Malta Gaming License

A Malta gambling license offers numerous benefits for operators seeking to enter the online gambling industry:

• Available access to the EU’s single market and a large consumer base;
• A high level of credibility for licensed operators;
• The favorable tax regime for gambling businesses, with a reduced corporate tax rate and a reduced VAT rate for gambling services;
• A highly skilled and multilingual workforce with a strong emphasis on education and training;
• A robust technological infrastructure, reliable internet connection, and a well-developed telecommunications network.

To obtain gambling permission, operators must meet various requirements established by the Malta Gaming Authority (MGA). These requirements are in place to ensure that all gaming practices in Malta are conducted fairly and transparently and to protect the interests of both players and operators:

Four types of gambling licenses are available, each catering to different gaming practices. These licenses are issued by the Malta Gaming Authority (MGA) and are subject to strict regulatory Malta gaming license requirements.

Type 1 License
This type covers games based on chance, including casino-style games, lotteries, and slots. The operator must be physically present in the country and meet the MGA’s technical and financial requirements. The bare minimum equity share for this type is €100,000.

Type 2 License
This type covers sports betting, including fixed odds and spread betting. The operator must be physically present in the country and meet the MGA’s technical and financial requirements. The bare minimum equity share for this type is €100,000.

Type 3 License
This license covers operators who provide g ames based on peer-to-peer gaming, such as poker and other skill-based games. The operator may be based outside Malta but must have a Maltese-registered company and comply with the MGA’s technical and financial conditions. The bare minimum equity share for this type is €40,000.

Type 4 License
This type covers software vendors who provide gambling software to other permissions. The vendor may be based outside the country but must have a Maltese-registered company and comply with the MGA’s technical and financial conditions. The bare minimum equity share for this type is €40,000.

To obtain a gambling license in Malta, you must first register a company there. The registration process is quite fast if you have all the necessary data and documents. As a rule, the whole registration process takes about 2 weeks. You do not even need to be personally present in Malta – you can entrust this process to your legal representative by issuing a power of attorney in his name.

The most common form of incorporation in Malta is a limited liability company. This is a convenient form of doing business that provides limited liability for the shareholders.

Requirements for a Private Limited Liability Company (LLC) in Malta:

• minimum number of founders – 1 (legal entity or individual), with no restrictions on residency or citizenship;
• number of shareholders – from 1 to 50, without restrictions on residency or citizenship, and shares may be bearer or registered;
• minimum authorized capital, which must be paid within 1 year after registration. For an ordinary private company, the amount of the authorized capital is 1,164.69 euros. For companies that plan to obtain a gaming license, the amount of share capital will be higher, and it depends on the type of future activities. For B2C licenses of type 1 and 2, the minimum share capital is 100,000 euros, for B2B and B2C licenses of type 3 and 4 – 40,000 euros. Operators providing multiple types of services must collectively meet the above share capital requirements up to a minimum limit of €240,000;
• Company name – must contain the word “Limited” or “Ltd.” and must not be similar to the names of other companies;
• it is mandatory to have a registered agent in Malta;
• local registered office;
• each company must have a secretary.

The registration process includes the following steps:

• reservation of a unique company name;
• obtaining a registered office address in Malta;
• appointing a director, secretary, and AML officer for the company;
• filing the company registration application and all necessary documents with the MBR;
• opening an account with a local bank;
• payment of company registration fees and dues;
• obtaining a certificate of incorporation from MBR;
• registering the company with the Commissioner of Revenue (CFR), which is responsible for the administration and collection of income tax.

To register a company, you will need the following documents:

• articles of Association;
• a business plan and financial projections;
• details of the founder, shareholders, and key personnel;
• details of the identification of the beneficial owners of the company;
• proof of local registered office address;
• a document confirming the transferred share capital.

A full list of required documents can be obtained from Fast Offshore Licenses lawyers.

You can apply for a gaming license in Malta through the MGA Licensee Portal. It is recommended to read the e-services tutorial available on the website before applying. The portal allows you to track the status of the application in real-time, which ensures an efficient and transparent process.

The entire application process can take from 7 to 12 months, depending on the quality of the application. Incomplete applications are given a status of “incomplete” for 60 days. If a complete application is not resubmitted within this period, the authority will reject and close the application.

The main steps in the application process are:

• determine the type of license;
• verify eligibility and requirements;
• prepare documentation, which includes company documents, and personal details of the founder and major shareholders, and developed AML, KYC, and data protection compliance policies;
• applying along with all required documents to the MGA;
• payment of the registration fee;
• passing the due diligence and regulatory review.

If approved, you will receive a license and permit to operate in Malta to the extent specified.

