Gambling Company in Malta

Gambling Company in Malta
26.07.2024

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Malta has established itself as a premier destination for online gambling operators due to its robust regulatory framework, favourable tax conditions, and strategic location within the European Union.

Setting up a company with a gambling license in Malta involves navigating through a well-defined process that ensures compliance with the Malta Gaming Authority (MGA) standards.

This guide provides a step-by-step approach to establishing a gambling business in Malta.

A Touch of Legal Insight

The Malta Gaming Authority (MGA) is the regulatory body responsible for overseeing all forms of gambling activities in Malta. The primary legislation governing gambling in Malta includes:

The Gaming Act (Cap. 583 of the Laws of Malta)

The Gaming Authorisations Regulations (S.L. 583.05)

The Gaming Compliance and Enforcement Regulations (S.L. 583.06)

The Gaming Player Protection Regulations (S.L. 583.08)

Types of Licenses

The MGA offers several types of licenses depending on the nature of the gambling activities:

  • B2C (Business-to-Consumer) Online Gambling Operator Licenses: For operators providing gambling services directly to players. Covers a wide range of games, incl. poker, slots, baccarat, roulette, bingo, kengo, etc.
  • B2B (Business-to-Business) Game Developer Licenses or Key Software Provider License for Game Platform Operators

Both B2C and B2B licenses allow game developers or software providers to offer their products in Malta and other markets where a gambling license of Malta is valid.

Gambling licenses are further categorized into four classes:

Class 1: For games of chance played against the house, such as casino games.

Class 2: For betting on events, including sports betting.

Class 3: For games of chance not played against the house, such as poker & bingo.

Class 4: For gambling management and hosting, incl. platform providers. Relates to B2B and required for companies to manage gambling on behalf of other companies.

The validity period of each license is 10 years.

Malta Gaming Company Incorporation

Step 1. Company Formation

1st Step Solution LTD, as a licensed corporate service provider, shall take care of the whole procedure, incl. company formation, registration for tax number, bank account opening etc.

Consider Share Capital Requirements:

The minimum share capital requirement varies based on the type of license:

Class 1 and Class 2 Licenses: €100,000

Class 3 and Class 4 Licenses: €40,000

Step 2. Gambling License

a. Pre-Application

  • Due Diligence: all documentation, including business plans, financial projections, and evidence of technical infrastructure.

b. Application Process

  1. Fit and Proper Test: the MGA conducts thorough background checks on the company and its key officials to ensure they meet ethical and financial standards.
  2. Business Plan Review: the MGA evaluates the business plan to ensure viability and compliance with regulatory requirements.
  3. Systems Audit: an independent audit of the gaming systems to verify their integrity and fairness.

c. Post-Licensing

  • Compliance Audit: Regular audits by the MGA to ensure ongoing compliance with regulations.
  • Annual License Renewal: Submission of annual reports and payment of renewal fees to maintain the license.

Compliance and Operational Requirements

Key Official Requirements

  • Directors and Key Personnel: Must reside in Malta and be approved by the MGA.
  • MLRO (Money Laundering Reporting Officer): Responsible for ensuring compliance with anti-money laundering regulations.

Technical Infrastructure

  • Servers and IT Systems: must be located in Malta or another approved jurisdiction.
  • Security Measures: implement robust security protocols to protect player data and financial transactions.

Reporting and Auditing

  1. Financial Reporting: annual submission of audited financial statements to the MGA.
  2. Compliance Reporting: regular reporting on compliance with gaming regulations, including anti-money laundering measures.

Taxation and Fees

Malta offers a competitive tax regime for gambling operators.

  • Corporate Tax Rate: 5% effective rate (via tax refund for foreign shareholders who operate outside Malta)
  • Gaming Tax varies depending on the type of license and revenue generated: Malta Government imposes a gambling tax on income earned from players in Malta. The rate is set at 5% and is only payable by B2C licensees. Revenue received by players outside Malta are not subject to this tax.

Fees

One-time fee payable upon submission of the license application, while annual fee is based on the type of license:

  • Class 1: from EUR 15.000
  • Class 2 and Class 3: from EUR 25.000
  • Class 4: EUR 10.000

Critical Game Support License (for operators engaged in the supply and management of physical game elements):

  • For annual revenues up to EUR 5mln – EUR 25.000
  • For annual revenues up to EUR 10mln – EUR 30.000
  • For annual revenues of more than EUR 10mln – EUR 35.000

For companies supplying and managing gaming and regulatory software:

  • Annual income up to EUR 1mln – EUR 3.000
  • Annual income over EUR 1mln – EUR 5.000

Compliance Contributions: Ongoing contributions based on gross gaming revenue.

Setting up a gambling company in Malta involves navigating a comprehensive regulatory landscape designed to promote integrity and fair play in the gaming industry. By following the steps outlined in this guide and maintaining strict compliance with MGA regulations, operators can benefit from Malta’s favourable business environment and establish a successful gambling enterprise. Whether you are looking to launch an online casino, a sports betting platform, or any other form of gambling service, Malta provides a stable and supportive environment for businesses of all sizes and ambitions.

Ready to register your Gaming Company in Malta?

Contact us now!


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