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Former LGA employee Valery Atanasov taken lightly over alleged irregularity reports
The Lotteries and Gaming Authority’s preceding employee, Valery Atanasov (now the Malta Gaming Authority), revealed to the Malta Independent on Sunday that in spite of him contacting a number of authorities, including the Internal Audit and Investigations Department (IAID), the police and the FIAU over alleged irregularities at his workplace. He felt they took him lightly and showed a nonchalant attitude towards his allegation. Atanasov filed an application in the Law Courts recently to be recognised as a whistleblower. He affirmed not only about his speaking to the aforementioned authorities about the alleged irregularities, but also about the handing over of a file of documents during a meeting held with an official at the Office of the Prime Minister. The Bulgarian national held his office with the Lotteries and Gaming Authority (LGA) between 2008 and 2015.
He told this newsroom: “As the only employee of the LGA responsible for the inspection and sealing of all Remote Gaming Operators (RGO) based in Malta for the period from May 2011 to July 2014, I established and duly informed my supervisors of a number of violations of the Remote Gaming Act. More precisely, violations relating to the fact that no changes to gaming systems can be made without the Authority’s prior approval, and that no gaming equipment can be used in the operation of an authorised game pursuant to an online betting or online gaming licence, without the prior approval of the Authority. Тhe law explicitly requires that all IT equipment of an RGO must be registered and approved by the LGA before it is used online.”
The sealing process, he explained, involves going on site to inspect servers. A sticker is placed on the server, which forms part of the gaming system, in order to know that the server is registered with a particular gaming company and has been certified by the LGA. If a server is replaced, the company is obliged to inform the LGA to reseal the server. In order to change a server, the company has to submit details regarding the new gaming system infrastructure to be reviewed by the authority and, if approved, would be given permission to install the new servers. Finally, the servers are sealed (using the stickers) to confirm that the new servers can go live.
Atanasov held that sealing is an important part of the procedure to ensure that no gaming equipment is used in the operation without the prior approval of the Authority, that the LGA has information for all the servers used for Remote Gaming from Malta and that there was no tampering with the Remote Gaming Systems.
Atanasov said he noted a number of irregularities, including companies that were operating without having their servers sealed, and others that spent periods of time operating on a Letter of Intent basis, without having a full licence. While this was practice at the time, some companies operated on a letter of intent for years, with some of them being closed down before they got their licence. That system ended in 2012.
Atanasov stated, he had been reporting irregularities to his superiors for quite some time and, in 2013, he approached the Internal Audit and Investigations Department (IAID). Atanasov showed this newsroom signed declarations he made before the IAID, where he had mentioned a number of cases.
One such case involves a major betting company. Atanasov claims that he had gone on-site to a data centre housing their servers, and together with another inspector found 10 racks of unsealed servers. He maintained that the company’s key official told him that the servers had not been sealed since 2008. He told the IAID that he had informed his supervisors about the situation and that a few days later the company received approval from the LGA for new seals. He also highlights that a second company was discovered to be in a similar situation.
Atanasov said he had taken his vacation in June, and upon his return, he found that “everything was cleaned in the LGA’s system and these two companies had passed the system review”. Atanasov mentioned a number of other examples, including one instance where he says he discovered a company in the process of transferring its business to another company without having notified the LGA.
Atanasov had a number of meetings with the IAID in January and February 2013 with his final meeting held in April 2013 as he felt the unit was not taking any action. In one meeting dated February 2013, the IAID declaration report read that on the “Attorney General’s instructions in writing dated 11 February 2013, IAID will try to verify the reliability of the information received through our powers as auditors/investigators and ‘that the matter should be referred to the police if concrete evidence is found which gives rise to a reasonable suspicion that a criminal offence has been committed’”.
Atanasov was called in by the Police Economic Crimes Unit, and a declaration signed 1 May 2013 details a question and answer session he had there. At that meeting, he mentioned some of the alleged irregularities. He was also asked by the unit whether the LGA had a system of monitoring remote gaming companies (at the time), like surprise visits, and he said he had no knowledge of it. He mentioned noticing that the LGA had two systems to monitor network devices constantly, “but most of the time they are switched off and only switched on when there are EU visitors.” Atanasov says he never heard again from the police unit.
In February 2013, he also contacted the Ombudsman, over both the alleged irregularities, as well as issues regarding alleged harassment. He was told that the Office of the Ombudsman does not investigate allegations of corruption as these fall within the competence of the Permanent Commission against Corruption. He was also told to contact the Occupational Health and Safety Authority (OHSA) with regard to his harassment allegations.
