MGA introduces positive equity requirement for licensees
The MGA's Capital Requirements Policy, effective 2 July 2025, requires remote gaming and critical supply licensees to keep a positive equity position.
By Oliwer Brewitz, Head of Marketing
Key changes
- Positive equity position required in addition to minimum share capital
- Applies to remote gaming and critical gaming supply licensees
- Negative equity must be restored promptly
- Effective immediately from 2 July 2025, with transitional arrangements
What changed
On 2 July 2025 the MGA published its Capital Requirements Policy, with immediate effect and transitional arrangements for new and existing licensees. It applies to entities holding an MGA licence for remote gaming services, critical gaming supplies or both. The policy keeps the existing minimum nominal share capital rules and adds a requirement to maintain a positive equity position. A licensee in negative equity must restore its position, and the MGA said it will use this as an early warning so that problems can be fixed sooner. The policy followed consultation and was notified to the EU's TRIS system under Directive (EU) 2015/1535.
What it means for advertising
The policy is a licensing and solvency rule, not an advertising rule. It is likely to influence how loss-making operators fund aggressive customer acquisition, because sustained losses driven by marketing spend can push a licensed entity into negative equity. Heavy display, video/CTV or DOOH investment by newer licensees may therefore need to be backed by fresh capital rather than accumulated losses.
What operators should do
Check the equity position of each MGA-licensed entity, including the expected effect of planned marketing spend over the next financial year. Prepare capital plans for any shortfall and read the transitional arrangements in the policy document. Inform the MGA where equity turns negative and agree a route back to compliance, so that the position does not escalate into supervisory action.
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