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The MGA Announces Lowering its RTP Threshold

The MGA Announces Lowering its RTP Threshold

The Malta Gaming Authority announced its lowering of the prevailing RTP (Return to Player) percentage in online slots. The MGA lowered the minimum RTP to 85% from 92%. This follows amendments to Article 22 of the Player Protection Directive.

Considering Feedback from Various Stakeholders

The Malta Gaming Authority, one of the most respected gambling regulators in the industry, announced changes to the minimum RTP applicable to licensees offering online casino games. This regulator lowered the RTP from the existing 92% to 85%. 

The lowering of the RTP comes after MGA held consultations with various industry stakeholders. According to the regulator, responsible decision-making provides a chance to involve industry stakeholders’ feedback. The regulator called for a closed-door consultative meeting with stakeholders regarding the lowering of the RTP. 

On top of the consultations with stakeholders, the MGA also carried out a comparative analysis to find out how to apply RTP percentages in various jurisdictions in the EU as outside the EU. In short, different jurisdictions and games will use optimal RTPs to ensure businesses run optimally and that players get the best gaming experience. The resulting resolutions from the consultations were published in what is now known as the Policy Paper on Amending the Return to Player Minimum Percentage. 

The MGA Announces Lowering its RTP Threshold

Gaining a Better Understanding of Stakeholders’ Views and Suggestions

Some of the stakeholders involved in the consultative meeting include B2B operators, consultants, and B2C operators. With these consultations, the gambling watchdog was able to gain a better perspective of the various views and suggestions adopted by stakeholders in the meeting. These include the best RTP percentage as well as the consequences of lowering the minimum RTP on product offering, competitive position, and operations. 

A majority of game providers welcomed the idea, stating that the changes don’t affect the products’ functionality. Of course, unless fairness and randomness aspects are altered, which is not the case. While this may be the case, several B2C respondents cast doubts on lowering the RTP ratios. According to these stakeholders, the move to lower RTPs will negatively affect customers’ playing experience, should licensees lower their competitive points in comparison to the wider gambling market. 

In response to the proposed negative impact, B2C supporters of the lowered RTP said this would be a boost for their game libraries. According to them, their game libraries will be fortified by reducing the gap in available games between them and other competitors who don’t necessarily stick to the RTP threshold. 

After noting concerns raised by B2C operators, the MGA announced that the new RTP threshold would be closely monitored. According to the regulator, monitoring the new streamline will allow it to spot any impacts on gaming. 

The Malta Gaming Authority

When discussing online gambling regulators across the world, the Malta Gaming Authority ranks among the top three. This gambling watchdog is here on merit thanks to numerous praises from various stakeholders about its stringent rules that aim to protect the player and operator. The regulator hails from Malta, a member of the European Union located south of Italy. 

Operators can choose from one of the four licenses to apply for depending on their operations, these are Class 1, Class 2, Class 3, and Class 4 licenses. 

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