Atanasov contacted the Ombudsman again in 2016, sending his “official Protected External Disclosure” in terms of the Protection of the Whistleblower Act. The Ombudsman’s letter read: “As you were an employee of the Malta Gaming Authority, a public entity, the Whistleblowing Unit in the Office of the Ombudsman cannot accept your document as a protected external disclosure, as the issue does not fall within the remit of this Office… you should submit your protected External Disclosure to the External Whistleblowing Officer, at the Cabinet Office in the Office of the Prime Minister, as stipulated in Part 2 of the First Schedule of the Act.”
Atanasov says he sent an email to Prime Minister Joseph Muscat in February 2014, in an attempt to “make sure that he (the Prime Minister) was informed of irregular practices”. Atanasov said that he is willing to meet the Prime Minister to provide him with documents. The email does not contain a whistleblower request. In response, he said, the Prime Minister wrote: “What you are saying is a matter of concern and I thus urge you to report immediately to the Chairman of the LGA.”
Atanasov said he had been trying to discuss the situation with the LGA Executive Chairman and sent him an email. Atanasov said he was surprised when the chairman replied and “the Internal Auditor at the LGA was also copied in the reply I received, as he was one of the persons I was reporting. The next day a woman contacted me and heard me out.”
Atanasov claims, however, that he later realised that the woman was the wife of the very same internal auditor.
He had also contacted the Financial Intelligence Analysis Unit on 23 July 2014 and asked them for a meeting. In a document titled ‘whistleblower disclosure’, which he sent to the FIAU, he alleged that a group of gaming consultants had a certain amount of control over the licensing process for their clients.
He told the FIAU that on 18 July 18, he had a meeting at the Office of the Prime Minister with a certain official and that he had “presented a number of documents that provided evidence of specific people’s involvements in corruption schemes in the gaming sector”.
He also said in the document that he wanted to “provide the facts and a number of documents to support my statements which will prove: No control over gaming transactions; No control over money flow generated by Remote Gaming; Lack of control and monitoring in the Remote Gaming Sector – companies operating from Malta without their gaming systems being licensed; Ineffective systems and compliance audit of Remote Gaming Operators; Non-transparent procedures and unspecified rules in the sector; Unregulated lobbying in favour of certain persons and companies – companies receiving licenses without having complied with the procedures and requirements.”
In an email to him dated 21 August, an FIAU official said that he had been in contact with officials from the Office of the Prime Minister, the Office of the Attorney General and the Ministry for Justice, Culture and Local Government in order to definitively clarify reporting procedures insofar as such disclosures are concerned.
The FIAU told him that it could not accept his protected disclosure since he worked in the public sector and the FIAU “is an Authority prescribed to receive external disclosures from the private sector”. It told him that, as per the Whistleblower Act, an employee of the Lotteries and Gaming Authority should direct their submission to the External Disclosure Unit within the Government of Malta.”
He also contacted the Permanent Commission Against Corruption but was told in a letter that the Permanent Commission Against Corruption only investigates external allegations (in terms of the Whistleblower’s Act) from the private sector.
Atanasov told this newsroom that he did not file a whistleblower request with the Secretary at the Cabinet Office at the OPM because at this point he was discouraged after having gone around in circles and that he had already sent an email to the Prime Minister and spoken to an OPM official.
Allegations investigated in 2014, no irregularities found – MGA
The Malta Independent on Sunday contacted the Malta Gaming Authority and asked it a number of questions.
While Atanasov gave detailed accounts of the alleged irregularities in the sealing process to the authorities, the MGA, in its replies reproduced below, admits that there were “occasional” situations where servers were not tagged or sealed, but says that sealing itself was an “outdated and non-critical” process.
The MGA was asked what action it took on the allegations made by Atanasov, and what investigations took place.
“Valery Atanasov’s allegations were investigated by our Internal Auditor way back in 2014. As a result, no irregularities were found. It is unfortunate that Valery Atanasov keeps making such unfounded and baseless allegations against the MGA and its employees. We look forward to the opportunity to provide all the information, explanations and evidence in the Law Courts to clear this matter once and for all,” the MGA responded.
The MGA was asked to confirm or deny the irregularities and for their comments.
“Valery Atanasov’s allegations centre around an outdated and legacy process called ‘sealing’ which was only an internal, non-critical inventory control procedure which has since been discontinued and replaced by the process of tagging of equipment solely for inventory control purposes.
