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Malta Gaming Company

The success of the iGaming industry in Malta has been the result of regulation rather than the restriction of the core business in this area. With the increased implementation of regulations and further legislative pressure, the need for sound operations and business processes are on the rise. At E&S Group, we guide and support our clients, whether start-ups or established operators, throughout the licensing process of any of the licences issued by the Malta Gaming Authority (MGA). In addition to licences in Malta, we can also assist in the attainment of licences in the UK, Estonia, and Sweden.

Licensing of Remote Gaming Operations

All operators of remote gaming in or from Malta must possess a valid license. This must be 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. This test 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 to ensure the safety of player winnings and deposit returns.

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

As any Malta Company, a Remote Gaming Company is obliged to pay Corporate Tax on its Net Profits to the Maltese Government. Additionally, anybody providing any Gaming Service comprising of a qualifying activity, irrelevant of the means of the provision of service, shall pay to the MGA a gaming tax. This is computed at the rate of 5% of the gaming revenue generated from the said gaming services during the relevant tax period.

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; after that 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 revenue from rake less bonus, commissions and payment processing fees (e-commerce fees);

Class One on 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 after that for the duration of the licence

Compliance – Important Dates:

  • 20th of each month – Deadline of submission of MGA return report of the previous month including payment of gaming revenue tax
  • 180 days from financial year end – Submission of audited financial statements to MGA. If Financial year end is 31 December the deadline is 28 June.
  • Vat Deadline submission – 22nd of the following month following the end of the vat period.
  • Moss submission deadlines and relative payment

20th January – Submission for the period October – December

20th April – Submission for the period January – March

20th July – Submission for the period April – June

20th October – Submission for the period July – September

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 our CBDO on LinkedIn Deborah Vella or email us on [email protected] 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!