OPERATION OF BETTING OFFICES g S.L.70.04 1
SUBSIDIARY LEGISLATION 70.04
OPERATION OF BETTING OFFICES 
REGULATIONS 
1st February, 2000
LEGAL NOTICE 34 of 2000.
Title.
Offices Regulations.
Interpretation. 
requires-
"bookmaker" means any person who, whether on his own
account or as employee or agent of any other person, carries on the
business of receiving or negotiating bets;
Cap. 400.
"Gaming Board" or "Board" means the Gaming Board
established under article 5 of the Gaming Act;
Cap. 122.
"Director" means the Director of Public Lotto whose office is
constituted under the Director of Public Lotto (Constitution of
Office) Act;
"electronic means" includes all electronic data transfer, whether
by telephony, facsimile, computer or any other means as approved
by the Gaming Board;
"betting transaction" includes any transaction in which one or
more of the parties acts as a bookmaker;
Cap. 70.
"control system" means a system of internal controls and
administrative and accounting procedures for the conduct of a
betting office;
"approved control system" means a control system approved by
the Gaming Board, and includes an approved control system
changed with the approval of the Gaming Board;
Cap. 400.
Act;
"betting office" means premises in respect of which a permission
has been granted by the Director under the provisions of article 11
of the Ordinance for the purpose of conducting therein betting
transactions by electronic means otherwise than with persons
resident in Malta .
Suitability of 
applicant 
3. (1) When granting a permission to operate a betting office,
regard shall be had to the suitability and integrity of the applicant.
I n deciding whether a person is suitable to hold a permission to
operate a betting office, the Director shall have regard to the
following -
( a ) the applicant’s character,  and his business reputation,
and if the applicant is a juridical person, the character
of the physical persons vested with executive powers ;
2 g S.L.70.04 OPERATION OF BETTING OFFICES
( b ) the applicant’s current financial position and financial
background;
( c ) whether the applicant has, or is able to obtain,
appropriate resources and services;
( d ) whether the applicant has the appropriate business
ability to conduct the betting office successfully.
(2)  For the purposes of this regulation -
"appropriate resources" means financial resources which are -
( a )  adequate, in the Director’s opinion, to ensure the
financial viability of  the  operations of a betting office;
and
( b )  that these are  available from a source that is not, in the
Director’s opinion, tainted with illegality;
"appropriate services" means the services of persons who have
appropriate experience to ensure the proper and successful conduct
of a betting office.
Plan and use of 
premises. 
4.  (1)  An   application made to the Director under the
provisions of article 11 of the Ordinance shall be accompanied by -
( a ) a plan of the premises in respect of which the
application is made; and
( b ) evidence that any authorisation, consent or permission
required under any law in respect of the structure or
use of  the  premises which are the subject of such
application has been granted or that, in the particular
circumstances of the case, no such authorisation,
consent or permission is necessary.
(2) Any premises in respect of which a permission has been
granted for the operation of a betting office shall be used solely for
the purpose of conducting therein betting transactions as authorised
in the said permission.
Powers of the 
Gaming Board.
5. (1) It shall be the duty of the Board to regulate, control and
supervise the operations of a betting office in respect of which the
Director has granted permission under the provisions of article 11
of the Ordinance, and to ascertain compliance with any conditions
imposed by the Director in the said permission.
(2) T he Board may at any time serve on a person who has been
granted permission to operate a betting office a notice  reasonably
requiring him, in such manner and within such reasonable time as
may be specified in the notice, to produce for inspection books,
documents or any other records relating to the betting office, as
specified in the notice, and the person operating a betting office
shall comply with any such notice.
(3) It shall not be lawful for the person who has been granted a
permission as aforesaid to employ or permit to work in relation to
the operation of the betting office any person unless such person is
approved for that purpose by the Board.
OPERATION OF BETTING OFFICES g S.L.70.04 3
Electronic betting 
office control 
systems.
6. (1) The  person  to whom a permit  to operate a betting office
is granted  shall  -
( a ) ensure that before effecting betting transaction, he
shall prepare, at his expense, a written plan of the
control system which he has chosen, drawn up or
approved by his auditors and submitted for approval
by the Board;
( b ) ensure that the approved system of control is adopted
by the betting office and that all operations are
conducted according to that system;
( c ) ensure that no changes are adopted in that system
without the prior approval of the Board.