“The Authority employs other procedures which include third party technical audits and spot checks, data extractions (physical and remote), lab certificates of critical components (e.g. servers, random number generators), website/data centre traffic monitoring and verification of replication procedures for data not hosted in Malta.
“Furthermore, gaming companies are allowed to use cloud-based solutions which are approved by the MGA before going live. This provides the Authority with the required assurances and capability to conduct its supervisory functions effectively. The Authority also audits its licensees’ information security procedures and processes against an internal manual largely adopted from international technical standards. This provides a far more comprehensive control environment than any physical sealing. It is pertinent to point out that servers can also be located overseas in line with the freedoms established under the EU treaty and hence the shift in ensuring that such servers are located in ISO certified data centre facilities, having world-class standards, which includes ongoing surveillance and 24/7 CCTV monitoring.”
The MGA was also asked why some gaming companies, under the LGA’s time period, were allowed to operate without having their servers sealed, and what action was taken against said companies.
The MGA responded: “The sealing of servers was an internal, non-critical procedure which has since been discontinued. It was in place mainly for inventory control purposes and was not a legal requirement. It was never considered as a material breach from a regulatory standpoint so in the occasional event of servers not being sealed or tagged, explanations were always sought from the relevant licensee and matters regularised accordingly.”
This newsroom asked the MGA to confirm that some companies, during the LGA’s time period, were allowed to operate without a licence and just with a letter of intent, to which the MGA said: “The practice of letters of intent was discontinued more than five years ago. It was considered as a ‘testing licence’ by the previous management but have since been revoked and/or converted into full licences by June 2012.”
The MGA also said that today “all companies operate with a full licence”.
Source: European Gaming Media and Events
The iGaming industry is advancing at breakneck speed, driven by technological innovation and evolving player expectations. Itai Zak, Executive Director of iGaming at Digicode, emphasizes the importance of bridging client aspirations with customized business solutions. Key trends shaping the future of iGaming include live dealer games, blockchain integration, artificial intelligence (AI) and machine learning (ML), enhanced personalization, and shifting regulatory environments. Let’s delve into how these trends influence the industry, presenting new opportunities while paving the way for future growth.
A Closer Look at Emerging Trends
- Live Dealer Games
Live dealer games are revolutionizing the online gaming experience, blending the best aspects of land-based casinos with the convenience of virtual gaming. Players can now engage with real-life dealers via high-definition video streams, enhancing the social component of online gambling. This bridge between physical and virtual casinos introduces interactive features like live chat and immersive gameplay. Industry leaders like Evolution Gaming and NetEnt are setting new standards in player engagement with innovative game formats and top-tier studio setups, redefining the realism and appeal of live gaming.
- Blockchain and Cryptocurrency Integration
Blockchain technology is transforming iGaming by offering unparalleled transparency and security. With blockchain’s ability to enable provably fair gaming, players can verify that each round is fair via an immutable ledger. Cryptocurrencies like Bitcoin and Ethereum facilitate faster, more secure transactions, catering to tech-savvy players who value privacy. Platforms like Bitcasino.io are leading the way, leveraging blockchain to ensure fairness and seamless payments. However, the rise of blockchain also attracts regulatory attention, requiring operators to balance innovation with compliance as governments navigate this new technology.
- Artificial Intelligence and Machine Learning
AI and ML are instrumental in enhancing player experience and operational efficiency. AI algorithms analyze player behavior in real-time, offering personalized game recommendations and promotions. Additionally, AI-powered chatbots provide instant customer support, improving user satisfaction. AI-driven predictive analytics also help operators fine-tune marketing strategies based on player preferences. Companies like Bet365 are already using these technologies to stay ahead of the competition, offering more personalized and efficient gaming experiences.
- Richer Personalization and Engagement
Personalization has become crucial for iGaming operators looking to boost player satisfaction and retention. By leveraging data analytics, companies can offer tailored game recommendations, dynamic bonuses, and individualized promotional offers. This level of engagement enhances the player experience and strengthens loyalty. Industry pioneers like DraftKings and FanDuel push the envelope by offering highly customized features, such as personalized fantasy sports leagues and bespoke betting options.
- Regulatory Changes and Market Expansion
The constantly evolving regulatory landscape offers both challenges and opportunities for iGaming operators. As more regions legalize various forms of online gambling, companies gain access to new markets. With their large populations and increasing internet penetration, emerging markets like Brazil and Nigeria represent lucrative opportunities. However, navigating the diverse regulations in these markets requires agility and strict compliance with local laws to succeed.
