iGaming in Malta

Since 2000 the iGaming industry in Malta has witnessed a remarkable and rapid growth. Malta has clearly become the leader and the jurisdiction of choice. Malta can in fact boast of regulating some of the world’s largest and leading operators.  A wide-ranging variety of games offered via means of distance communication (such as internet, mobile, telephone and digital TV) can be operated under the Maltese remote gaming licensing system. The gaming possibilities include casinos, sports betting, P2P games, lotteries, DFS and poker networks. iGaming company operators have chosen to operate under the Maltese jurisdiction  due to several attractive factors which Malta offers:

  • Malta is the only country within the EU which regulates remote gaming
  • Online Gaming in Malta has a reputation of being operated out of a well-regulated jurisdiction which safeguards the interests of both operators and players
  • a very attractive fiscal regime
  • an efficient and relatively inexpensive Malta gaming license process
  • a stable political climate
  • established financial services institutions (including payment gateways) for Maltese gambling companies
  • support services by pro-active professionals who adopt a ‘can do’ attitude to assist Malta gambling companies
  • a highly qualified and skilled Maltese gaming workforce that is fluent in various languages
  • a state-of-the-art telecommunications infrastructure

Remote iGaming Malta Requirements

The MGA will only consider applicants who are:
(a) established within the EU / EEA
(b) are fit and proper
(c) demonstrate adequate business and technical ability to manage a remote / online gaming operation
(d) prove that the operation is covered by sufficient reserves and / or securities, and that payment of player winnings and deposits are ensured.

The applicant would need to provide the MGA will the necessary due diligence documentation, the company’s policies, procedures and ancillary documentation, which provide the MGA with a clear picture of the company’s intended manner of operation. Once all these requirements are to the Authority’s satisfaction and the system has been successfully audited, the Remote Gaming Licence is issued for a five year period, (ten year period for applications issued after July 2018), renewable upon expiration.

An application fee amounting to €2,330 (€5,000 from July 2018) is due upon submission of an application for a Remote Gaming Licence. Once the licence is issued, and each year thereafter, a non-refundable annual licence fee of €25,000 becomes due. For operators offering DFS, both B2C and B2B, the annual licence fee payable is €10,000. For operators offering critical gaming supplies the licence fee payable is based on the table below:

 

Annual Licence Fee
Where annual revenue does not exceed €5,000,000 €25,000
Where annual revenue exceeds €5,000,000 but does not exceed €10,000,000 €30,000
Where annual revenue exceeds €10,000,000 €35,000

Furthermore, a compliance contribution calculated on the basis of varying percentages of the Gaming Revenue generated, becomes payable to the MGA on a monthly basis. The tables below provide the relevant percentages for each type of game. If an operator offers more than one type of game, then the calculation has to be made separately for each gaming service and then added accordingly.

Type 1 – Casino / RNG Based Gaming Services

Compliance contribution for the Licence Period Rate
For every euro of the first €3,000,000 1.25%
For every euro of the next €4,500,000 1.00%
For every euro of the next €5,000,000 0.85%
For every euro of the next €7,500,000 0.70%
For every euro of the next €10,000,000 0.55%
For every euro of the remainder 0.40%

Type 2 – Events Betting Gaming Services

Compliance contribution for the Licence Period Rate
For every euro of the first €3,000,000 4.00%
For every euro of the next €4,500,000 3.00%
For every euro of the next €5,000,000 2.00%
For every euro of the next €7,500,000 1.00%
For every euro of the next €10,000,000 0.80%
For every euro of the next €10,000,000 0.60%
For every euro of the remainder 0.40%

Type 3 – P2P Based Gaming Services

Compliance contribution for the Licence Period Rate
For every euro of the first €2,000,000 4.00%
For every euro of the next €3,000,000 3.00%
For every euro of the next €5,000,000 2.00%
For every euro of the next €5,000,000 1.00%
For every euro of the next €5,000,000 0.80%
For every euro of the next €10,000,000 0.60%
For every euro of the remainder 0.40%

Type 4 – Controlled Skill Games Gaming Services

Compliance contribution for the Licence Period Rate
For every euro of the next €2,000,000 0.50%
For every euro of the next €3,000,000 0.75%
For every euro of the next €5,000,000 1.00%
For every euro of the next €5,000,000 1.25%
For every euro of the next €5,000,000 1.50%
For every euro of the next €10,000,000 1.75%
For every euro of the remainder 2.00%

 

Taxation of Remote iGaming in Malta

The shareholders of the licensed company, whether natural or corporate, are eligible to obtain, and avail themselves of the refundable tax refund upon receipt of a dividend from the company. Furthermore, due to the imputation tax system provided for under Maltese legislation, the shareholders are not subject to further tax on dividends received from the company. For further details kindly refer to our brochure Malta Companies and Taxation.

 

EMD’s iGaming Department

We at EMD through our fully fledged iGaming Malta department, provide our gaming clients with a comprehensive professional support service in matters relating to their iGaming business requirements. Therefore, besides assisting clients to obtain their licence and ensuring continued compliance with the licence conditions, we also provide clients with other advisory and support services which they may require to run their operations efficiently and effectively. These services include:

  • company formation
  • iGaming legislation advice
  • local and international taxation advice
  • accounting
  • drafting and review of documentation
  • drafting and review of contracts
  • payroll services
  • work permit applications
  • assistance with residency and relocation
  • opening of bank accounts .

We are therefore in a position not only to assist our clients in obtaining remote gaming licences but also to maintain the company once operations commence.

EMD also assist operators who are relocating to Malta with their various needs in the relocation process such as getting their official Malta residence. EMD’s client portfolio comprises several gaming companies licensed in Malta, including some of the world’s major players in the gaming industry. EMD ensures that operators in the Malta gaming industry and holders of Malta gambling licences are afforded with a complete service for their operational needs.

 

Further information may be obtained from one of our leading experts by sending an email to info@emd.com.mt.

 

Further information may be obtained from one of our leading experts by contacting us below:

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