed to be used under the licence;
(viii) the minimum opening hours;
(ix) such other particulars relating to the casino as the Authority considers necessary; and
(x) such other particulars as may be prescribed;
(b) shall identify the area or areas by reference to plans designated to be the casino.
(5) (a) A licensee shall within fourteen days of any change in the ownership of any share capital of the company or of its affiliates and of any change in the management or Board of Directors of the company or of its affiliates inform the Authority of such change.
(b) If pursuant to any change as is referred to in paragraph (a) a situation is brought about that had it existed at the time of the application for the licence, would have disqualified the company from obtaining a licence in accordance with subarticle (2), the Authority shall by notice inform the licensee accordingly and if the situation shall not have been remedied within one calendar month from the notice to that effect by the Authority, the Authority shall revoke the licence:
Provided that the Authority shall not issue a notice as aforesaid later than three calendar months after being informed by the licensee of the change in accordance with paragraph (a).
(6) Failure to comply with the provisions of subarticle (5) shall constitute an offence against this Act.
(7) A licence under this article may not be assigned.

Casino licence fee.

Amended by:

XXIV. 2001.80;

XV. 2011.4.

16. (1) The Authority shall, on the basis of the costs incurred by itself in carrying out its functions under this Act, determine the casino licence fee, in the casino licence, for the purposes of this Act.

(2) The casino licence fee is payable in advance to the Authority on behalf of the Government on each anniversary of the licence by the casino licensee.
(3) Determinations and variations under sub-article (1) shall not be made at intervals of less than twelve months.

Surrender of casino licence.

Amended by: XXIV. 2001.80.

17. (1) The casino licensee may surrender the casino licence at any time by giving notice in writing to the Authority not less than one year prior to the date of the surrender of the licence.

(2) The surrender of any casino licence shall not dispense the person surrendering the licence from any obligation incurred under articles 16 and 37.
(3) If the casino licensee surrenders the casino licence without giving the notice specified in subarticle (1), the gaming equipment and machines to be found in the casino shall be forfeited to the Authority on behalf of the Government.

Cancellation of casino licence - grounds. Amended by: XXIV. 2001.80.

18. The Authority may order the cancellation of a casino licence on any of the following grounds:

(a) any director or manager of the casino licensee is convicted of an offence against this Act or of theft, receiving stolen property, fraud or any crime against public trust;
(b) the casino licensee contravenes a provision of this Act or is in breach of a licence condition;
(c) the casino licensee knowingly or recklessly supplies to the Authority information that is false or misleading in a material particular;
(d) the casino licensee fails to fulfil the licensee’s financial commitments when they become due and payable;
(e) the casino licensee fails to maintain the formal gaming reserve as specified in article 39;
(f) the licensee is being wound up; or
(g) the Authority is satisfied that the casino licensee is not, or has ceased to be, a suitable person to be the licensee of a casino.

Cancellation of casino licence - procedures. Amended by: XXIV. 2001.80.

19. (1) Where a ground for cancellation of the casino licence arises under article 18, the Authority, by notice in writing, shall request the casino licensee, and may request any other person who in its opinion has an interest in the licence, to show cause, within such period, being not less than twenty-one days after the issue of the notice, as is specified in the notice, why the casino licence

should not be cancelled on such ground as stated in the notice.
(2) The Authority shall have regard to any response made under subarticle (1) and -
(a) where the matter is resolved to its satisfaction shall take no further action;
(b) where, although the matter is not resolved to its satisfaction, it considers that further action is not warranted, it shall, in writing, caution the casino licensee; or
(c) where the matter is not resolved to its satisfaction and it is satisfied that further action is warranted, it may -
(i) by notice in writing, give such direction as it considers appropriate; or
(ii) suspend for such period as it thinks fit, or cancel, the casino licence.
(3) Where a direction given by the Authority under subarticle (2)( c )(i) i s n o t complied wi th wit h in t h e t ime specifi e d i n the notice, the Authority shall cancel the casino licence.

20. (1) No person shall employ or work as a - (i) casino employee;

(ii) casino manager; or
(iii) junket leader,
without a licence from the Authority, wherever such licence shall be required by any regulations under this Act.
(2) Any person who shall do anything referred to in subarticle (1) wherever a licence therefor is required under subarticle (1), witho u t bei ng in possession of the rel a t i ve li cen c e or n o t in accordance with such licence shall be guilty of an offence against this Act.