- Enhanced Payment Solutions
With digital transactions becoming the norm, the demand for fast, secure, and flexible payment methods is skyrocketing. From digital wallets to instant banking and cryptocurrencies, players expect payment solutions that offer convenience and security. This growing demand is driving innovation in payment processing, giving operators more opportunities to streamline the transaction process while building trust with users.
Future Implications
The Expanding Role of AI and Blockchain
AI and blockchain are not just current trends, but they are poised to play an even more significant role in iGaming’s future. As AI technology evolves, more sophisticated algorithms will emerge, enabling real-time adaptation to player behavior and preferences. Blockchain’s application may extend beyond transparency and security, transforming game mechanics and player interactions potentially redefining how games are designed and played.
Shifting Player Preferences
Player expectations will continue to evolve toward immersive, interactive experiences. As Virtual Reality (VR) and Augmented Reality (AR) become more mainstream, they will significantly influence the future of iGaming. Players will demand more engaging, lifelike environments, pushing the industry to create innovative game formats and features that offer deeper immersion and entertainment value.
Regulatory Developments
The regulatory environment will continue to evolve, and iGaming operators must stay agile to navigate future changes. New regulations may increasingly emphasize responsible gaming and player protection, influencing platform design and operational practices. A more harmonized regulatory framework across jurisdictions could provide stability while requiring operators to prioritize compliance.
Integrating Emerging Technologies
Technologies like 5G and edge computing are set to revolutionize iGaming by enabling faster, more reliable connectivity. This will allow for more complex game designs and real-time player interactions, opening new avenues for innovative gaming experiences. As these technologies mature, operators will have greater opportunities to differentiate their offerings. The potential of these emerging technologies to revolutionize iGaming is truly exciting and promising for the industry’s future.
Final Thoughts
The iGaming industry is on the cusp of significant transformations, driven by technological advancements and shifting player demands. Innovations like live dealer games, blockchain integration, AI, ML, and enhanced personalization are just the beginning. As the industry evolves, staying ahead of these trends will be critical for operators looking to thrive in an increasingly dynamic environment.
At Digicode, we are constantly exploring new technologies and refining our solutions to meet the evolving needs of our clients. Our focus on adaptability and foresight ensures that our clients are not just keeping pace with the industry—they’re leading it.
The post Innovations Redefining iGaming: What Operators Need to Know appeared first on European Gaming Industry News.
A partnership between game developer Turbo Games and iGaming solution provider and aggregator Slotegrator began in November 2022 via the APIgrator game integration solution. Since then, the collaboration has been developing successfully — and now it’s time to analyze what made it successful.
Turbo Games has noticed how the new technologies spreading throughout the industry can work for the good of brand transparency and player loyalty: “We can already see how blockchain technology has made it possible to make betting checks more accessible to players. All you need is a blockchain-hash and a decoder service. We think we will continue to move in this direction. Many traditional online casinos do not offer the possibility to check the bet. Sooner or later we all have to come to this. Perhaps the development of artificial intelligence will help here, because we are already seeing its involvement in all spheres of human life.”
Turbo Games specializes in provably fair games. Provable fairness is a concept where players can verify their wins or losses using blockchain technology — the outcome of the game is dictated by a smart contract and is absolutely random, barring the possibility of any human involvement. Using cryptographic hashing algorithms, the gambling site and the player’s device both generate seeds (random strings of numbers). Players receive a key that allows them to check the results; if the results are the same as the game round they witnessed, it proves that there was no foul play.
According to statistics from Turbo Games, the audience for provably fair games is mostly between 18 and 25 years old. However, there are also players aged 35-40 who prefer traditional games but would like to try something new, and have turned their attention to provably fair games.
There are good odds that the technology of provably fair games will become more popular, if not even commonplace, because it gives players a feeling of transparency and proves that the business is trustworthy without the need to search through dozens of reviews. Whereas many innovations in iGaming simply add entertainment, provable fairness addresses security concerns and reassures players that they’re not being exploited, which is invaluable.
Provably fair games are beneficial for both players and online casinos. Vadim Potapenko, Head of Sales at Turbo Games, comments: “It often happens that the users are not satisfied with the result, because gambling is not only about big wins, but also possible losses. By allowing them to check the fairness of a bet, we make life easier for platforms and players. Of course, this allows us to communicate with partners and users that we work honestly and that’s why they should trust our games.”
