The iGaming industry in Malta has been booming since the 2000s, making this one of the leading jurisdictions on a worldwide level. Today, Malta regulates some of the largest operators for remote gambling. The gaming possibilities extend beyond sports betting and casinos and include live betting, lotteries, poker networks, scratch cards, and more. Additionally, gambling addiction statistics are monitored to ensure player safety and address any emerging concerns.
As an iGaming jurisdiction, Malta was the first EU member to regulate online gambling, and it now has a reputation as one of the best-regulated jurisdictions. As such, Malta iGaming licenses are not easy to obtain, but they are in high demand and favourable for both operators and players.
In this post, we’ll explore the process of obtaining such a license, the reasons why it is popular, how much it costs, as well as why one should play at casinos that hold it.
iGaming tax in Malta for remote gambling
These days, many players will prioritise operators that have a Malta iGaming license for a number of reasons. For starters, they’ll choose it because Malta iGaming is considered secure and trustworthy. Many of them, especially UK players, will opt for these sites in search of non-Gamstop betting or to avoid similar self-exclusion and restriction programs. To bypass all those restrictions coming with these programs, they go for a secure alternative with less stringent rules, such as Malta iGaming.
The corporate Malta gaming tax is set up at 35%, but the legal entity is entitled to a tax credit, so it is significantly lower later on. When the operators pay all taxes and when they distribute the dividends, there are two options:
- A 5/7 of effective corporate income tax rate is 10% in ‘passive’ income, as well as royalties
- A 6/7 effective corporate income tax rate is 5% in ‘active’ business income
In other words, while the corporate tax is high i.e. 35%, businesses can claim most of this as a rebate, so they essentially pay only 5% or 10% tax on the profits.
The personal gaming tax Malta regime is attractive, as well. Top earners pay up to 35% and professionals can pay as little as 15%, which is significantly lower compared to other jurisdictions.
Requirements for igaming operators in Malta
Before we talk about the Malta gambling license cost, it is important to know that the MGA has certain criteria operators must meet to be eligible for a license. These include:
- The operator is established within the EEA/ EU
- They demonstrate adequate technical and business ability to manage online gaming operations
- Can prove that the operation has sufficient securities and reserves and that it can ensure the payment of players’ winnings and deposits
- Is fit and proper
To establish if this is the case, all applicants must provide the MGA with the due diligence documentation, ancillary documentation, and the company’s procedures and policies clearly described. Once the Authority confirms that these are to their satisfaction, they can issue a remote gaming license, renewable upon expiration.
Read also: All you need to know about the Malta Gaming Licence
To check if they are ‘fit and proper’, the MGA conducts a propriety and fitness test by analysing all documentation received from key persons, UBOs, and shareholders. The applicants must also submit a business plan with a detailed forecast of the general strategies, growth plan, and more.
The applicant must comply with share capital requirements. For instance, Gaming Service License Type 1 and 2 must contribute at least €100,000 in share capital, while those with type 3 and 4 licenses have to contribute at least €40,000. Companies with multiple types, on the other hand, must contribute €240,000.
Once the applicant passes the previous stages successfully, the MGA will invite them to implement the technical environment requirements within 60 days. Then, the System Audit will review this and decide on the next step.
Types of gambling licenses in Malta and the associated fees
Operators can apply for one of two categories of license or both:
- B2C license
- B2B license
B2C Malta igaming license
If an operator wants to offer DFS, both B2B and B2C, the annual license they have to cover is €10,000. In comparison, the renewal fee for B2C license holders is different.
|
Annual fee paid in advance when the license is issued (non-refundable) |
€25,000 |
|
Renewal/ administrative fee |
€5,000 |
|
Compliance contribution fees |
1 license class, minimum of €15,000 up to €375,000 (0.4% to 1.25%) 2 license classes, a minimum of €25,000 up to €600,000 (0.4% to 4%) 3 license classes, a minimum of €25,000 to €500,000 (0.4% to 4%) |
B2B Malta igaming license
B2B license holders are not required to pay compliance contribution fees. As for their annual fee, this depends on the gaming revenue. For a Class 4 license, operators need to pay an annual fee of between €25,000 and €35,000. This depends on the revenue and can easily be calculated using an online tax Malta calculator.
Malta gambling license cost: additional administrative fees
In addition to the fees described above, the Malta gambling license comes with other expenses during the all-stages process proceeding. The key provisions include:
- €5000 application fee for a new license, paid upon application
- €5000 application fee for renewal of license
- €50 key function certificate, applicable per role
- €1500 transfer of a qualifying interest in a licensee, paid upon request
- €1500 for any changes to the corporate entities
- €5000 for the annual maintenance fee for a recognition notice
And, of course, the 5% Gaming Tax is applied to any gaming revenue generated from players based in Malta per year.
Benefits of Malta igaming license
Some of the benefits of a Malta igaming license include:
- Highly efficient regulator
- Very popular and trusted licensing body, which will attract many players
- Gaming-friendly and non-gamstop
- Robust regulatory framework in line with EU directives
- Easy setup process
- Attractive fiscal regime
With so many operators offering igaming services to online players, you must aim high to attract and impress more players. With that in mind, a Malta igaming license is one of the best options. A bulk of the online casinos and sportsbooks these days use this license, not only because of its attractive fiscal regime but also because of its popularity in the gambling market. Hopefully, this post taught you all about the application process and gave you a basis to get started.
Disclaimer: Players must be 18 years + to partake in any gambling, betting or casino activity. Players are urged to seek help if they require it. Players play at their own risk.