Licence for employees. Amended by: XXIV. 2001.80.

PART V

OPERATION OF CASINO

21. (1) It shall be lawful for a casino licensee to require persons entering the casino premises to pay a fee therefor. Such fee shall be fixed by the licensee with the approval of the Authority.

(2) Such approved fee is to be clearly displayed at the entrance to the premises. All such fees received shall be recorded.

Entrance fee. Amended by: XXIV. 2001.80.

22. (1) A casino licensee shall -

(a) maintain the facilities and amenities of the casino in a condition to the satisfaction of the Authority;
(b) ensure that the casino is at all times properly and competently conducted;
(c) ensure that all casino installations, equipment and

Maintenance of facilities. Amended by: XXIV. 2001.80.

procedures for security are available and are tested, used, operated and applied effectively; and
(d) ensure the gaming equipment and chips approved by the Authority for use in the casino are maintained in good order and condition.
(2) The casino licensee shall not operate the casino unless the layo ut of th e casi no is in ac cordance with pl ans and diagra ms approved by the Authority.

Security. Amended by: XXIV. 2001.80.

Operating times. Amended by: XXIV. 2001.80.

23. The casino licensee shall, for the purpose of ensuring security within the premises of the casino, install and keep in good working order such camera and audio system, in such numbers and locations, and which shall be monitored by such number of persons adequately trained to be employed as professional security staff as may be approved by the Authority.

24. The Authority shall, in the casino licence, establish a schedule of minimum operating times for the casino setting out the days on which, and hours during which, the licensee shall operate the casino. The Authority may also establish the days during which casinos shall remain closed.

Identification. 25. (1) It shall be the duty of the casino licensee to ensure that persons entering the casino premises are identified and may at any time request such persons to produce their identification card or passport for inspection.

(2) The casino licensee shall cause the particulars of persons entering the casino together with details of identification card or passport produced to be registered in a register kept at the casino premises for such purpose.

Exclusion of certain persons from a casino.

26. (1) A person shall not enter a casino during the hours of operation of the casino, if the person -

(a) is requested by a licensed casino employee not to enter the casino or other gaming premises, as the case may be, on the ground that the person has previously contravened the approved rules of an authorised game or rules of conduct of gaming in force;
(b) is a person in relation to whom a court order under article 27(1) is in force;
(c) is in the case of a citizen of Malta under the age of twenty-five years;
(d) is in the case of any other person under the age of eighteen years;
(e) has asked for a ban or restriction on his own admission;
(f) upon a request to do so by a licensed casino employee, fails to produce his identification card or passport; or
(g) appears to be under the influence of alcohol or a drug or is acting in a disorderly manner:
Provided that, any ban or restriction of admission shall,
under paragraph (e), have effect during the period requested by the person concerned, which shall not be less than six months and not more than one year. Any such ban or restriction cannot be cancelled before its expiry.
(2) A person shall not remain in a casino during the hours of operation of the casino if the person -
(a) when requested to do so by a licensed casino employee, refuses or fails to produce evidence of his age;
(b) has been requested by a licensed casino employee to leave the casino on the ground that the person -
(i) appears not to understand fully the nature or consequences of gaming as it relates to the application of the approved rules of authorised games and the potential for financial loss;
(ii) appears to be under the influence of alcohol or a drug;
(iii) is affecting the orderly functioning of the operations of the casino or, generally, of gaming whether because of the influence of alcohol or drugs or otherwise;
(iv) appears to be disturbing the peace or affecting the orderly functioning of the operations of the casino;
(v) appears to be cheating, or attempting to cheat, in the casino; or
(vi) has previously contravened the approved rules of an authorised game or rules of conduct in force in a casino;
(c) is a person in relation to whom a court order under article 27 is in force.
(3) Without prejudice to the other provisions of this Act, admission to a casino shall be at the discretion of the licensee who shall ensure that persons who may have a problem of pathological gambling are not given access to the gaming area:
Provided that no person shall be refused admission to a casino by reason of his race, pl ace of origin, political opinion, colour, creed, sex or physical infirmity.

27. (1) Where any person is convicted by a court of an offence which in the opinion of the court is of such nature, or where the circumstances under which it was committed were such that it is undesirable that the person so convicted should be permitted to enter a casino, the court may in addition to any other power under any other law make an order prohibiting the person convicted from entering a casino as specified in such order, for such period as may be specified therein.

