The gaming industry is going to undergo a number of changes over the next decade. One will be a bigger emphasis on digital operations. The Malta Gaming Authority (MGA) is now in the process of looking to establish regulations for some of the newer innovations coming to the gambling space.
The Malta Gaming Authority’s sign hangs outside its office. The gaming regulator is embracing non-fungible tokens and other digital technologies as online gaming continues to evolve. (Image: Times of Malta)
The MGA announced yesterday that it is initiating a stakeholder consultation to develop proposed policies for the use of technology in gaming, such as virtual financial assets (VFA), virtual tokens and non-fungible tokens (NFT). The digital solutions are slowly becoming integrated into the ecosystem, but a lack of regulations hinders responsible growth.
Just like cryptocurrencies, NFTs have had to face mixed reactions. Metaverse casino Slotie, which faces regulatory backlash in the US, is a perfect example, and it’s also why regulations are necessary.
MGA Ready For NFTs
The MGA’s consultation covers its self-defined “Guidance on the use of Innovative Technology Arrangements and the acceptance of Virtual Financial Assets and Virtual Tokens through the implementation of a Sandbox Environment.” The authority wants interested parties to participate in the sandbox environment, which will run through December 31.
Initially, the sandbox was to have already expired. However, in March of last year, the MGA announced that it would extend it until the end of this year. At the same time, it introduced certain updates that would align with the changing gaming environment.
The aim of the initiative is to introduce a more structured and refined point of contact between it and industry stakeholders. It also invites dialogue on regulatory topics that are shaping the industry.
The MGA will host a Regulatory Workshop to discuss the proposed policies. It will soon begin to send out invitations to prospective industry insiders, preparing for the workshop in December.
Subsequently, it plans on introducing the new policy, which will present its position on the acceptance of virtual tokens and the use of ITA. It will also cover Distributed Ledger Technology platforms and smart contracts by authorized operators.
The ongoing consultation gives these interested parties the opportunity to submit their possible feedback on the proposed policy updates. The consultation period runs until December 14.
A New Era In Gaming
At first, the NFT and gambling seem like two completely different worlds, but the two realms have a lot in common. In the future, it is likely that we will even be able to transact sports betting with NFTs, an enhanced alternative, because they are not interchangeable and are unique. Therefore, it is perfect as a means of betting.
NFTs are a relatively new type of digital collection that is predominantly popular in the world of cryptocurrencies. They are indestructible digital objects stored on a blockchain, which means they cannot be modified or deleted by anyone.
This makes them an ideal solution for storing digital collections such as works of art, musical pieces or other digital content. Some well-known examples of NFTs are Crypto-Kitties, a digital cat game that runs on the Ethereum blockchain, and Decentraland, a virtual world builder also based on Ethereum.
Players could place their bets in the form of NFTs and immediately see if they have won or lost. The use of NFTs in online gambling is already catching on, and the technology is becoming more common in other areas as well.
Since NFTs can verify and secure ownership of a digital item, it stands to reason that they can also be used in gambling. However, so far, there is no platform that specifically uses NFTs for betting.
One that comes close is Stakes, which allows bettors to create a permanent blockchain record of their wagers in the form of an NFT. Still, it’s only a matter of time before other options arrive.
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