Malta’s online gaming business has increased exponentially in the past several years, now accounting for a significant area of the market more than 12 percent of GDP. Malta has to continue to boost its offering to make sure it keeps its competitive advantage, having built its success on its own first-mover benefit in regulating the business. This need to spend further in the industry is very relevant as other bigger jurisdictions with higher funds slowly start to govern and concentrate on iGaming. To learn more about iGaming, check out slot online.
Malta should offer a whole ecosystem for iGaming businesses, a basic portion of that will be access to capital markets financing. Publicly listed issuers generally also find it a lot easier to raise additional funds and reduce their borrowing costs from different sources as a consequence of their improved credibility related to the stricter regulatory conditions which include a listing.
Malta and the iGaming Industry
Since the iGaming industry continues its constant growth, operators will always require access to varied alternative sources of financing to proceed to another phase of the development. Within the last couple of decades, more iGaming businesses licensed or established in Malta have opted for an IPO and listing of the stocks on several different foreign markets, together with Nasdaq Stockholm leading the bunch as the favored destination of European businesses.
The appeal for this marketplace is clear, given the Nordic origins of several of the larger leaders and investors, with a massive portion of the companies also centered on the Nordic markets. Various studies have proven companies must generally possess some concrete relation to the state of record if they’re to have an effective public offering there, together with local investor wisdom and significance of their company into the area important facets. This movement overseas can be typical and indicative of the constraints of the national capital markets of smaller authorities like Malta.
This trend of cross-border fairness listings will be very likely to remain in the brief term given the increased liquidity and depth of the foreign exchange markets. Nevertheless, an individual should not dismiss the prospect of an IPO and record in Malta, given national investors to be familiarized with the iGaming sector.
In the meantime, iGaming companies should think about sourcing some funds locally through bond issues on the MSE along with a foreign equity record as funding market globalization proceeds and businesses find it much easier to raise funds in numerous jurisdictions.
The MSE is a respectable European Union market that provides several markets where firms can exchange, including its principal market, in which issuers can record debt and equity securities, and also a professional wholesale debt market for institutional finance. There are definite opportunities to raise funds in the local foreign exchange market, regardless of the limited size of Malta’s capital markets. New issuers are able to anticipate strong demand, together with the great majority of new bond issues becoming oversubscribed.
In addition to helping to finance the additional rise of the neighborhood iGaming industry, new entrants would substantially help the local capital markets by providing investors a sorely needed investment choice, especially given the massive concentration of issuers from the local property industry. Any potential bond issues by a Malta-based company in this controlled, profitable, and booming sector would provide investors compelling investment opportunities.