( 2 ) A control system submission shall describe and, without
prejudice to the generality of the foregoing, shall include
information about - 
( a ) the following items to be used for the conduct of the
betting office -
(i) accounting systems and procedures and chart of
accounts,
(ii) administrative systems and procedures,
(iii) computer software,
(iv) standard forms and terms; and
( b ) the general procedures to be followed for effecting
betting transactions;
( c ) the procedures and standards for the maintenance,
security, storage and transportation of equipment to be
used for effecting betting transactions;
( d ) the procedures for recording bets and paying winnings
won in a betting transaction; and
( e ) the procedures for using and maintaining security
facilities.
( 3 ) The Board shall consider the control system submission
and either approve or refuse the proposed control system or the
proposed change thereto.
( 4 ) In considering the control system submission, the Board
may require the person granted permission to operate a betting
office -
( a ) to give the Board further information about the
submission that is necessary and reasonable to assist
the Board to make a decision about the submission;
and
( b ) to allow the Board, acting through its inspectors or
agents, to submit the proposed control system, or the
approved control system as proposed to be changed, to
tests.
( 5 ) In considering whether to give an approval, the Board shall
have regard to -
4 g S.L.70.04 OPERATION OF BETTING OFFICES
( a ) whether the system control submi tted  satisfies the
requirements of this regulation; and
( b ) whether the proposed control system, or approved
control system as proposed to be changed, is capable
of providing satisfactory and effective control over the
management and conduct of a betting office.
( 6 ) The Board may refuse to give  its  approval if the person
granted permission to operate a betting office fails to comply with a
requirement under sub-regulations ( 2 ) and ( 4 ).
( 7 ) If the Board decides to withhold its approval,  within thirty
days  a notice in writing stating the reasons for the decision shall be
served on the  applicant  and, if the Board is of the opinion that the
control system submission can easily be rectified to enable it to
give  its  approval, the notice must also -
( a )  explain how the submission may be changed; and
( b )  invite the person granted permission to operate a
betting office to re-submit the submission after making
the appropriate changes.
Accounts and 
records.
7. (1) The person granted permission to operate a betting
office shall  keep , in respect of the transactions and affairs relating
to the operation of the betting office, proper accounts and records
which show a true and fair view of the financial operations and
affairs conducted by the person in relation to the operation of the
betting office.
Cap. 386.
(2) The person granted permission to operate a betting office
shall, within thirty days from the end of each six month period to be
reckoned from the beginning of each financial year, lodge with the
Board a full set of financial statements made  and audited  in
accordance with international accounting  and auditing  standards
and which comply with the provisions of the Companies Act.
Powers of 
inspectors.
8.  (1) An inspector may at any time upon production of his
identity card enter and remain in a betting office for the purpose
of- 
( a ) observing the operations of the betting office;
( b ) ascertaining whether the operations of the betting
office are being properly conducted and managed;
( c ) ascertaining whether the conditions imposed in the
permission issued by the Director are being complied
with; and
( d ) in any other respect, exercising his powers or
performing his duties.
(2) An inspector may for the purpose of ascertaining that the
conditions imposed by the Director in the permi t  are being
complied with and that the full amount of tax under the permi t  is
being paid -
( a ) require, in writing or orally, a person granted  the
permi t  or a person acting on his behalf -
(i) to produce to the inspector for inspection such
OPERATION OF BETTING OFFICES g S.L.70.04 5
book, document or record in his custody or
control relating to the operation of the betting
office 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, document
or record, relating to the operation of the betting
office as the inspector specifies;
( b ) inspect or test any equipment, including software, or
inspect such book, document or record, and take
copies of, or make notes in relation to, such book,
document or record, relating to the operation of the
betting office as the inspector considers necessary;
( c ) direct a person operating a betting office not to use any
equipment, including software material, that the
inspector considers unsatisfactory for use; and
( d ) call to the inspector’s assistance - 
(i) another inspector; or
(ii) a betting office 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.
(3) No person employed in a betting office shall, without
reasonable excuse, hinder or fail to assist an inspector in the
discharge of his duties.
(4) Inspectors may, in carrying out their functions under these
regulations, be assisted by or accompanied with such experts as the
Secretary of the Board may direct.
(5) An inspector shall make a report on the exercise of his
functions under these Regulations to the Secretary of the Board.
Duty.
offices are to pay to the Government of Malta a tax equivalent to
half of one  per centum  on the value of all bets received and
accepted by them at the betting offices established and operated
through such permi t , in lieu of the tax provided for in article 11(2)
of the Ordinance.
Suspension or 
withdrawal of 
permit.
10.  It shall be the duty of the Board to advise the Director to
restrict, suspend or withdraw any permission granted under article
11 of the Ordinance if it considers that any person granted
permission to operate a betting office is acting in breach of any
condition imposed in the permi t  or of any provision of these
Regulations or if, upon giving sufficient reason, it deems necessary
in the national interest to suspend or withdraw the permi t .
