The Malta Gaming Authority (MG) will soon launch a public consultation on the use of artificial intelligence in the gaming industry, as regulators seek to establish clear new guidelines for rapidly expanding AI technologies.
The proposed framework, developed in collaboration with the Malta Digital Innovation Authority, is intended to guide gambling operators in the responsible and transparent use of AI systems across their businesses.
Expanding use of AI in gaming
Artificial intelligence has become increasingly common within gambling operations in recent years. Operators are now using automated systems for customer interaction, fraud prevention, data analysis, marketing and responsible gaming monitoring. Regulators say the technology can improve efficiency and help companies identify suspicious behaviour more quickly, but concerns remain over accountability, transparency and consumer protection.
MGA Chief Executive Officer Charles Mizzi previously said that AI tools are already widely used by operators licenced in Malta and in other regulated markets. He noted that clearer guidance is needed to ensure the technology develops responsibly without undermining player safeguards.
The regulator explained that the proposed charter is meant to nudge people toward making ethical choices, without putting up unnecessary roadblocks for innovation. Officials were open about the fact that AI can genuinely improve how businesses run day-to-day, particularly when it comes to catching fraud and helping players gamble more responsibly.
At the same time, the consultation makes it clear that automated decision-making is becoming a growing concern. The MGA said operators should be able to explain how AI systems play a role in important decisions, especially when it comes to how customers are treated or whether regulations are being followed.
Focus stays on human control
Human oversight is also expected to remain a major part of the proposed guidance. While AI may assist companies in making operational decisions, regulators said accountability should continue to rest with human staff rather than fully automated systems.
Data protection forms another major part of the consultation. Authorities warned that many AI systems rely on large amounts of customer information and, therefore require strong safeguards around privacy and personal data handling. Operators are being encouraged to ensure their systems remain compliant with existing data protection laws.
The regulator is also urging companies to regularly test and monitor AI systems for errors, unintended outcomes or discriminatory patterns. Businesses would be expected to maintain procedures for reviewing algorithm performance and correcting problems when necessary.
Attention has also been placed on third-party technology suppliers. Many gambling firms rely on external companies for AI-driven software and services, and the MGA said operators should conduct due diligence to ensure that third-party systems meet both regulatory and ethical standards.
Aligning with EU’s AI Act
The proposed framework is also set to align with the European Union’s AI Act, one of the first major laws the bloc has put in place to specifically address artificial intelligence. The legislation takes a risk-based approach to make AI systems more accountable, transparent, and safer for everyday people across the EU.
The MGA has invited feedback from gambling operators, compliance professionals, technology providers and other industry stakeholders before finalising the guidance.
Industry observers say the consultation may offer an early indication of how gambling regulators across Europe could approach AI oversight in the coming years, as the technology becomes more deeply embedded within day-to-day gaming operations.
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