Malta launched remote gaming in 2000 and, upon accession to the EU in 2004, it became the first EU member state to have a have a regulated online gaming industry. Since then, we have seen the Malta gaming landscape bolstered by the implementation of robust regulatory practices designed to ease entry into the market, provide the necessary protections and controls, and to ensure best practice is adhered to amongst the operators. Malta is the largest gaming market in the EU with more than 625 active licences and over 13 million customer accounts. Malta remains a cost-effective, crypto-friendly, well-regulated jurisdiction from which to operate for new and existing operators.

Gambling in Malta is governed by the Gaming Act (Cap 583 of the Laws of Malta) and by subsidiary legislation issued thereunder, as well as by instruments and directives issued by the Malta Gaming Authority (MGA), which is the regulatory body responsible for regulating and supervising any activities relating to any matter under the Gaming Act – including, inter alia, the granting of licences, inquiring on the suitability and fitness and properness of any persons engaged within the industry, monitoring the industry, protecting players, ensuring advertisements are fair and responsible, and preventing detecting and ensuring the prosecution of offences against the Gaming Act.

The provision of any activity which amounts to a gaming service in or from Malta requires authorisation from the MGA. In terms of the different requirements applicable to each type of activity, while the Maltese framework does contain some activity-specific requirements, any activity or activities can be included under a singular MGA licence.

A gaming licence is available from the Malta Gaming Authority (MGA) for business-to-consumer (B2C) gaming operators.

A separate licence is available for business-to-business (B2B) (critical) gaming suppliers such as:

• disaster recovery services
• data centres
• content services
• odds services
• risk management services

In terms of licence structure, both B2C and the B2B gaming licences can cover one or more of the four game types – i.e. the gambling activities as specified within the Gaming Act.

Licence Fees, Compliance Contributions, and Gaming Tax

• A EUR 5,000 one-time, non-refundable application fee needs to be paid in order for a gaming licence application to be considered as complete
• The annual licence fee varies between EUR 10,000-25,000 depending on type of activity and the type of licence applied for

Once the operator is duly licenced, then they are required to pay the monthly Compliance Contribution, commencing immediately after the month in which the licence period commences, and then on a monthly basis, with payments to be calculated on the gaming revenue accrued during each and every month falling within a licence period (‘the reference month’). The amount due shall be paid before the expiration of the twentieth (20th) day of the month following the reference month. The compliance contributions vary from one category of licence to another and depend on the gaming activities undertaken. The compliance contributions can be calculated in line with the Gaming Licence Fees Regulations

For gaming services being offered to players physically present in Malta, the licensee would be subject to the payment of a gaming tax calculated at the rate of five per cent (5%) of the gaming revenue generated from the gaming service in one year

Types of Gaming Services Offered

Companies with multiple type approvals are required to meet the above share capital requirements cumulatively up to a minimum capping of €240,000.

Gaming companies are also subject to corporate tax. For more information pertinent to the corporate tax system kindly click here.