• Malta has a robust online gambling regulatory structure overseen by the Malta Gaming Authority (MGA). The MGA regulates all aspects of online gambling, including licensing, compliance, and enforcement.
• To operate an Internet gaming business in Malta, operators must obtain valid permission from the MGA. The rigorous licensing process involves meeting strict criteria related to financial stability, technical capability, anti-money laundering procedures, and social responsibility practices.
• Once granted a gambling license Malta, operators are subject to ongoing monitoring and supervision by the Malta Gaming Authority (MGA). This includes regular audits and inspections to ensure compliance with regulatory requirements. The MGA also has the power to impose sanctions, including fines and revocation of licenses, for non-compliance.
• In addition to licensing and compliance, the MGA is also responsible for protecting players from problem gambling. This includes implementing measures to prevent underage gambling, promoting responsible gambling practices, and providing support and resources to individuals at risk of developing gambling-related problems.
• One of the critical features of Malta’s regulatory structure is its focus on international cooperation. The MGA has signed numerous agreements with other regulators and law enforcement agencies to facilitate data sharing and collaboration in the fight against illegal Internet gaming and other forms of criminal activity.

Holders of gaming services and “critical gaming services” licenses are required to pay a license fee to the Department. The amount of the fee depends on the type of license and is governed by the Gaming License Fee Regulations (SL 583.03). The regulation is available on the Authority’s website. The initial license fee must be paid at the final application stage before the license itself is issued. Annual license fees are paid in advance and are non-refundable.

Game Service License
The fixed annual license fee varies by license type:

License for critical game supplies – B2B (supply and management of tangible game elements)

Companies that supply and manage material game elements are charged license fees based on the company’s annual revenue.

For operators exclusively providing Type 4 gaming services, the fee is €10,000, regardless of annual revenue.

License for critical gaming supplies – B2B (software supply and management)
The amount of license fees for companies supplying and managing software also depends on the company’s annual revenue.

Companies supplying and managing software for processing regulatory documentation, etc.

Compliance Fee
MGA licensees are required to pay a monthly compliance fee. The fee depends on the type of license and is calculated as a percentage of gaming revenue. For operators offering multiple types of games, the fee must be calculated separately for each game service and then totaled.

Before a Maltese gaming company is allowed to commence its operations, a system review and compliance audit must be carried out in a technical environment. As part of the application process, the company will be asked to launch its operations in a controlled environment and will have 60 days to complete this process.

During this period, the applicant must request an external system review, which will audit the operating environment and compare it to what was proposed in the business plan and application. If the current version is significantly different from what was originally proposed, the entire application process will have to start from the beginning.

In addition, a compliance audit must be carried out on the platform and online gambling organization. The criteria for this audit are defined by the MGA and local legislation. Compliance will be checked during the audit, periodically, and at the request of the MGA during the term of the license.

1. Financial Audit – assesses the accuracy and reliability of the financial statements, ensuring compliance with Generally Accepted Accounting Principles (GAAP) and relevant Maltese regulations.

2. Compliance Audit – aims to assess a company’s compliance with certain regulations such as:

• Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations;
• Data Protection Regulations (GDPR);
• gambling regulations (MGA compliance);
• environmental regulations;
• health and safety regulations.

3. Operational Audit – assesses the efficiency and effectiveness of internal controls and business processes, identifying areas for improvement and potential risks.

Compliance with regulations is fundamental to the operation of any business in Malta. This is particularly important in highly regulated areas such as the gambling industry. An audit is a tool that helps to ensure compliance with these regulations and mitigate the risks associated with non-compliance.

Malta has a favorable taxation system for gambling businesses, which is one of the reasons it has become a popular destination for operators seeking gambling permission. The Maltese Income Tax Act and the Value Added Tax (VAT) Act regulate the taxation system.

For companies licensed by the Malta Gaming Authority (MGA), the corporate tax rate is 35%. However, companies may be eligible for a reduced tax rate of 5% under the Maltese Gaming Tax Regulations. To qualify for this reduced rate, the company must meet specific criteria, such as being registered in Malta and having at least one resident director.

In addition to corporate tax, gambling operators are also subject to VAT. The standard VAT rate in Malta is 18%, but gambling services are subject to a reduced rate of 5%. This includes Internet gaming services, which are treated the same as land-based gambling services.

Another advantage of Malta’s taxation system is its participation in the European Union’s (EU) VAT regime. This means that gambling operators licensed in Malta can benefit from EU-wide VAT rules, such as the VAT reverse charge mechanism, which allows operators to shift the responsibility for VAT payment to their customers in certain circumstances.

Furthermore, Malta has signed double taxation agreements with over 70 countries, which helps to avoid double taxation on gambling operators’ profits.