Ayvar Gabidullin, Business Development Manager at Slotegrator, adds that “this type of game is now becoming more and more popular and has great potential for both players and game providers in the future. On the part of the player, the advantage is that the player can always be sure that his game is fair and he can independently check any of his bets. And for the game provider, this also simplifies the process of implementing casino games, since now it will not be necessary to obtain the appropriate certificates from independent laboratories before launching new games, they can immediately enter the market with these games and where anyone can check the result and make sure that that there is no cheating with players. Many game providers are starting to look towards this type of game. And as far as I see, many operators are starting to think about adding these games.”
What do players in 2023 need? The iGaming industry is all about reputation and trust. Players have a huge number of platforms to choose from, making them pickier and pickier. There’s an abundance of forums where players leave reviews, so if players view a brand as untrustworthy, there are plenty of places they can share their opinion. Provable fairness not only stops that from happening, it provides evidence to the contrary, giving players something else to talk about.
Slotegrator also recommends investing time and effort into localization and creating an effective and detailed marketing strategy — before trying provably fair technology players need to get to the platform, and there is no acquisition without marketing.
ABOUT SLOTEGRATOR
Since 2012, Slotegrator has been one of the iGaming industry’s leading software and business solution providers for online casino and sportsbook operators.
The company’s main focus is software development and support for online casino platforms, as well as the integration of game content and payment systems.
The company works with licensed game developers and offers a vast portfolio of casino content: slots, live casino games, poker, virtual sports, table games, lotteries, casual games, and data feeds for betting.
Slotegrator also provides consulting services in gambling license acquisition and business incorporation.
More information: https://slotegrator.pro/
ABOUT TURBO GAMES
Turbo Games — a provably fair games provider that belongs to Turbo Stars company — has an ambitious goal to establish widespread recognition throughout the iGaming world. Even though it is young, the company consists of professionals who have been working on the brand for over five years and are even planning to introduce a new brand for a wider audience soon.
Turbo Games also works in Europe, India, and South Africa, where the company sees the most potential and expects the same “hype” as in Brazil.
The portfolio of Turbo Games consists of 21 titles, including well-known games like Mines, Crash X, DoubleRoll, Hi-Lo, and Plinko. The studio releases a game every month. However, not all games are developed from scratch. Wicket Blast and Spin Strike, the last two releases, are based on cricket and the Indian Premier League. Crash X remains the most popular fast game in the Turbo Games portfolio, and the studio reports that crash games enjoy stable levels of popularity. Overall, the main focus of the brand is provably fair games.
More information: https://turbogames.io/
Looking to take your career to the next level in the games industry? Then, Nordic Game Talents is the place to be! Games Factory Talents has teamed up with Nordic Game to bring you Nordic Game Talents.
From Oct 27-29, the online and interactive event is dedicated to recruitment and career building in the creative & games industry within the Nordic region. The event empowers participants to be part of a bigger community and motivates them to explore new paths in achieving their career goals.
Hiring creative & games studios – Supercell, Funcom, Panzerdog, Tactile Games, Gamecan, Fingersoft, Dazzle Rocks, Redhill Games to name a few from the Nordic region will be participating in the event. These studios will share information on their latest projects, work culture and what it takes to be part of their team. The individual games associations from Finland, Denmark, Sweden, Norway and Estonia will share insights through live sessions on the booming games industry in their respective countries. Career development topics pertinent to job seekers like – How to have a successful first interview, Creative Portfolio reviews will also be discussed.
Experienced game industry professionals and individuals beginning their careers from around the world are welcome to join the event. One-to-one interviews with the hiring studios can be scheduled through the event platform. A great opportunity to get to know the studios and network with game professionals from around the world.
Participating in the event
As a job seeker attending Nordic Game Talents, take a few minutes to fill out a simple registration form. After filling the registration form you will receive a link to the online event platform – PINE, to join the event on 27th October. Participants joining Nordic Game Talents will also receive a free-of-charge pass to the Nordic Game Conference.
To view the complete agenda, please click here and to learn more about the event please visit Games Job Fair
About Games Factory Talents
A Helsinki-based talent attraction agency dedicated to the games & creative industry. Our services include direct recruitment, organizing game job fairs and managing a community of game industry professionals through our GameDev Talent Board.
To learn more about Games Factory Talents visit – Games Factory Talents
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