Malta is considered as the European hub for remote gaming. This reputation as well as the favourable licence costs and tax regime continues to make Malta the jurisdiction of choice for gaming operators. Gaming is regulated by the Malta Gaming Authority (“MGA”) and not by the Malta Financial Services Authority.
The licensing process for obtaining a Remote Gaming Licence involves the submission of an application form and other relevant documentation where the MGA assesses whether an applicant:
Is fit and proper to conduct gaming business;
Is correctly prepared from a business strategy perspective;
Has the operational and statutory requirements to meet the legal obligations expected by Maltese Law;
Implements what has been applied for before going live; and
successfully completes the systems audit.
Before commencing operations, the licensee must appoint a Key Official who must be approved by the MGA as fit and proper. The Key Official, who must also be a director of the company, will act as the primary point of contact with the MGA, who personally supervises the operations of the licensee and ensures that the licensee is compliant with all applicable laws and regulations or any conditions issued by the MGA.
Class 1 - for operators managing their own risk on repetitive games. This class covers casino-type games, skill games and online lotteries.
Class 2 - for operators managing their own risk on events based on a matchbook. Under this class falls fixed odds betting, pool betting and spread betting.
Class 3 - for operators taking a commission from promoting and/or betting games. This class includes P2P, poker networks, betting exchange and game portals.
Class 4 - to host and manage remote gaming operators, excluding the licensee himself. This is intended for software vendors who want to provide management and hosting facilities on their platform.
Gaming License Fees
Set-up fee - Eur2,330 application fee and Eur2,500 system audit fee
Compliance audit - Eur3,500 (within first year) plus another within 4th year of operations
Annual fee - Eur8,500
Renewal fee - Eur1,500 (every 5 years).
Gaming operators enjoy of a very favourable tax regime.