License for Gambling in Malta

A significant number of European online casinos, poker rooms, and similar entities choose Malta as their registration destination. The reasons are plentiful and diverse, including its strategic location, ease of opening bank accounts, favorable local legislation supporting e-commerce. Malta stands as a reliable and respected hub for the gambling sector, with the Malta Gambling Authority (MGA) issuing pertinent licenses for successful operations within this niche. With such certification, operators gain access to online casinos, sports betting, and beyond. Key aspects that applicants must demonstrate include financial stability, data protection, player safety, and rigorous risk management protocols.

Obtaining a gambling license in Malta instantly elevates one’s prestige within the industry. Operators gain access to a vast European and international player base, enhancing their credibility. Various license classes are available, such as B2B, crucial for software developers, or B2C for online gambling providers.

Regulatory Framework and Oversight by MGA

Malta provides an extensive definition of “games,” encompassing all gambling activities in accordance with the 2018 Gaming Definitions Regulations. The Maltese Gaming Act of 2018 primarily regulates the industry, emphasizing the alignment of public interests, sustainable growth, and positioning Malta as a gaming expertise center. It addresses audit matters, protection of minors, and player responsibility.

Key legislative acts under the Gaming Act include:

• Rules for granting gambling licenses
• Commercial communication rules in gaming
• Compliance and enforcement rules in gambling
• Rules for player protection
• Rules for the use of gaming premises
• Gaming license fee regulations
• Tax rules in gambling
• Social Causes Fund regulations
• Data storage rules (MGA)

The Malta Gaming Authority (MGA) ensures fairness, crime prevention, and protection of vulnerable groups. Its responsibilities include monitoring gaming operations, public guidance, responsible advertising, player complaint resolution, and data management.

Operators must adhere to player protection rules, implementing measures to prevent underage and vulnerable persons from gambling, ensuring player interests, providing clear information about gaming services, and promoting responsible gaming.

Additionally, compliance with the Anti-Money Laundering Act of 1994 and its 2018 amendments is mandatory. This requires strict Know Your Customer (KYC) policies, activity reporting, and MGA-monitored risk assessments to ensure regulatory compliance.

Benefits of Obtaining a Malta Gambling License

• Malta’s tax incentive system effectively reduces the tax rate to 5%, positioning it as a tax-friendly jurisdiction for gambling.
• Malta’s globally recognized gambling license enhances a company’s reputation, fostering trust among players and partners.
• Malta’s stringent yet fair regulations guarantee player safety and platform fairness.
• Malta’s stable political and economic climate, as an EU member, fosters gambling business growth.
• Over 70 double taxation avoidance agreements ease additional tax burdens, enhancing financial efficiency.
• Global recognition of the license facilitates companies’ entry into international markets.
• Malta’s commitment to improving gambling laws creates a favorable environment for business development.
• The Maltese government actively supports the gambling sector, offering tax incentives and market access to operators.
• The country’s advanced telecommunications and data processing centers actively support the gambling industry.

Criteria for Obtaining a Gambling License in Malta

To secure a gambling license in Malta, companies must meet stringent criteria:

1. Legal Registration: The company must be legally registered in Malta.
2. Infrastructure: Establishing a reliable infrastructure is crucial for player safety and fraud prevention.
3. Risk Management: Implementing a risk management system compliant with MGA requirements is essential.
4. Reputation: The applicant must maintain an authoritative status and be free from any connections to illegal gambling activities.
5. Financial Stability: Sufficient financial reserves to manage gambling operations are imperative.
6. Confidentiality and Anti-Money Laundering Protocols: Implementing confidentiality guarantees and anti-money laundering protocols is essential.
7. Regulatory Compliance: The company must undergo regulatory checks.
8. Operations in Malta: A significant portion of gambling operations, including physical and technological assets, must be located in Malta.

Moreover, at the time of registration, gaming companies must have a minimum share capital:

• Type 1 and 2: Minimum of €100,000.
• Type 3 and 4: Minimum of €40,000.

Stages of Obtaining a Gambling License in Malta

1. Company Formation: Begin by establishing a Maltese company, preferably a private limited company (Ltd). This process may take up to three months and can be facilitated by a power of attorney to a lawyer.
2. Unique Company Name: Ensure and reserve a unique company name valid for three months.
3. Physical Office: Find a physical office in Malta to serve as the registered address for official correspondence.
4. Staffing: Hire necessary personnel, including a director, secretary, and anti-money laundering expert.
5. Corporate Bank Account: Open a corporate bank account in Malta for financial transactions.
6. Minimum Share Capital: Contribute the required minimum share capital corresponding to specific gaming activities.
7. Registration Fee: Pay the company registration fee, varying depending on the company’s share capital (€245–€1,750).
8. Submission of Documents: Submit necessary documents to the Malta Business Registry (MBR), including memorandum, articles of association, copies of shareholders’ and directors’ passports, BO1 form, proof of office address, and capital injection.
9. Income Revenue Commissioner (CFR) Registration: Upon receiving the registration certificate from MBR, proceed to register with the Income Revenue Commissioner (CFR) for tax-related matters.

Fees

In accordance with the Gaming License Fees Regulations, license holders of online casinos in Malta must fulfill financial obligations, including compliance fee for each license period and an annual fixed license fee payable in advance for the upcoming 12 months and each license anniversary.

Non-refundable annual fees, paid in advance, vary based on the category of the Maltese gaming license:

Gaming Services License:

• Types 1-3: €25,000.
• Type 4: €10,000.

Critical Gaming Supply License:

Material Gaming Elements Providers:

Annual Revenue ≤ €5 million: €25,000. Annual Revenue ≤ €10 million: €30,000. Annual Revenue > €10 million: €35,000. Type 4 (regardless of revenue): €10,000.

Software Providers for Regulatory Processing:

Annual Revenue ≤ €1 million: €3,000. Annual Revenue > €1 million: €5,000.

For premium legal services and seamless licensing solutions tailored to your gambling business needs, consider partnering with Taurus Legal Group. Our expertise, combined with Malta’s reputable licensing framework, ensures your venture’s success in the dynamic world of online gambling. Contact us today to embark on your journey to regulatory compliance and industry leadership.