(2) The Authority as well as all casino licensees shall, as soon as practic able, be noti fi ed wi th su ch order b y th e Re gi st rar of

Power of court to prohibit persons from entering casino.

Amended by: XXIV. 2001.80.

Court.
(3) The casino licensee shall keep a list of the names, together with any other available identification details of those persons, in rel a tio n to whom a court order has been made as provi ded in subarticle (1).
(4) A casino licensee shall make the said list available for inspection by the Authority and by inspectors.
Enforcement. 28. (1) A person who is - (a) a police officer; or
(b) for the time being in charge of the casino; or
(c) an agent or an employee of the casino licensee,
may, with such assistance as is necessary and reasonable and using such force as is necessary and reasonable, cause any person who, under article 26, may not enter, or remain in, the casino:
(i) to be prevented from entering the casino; or
(ii) to be removed promptly from the casino as the case requires.
(2) A person who, without reasonable excuse, obstructs or hinders a person in the exercise of a power conferred on the latter person under subarticle (1), shall be guilty of an offence under this Act.
(3) The casino licensee who, knowingly or recklessly, permits to enter, or fails to remove from, the casino a person who is not entitled to be in such premises by virtue of the provisions of article
26, shall be guilty of an offence under this Act.

Authorised games.

Amended by:

XXIV. 2001.80.

29. (1) The Authority shall, in the casino licence issued or to be issued under t h is Act, spec ify the game or gam e s to be designated as authorised games for the purposes of the Act.

(2) The Authority may at any time alter the list of the designated authorised games and the approved rules of a game as specified in the casino licence.
(3) In carrying out its functions under subarticles (1) and (2), the Authority shall seek the ag re ement of the casino lice nsee thereon.

Gaming in the casino. Amended by: XXIV. 2001.80.

Use of machines by virtue of licence.

Amended by: XXIV. 2001.80.

30. The Minister may, after consultation with the Authority, m ake regu lation s specif ying in a g eneral m anner the ter ms and con d iti ons accordin g to which g a ming is to be co nducted in a casino. Th e Authority m a y in a casino licence specify in a particular manner terms and conditions, being terms and conditions not prohibited by regulations, according to which gaming is to be conducted in a casino.

31. (1) The Authority shall, in a casino licence, specify the number of authorised machines that may be installed and kept for use on th e casino premises, and ma y in the licence subject the keeping of such machines to any conditions as may be specified by the Authority in the licence.

(2) Subject to any limitation in the concession granted by the Mini ster u nder art i cl e 3 the Au thori t y may, either on its ow n initiative or upon a request by the casino licensee, upon the renewal of a cas ino licence, vary the number of, and the terms and con d it ion s regul at ing , autho r ised machin es permitt ed to be installed in the casino:
Provided that the Authority shall not refuse the request made by the casino licensee under this subarticle unless there are reasonable grounds for such refusal. The acceptance or refusal of any such request shall be made in writing.

32. (1) No gaming machine of any description shall be kept for use in a casino -

(a) contrary to the conditions specified in the casino licence; or
(b) without the machine being registered in accordance with any regulations issued under this Act and in force from time to time.
(2) If any gaming machine is kept for use in the casino in contravention of subarticle (1), the casino licensee shall be guilty of an offence under this Act.
(3) Any person who manufactures, imports, keeps or supplies a gaming machine for use as a casino under this Act shall, without prejudice to any other liability under any other law, be guilty of an offence under this Act:
Provided that the Minister may, under such conditions as he may deem appropriate, give a permit for the manufacture of gaming machines for export, and any machines manufactured in accordance w i t h s u ch a pe r mit sh a l l n o t be deemed to be manufactured in contravention of this subarticle.
(4) If, in any proceedings for an offence under subarticles (2) and (3), it is proved that a gaming machine was on the premises of a casino, it shall be presumed, unless the contrary is shown, that the machine was kept on the premises of the casino for use on those premises.

Offences relating to gaming machines.

PART VI

PROVISION OF MONEY FOR GAMING

33. It shall not be lawful for the licensee or any person acting on his behalf or under any arrangement with him, to make any loan or otherwise provide or allow to any person any credit, or release or discharge on another person’s behalf, the whole or part of any debt:

(a) for enabling a person to take part in gaming at a casino; or
(b) in respect of any losses incurred by any person in gaming at a casino.

