In 2004, the Mediterranean island nation of Malta began its transformation from sleepy tourist spot to international gambling mecca. As Malta became the first European Union member state to regulate online betting, proponents of the legislation saw the country as a trailblazer. It could generate billions of dollars in tax revenue, with companies able to offer on-shore betting to customers across the European Union’s 27 member states. By placing bets through an EU-registered sportsbook, customers received reassurance. Companies, meanwhile, benefited from tax breaks that can often only be secured offshore.
Seventeen years later, Malta—in the view of Transparency International, bilateral law enforcement agencies and several members of the European Union—is a cause for concern. Against the backdrop of the public inquiry into the assassination of journalist Daphne Caruana Galizia, Malta has been rocked by a series of scandals this month, which saw the Malta Gaming Regulator’s former anti-corruption tsar charged with corruption. Meanwhile, anti-mafia prosecutors in Italy allege that the Malta Gaming Authority-licensed site RaiseBet24.com laundered $74.2 million for the Cosa Nostra.
