Malta: A guaranteed bet for remote gaming The relationship between Malta and remote gaming is very strong as Malta was the first EU jurisdiction to regulate iGaming. Malta’s legal, fiscal and non-fiscal systems have made the island one of the most competitive locations for establishing of remote gaming operations. Today Malta is officially the world’s largest online gaming jurisdiction. Why Malta? There are many reasons for considering Malta as the ideal base for gaming operations such as:
Activities which fall within the scope of Malta’s gaming regime The Malta Gaming Authority (MGA), is Malta’s regulator for remote gaming. The MGA may issue licenses to all types of providers of remote gaming, including those involved in casinostyle games, poker, sports betting, betting exchanges, P2P, skins and lotteries through all types of technological media including the internet, mobile, telephone and fax, among other media operators, excluding the licensee himself.
low Malta Gaming tax;
Class 1 – applicable to operators managing their own risk on repetitive games (casino-type games, skill games and online lotteries)
the lowest effective corporate tax rate in Europe (at 5%) and the availability of a highly attractive participation exemption;
Class 2 – applicable to operators managing their own risk on events based on a matchbook (fixed odds betting, pool betting and spread betting)
a stable political environment;
Class 3 – applicable to operators promoting and abetting gaming from Malta & taking a commission from promoting and/or abetting games (P2P, poker networks, betting exchange and game portals).
an efficient and relatively inexpensive licensing process;
a modern and continuously improving legal and tax framework; a gaming sector characterized by an accessible and flexible regulator; an excellent telecommunications infrastructure;
Class 4 – a license to host and manage remote gaming operators, excluding the licensee himself.
equipped with modern hosting and co-location facilities;
knowledgeable, flexible and multi-lingual labour force.
© 2014 KSi Malta, a member firm of the KS International an association of independent member firms. All rights reserved. No one should act or rely on information prior to seeking appropriate professional advice on his/her specific situation.
Class 1 on 4 – applicable to operators managing their own risk on repetitive games (e.g. casino-type games, skill games and online lotteries) operating on a 3rd party platform duly licensed by the MGA. Class 3 on 4 – applicable to operators promoting and abetting from Malta & taking a commission from promoting and/or abetting games (P2P, poker networks, betting exchange and game portals) operating on a 3rd party platform duly licensed by the MGA.
Gaming Taxes Class 1 – €4,660 per month during the first 6 months after issue of the license, and €7,000 per month subsequently for the entire duration of the license period. Class 1 on 4 – €1,200 per month
Other fees Every license issued by the MGA will be valid for a period of 5 years. The initial application fee is €2,330 whereas an annual license fee of €8,500 is payable every year. Any license is valid for a period of 5 years, and upon its termination renewal involves a fee of €1,500.
Corporate Tax Generally, shareholders would incur an effective tax rate of 5% upon claiming the tax refund. Such effective tax rate is the lowest in Europe.
Application Process for a gaming license Stage 1 The MGA performs a fit & proper test on the applicant.
Class 2 – 0.5% of the gross amount of bets accepted Class 3 and Class 3 on 4 – 5% on net income (net income is defined as revenue from rake less bonus, commissions and payment processing fees, i.e. e-commerce fees) Class 4 – No gaming tax for the first 6 months of operation; €2,330 per month for the subsequent 6 months and €4,660 per month subsequently for the entire duration of the license. Provided that the hosting platform shall also pay a monthly tax of €1,165 for every operator it hosts and which operator is licensed by the government or competent authority of an EEA Member State (not being Malta).the Maltese registered company owns at least 10% of the equity shares in the nonresident company.
Stage 2 The MGA performs an in-depth examination of the proposed operations. Stage 3 The MGA examines the applicant on the instruments required to conduct the business. Stage 4 Once the first 3 stages are completed, the MGA invites the applicant to implement onto a technical environment in preparation for going live. Stage 5 The MGA mandates that after going live a Licensee shall undergo a number of compliance audits of its operation.
Contact us
Our Office
Bernard C. Gauci Senior Advisor bgauci@ksimalta.com
Villa Gauci Mdina Road Balzan BZN 9031 Malta Tel: (+356) 21226176 Fax: (+356) 21226019
Benjamin Griscti Senior Advisor bgriscti@ksimalta.com
www.ksimalta.com
A member of KS International
© 2014 KSi Malta, a member firm of the KS International an association of independent member firms. All rights reserved. No one should act or rely on information prior to seeking appropriate professional advice on his/her specific situation.