Restriction on credit.

Applicability of articles 1713 and

1716 of the Civil

Code.

Cap. 16.

34. (1) Article 1716 of the Civil Code shall not apply with respect to a game lawfully played in a licensed casino.
(2) The provisions of article 1713 of the Civil Code shall not prejudice the right of the casino licensee to recover a debt arising from the acceptance of a cheque in accordance with article 35 and which is subsequently not honoured.

Cheques. Amended by: XXIV. 2001.80.

35. (1) Subject to any regulation made by the Minister or any directive that may be issued by the Authority, a casino licensee or any person acting on his behalf or under any arrangement with him may, if he has reasonable grounds to believe that a cheque will be honoured upon presentation, accept a cheque and give in exchange for it cash or tokens for enabling such person to take part in the gaming as long as -

(a) the cheque is not a post-dated cheque; and
(b) the cheque is exchanged either for cash to an amount equal to the amount for which it is drawn, or it is exchanged for tokens at the same rate as would apply if cash, to the amount for which the cheque is drawn, were given in exchange for them.
(2) Where the conditions set out in subarticle (1) are fulfilled, the giving of cash or tokens in exchange for a cheque shall not be deemed to be contrary to the provisions of article 33.
(3) Where the casino licensee or a person acting on his behalf or under any arrangement with the licensee, accepts a cheque in exchange for cash or tokens to be used by a player in gaming, he shall, not more than two banking days later, cause the cheque to be delivered to a bank for payment or collection.

Redemption of cheques.

36. A person may, with the consent of the casino licensee, and not later than thir ty minu t es fr om the end of a gaming session redeem any cheque accepted from the person by the casino licensee during that gaming session by presenting at the cash desk of the casino -

(a) an amount of money, or
(b) chips the face value of which is, or
(c) any combination of cash and chips, or
(d) where more than one cheque is being redeemed, a consolidating cheque for an amount,
equivalent to the amount for which the cheque or cheques are drawn, or the sum of the amounts of the cheques, to be redeemed.

Tax. Amended by: XXIV. 2001.80.

PART VII

FINANCIAL

37. (1) The licensee shall pay to the Authority on behalf of the Government the rate of tax based on the total gross takings of all games played at the casino specified in the Schedule without the

the following provisions of this article. The licensee shall not later t h an t h e seventh day of each mon t h, ef f e ct payment to the Authority of the tax due in respect of the preceding month.
(2) For the purpose of determining the sums due to the Authority under subarticle (1), the gross takings or gross losses, as the case may be, on all games of chance shall be those resulting at the closing of the casino each day, but the casino licensee shall be entitled to set off any gross losses on such games incurred during any two months against gross takings on such games made during the same months:
Provided that where a casino remains open for twenty-four hours in a day the closing of the casino for the purposes of this subarticle shall be deemed to be 8 a.m.
(3) The gross takings or losses on all games of chance shall be calculated at the closing of the casino each day and duly appointed repr esent a tiv es of th e Au tho r i t y shall be enti tle d t o at tend th e making of such daily calculation for the purpose of verifying the same and, moreover, to attend at the playing of all games at the casino.
(4) The licensee shall further pay to the Authority on behalf of the Government such rate of tax on the casino entrance fee as may be specified in the casino licence.
(5) For the purposes of subarticle (2), the term "two months" means periods of two months, ending at the closing of the casino on the l a st day of February, April, Jun e , Augu st , Octob e r and December of each calendar year and does not include any time after the closing of the casino during which the business of the casino, commenced on the last day of the relevant two months’ period, is continued or concluded.

38. (1) Upon the grant of a casino licence, the Authority may require the casino licensee to take out a bank guarantee issued by a bank or by a credit or f inancial in sti tution licensed in Malta in favour of the Authority on behalf of the Government in an amount not exceeding the gaming reserve and subject to such terms and conditions as may be specified in the licence. Such bank guarantee shall remain valid until the expiration of one year after the expiration of the licence.

(2) The casino licensee may forfeit such bank guarantee in favour of the Authority in any of the following cases:
(a) upon the surrender of the casino licence under article
17;
(b) upon cancellation of the casino licence by the
Authority under article 18;
(c) upon breach of any of the conditions in respect of maintenance of facilities in terms of article 22;
(d) in settlement of any liability of the licensee with respect to a fine imposed under Part VIII of this Act.

