Malta Gaming Company
Licensing of Remote Gaming Operations
All operators of remote gaming in or from Malta must possess a valid license of the relevant class as set out in the First Schedule of the Remote Gaming Regulations. Applicants must satisfy relevant criteria to obtain a gaming license in Malta, amongst other things they must be:
- A Registered limited liability company in Malta,
- They must satisfy the “fit and proper persons” test which involves rigorous due diligence checks on all persons (individual or corporate) who have a significant stake in the enterprise,
- Demonstrate business, financial and technical ability to carry out the operation, and
- Demonstrate its solvency in order to ensure player winnings and deposit returns are safeguarded.
Four classes of Gaming licenses
- Class One – operators managing their own risk on repetitive games (casino-type games, skill games and online lotteries)
- Class Two – operators managing their own risk on events based on a matchbook (fixed odds betting, pool betting and spread betting)
- Class Three – operators promoting and abet gaming from Malta & taking a commission from promoting and/or abetting games (P2P, poker networks, betting exchange and game portals)
- Class Four – operators hosting and managing online remote gaming operators, excluding the licensee himself (software vendors developing platforms from which gaming operators can operate).
Malta Gaming Tax and Gaming Classes
Gaming tax in Malta varies depending on the type of license held, as follows:
Class One: €4,600 per month for the first six months; thereafter a monthly flat rate tax of €7000;
Class Two: fixed odd betting: 0.5% on the gross amount of stakes accepted; on betting exchanges (where the exchange is involved in the risk): 0.5% on the sum of all net winnings calculated per player per betting market; pool betting: 0.5% on the aggregate of stakes paid;
Class Three: 5% on net income. The net income is defined as revenue from rake less bonus, commissions and payment processing fees (e-commerce fees);
Class One on a class Four: the gaming tax payable by the casino operator is €1,200 per month. The gaming tax payable by the host platform is zero TAX for the first six months of operation, €2,300 per month for the subsequent six months and €4,600 per month thereafter for the duration of the licence.
Tax Cap for Gaming license holders in Malta
There is a tax capping mechanism which limits the gaming tax payable annually by any one licensee to a maximum of €466,000.In the case of class one under class four situation, the tax cap of €466,000 is applicable to the total tax payable by ALL licensees.
What distinguishes the Maltese license process from that of some other ‘less rigorous’ jurisdictions is the serious application process which is applied.
Prior to the attainment of certification, the Lotteries & Gaming Authority (LGA) applies a 3-stage process in order to audit the business operation, the key personnel and the control & gaming systems.
Step 1 – Fit & Proper Test and Gaming Business Adequacy
Step 2 – Business and Technical Ability Assessment for gaming
Step 3 – Compliance Audit
The content on this website is for information purposes only and should not be taken as tax, legal or any other professional advice.
Contact us for more information as well as for a quote. We will happily guide you through the gaming License application process and also advise you on the solutions that would best suite your needs!
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