Malta Online Gambling Law

Malta Jurisdiction Overview

Malta offers many opportunities as a jurisdiction for online betting. It was the first EU member state to regulate remote gambling. Malta offers gaming licenses for casino-type games, online casinos, betting, betting exchanges, lotteries, gaming platforms and casino-style games. Their licensing fees are competitive and they provide an appealing corporate tax system. They are credible and reliable in their regulation which limits the risks to the operators of money-laundering and fraud. Malta is also a member of the EU meaning that if you hold a license from Malta you have freedom in the EU internal market. In other words, you can provide cross-border services within the EU.

2004 Remote Gambling Regulations

Prior to 2004, online betting companies were able to be established in Malta. With the new regulations that came into effect in April 2004, a license could be obtained for multiple operations, including online betting, betting exchanges, online casinos, lotteries, bingo and casino-style games, as well as betting platforms. There are no limitations placed on the number of licenses that can be obtained under the Remote Gambling Regulations.

The Lotteries and Gaming Authority (LGA) of Malta

The Lotteries and Gaming Authority is the only regulatory body responsible for gaming in Malta. It is responsible for all forms of gaming in Malta, such as casinos, remote gaming, lotteries, bingo halls, amusement machines and more. It aims to ensure that gaming is fair and transparent to the player and to protect players. It strives to prevent crime, corruption and money laundering in relation to gaming.

The Malta Remote Gaming Council

The Malta Remote Gaming Council was launched in March 2005 as part of the Lotteries and Gaming Authority’s strategic plan to establish a dynamic regulatory environment for remote gambling. The Gaming Council’s aim is to provide an ongoing discussion forum to be able to provide feedback to the LGA regarding developments in the remote gaming industry.

Taxation on Gaming Licenses

The taxation system in Malta is compliant with OECD standards and is in line with EU directives. That being said, there is an advantageous taxation regime for online gaming in Malta.

Those who hold a Class 4 remote gaming license, with a licensee who operates the gaming platform, do not pay any tax for the first six months, then EU 2,400 per month for the next six months and then EU 4,600 per month for the duration of the license period.

• Those who hold a license for casino type games must pay EU 4,600 per month for the first six months after the license has been issued and then EU 6,900 per month for the duration of the license period.
• Those who hold online betting operation licenses must pay 0.5% on the gross amount of bets.
• Those who hold online betting exchange licenses must pay 5% on the sum of all net winnings per player. Net income includes revenue from rake, less bonus, commissions and processing fees for payments.
• The total tax payable by one licensee per annum can not go over EU 460,000.