Bank guarantee. Amended by: XXIV. 2001.80.

Gaming reserve. Amended by: XXIV. 2001.80.

39. (1) Upon the grant of a casino licence, the casino licensee shall establish a formal reserve in an amount to be fixed by the Authority which will protect the casino against a run of gaming losses and therefore ensure that punters are paid out after a large win and which will provide comfort that the casino licensee has adequate financial resources to carry on the business of casino gaming to acceptable and proper standards and without imminent risk of closure or liquidation.

(2) The gaming reserve shall be in the form of a deposit held with a bank established in Malta and or any other security held on the licensee’s behalf by such bank acceptable to the Authority. The casino licensee shall cause the bank to confirm existence of such a reserve to the Authority, as and when requested by the Authority, and in any case annually upon every anniversary of the licence.
(3) Should it be necessary for the reserve to be drawn upon, the casino licensee shall immediately inform the Authority and shall restore the reserve within two months and shall thereupon cause the bank to confirm its restoration to the Authority.

Prevention of money laundering. Amended by: XXIV. 2001.80. Cap. 373.

Cap. 373.

40. (1) Without prejudice to the provisions of the Prevention of Money Laundering Act, and of article 50, the Minister with the concurrence of the Minister responsible for justice may by order provide guidelines for conduct by a lic ensee , inspectors or the Authority in relation to certain transactions that may give rise to suspicion of money laundering, and may in particular provide that the pro v isions of article 12(1) of the Prevention of Money Laundering Act shall apply with regards to a casino with such modifications and adaptations as may be specified in the Order.
(2) Where an inspector or a casino employee has reason to suspect that a transaction or a proposed transaction could involve money laundering, he shall act in accordance with regulations made under the Prevention of Money Laundering Act, and any regulation made under this Act, applicable thereto.

Exchange control. 41. It shall be lawful for a casino licensee, upon authorisation gran ted by the Central Bank o f Malta and sub j ect to such conditions as may be specified in such authorisation, to provide faci li ties f o r the ex ch an ge o f f o reig n cu rrency on th e casi no premises.

Penalty for offences against this Act. Amended by: XXIV. 2001.80;

L.N. 425 of 2007.

PART VIII

OFFENCES
42. (1) Any person guilty of an offence against this Act, shall on conviction be liab l e t o a fine ( multa ) of not less than six thousand and nine hundred and eighty-eight euro and twelve cents (6,988.12) and not more than two hundred and thirty-two thousand and n i ne hundred and t h irty-seven euro and thirty -four cent s (232,937.34) or to imprisonment of not more than two years or to both such fine and imprisonment:
director, manager, secretary or other similar officer of a company or other undertaking the said person shall, for the purpose of this article, be deemed to be vested with the legal representation of the same company or other undertaking which accordingly shall be liable in solidum with the person found guilty for the payment of the said fine:
Provided further that where the Attorney General in the sanction issu ed in accordance with article 48, certifies that the offence will be adequately punished with a fine (multa) of not less th an tw o hu n d r e d an d th ir t y - t w o eu ro an d n i n e ty -f o u r c e nt s (232.94) and not more than six tho usand and nine hundred and eighty-eight euro and twelve cents (6,988.12) the applicable penalty shall be a fine (multa) of not less than two hundred and thirty-two euro and ninety-four cents (232.94) and not more than six thousand and nine hundred and eighty-eight euro and twelve cents (6,988.12).
(2) The fine referred to in subarticle (1) shall be recoverable as a civil debt in favour of the Government by the Chief Executive of the Authority.
(3) The provisions of the Probation Act and of article 21 and of articles 28A to 28I of the Crim in al Code sh all not apply with respect to offences referred to in subarticle (1).

Cap. 446. Cap. 9.

42A. (1) The Authority may, with the concurrence of any licensee or holder of a permit issued in terms of article 36 who contravenes a condition of his licence or, as the case may be, of his permit, or any directive issued by the Authority in terms of this Act or of regulations made thereunder and applicable to such licensee o r , as th e case may be, to such permit h o ld er wh er e such co ntrav e ntion amo unts to an offence agai nst thi s Act, im pose administrative penalties or sanctions upon such licensee or holder of a permit as an alternative to proceedings in Court.

