As the EU's "Artificial Intelligence Act" moves into implementation, the global gambling industry stands at a new crossroads of technological regulation. Recently, Charles Mizzi, CEO of the Malta Gaming Authority (MGA), revealed that they are drafting the world's first AI governance framework specifically designed for gambling operators. This is not just a conceptual document on paper, but aims to provide clear, practical action guidelines for license holders to help them transition AI technology from experimentation to core operations, and to pre-emptively align with future EU regulatory obligations.
Malta, as the headquarters of many of Europe's top online operators, suppliers, and platform providers, often sets the trend in industry regulation. Mizzi emphasizes that when AI is deeply integrated into operations, compliance, and player-facing tools, operators must have a clear and unequivocal understanding of what constitutes 'good practice'. The launch of this voluntary framework is to define the boundaries of responsible AI in the wave of innovation.
Why is MGA taking the lead in AI governance?
In the unique industry of gambling, the application of AI is a double-edged sword. It can enhance anti-fraud monitoring efficiency, optimize anti-money laundering processes, and even help identify early signs of gambling harm, but it can also exacerbate biases, foster excessive analysis, or induce harmful gambling patterns due to improper system design. Mizzi points out that AI introduces new types of risks not covered by traditional gambling regulations, such as outcome bias and opaque decision-making processes, which can harm player interests and game fairness.
Therefore, MGA chooses to take the initiative by collaborating with licensees and the Malta Digital Innovation Authority to develop guidelines that reflect actual operational constraints. Its core stance is: innovation is welcome, but the results must clearly benefit player welfare and financial integrity. "We regulate outcomes, not headlines," Mizzi says, "AI is acceptable when it makes players safer and strengthens oversight, but it becomes unacceptable when it exploits player weaknesses or blurs responsibilities."
Framework core: Anchoring AI applications with principles
The upcoming AI governance framework is not a set of rigid rules, but is built around a series of core principles, including transparency, fairness, data protection, system robustness, and clear human oversight. These principles will apply to various AI-driven scenarios from marketing and risk management to customer support.
Among them, human involvement in critical decision-making is placed at the center. Mizzi specifically states that in high-stakes decisions affecting players, there must be documented manual review processes to prevent unintended harm and maintain accountability. This ensures that technology always serves people, rather than replacing human judgment.
Early alignment with the EU AI Act to reduce the burden on operators
One notable feature of the MGA framework is its early alignment with the EU's "Artificial Intelligence Act". The Act introduces a risk-based tiered framework for AI regulation across the EU. Although the Act spans all industries, it has a profound impact on the gambling industry, with systems used for behavioral analysis, fraud detection, or player risk assessment likely classified as high-risk, facing stricter scrutiny.
From a regulatory perspective, this early alignment provides operators with an opportunity to "actively prepare" rather than "reactively respond". Mizzi explains that the framework maps the risk structure and core principles of the EU AI Act from the start, providing operators with clear guidance to help avoid costly future system modifications. Over the next 12-24 months, as the Act moves into the enforcement phase, requirements for documentation, bias testing, model monitoring, and traceability will pose severe challenges for operators using complex or third-party AI systems. MGA reminds that whether AI capabilities come from internal or external suppliers, the ultimate responsibility lies with the licensee according to gambling regulations and the EU AI Act.
Using AI to strengthen regulation itself, achieving a balance between innovation and safety
Interestingly, although this voluntary code of conduct is aimed at licensees, MGA itself is also actively applying AI technology. The Authority is developing an internal implementation roadmap for 2026-2027, focusing on using AI for anti-money laundering, player support, and financial compliance regulatory functions. For example, in anti-money laundering monitoring, AI tools can more effectively analyze massive transaction data and identify anomalies, allowing regulatory resources to focus on truly high-risk activities, rather than noise.
In responsible gambling supervision and financial compliance automation, AI exploration is also underway. These internal practice experiences will feed back into the guidance and expectations for external licensees, forming a virtuous cycle between innovation and protection.
Overall, MGA is trying to shape a healthy development trajectory for AI in the gambling industry through early planning, rather than post-facto remedies. For operators, the next one to two years are crucial. Early participation and adoption of MGA's AI governance framework not only helps navigate a tightening regulatory environment smoothly but also demonstrates to players, partners, and regulatory bodies that innovation and responsibility can coexist. For more insights into the latest trends and in-depth analysis of global gambling regulation, continue to follow PASA's official website.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel:https://t.me/pasa_news
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