Gaming

Gaming – Malta

Malta – Alderney – Caribbean – UK – USA
“Your Business Is Global – So Is Our Advice”
Remote Gaming – iGaming – Fantasy Gaming
Virtual / Reverse Branding
Efficient Tax Routing & Structuring

A ‘one stop shop’, an efficient, fully regulated gaming environment to transfer, apply for a new licence, or establish your new gaming operations – all within a competitive tax regime. We are one of the leading law firms who can secure a Malta Gaming license for your gaming company.

With our advisers having extensive gaming and intellectual property experience in various jurisdictions, we can provide you with services in various jurisdictions.

Malta

• 1st EU Country to Regulate iGaming
• Competitive Tax Jurisdiction
• Low Set-Up Costs
• Established, Reputable
• Schengen Member

Malta – iGaming By Acumum

Malta a full member of the EU, provides a ‘one stop shop’ gaming regulatory procedure. Malta Gaming Authority (MGA) has consolidated its application process, providing gaming operators a single authority with established licensing routes. The MGA’s rules are clear and accessible, with guidance notes as to both the operation and ongoing requirements can be found on its website.

B2C Malta Gaming License Types

Malta offers a range of licenses for gaming. A B2C licence can be obtained in relation to one or more game types as follows:

Type 1 – games of chance played against the house, the outcome of which is determined by a random number generator. This type includes casino type games such as roulette, blackjack, baccarat, poker played against the house, lotteries, secondary lotteries and virtual sports games.

Type 2 – games of chance played against the house, the outcome of which is not generated randomly but is determined by the result of an event or competition extraneous to a game of chance and where the operator manages his or her own risk by managing the odds offered to the player, typically a sportsbook.

Type 3 – games of chance not played against the house and wherein in the operator is not exposed to gaming risk, but generates revenue by taking commissions or other charge based on the stakes or the prize. This type includes player versus player games such as poker, bingo, betting exchange, and other commission based games.

Type 4 – skill games the outcome of which is determined by the use of skill alone or predominantly by the use of skill determined to be licensable by the MGA (therefore controlled skill games), principally fantasy sports.

Main Financial Requirements

Minimum Share Capital to be paid up:

• B2C Type 1 or 2 – €100,000
• B2C Type 3 or 4 – €40,000

License Fees

B2C licences (Types 1, 2 and 3) require a fixed annual licence fee of €25,000 and for B2C Type 4 the annual licence fee is €10,000. In addition to the annual license fee, a variable compliance contribution being a scaled percentage of the gaming revenue must be paid as follows:

Process

Whether you wish to achieve a full license or a ‘white label’ operating under another operators’ existing license, Acumum can help you in obtaining certification.

Malta’s gaming laws are set out in the main legislation Gaming Act Chapter 583 of 2018 as amended from time to time, as well as a number of subsidiary regulations:

Gaming Authorisations Regulations

Gaming Commercial Communications Regulations

Gaming Compliance and Enforcement Regulations

Gaming Definitions Regulations

Gaming Player Protection Regulations

Gaming Premises Regulations

Gaming Licence Fees Regulations

Gaming Tax Regulations

Social Causes Fund Regulations

Retention of Data (MGA) Regulations

Pre- application

Before submitting formal documentation, potential operators are advised to enter into talks with the LGA to discuss their business plans and proposed operations. This provides guidance and upon eventual submission of the required documentation, a faster method of approval.

Application

The 4 main tests applied to every application are:

1. Is the applicant fit and proper to conduct a gaming business?
2. Does the applicant have sound business plans?
3. Does the applicant meet the operational and statutory requirements necessary to conduct the business?
4. IT systems audit; has the applicant implemented the necessary compliance standards within its technical operations?

On successfully completing the 4 step requirements a gaming license is granted for a period of 5 years.

Ongoing Requirements

At pre-set milestones after the granting of a gaming license, a licensed operator is subject to ongoing compliance audits:

1. After the first year of operation
2. On the third year of operation
3. On the implementation of major changes in the gaming system
4. At the discretion of the LGA – normally arising from a suspicion of deviation from either the regulations or the operational environment

Key Official Requirement

Acumum can provide you with, or assist you and your Key Official in meeting the requirements of ongoing compliance:

• In guiding you through the regulatory requirements of the decommissioning or installation of hardware, addition of new games or partners, changes in the stakeholders of your operations, or other incidents that may occur within the gaming system or your operations
• In helping you in the preparation of the financial reports that must be submitted to the AML from time to time.

Undertaking core compliance and reporting responsibilities, the Key Official is an essential function in every gaming operation. Acumum can assist you by recommending a pre – authorised Key Official or if you wish to nominate such a person within your own operations, can assist that person in achieving Key Official status.

The importance of the role of a Key Official cannot be emphasised enough; his or her duties include:

• Sealing of servers, ensure that the seals are not broken and reporting to the LGA if they are and subsequently re-sealed
• System review / certification of compliance
• Incident reports – within 24 hours the LGA must be notified of any changes made to either the hardware or software of the gaming company by signing and submitting the Incident reports
• Keeping the LGA updated of in respect of any changes to be made, to the pre-approved set-up of the authorised gaming operations
• Monthly submission of gaming tax and annual gaming license fee
• Submission of the gaming licensee’s management accounts alongside the annual audit financial statements
• Monthly reports ensuring players’ funds are securely and adequately held by the gaming licensee at all times – both at the control and bank account levels
• Data protection compliance as a data processor
• Submission of National Statistics

Anti – Money Laundering (AML) & Know Your Customer Requirements (KYC)

Malta takes its responsibility to and position within the global prevention of terrorist and criminal activities seriously.

All prospective and licensed gaming holders must comply at all times with appropriate AML and KYC requirements and procedures. The LGA must be provided with all necessary due diligence documents in respect of its key officials, directors and shareholders.

Acumum can assist you in establishing, documenting and maintaining sufficient and appropriate compliance processes and manuals:

• Role & Responsibilities of the Key Official
• KYC & AML procedures
• Payout management procedure

With our extensive gaming and intellectual property experience in multiple jurisdictions, Acumum’s team can help you with introductions to local and international gaming service providers such as gaming software providers, assistance with business planning, gaming license applications and ongoing commercial and compliance support.