Malta

Gaming License

To get a Malta Gambling License, you must have a registered legal address in Malta, at least one director, a secretary, and an AML specialist. If registered outside Malta, a local representative is required. Type 1 and 2 licenses need €100,000 in capital, while Type 3 and 4 licenses require €40,000. A local bank account is also necessary. 

You must submit incorporation documents, proof of capital, a detailed business plan, technical documentation, as well as compliance policies (AML, KYC, CDD). Once submitted, approval takes about 6 months.

With MGL assistance, you do not need to handle all the paperwork on your own. We guide you through preparing each required document, making everything simpler and more manageable. 

How to Start a Gambling Company in Malta

Malta is a popular jurisdiction for online gambling businesses because of its trustworthy regulatory framework, European reputation, and bulletproof credibility. Below is a step-by-step guide to launching an online gambling company in this attractive jurisdiction.

Step 1: Decide on Your Business Model

Before applying for a license, you must determine the type of gambling business you want to operate:

• Business-to-Custumer (B2C): Directly offering online casinos, sportsbooks, poker websites, or other gambling services.

• Business-to-Business (B2B): Providing gambling software, aggregators, games and platforms.

Your choice will determine which license you need from the MGA.

Step 2: Incorporate a Company in Malta

Since it is one of non-negotiable requirements, you must set up a business entity with the Malta Business Registry (MBR). Typically, a Limited Liability Company (Ltd.) is preferred.

To do that, choose a company structure, appoint a minimum of one director and one shareholder (who can be the same person), get a registered office address in Malta, submit incorporation documents, including company name approval, details of directors and shareholders, as well as Memorandum & Articles of Association. Full registration takes about 2-3 weeks.

Step 3: Open a Business Bank Account

Since gaming enterprises deal with high-risk transactions, you must have a corporate bank account at a Malta-based or international bank. This step requires a company registration certificate, business plan, AML policy, proof of funds, Memorandum & Articles of Association, and KYC (Know Your Customer) details of shareholders and directors. 

Step 4: Set Up a Registered Office & Local Presence

Every company must have a registered office in Malta. This address is required for official communication and legal compliance. There are three options for office space: rent a physical office in Malta, use a virtual office service, or appoint a corporate service provider to manage compliance.

Step 5: Implement Financial & Compliance Policies

Before launching, the company must set up financial, AML, KYC, and GDPR (General Data Protection Regulation) policies. Companies must follow EU anti-money laundering directives, identity verification for customers and partners, and secure handling of customer data.

Step 6: Build Gambling Software

Malta offers a competitive tax system for gaming companies. Before obtaining a license, companies must pay a 35% corporate tax, which can be reduced to 5% on gaming revenue generated from Malta-based players. VAT registration is not required, while gaming tax is only applicable after obtaining a license.

Step 7: Build Gambling Website

You have two options: develop a website from scratch or use a White-Label solution or turnkey solution. Development of in-house software requires a team of developers, UX designers, and security experts but gives more control. A white-Label solution is a faster and more cost-effective option, with an already developed website provider by a B2B gaming provider.

Step 8: Hire a Local Team (Optional but Recommended)

To operate efficiently, you may need legal advisors with expertise in Malta’s gambling regulations, IT and security team, as well as marketing and customer support.

Step 9: Set Up Payment Processing

To process deposits and withdrawals, you need a payment gateway. MGL can assist you even on this crucial step and help you to find reputable Payment Service Providers (PSPs).

Types of licenses for Gambling in Malta

The Malta Gaming Authority offers two main license categories:

B2C license: For operators providing gambling services directly to players. Operators can manage player accounts, accept bets, and process payments. The license covers different gaming categories:

• Type 1: Casino-style games (slots, blackjack, roulette).

• Type 2: Fixed-odds betting (sports betting, horse racing).

• Type 3: Peer-to-peer games (poker, bingo, betting exchanges).

• Type 4: Skill-based games (fantasy sports, esports betting).

B2B license: For operators providing gambling products and services to other businesses. Like B2C license holders, B2B companies are subject to the standard corporate tax of 35% on their profits.

Both licenses are valid for 10 years and require regular (monthly, half-yearly and yearly) audits and compliance checks. 

Overview of the Malta Gambling License 

Located in the Mediterranean Sea, in the south of Italy, Malta is a small island country in Southern Europe. The country is known for its rich history, strong economy, and business-friendly environment. 

Despite its small size, Malta has become a global hub for online gambling, financial services, and technology startups. Companies are drawn to Malta because of strong regulatory frameworks. 

Over the years, Malta has set a golden standard in the online gaming industry. Malta was the first country to implement Anti-Money Laundering (AML) and Know Your Customer (KYC) standards to gain credibility and protect players. 

Now, Malta is home to over 300 gambling companies, the lucky ones who have gone through the challenging process of obtaining a license. 

