Since the 2000s 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, scratchcards, sports betting, including live 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 was the first EU member state to regulate remote gaming
- • The most recent remote gaming framework published for Malta has taken an objective-based approach, allowing operators room for innovation
- • 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 with 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 ten(10) year period, renewable upon expiration.
An application fee amounting to €5,000 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% |
In addition to the Compliance Contribution, Gaming Tax is also due in terms of the Gaming Tax Regulations at the rate of 5%. This is payable monthly and is based oin the gaming revenue generated from players located in Malta.
Taxation of Remote iGaming in Malta
The non-resident shareholders of a 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, and elsewhere, while operating from 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.