(2) For the purposes of subarticle (1), where the Authority decides to exercise its powers thereunder, the Authority shall enter into an agreement in writing with the offender whereby the said offender pays a sum which shall not exceed two hundred and thirty- five thousand euro (€235,000.00), as the Authority shall determine, and upon the signing of any such agreement between the Authority and the offender, all criminal liability of the offender under this Act, with regard to the offence or offences in relation to which the agreement has been entered, shall be extinguished:
Provided that any such agreement and the provisions of this article shall be without prejudice to the power of the Authority, wher e applicable , to cancel or susp end the lice n ce held by the of fen d er in ter m s o f th e p r o v i s io ns o f t h is Act r e l a ti ng to cancellation or suspension of the relevant licence.
(3) The provisions of subarticle (2) shall apply also in any case where the offender has been charged before a Court in relation to the offence, but before final judgement has been given in the case.
(4) Any sum due by virtue of an agreement entered into in

Administrative penalties. Added by:

XV. 2011.5.

terms of subarticle (2) shall be due to the Authority as a civil debt. The Authority shall not enter into an agreement as is referred to in su barti c le (2), un less su ch agreement is accompan ied by th e payment of the sum due or by an adequate and sufficient security for its payment.

Use of counterfeit chips.

43. (1) It shall not be lawful for a person to use, or have in his possession, in or outside a casino -

(a) chips that the person knows are counterfeit chips; or
(b) cards, dice or coins that the person knows have been marked, loaded or tampered with.
(2) Whosoever shall contravene the provisions of subarticle (1)
shall be guilty of an offence against this Act.

Forgery. 44. (1) It shall not be lawful for a person -

(a) to forge or counterfeit any chips or other tokens to be used in a casino licensed under this Act, or a licence used for the purposes of this Act; or
(b) knowingly to utter counterfeit chips or knowingly utter a forged or counterfeit licence.
(2) Whosoever shall contravene subarticle (1) shall be guilty of an offence against this Act.

Persons gaming to be present at casino.

Unlawful gaming. Amended by: XXIV. 2001.80. Cap. 438.

45. (1) No person shall take part in gaming at a casino -

(a) if he is not present on the premises of the casino when gaming takes place there;
(b) on behalf of another person who is not present on the premises at the time.
(2) Any person who contravenes the provisions of subarticle (1) or who aids or permits any other person to contravene such provisions shall be guilty of an offence under this Act.
46. (1) Every person who in any premises not licensed under t h i s A c t or un der t h e Lotteries and Other Ga me s Act or i n contravention of the provisions of this Act or any regulations made thereunder or in breach of any condition imposed in any licence issued under this Act, takes part in any game of chance played for money or money’s worth; or permits the use of any place for or encourages any such game; or wilfully prevents any Police officer, lawfully authorised to enter into any place suspected of being used as a gam i ng ho use, from entering into su ch p l ace or any part thereof, or obstructs or delays any such officer in so entering, or, by any bolt, bar, or other contrivance secures any external or internal door or means of access to any such place; or uses any means or contrivance whatsoever, for the purposes of preventing, obstructing or delaying the entry of such officer into any such place or any part thereof; or although not taking part in any unlawful game, shall be a partner of any player at any such game; or who is present while any such game is being played shall be guilty of an offence against this Act.
(2) In addition to any penalty under any other provision of this Act the money and effects representing the stakes as well as the in strum e n t s an d arti cl es u s ed i n ga mi ng i n co nt raven t io n of subarticle (1) and any money found on any person committing an offence under that sub articl e shall be forfeit ed i n favour of the Government.
(3) Subarticles (1) and (2) shall not apply in respect of any game lawfully played in terms of the Lotteries and Other Games Act or any other law.

Cap. 438.

47. The Court of Magistrates shall be the competent court to take cognisance of offences against this Act.

48. No proceedings for an offence against this Act shall be commenced without the sanction of the Attorney General.

Offences against this Act to be tried by Court of Magistrates.

Sanction of

Attorney General.

