We offer an efficient, fully regulated gaming environment that is able to transfer or apply for a new licence, or establish a new gaming operation, all within a competitive tax regime.
We’re one of the leading law firms that can secure your gaming company licence in Malta. Our advisers have extensive gaming and intellectual property experience and can provide you with services in various jurisdictions.
Malta
- First EU member country to regulate iGaming
- Competitive tax jurisdiction
- Low set-up costs
- Established and reputable
- Schengen member
MALTA: iGAMING BY ACUMUM
Malta, as a full member of the EU, provides a ‘one stop shop’ for gaming regulatory procedure. The 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 for both operation and ongoing requirements. These can be found on its website.
B2C Malta gaming licence types
Malta offers a range of licences 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 includes casino type games such as roulette, blackjack, baccarat, poker, 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, where the operator manages their own risk to the player, typically a sportsbook.
Type 3
Games of chance not played against the house and wherein the operator is not exposed to risk, but generates revenue by taking commission or other charges 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 in which the outcome is determined by the use of skill alone, or predominantly by the use of skill, and determined to be licensable by the MGA (therefore controlled skill games), which are principally fantasy sports.
Main financial requirements
Minimum share capital to be paid:
- B2C Type 1 or 2 – €100,000
- B2C Type 3 or 4 – €40,000
Licence 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, which is a scaled percentage of the gaming revenue, must be paid as follows:
| B2C TYPE 1 | B2C TYPE 2 | B2C TYPE 3 | B2C TYPE 4 |
|---|---|---|---|
| first €3,000,000 – 1.25% | first €3,000,000 – 4% | first €2,000,000 – 4% | first €2,000,000 – 0.5% |
| next €4,500,000 – 1% | next €4,500,000 – 3% | next €3,000,000 – 3% | next €3,000,000 – 0.75% |
| next €5,000,000 – 0.85% | next €5,000,000 – 2% | next €5,000,000 – 2% | next €5,000,000 – 1.00% |
| next €7,500,000 – 0.7% | next €7,500,000 – 1% | next €5,000,000 – 1% | next €5,000,000 – 1.25% |
| next €10,000,000 – 0.55% | next €10,000,000 – 0.8% | next €5,000,000 – 0.8% | next €5,000,000 – 1.5% |
| next €10,000,000 – 0.55% | next €10,000,000 – 0.6% | next €10,000,000 – 0.6% | next €10,000,000 – 1.75% |
| remainder – 0.4% | remainder – 0.4% | remainder – 0.4% | remainder – 2% |
| B2C TYPE 1 |
| first €3,000,000 – 1.25% |
| next €4,500,000 – 1% |
| next €5,000,000 – 0.85% |
| next €7,500,000 – 0.7% |
| next €10,000,000 – 0.55% |
| next €10,000,000 – 0.55% |
| remainder – 0.4% |
| B2C TYPE 2 |
| first €3,000,000 – 4% |
| next €4,500,000 – 3% |
| next €5,000,000 – 2% |
| next €7,500,000 – 1% |
| next €10,000,000 – 0.8% |
| next €10,000,000 – 0.6% |
| remainder – 0.4% |
| B2C TYPE 3 |
| first €2,000,000 – 4% |
| next €3,000,000 – 3% |
| next €5,000,000 – 2% |
| next €5,000,000 – 1% |
| next €5,000,000 – 0.8% |
| next €10,000,000 – 0.6% |
| remainder – 0.4% |
| B2C TYPE 4 |
| first €2,000,000 – 0.5% |
| next €3,000,000 – 0.75% |
| next €5,000,000 – 1.00% |
| next €5,000,000 – 1.25% |
| next €5,000,000 – 1.5% |
| next €10,000,000 – 1.75% |
| remainder – 2% |
The Process
Whether you wish to achieve a full licence or ‘white label’ operating under another operator’s existing licence, Acumum can help you obtain certification.
Malta’s gaming laws are set out in the main legislation of the Gaming Act Chapter 583 of 2018 as amended from time to time, as well as in a number of subsidiary gaming legislation regulations.
These include:
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
Stage one
Pre-application
Before submitting formal documentation, potential operators are advised to enter into talks with the MGA to discuss their business plans and proposed operations. This not only provides useful guidance, but upon eventual submission of the required documentation, a faster method of approval.
Stage two
Application
The four main assessments for every application are:
- Is the applicant fit and proper to conduct a gaming business?
- Does the applicant have sound business plans?
- Does the applicant meet the operational and statutory requirements necessary to conduct the business?
- IT systems audit: Has the applicant implemented the necessary compliance standards within its technical operations?
On successfully completing the requirements of all four steps, a gaming licence is granted for a period of five years.
Stage three
Ongoing requirements
Following the granting of a gaming licence, an operator is subject to ongoing compliance audits at pre-set milestones:
- After the first year of operation
- On the third year of operation
- On the implementation of any major changes in the gaming system
- At the discretion of the MGA, normally arising from a suspicion of deviation from either the regulations, or the operational environment.
Key official requirement
Acumum can assist you, and your key official, in meeting the requirements of ongoing compliance by:
- 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 your gaming system or operations
- Helping you prepare financial reports, which must be submitted to the AML as requested, from time to time.
- Undertaking core compliance and reporting responsibilities, the key official performs 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, we can assist that person to achieve key official status.
- The importance of the role of a key official cannot be emphasised enough.
Their duties include:
- The sealing of servers: Ensuring that no seals are broken, reporting to the MGA if they are, and ensuring they are subsequently re-sealed
- System review/certification of compliance
Incident reports: The MGA must be notified within 24 hours of any changes made to either the hardware or software of the gaming company by signing and submitting all incident reports - Keeping the MGA updated 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 licence fee
Submission of the gaming licensee’s management accounts alongside the annual audited 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.
- The sealing of servers: Ensuring that no seals are broken, reporting to the MGA if they are, and ensuring they are subsequently re-sealed
- System review/certification of compliance
Incident reports: The MGA must be notified within 24 hours of any changes made to either the hardware or software of the gaming company by signing and submitting all incident reports - Keeping the MGA updated 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 licence fee
Submission of the gaming licensee’s management accounts alongside the annual audited 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) and Know Your Customer requirements (KYC)
Malta takes its responsibility to the global prevention of terrorist and criminal activities seriously.
All prospective and licensed gaming operators must comply at all times with appropriate AML and KYC requirements and procedures.
Operators must provide the MGA with all necessary due diligence documents in respect of key officials, directors and shareholders.
Acumum can assist you with establishing, documenting and maintaining sufficient and appropriate compliance processes and manuals.
These include:
- Role and responsibilities of the key official
- KYC and AML procedures
- Payout management procedure(s)
