Licence Fees, Compliance Contributions and Gaming Tax in Malta

Updated: June 30, 2020 | 6 minute read

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Introduction

The Gaming Licence Fees Regulations (L.N. 409 of 2017), were brought into force on 1 January 2018. Any person in possession of a licence issued by the MGA shall pay the Authority the appropriate non-refundable fixed annual licence fee. B2C Licensees shall also pay the compliance contribution depending on the type of approval issued by the Authority. 

Licence Fee

B2C Licensees Fee in Malta

 Non-refundable fixed annual licence fee  €25,000
 For B2C operators providing solely Type 4 gaming services  €10,000

B2B Licensees Fee in Malta

Supply & Management of Material Elements of the Game
Where annual revenue does not exceed €5,000,000 €25,000
Where annual revenue exceeds €5,000,000 but does not exceed €10,000,000 €30,000
Where annual revenue exceeds €10,000,000 €35,000

Supply & Management of Software
Where annual revenue does not exceed €1,000,000 €3,000
Where annual revenue exceeds €1,000,000 €5,000


iGaming Licensees Fee in Malta

Compliance Contributions

Compliance contributions are a variable fee due monthly to the Malta Gaming Authority and borne only by B2C Licensees depending on the game-type for which they are licenced. Minimum compliance contribution for new operators will not apply until the first financial year-end of operations following licence acquisition. Start-Ups who qualify under the Directive on Start-Up Undertakings will benefit from a moratorium period of 12 months in which they are exempt from paying compliance contribution.

Type 1

Games of chance played against the house, the outcome of which is determined by a random generator, and shall include casino-type games, including roulette, blackjack, baccarat, poker played against the house, lotteries, secondary lotteries and virtual sports games.

For every euro of the first €3,000,000 1.25%
For every euro of the next €4,500,000 1%
For every euro of the next €5,000,000 0.85%
For every euro of the next €7,500,000

0.7%

For every euro of the next €10,000,000 0.55%

For every euro of the remainder

0.4%
 

The minimum Compliance Contribution payable in any one period shall be €15,000, whilst the maximum shall be €375,000.

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 whereby the operator manages his or her own risk by managing the odds offered to the player.

For every euro of the first €3,000,000 4%
For every euro of the next €4,500,000 3%
For every euro of the next €5,000,000 2%
For every euro of the next €7,500,000 1%
For every euro of the next €10,000,000 0.8%

For every euro of the next €10,000,000

0.6%
For every euro of the remainder

0.4%

 

Minimum Compliance Contribution shall be €25,000 whilst the maximum shall be €600,000.

Type 3

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 shall include player vs player games such as poker, bingo, betting exchange and other commission-based games.

For every euro of the first €2,000,000 4%
For every euro of the next €3,000,000 3%
For every euro of the next €5,000,000 2%
For every euro of the next €5,000,000 1%
For every euro of the next €5,000,000 0.8%
For every euro of the next €10,000,000 0.6%
For every euro of the remainder 0.4%
 

Minimum Compliance Contribution shall be €25,000 whilst the maximum shall be €500,000.

Type 4

Controlled Skill Games.

For every euro of the first €2,000,000

0.5%

For every euro of the next €3,000,000 0.75%
For every euro of the next €5,000,000 1%
For every euro of the next €5,000,000 1.25%
For every euro of the next €5,000,000 1.5%
For every euro of the next €10,000,000 1.75%
For every euro of the remainder 2%
 

Minimum Compliance Contribution shall be €5,000 whilst the maximum shall be €500,000.

Gaming Tax in Malta

5% Gaming Tax is applied on Gaming Revenue generated by B2C licensees from Malta-based players. Determination of taxability is whether the player is established, has his permanent address and/or usually resides in Malta.

 

Written By
Dr Alexandra Dimech
International Client Services

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