PART IX

MISCELLANEOUS

49. (1) No person shall issue or cause to be issued any advertisement -

(a) informing the public that any premises in Malta are premises on which gaming takes place or is to take place as a casino; or
(b) inviting the public to take part as players in any gaming which takes place, or is to take place, in any such premises, or to apply for information about facilities for taking part as players in any gaming which takes place, or is to take place, in any such premises; or
(c) inviting the public to subscribe any money or money’s worth to be used in gaming on such premises or to apply for information about facilities for subscribing any money or money’s worth to be so used; or
(d) inviting the public to take part as players in any gaming which takes place, or is to take place, in any casino outside Malta or to apply for information about facilities for taking part as players in any gaming which takes place, or is to take place, outside Malta:
Provided that such restriction on advertising shall not apply to adverti s emen ts p ubl ished , disp layed o r b r o a dcasted ou tsid e Malta for distribution or circulation outside Malta or to advertise- m e nt s as des c ri bed in su bar t i c l e ( 1 ) wh i c h are d i s p l a y e d i n locations frequented mainly by tourists and are to include airports, seaports, hotels and holiday complexes but shall not include bars and restaurants.
(2) subarticle (1) shall not apply to:
(a) the display in a casino in respect of which a concession

Advertising. Amended by: XXIV. 2001.80.

has been granted by the Minister, and a casino licence has been issued by the Authority, under this Act, of a sign or notice indicating that gaming takes place, or is to take place, in the casino, whether the sign or notice is displayed inside or outside the premises; or
(b) the publication of a notice in the Gazette where the notice is required to be published under this Act; or
(c) any advertisement authorised by the Authority relating to non-gaming activities held at a casino.
(3) Any person who contravenes the provisions of subarticle
(1) shall be guilty of an offence under this Act.

Power to make regulations. Amended by: XXIV. 2001.80; III. 2004.164; XV. 2011.6.

50. The Minister may, on the advice of the Authority, make regulations for carrying out the provisions of this Act and, without prejudice to the generality of the provisions of the foregoing, may by such regulations -

(a) regulate the issue, suspension and cancellation of a licence;
(b) regulate gaming, and stakes at a casino;
(c) regulate junkets and prescribe the rate of taxation applicable to takings generated by junkets;
(d) regulate the use of machines at a casino;
(e) prescribe the records and accounts to be kept by a casino licensee;
(f) prescribe in relation to the gaming reserve referred to in article 39;
(g) prescribe anything that is to be prescribed under any other provision of this Act; and
(h) re g ulate the operations of casinos on a voluntary basis, on board aircrafts and cruise ships re g istered in Malta and, or other cruise ships which berth in a Maltese port and determine the tax and licence fees which shall apply to such operations as w e l l as determine which provisions of this Act s h a l l either apply or not apply for such operations:
Provided that for the purposes of this paragraph the term cruise ship s h a l l mean a passenger ship used for pleasure voyages with a minimum of t h r e e ports of call in three different jurisdictions which may or may not include Malta, having i t s own amenities, that include lodging facilities for all passengers, and a minimum capacity of one hundred and fifty (150) passengers:
Provided further that cruise ships, which shall be given an authorisation to operate their casinos while they are berthed in Malta, shall solely allow passengers who are registered for such a voyage to board such ship during such time:
Provided further that ferry boats used for transporting passengers and, or cargo shall be excluded from this term.
51. The use of any part of a hotel for the running of a casino licensed under this Act shal l not, for the purpose of the Development Planning Act, be deemed to be a change of use.
52. Nothing in this Act shall prejudice the operation of, or shall be deemed to substitute or to derogate any of the provisions of, the Lotteries and Other Games Act.

Use of hotels for gaming purposes.

Cap. 356.

Saving. Added by: XXIV. 2001.80. Cap. 438.

SCHEDULE (Article 37) TAXATION
(1) The casino licensee shall pay to the Authority on behalf of the Government the following rates of taxation:
(a) Table Games:
(i) On total gross takings of all table games played at the casino a sum equivalent to thirty-six per centum (36%).
(ii) On the gross takings generated by junkets approved by the Authority and in accordance with any regulations applicable thereto, on all table games dedicated to the junkets a sum equivalent to fifteen per centum (15%).
(b) Gaming Machines:
(i) On total gross takings of all gaming machines played at the casino a sum equivalent to forty per centum (40%).
(ii) On the gross takings generated by junkets approved by the Authority and in accordance with any regulations applicable thereto, on all gaming machines dedicated to the junkets a sum equivalent to twenty-five per centum (25%).
(2) The tax calculated under item (1) hereof shall be assessed separately and no set-off for any tax or for any loss under any one paragraph shall be allowed.

Amended by: XXIV. 2001.80.