The Malta Gaming Authority (MGA) has introduced a new AI Gaming Charter in partnership with the Malta Digital Innovation Authority (MDIA), offering gambling operators a framework for the responsible use of artificial intelligence as adoption continues to spread across the industry.
The voluntary initiative follows research conducted among Malta-licensed operators that examined how AI technologies are currently being deployed. While the regulator noted that the survey represented only part of the sector, the findings provided insight into the maturity of AI implementation and the challenges that accompany it.
According to the study, AI adoption remains inconsistent across the gambling market. Operators have generally focused on operational and support functions, while more sensitive commercial and player-facing applications have seen slower uptake. The research found that businesses commonly use AI for customer service chatbots, data analysis, operational efficiency, recommendation systems, player profiling, fraud prevention, anti-money laundering (AML) activities and responsible gambling behavioral modelling.
The report also found that some licensees are still testing AI applications before broader deployment. Areas such as player onboarding, know-your-customer (KYC) processes, payments, human resources and player acquisition were identified as functions where organizations have progressed beyond experimentation but continue to evaluate practical implementation.
Research Highlights Governance and Transparency Gaps
Although AI usage is increasing, the MGA study identified shortcomings in governance structures and transparency practices. Only a minority of surveyed operators reported having formal AI strategies or dedicated roadmaps. While many respondents described their technical infrastructure as sufficiently developed, documentation practices and data traceability were less consistently established.
The regulator also highlighted concerns regarding customer awareness of AI use. Few organizations reported informing players when AI systems were involved or obtaining explicit consent for automated processing. AI-specific risk assessments and incident management procedures were also found to be less mature than other operational controls.
The Charter responds to these findings by outlining recommendations covering governance, accountability, transparency and risk management. Operators are encouraged to maintain inventories of AI systems, documenting details such as purpose, ownership, deployment context, risk classification and lifecycle status. The framework also promotes impact assessments to evaluate potential consequences for individuals, groups and society.
Particular attention is given to higher-impact systems used in responsible gambling, AML, fraud detection, KYC processes and account restrictions. For these applications, the Charter recommends stronger testing procedures, validation exercises, ongoing monitoring and clearly defined human oversight mechanisms.
A key principle throughout the document is that AI should support human decision-making rather than replace it, especially in situations that may affect player welfare or account access. For higher-risk systems, operators are advised to maintain detailed logs and escalation procedures.
The Charter also advises operators to ensure players can identify when they are interacting with AI-powered systems. Guidance includes disclosure requirements for AI-generated content, including deepfakes, in line with Article 50 of the European Union’s AI Act. At the same time, the framework distinguishes between information that should be shared publicly and information that may remain confidential due to commercial sensitivity or security considerations.
Framework Aligns With Existing Regulation
The MGA and MDIA stressed that the Charter is intended to complement existing legislation rather than create new legal obligations. The framework aligns with the EU AI Act and the General Data Protection Regulation (GDPR), translating those broader legal requirements into guidance tailored to gambling operations.
The recommendations also cover data governance and privacy. Operators are encouraged to document the origin and quality of training data, address potential bias and follow GDPR principles such as data minimization, purpose limitation, accuracy and retention management.
Environmental considerations are included as well. Recognizing the significant energy demands associated with AI development and operation, the Charter encourages organizations to assess supplier energy practices, improve deployment efficiency and consider carbon footprint impacts during development decisions.
The initiative emerged following extensive engagement with stakeholders, including industry-wide surveys, consultations with gaming licensees and discussions involving the technology community and public sector representatives. The MGA and MDIA said this process was intended to ensure the framework remains practical and proportionate to the needs of the industry.
Speaking at the launch, MGA Chief Executive Officer Charles Mizzi said: “The AI Gaming Charter reflects a shared commitment between regulators, industry and technology experts to promote the responsible and transparent use of artificial intelligence. Our role as a regulator is not to stand in the way of innovation, but to help create the certainty and confidence needed for innovation to flourish responsibly.”
MDIA CEO Kenneth Brincat added: “Trust is fundamental to the responsible adoption of AI. As its use becomes increasingly embedded across the gaming sector, organizations need practical ways to understand where AI is being used, manage the associated risks and ensure that accountability and human oversight remain firmly in place.
The AI Gaming Charter translates these principles into practical, sector-specific guidance, bringing together MDIA’s expertise in AI governance and the MGA’s deep understanding of the gaming sector. This collaboration demonstrates how Malta can support technological innovation while ensuring that AI remains transparent, accountable and trustworthy.”
The regulator said operators may adopt the Charter voluntarily as a demonstration of their commitment to responsible AI practices and stronger governance standards as artificial intelligence becomes more widely embedded across gambling operations.