How do you get a Remote Gaming Licence in Malta?

    Get a Remote Gaming Licence in Malta (Learn How)

    Malta is considered to be the European Hub when it comes to Remote Gaming.

    Over the years, the Maltese Islands have acquired a reputation as a well regulated European jurisdiction within the gaming sector.

    The reputation gathered together with the favourable licence costs and gaming tax regime continues to make Malta the jurisdiction of choice for gaming operators.

    The root of this is deeply connected to the Remote Gaming Regulations (Malta) which were published in April 2004. It placed Malta as the first member state of the European Union to regulate remote gaming. The Remote Gaming Regulations have, since then, been repealed by the Gaming Act (the “Act”), which came into force in August of 2018.

    Companies wishing to operate an online gaming company (remote gaming business) in or from Malta must possess a valid licence issued by the Malta Gaming Authority (the “MGA”). There are two types of remote gaming licences offered in Malta, these being either a B2C Gaming Service Licence or a B2B Critical Gaming Supply Licence.

    This read intends on providing you with all the information you require on ‘How to get a remote gaming licence in Malta’.

    get a remote gaming license in Malta

    Read More

    1. What is a Remote Gaming Licence?
    2. What are the Types of Gaming Licences in Malta?
    3. What is the Malta Gaming Licence Cost?
    4. Malta Gaming Tax Rates
    5. How long does it take to get the Gaming Licence in Malta?
    6. Why Choose Malta to set-up your iGaming company?
    7. Why Choose Nexia BT?
    8. Contact Us Today

    What is a Remote Gaming Licence?

    A Maltese Gaming Licence allows companies wishing to carry on or otherwise provide gaming services in or from within Malta, including but not limited to, games of chance, such as slots or casinos, fixed odds betting such as race books or sports pools, peer-to-peer games such as poker or bingo or controlled skill games and/ or any gaming supplies which are indispensable to provide such services.

    The licence covers the types of games to be offered, along with the services to be provided, either Business-to-Business (B2B) services or Business-to-Consumer (B2C) services.

    Nexia BT can provide assistance in the licensing application and everything else related to it.

    Get in Touch 

    What are the Types of Gaming Licences in Malta?

    Anyone wishing to enter the iGaming sector by either operating a remote gaming company in Malta or by providing critical supplies thereto must hold a valid Maltese Gaming Licence issued by the MGA.

    There are two types of Gaming Licences, either a Gaming Service Licence applicable to B2C operators or a Critical Gaming Supply Licence applicable B2B operators.

     
    types of gaming licences in malta-1
     

    B2C Gaming Service Licences

    The B2C Gaming Service Licence consists of four gaming services types. If you are planning on applying for a B2C Gaming Service Licence, you need to first identify the types of games that will be offered.

    The four Gaming Services Types are as follows,

    • Type 1 Gaming Service: consisting of games of chance played against the house, the outcome of which is determined by a random generator;

     

    • Type 2 Gaming Service: consisting of games of chance played against the house, the outcome of which is not generator randomly, but is determined by the result of an event or competition extraneous to a gaming of chance, and whereby the operator manages his or her own risk by managing the odds offered to the player;

     

    • Type 3 Gaming Service: consisting of games of chance not played against the house and wherein the operator is not exposed to gaming risk but generates revenue by taking a commission or other charge based on the stakes or the prize; and

     

    • Type 4 Gaming Service: consisting of controlled skill games.

     

    B2B Critical Gaming Supply Licences

    A B2B Critical Gaming Supply Licence is required solely for providers of critical gaming and/or material gaming supplies.

    Namely, those supplies which are indispensable in determining the outcome of games forming part of the gaming service, constitute an indispensable component in the processing. and/or manage essential regulatory data and which are of such importance that any weakness or failure in its provision could have a significant impact on the operator’s ability to meet its legal obligations, to manage the risks related to the supply and/or to continue in business.

    Learn more about the Types of Licences in Malta

     Types of Gaming Licences in Malta

    Moving on to the next important question,

    What is the Malta Gaming Licence Cost?

    B2C Gaming Service licensees are subject to an annual fixed licence fee of €25,000, with the exception of suppliers of Type 4 games, who are instead subject to a yearly fixed licence fee of €10,000.

    On the other hand, the licence fee for B2B Critical Gaming Supply licensees shall vary between €25,000 to €35,000, depending on their annual revenue. 

    Moreover, a reduced licence fee of €10,000 shall apply, if the licensee supplies critical supplies solely Type 4 game providers.

    Depending on the revenue generated, the Gaming Licence Fees Regulations impose a Compliance Contribution solely on B2C gaming service providers in terms of a sliding scale.

