iGAMING Services: Licences, Tax and Compliance
Malta was the first jurisdiction in the European Union to introduce regulated remote gaming, so it’s no surprise that the nation is considered the EU’s capital of iGaming. As a strict regulator of remote gaming, the Malta Gaming Authority (MGA) employs high standards that iGaming operators must meet in order to be granted an iGaming license. On average, the nation reviews about 100 new applications for remote games each year.
How to get a gaming licence in Malta
The top benefits for obtaining a remote gaming license in Malta:
- Oversight from well-regulated jurisdictions to protect both operators and players.
- Low cost to obtain a license.
- Favourable corporate and gaming tax rates.
- Stringent anti-money-laundering rules and regulations.
- Access to a highly skilled workforce from different nationalities and backgrounds.
- Licensing support and advisory
- Corporate structuring
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- Bank and payment service provider connections.
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- Compliance monitoring.
- Payroll and accounting services.
- VAT support and structuring page.
- Tax compliance and structuring
- Licensing support and advisory
- Corporate structuring
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Malta Gaming Authority – Regulatory Body of Malta’s iGaming landscape
The Malta Gaming Authority (MGA) is supportive of the benefits that iGaming brings to the nation, but also works diligently to ensure that all iGaming operators abide by their laws. With attractive iGaming laws, low gambling and corporate taxes, and an ideal communications infrastructure that offers maximum bandwidth and hosting capabilities, Malta is a highly sought-after jurisdiction by operators that wish to set up their iGaming platforms.
Malta Gaming Authority (MGA) License types in Malta
Malta offers B2B and B2C licenses. A B2C license can be obtained in relation to one or more game types, as follows:
- Type 1 Games: These games of chance are played against the house. The outcome is determined by using a random-number generator. Often, these games include casino-type games such as blackjack, roulette, baccarat, virtual sports games, and secondary lotteries.
- Type 2 Games: These games are played against the house, and the outcome is determined by the result of an event or series of events or competitions, and the operators manage their risk by managing the odds offered to the player. These games are typically a sportsbook.
- Type 3 Games: These games are played by the players against each other. The operator is not undertaking any gaming risk, but the revenue is generated by charging commissions or other charges based on the stakes or prize. Typical games of this type are poker, betting exchange, and bingo.
- Type 4 Games: The outcome of these games is based on the skillset a player possesses or a set of skills determined to be licensable by the MGA. Fantasy sports typically fall under this category.
Licence Fees
The applicable license fees by the MGA are split in three categories, Administrative fees, Fixed Annual License fees and variable Compliance Contribution fees.
Administrative and License Fees
License and Compliance Dues
The Gaming Licence Fees Regulations (L.N. 409 of 2017) , were brought into force on 1 January 2018. Any person in possession of a licence issued by the MGA shall pay the Authority the appropriate non-refundable fixed annual licence fee. Licensees shall also pay the compliance contribution depending on the type of approval issued by the Authority.
Fixed Annual License Fee (B2C Only)
| Fixed Annual License Fee | |
| Non-refundable Fixed Annual License Fee | €25,000 |
| Non-refundable Fixed Annual License Fee for operators providing solely Type 4 gaming services | €10,000 |
Fixed Annual License Fee (B2B Only)
| Fixed Annual License Fee | |
| License Fee for providers supplying solely Type 4 gaming supplies | €10,000 |
Gaming Service License – B2C
| B2C – Type 1 Gaming Services | Minimum* €15,000; Maximum €375,000 |
|---|---|
| Compliance Contribution for the Financial Year** | Rate |
| For every euro of the first €3,000,000 | 1.25% |
| For every euro of the first €4,500,000 | 1.00% |
| For every euro of the first €5,000,000 | 0.85% |
| For every euro of the first €7,500,000 | 0.70% |
| For every euro of the first €10,000,000 | 0.55% |
| For every euro of the remainder | 0.40% |
| B2C – Type 2 Gaming Services | Minimum* €25,000; Maximum €600,000 |
|---|---|
| Compliance Contribution for the Financial Year** | Rate |
| For every euro of the first €3,000,000 | 4.00% |
| For every euro of the first €4,500,000 | 3.00% |
| For every euro of the first €5,000,000 | 2.00% |
| For every euro of the first €7,500,000 | 1.00% |
| B2C – Type 3 Gaming Services | Minimum* €25,000; Maximum €500,000 |
|---|---|
| Compliance Contribution for the Financial Year** | Rate |
| For every euro of the first €2,000,000 | 4.00% |
| For every euro of the first €3,000,000 | 3.00% |
| For every euro of the first €5,000,000 | 2.00% |
| For every euro of the first €5,000,000 | 1.00% |
| For every euro of the first €5,000,000 | 0.80% |
| For every euro of the first €10,000,000 | 0.60% |
| For every euro of the remainder | 0.40% |
| B2C – Type 4 Gaming Services | Minimum* €5,000; Maximum €500,000 |
|---|---|
| Compliance Contribution for the Financial Year** | Rate |
| For every euro of the first €2,000,000 | 0.50% |
| For every euro of the first €3,000,000 | 0.75% |
| For every euro of the first €5,000,000 | 1.00% |
| For every euro of the first €5,000,000 | 1.25% |
| For every euro of the first €5,0000,000 | 1.50% |
| For every euro of the first €10,000,000 | 1.75% |
| For every euro of the first remainder | 2.00% |
Critical Gaming Supply License – B2B
| B2B – Critical Gaming Supply | Annual Licences fees used (supply & manage material elements of the game) | |
|---|---|
| License Fees on Annual Revenue | 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 |
| B2B – Critical Gaming Supply | Annual Licences fees used (supply & management of software) | |
|---|---|
| License Fees on Annual Revenue | Fee |
| Annual revenue does not exceed €1,000,000 | €3,000 |
| Annual revenue in excess of €1,000,000 | €5,000 |
Low Risk Games Administrative Fees
| One Time Non-Refundable Fee | |
|---|---|
| Fee | |
| Non-Profit Games | €25 |
| Commercial Communication Games | €25 |
| Limited Commercial Communication Games | €25 |
5% Gaming Tax
5% Gaming Tax is applied on Gaming Revenue generated from Malta based players. Determination of taxability is whether the player is established, has his permanent address and/or usually resides in Malta.
* Minimum compliance contribution for new operators will not apply until the first financial year end of operations following licence acquisition.
** Start-Ups who qualify under the Directive on Start-Up Undertakings will benefit from a moratorium period of 12 months in which they are exempt from paying compliance contribution.
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