Time Runs Out for Totup System as Malta Gaming Authority Cancels its Gaming License
The Malta Gaming Authority (MGA) has confirmed the cancellation of Totup System Limited’s iGaming license after the operator failed to pay the license fee for this year and the last year. Before cancelling the license, the Maltese regulator had issued a 20-day notice to Totup System. The Malta-based operator could have retained its permit if the outstanding amount was cleared within the notice window. However, that did not happen and the MGA was forced to cancel the Class 3 B2C license of Totup System.
The Malta Gaming Authority (MGA) has confirmed the cancellation of Totup System Limited’s iGaming license after the operator failed to pay the license fee for this year. ?Vincenzo De Simone/Unsplash
Since its establishment in 2016, Totup System Limited has operated from Malta – The jurisdiction it was founded in. Approaching seven years in this industry, the Maltese operator mainly offers online pool betting to players. In this game, multiple players compete with each other in wagering, while the operator earns from bet fees. These wagers are placed using Totup System’s coupons that are given to players via their official website. The operator intends to increase the accuracy and perfect its forecast tools that could help players in multi-step betting, where all the forth-coming steps are generated automatically after analysing the forecast on the previous step. As of now, a quantitative assessment for accuracy is conducted on all bets that were placed using coupons during a particular event. Totup System does not offer fixed odds. The focus is entirely on accuracy as the coupon prize fund of the operator is distributed among half of the wagers that were the most accurate. This is gauged during the quantitative assessment where the accuracy is measured in points from 0 to 100.
Due to this arrangement, the probability of winning is 50 percent, which is decent. This also offers a psychological boost for players. Four years after its establishment, Totup System secured the iGaming license in Malta and became one of the best pool betting providers in the jurisdiction. In the first two years of legal operation in Malta, the operator paid its license fee on time. Gambling operators who want to operate legally in the country have to pay €25,000 annually for a B2C license. Non-payment of this fee forces the MGA to issue a 20-day notice to the operator who has not paid. If the operator does not provide a valid reason for non-payment and does not pay the outstanding amount in the same window, the Maltese regulator has the right to revoke its license. That is what happened to Totup System recently. The MGA cancelled the license of the online pool betting specialist because it failed to pay the license fees for last year and this year. Now the operator owes €50,000 to the nation’s gambling regulator and has also seen its license gets revoked.
Non-payment of the license renewal fee is not the only violation Totup System was held responsible for. Another financial breach came in Regulation 6, when the operator did not pay the applicable compliance contribution fee on multiple occasions. Due to these two violations, the MGA issued a 20-day notice last month. Totup System was given a chance to provide a legitimate reason for non-payment of the fees, but the operator failed to do so. Now the Malta-based entity has seen its license revoked and is still liable to pay the total amount it owes to the nation’s regulator. Without a valid permit, the operator is required to cease all its iGaming operations within the jurisdiction of Malta and is prohibited from registering any new players on any of its platforms. Including the license fees of two years, Totup System owes the MGA €79,570 and has to settle this amount within three days of license cancellation. However, the operator still has a 20-day window to appeal the decision. But considering the violations, there is a high probability that the ruling will not go in its favour.
The MGA maintains a strict approach for all operators
The issuance of a notice and immediate cancellation of the B2C license showcases MGA’s determined approach when it comes to maintaining the integrity of its gambling jurisdiction. The regulator has always been known for being strict with its supervisory and regulatory responsibilities. Apart from ensuring player safety, the MGA constantly fights with illegal operators who try to target Maltese players without a permit. In addition to that, the licensed operators are also strictly monitored to ensure compliance with the country’s gambling act.
The gambling market of Malta welcomes B2B and B2C entities. Software and solutions providers must have a B2B license, while the standard gambling operators can apply for a B2C license. To retain both types of licenses, entities must comply with the regulations. Last month, the B2B license of 4tune-Software was canceled by the regulator after Regulations 10 and 9 (1)(d) were violated after financial commitments to the MGA were not met. The Austria-based operator had to cease its operations in Malta after almost four years. This shows the MGA’s dedication to maintaining a robust approach in the market.
MGA has canceled multiple licenses since December last year
Over the past six months, the MGA has been extremely active, and the licensed operators have kept the regulator busy. To keep up with the latest standards in regulation and supervision, the Maltese regulator updated its framework, including gaming authorizations, compliance, enforcement regulations, and others. However, even before that, the MGA was vigilantly monitoring the licensed operators and caught quite a few that were breaching the regulations.
The detected legal operators were eGaming Lab Limited, M-Hub Gaming C4 Limited, and Morpheus Games. Just like Totup System, all three operators failed to fulfill financial commitments to the regulator. All three entities saw their respective gambling permits revoked. Furthermore, eGaming Lab and Morpheus games were asked to pay the due amount that was owed to the MGA. To complete this task, both operators were given a deadline of five working days. The former owed €50,000, while the latter had to pay €81,000.
Betago also lost its retail and online sports betting licenses in January this year after breaching three sections of the Regulations. The operator violated sections 9 (1) (c), (d), and (l). All the violations were related to financial commitments to the MGA which the renowned operator did not fulfil.