    Below is the minimum/maximum Compliance Contribution payable in any one period.

    B2C Licence Type

    Minimum Compliance Contribution

    Maximum Compliance Contribution

    Type 1 Gaming Services

    €15,000

    €375,000

    Type 2 Gaming Services

    €25,000

    €600,000

    Type 3 Gaming Services

    €25,000

    €500,000

    Type 4 Gaming Services

    €5,000

    €500,000

     

    It is important to note that B2C gaming services providers who qualify as start-up undertakings are entitled to a one-year exemption on Compliance Contributions. Conversely, B2B Critical Gaming Supply licensees are not subject to Compliance Contributions.

     

    Nexia BT can provide assistance for a portfolio of services in connection with the gaming industry in Malta.

    Contact Us

     Malta Gaming Licence Cost

    Moving on,

    Let us now give you a brief about the gaming tax rates in Malta.

    Malta Gaming Tax Rates

    Any remote gaming company based in Malta has a number of Tax obligations to adhere to.

    Gaming companies are subject to corporate tax in Malta, either if they are companies incorporated and/or having management and control in Malta or companies deriving or raising income in Malta.

    Moreover, certain gaming companies are also subject to further gaming tax obligations.

    Remote Gaming Tax

    In accordance with the relevant applicable laws of Malta, iGaming Companies are subject to the payment of remote gaming tax on their activities based in Malta.

    A company authorised to carry remote gaming activities licence by the Malta Gaming Authority (the ‘MGA’) is, amongst others, subject to the following two main types of taxes:

    • Corporate Tax - a 35% corporate tax rate shall apply to the profits generated by remote gaming operators. Companies will be able to benefit from certain tax incentives, subject to applicable conditions.
     

    To know more about the corporate tax and income tax returns readA Guide To Malta Corporate Tax in 2019

     
    • Gaming Taxa 5% gaming tax shall apply to the gaming revenue generated by remote gaming operators from Malta-based players.
     

    Malta remote gaming tax rates for 2019

    How long does it take to get the Gaming Licence in Malta?

    The Maltese Gaming Licence shall be granted by the Malta Gaming Authority to the applicant in its sole discretion and subject to the applicant satisfying all the conditions required under the licence.

    The process for obtaining a Gaming Licence in Malta takes approximately 12 to 16 weeks from the date when all the necessary documentation and information is provided to the MGA.

     
    Nexia BT can provide assistance for a wide range of services related to the gaming
    industry in Malta.
     
    Get in Touch 

    Why Choose Malta to set-up your iGaming company?

    Malta is an excellent jurisdiction to obtain your licence especially if your business is dependent on the availability of employees.

    Malta is part of the European Union which makes it a very attractive jurisdiction to obtain a gaming licence. Additionally, it comes with tax incentives and an expert workforce.

    Malta Gaming Authority (MGA) is the single regulatory body for both land-based and remote gaming activities in Malta. Malta hosts over 513 licences for remote gaming operations which are held amongst over 266 companies.

    Malta’s economic and political stability, together with a regulator who adopts a hands-on approach, make it a destination of choice for the iGaming industry.

    • Experienced & Reputable Regulator;
    • Attractive Tax regime for both companies and individuals;
    • Well-regulated remote gaming jurisdiction which safeguards the interests of both operators and players;
    • An extensive network of Double Tax Treaties;
    • Established and well-regulated financial services institutions;
    • Excellent telecommunication infrastructure;
    • Top business support services specialised in the gaming industry;
    • Political and economic stability; and
    • A Safe, secure and pleasant lifestyle.

    Why Choose Nexia BT?

    Nexia BT provides a wide range of services ranging from basic company incorporation and compliance to specialised advisory services, audit, tax and accounting, for particular sectors such as financial services, international trade, remote gaming, investment funds, shipping and aviation.

    We offer international support including back-office operations and advisory services, in a responsive, proficient and professional manner.

    Nexia BT can provide assistance for a portfolio of services in connection with the gaming industry in Malta, including: incorporation and tax advice of the appropriate corporate structures, assistance in the licensing application, provision of key function services, gaming compliance, tax compliance, accounting, assurance and IT Audit services.

    Whether you want to start-up your business operations in Malta or you plan to relocate your established business to Malta, we are committed to offer and devise a tailor-made service to your company needs. We understand that the gaming industry has specific needs and our services are intended to cater to them.

    Contact Us Today

    gaming services - Contact Us Today

    Oliver Zammit
    Partner 
    Tax and International Client Services

    oliver.zammit@nexiabt.com
    View Profile