Introduction

 

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.

​

 

Licencing Process

​

The licensing process for obtaining a Remote Gaming Licence involves the submission of an application, including the necessary documentation, enabling the MGA to assess whether an applicant:

​

• Is fit and proper to conduct gaming business;

• Is established within the EU / EEA;

• Demonstrates adequate business and technical ability to manage a remote / online gaming operation;

• Operation is covered by sufficient reserves and / or securities, and that payment of player winnings and deposits are ensured;

• Implements what has been applied for before going live; and

• System have been successfully audited.

​

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.

​

​

Licence Types

 

Applicants can obtain one or both of the following licences:

​

1. Gaming Service License (B2C)

​

This licence constitutes the: 

​

• offering, provision or operation of a gaming service; and

• hosting by a person in his premises accessible to the public, the operation or making available for use a gaming device or gaming system.

​

2. Critical Gaming Supply Licence (B2B)

​

This license constitutes the:

​

• supply and management of material elements of a game;

• supply and management of software, whether stand-alone or part of a system, to generate, capture, control or otherwise process any essential regulatory record, or the supply and management of the control system itself on which such software resides.

​

​

Type of Games

 

Before applying for a licence with the MGA, the promoter is to establish the types of games to be offered to players, as follows:​

 

Type 1: Games of chance played against the house, the outcome of which is determined by a random generator, and shall include casino type games, including roulette, blackjack, baccarat, poker played against the house, lotteries, secondary lotteries and virtual sports games.

​​

Type 2: Games of chance played against the house, the outcome of which is not generated randomly, but is determined by the result of an event or competition extraneous to a game of chance, and whereby the operator manages its own risk by managing the odds offered to the player.

 

Type 3: Games of chance not played against the house and wherein the operator is not exposed to gaming risk however generates revenue by taking a commission or other charge based on the stakes or the prize and shall include player vs. player games such as poker, bingo, betting exchange and other commission-based games.

​​

Type 4: Controlled Skill Games which require additional regulatory supervision because of the additional risks they pose to consumers and shall include fantasy sports.

​

​

Application and Gaming Licence fees

​

The following are the applicable Application, Annual and Compliance fees:

 

1. Application Fee of €5,000.

 

2. Annual License Fee

​

The annual licence fee is required to be paid prior to the issuance of the licence and subsequently, on an annual basis. The annual licence fee is non-refundable and payable upfront in advance. The applicable amounts for the initial gaming licence fee payment are the following:

 

a. Initial Fee

​

Initial Gaming Licence fee – Gaming Service Licence (B2C)

• Non-refundable Fixed Annual Licence Fee €25,000

• Non-refundable Fixed Annual Licence Fee of €10,000 for operators providing solely B2C (Type 4) gaming services.

​

Initial Annual Gaming Licence fee – Gaming Supply Licence (B2B)

• Non-refundable Fixed Annual Licence Fee €25,000

• Non-refundable Fixed Annual Licence Fee (Back-Office) €10,000

 

b. Annual Fee

​

Following the initial year, the licence fee is calculated as per the following guidelines:

​

Fixed annual licence fees – Gaming Service Licences (B2C)

• Non-refundable Fixed Annual Licence Fee €25,000

• Non-refundable Fixed Annual Licence Fee of €10,000 for operators providing solely Type 4 gaming services

​

Fixed annual licence fees (B2B)

• Where annual revenue does not exceed €5,000,000, fee of €25,000

• Where annual revenue exceeds €5,000,000 but does not exceed €10,000,000, fee of €30,000

• Where annual revenue exceeds €10,000,000, fee of €35,000.

​

Licence Fees on Annual Revenue – (B2B Back-Office)

• Annual revenue does not exceed €1,000,000, fee of €3,000

• Annual revenue in excess of €1,000,000, fee of €5,000

 

3. Compliance Contribution / Fee

​

Such contribution is required to be paid monthly and vary from one category of licence to another and depend on the gaming activities undertaken and the acquired amounts each year. It can be calculated as follows:

​

Gaming Service Licence – B2C

​

• B2C – Type 1 Gaming Services Minimum* €15,000; Maximum €375,000

• B2C – Type 2 Gaming Services Minimum* €25,000; Maximum €600,000

• B2C – Type 3 Gaming Services Minimum* €25,000; Maximum €500,000

• B2C – Type 4 Gaming Services Minimum* €5,000; Maximum €500,000

 

Further details can be found under https://legislation.mt/eli/sl/583.3/eng/pdf

 

 

Share Capital Requirements

 

A licensee is subject to minimum issued and paid-up share capital gaming requirements. The minimum share capital requirement depends on the licence being applied for. In the case of a ‘B2C’ gaming service licence, the share capital requirements depend on the game type, as indicated below:

​

• Type 1 & 2 – Minimum  €100,000

• Type 3 & 4 – Minimum €40,000

​

​

Gaming Tax

 

A Malta remote gaming company has a number of tax obligations that need to be fulfilled.  Like any other Maltese company, such gaming company shall pay corporate tax on its net profits.  Being a remote gaming company, additional tax obligations arise in relation to the specific remote gaming activities.  Non-Resident shareholders (corporate or physical persons) of the gaming company are eligible to avail themselves of the refunds available upon a receipt of a dividend from the company.  For explanation of the refund system, please refer to mostly used corporate tax system.

​

For gaming services being offered to players physically present in Malta, the company would be subject to the payment of a gaming tax of 5% on the gaming revenue generated from the gaming service in one year.