Audited Financial Statements, Auditor's Management Letter & Auditor's Player Funds and Gaming Revenue Declarations
Submission of Audited Financial Statements
The Malta Gaming Authority (“MGA”) is hereby reminding all licensees of the requirement to submit their Audited Financial Statements within six (6) months from the end of their financial year as stipulated in Article 41 of the Gaming Authorisations and Compliance Directive (Directive 3 of 2018). Moreover, licensees are reminded to ensure that the Audited Financial Statements:
• Are prepared in accordance with International Financial Reporting Standards;
• For B2C licensees providing gaming services by remote means, illustrate the Player Funds Account Balance separately under the Cash and Cash Equivalents Note to the Audited Financial Statements as well as illustrate player funds under the Trade and Other Payables Note to the Audited Financial Statements;
• Are accompanied by the Directors’ Report which shall be drawn up in accordance with Article 177 of the Companies Act (CAP. 386 of the Laws of Malta). This requirement shall also apply to companies defined as “small” under the Companies Act.
The requirement to submit the Audited Financial Statements applies to:
• All companies licensed by the MGA as at the Audited Financial Statements due date. This applies irrespective of whether or not the company was licensed by the MGA during the period covered by the financial statements.
• All companies covered by a Corporate Group Licence.
Submission of Auditor’s Management Letter
Following completion of the statutory audit engagement, licensees are reminded to submit a copy of the auditor’s management letter by not later than nine (9) months from the licensee’s financial year end. Same applicability employed for Audited Financial Statements also applies to the Auditor’s Management Letter.
Submission of the Auditor’s Player Funds and Gaming Revenue Declarations
Licensees are also reminded to make the necessary arrangements with their auditors to prepare the Agreed-Upon Procedures Report drawn up in accordance with ISRS 4400 (Revised) Agreed-Upon Procedures Engagements (click here for more information) which are distinct from the statutory auditor’s report and are thus subject to separate terms of engagement.
Change in Due Date
The said declarations shall be submitted to the MGA within nine (9) months from the end of the licensee’s financial year. This shall apply for the year ending December 2022 as well as for any subsequent years. In this regard, the licensee’s Player Funds and Gaming Revenue Declarations for the financial year end December 2022 shall be submitted by 30 September 2023. For the avoidance of doubt, the Audited Financial Statements for the financial year end December 2022 shall still be submitted by 30 June 2023.
The requirement to submit the Player Funds and Gaming Revenue Declarations applies to all companies licensed by the MGA, except for:
• B2B licensees;
• Companies covered by a Corporate Group Licence, other than the main licensee which shall still be required to submit the declarations.
Submission through the Licensee Relationship Management System
All documentation shall be submitted through the Licensee Relationship Management System which can be accessed here. In this regard, licensees will be required to upload the documentation by selecting either the Audited Financial Statements, the Auditor Player Funds & Gaming Revenue Declaration or the Auditor’s Management Letter option which will be visible in Draft mode within the licensee’s timeline.
Licensees are kindly requested to contact the MGA by sending an email to firstname.lastname@example.org for any clarification or additional guidance.