Renewing Malta Gambling License

The Malta Gaming Authority (MGA) requires all licensed gambling operators to renew their license before it expires to continue operating legally. The renewal process ensures that license holders remain compliant with essential regulations.

To renew the license, operators must submit a renewal application through the MGA’s online portal, pass a compliance and financial review, and undergo an operational audit conducted by the MGA-approved auditor. They must also pay a renewal fee, which depends on the license type. If everything is good, the MGA issues a renewed license, typically valid for 10 years. 

Gambling Regulations in Malta

The Malta Gaming Authority (MGA) is the official body that regulates all gambling activities in Malta. It handles everything from licensing and compliance to player protection and enforcement. If an operator fails to follow the rules, the MGA has the power to issue fines, suspend, or even revoke licenses.

Malta’s gambling industry is governed by the Gaming Act (2018), which sets out clear legal requirements for licensing, taxation, and regulatory compliance.

Operators who don’t comply face serious consequences, including fines of up to €500,000, legal action, or the loss of their license altogether.

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Comparison With Other Licenses

Compare the Malta Gambling License with other major jurisdictions in terms of cost, processing time, and regulatory requirements.

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Fees & Taxes of the Malta Gambling License

As one of the most reputable certificates in the industry, the Malta Gambling License is not a cost-effective option for operators. Although they must have a minimum share capital of €40,000 to €100,000, they must pay an application fee, compliance fee, and high taxes. 

The Malta Gaming Authority has set specific fees for different types of licenses. 

Application Fees (One-Time Fees)

These fees are required when first applying for authorization to operate in Malta:

• Standard Gaming License Application Fee (one-time, non-refundable): €5,000 

• Key Function Approval (per person): €50

• Approval of a New Gaming Device (per device): €100 

• Recognition Notice Fee (for Recognition of a Foreign License): €5,000

• Domain Name Registration (for online operators, per domain): €100

• Annual Fixed License Fee (Type 1, 2, or 3 Gaming Services): €25,000‍

• Annual Fixed License Fee (Type 4 Gaming Services): €10,000‍

• Renewal Fee: €5,000 (every 10 years).‍

• Limited Duration License Application Fee: €500

Annual Fees (Recurring Fees)

These fees must be paid every year to maintain an active license:

• Annual Fixed License Fee (Type 1, 2, or 3 Gaming Services): €25,000

• ‍Annual Fixed License Fee (Type 4 Gaming Services): €10,000‍

• Renewal Fee (every 10 years): €5,000 

• ‍B2B Gaming Suppliers (depending on revenue): €25,000-€35,000

• ‍Fixed License Fees on Annual Revenue (B2B, below €5M): €25,000‍

• Fixed License Fees on Annual Revenue (B2B, €5M-€10M): €30,000‍

• Fixed License Fees on Annual Revenue (B2B, €10M+): €35,000‍

• Fixed License Fees on Annual Revenue (B2B, below €1M): €3,000‍

• Fixed License Fees on Annual Revenue (B2B, €1M): €5,000

If fees are not paid on time, the operator must pay interest on the  overdue amount, which is applied per month (or part thereof) until full payment is made. For example, an online gambling operator in Malta with a GGR of €5M would pay around €50,000 on corporate tax after refunds, €62,500 on compliance fees, and €25,000 for the annual license. In total, that’s about €137,500 per year.

Taxation in Malta

Tax rates in Malta can surprise many operators due to their high percentages. Every company operating in Malta must pay 5% tax on gaming revenue generated from players in Malta. 

There are also compliance contributions that must be paid monthly. The contribution amount depends on the revenue of the gambling company.

• Compliance Contribution (Type 1): 1.25% on the first €3M revenue, 1.00% on next €4.5M, 0.85% on next €5M, 0.70% on next €7.5M, 0.55% on next €10M, and 0.40% for revenue above €30M.

• Compliance Contribution (Type 2): 4% on the first €3M revenue, 3.00% on next €4.5M, 2.00% on next €5M, 1.00% on next €7.5M, 0.80% on next €10M, 0.60% on next €10M, 0.4% for revenue above €35M.

• Compliance Contribution (Type 3): 4% on the first €2M revenue, 3.00% on next €3M, 2.00% on next €5M, 1.00% on next €5M, 0.80% on next €5M, 0.60% on next €10M 0.40% on revenue above €30M.

• Compliance Contribution (Type 4): 0.5% on the first €2M revenue, 0.75% on next €3M, 1.00% on next €5M, 1.25% on next €5M, 1.50% on next €5M, 1.75% on next €10M, increasing to 2% on revenue above €30M.

Good news for startups: they are exempt from compliance contributions for the first 12 months. 

Despite that, if revenue is low, operators must pay a minimum amount €15,000 per year for Type 1 license, €25,000 per year for Type 2, €25,000 per year for Type 3, and €5,000 per year for Type 4. 

Corporate tax is last but not least in this long list of taxes in Malta. Standard corporate tax is 35% on net profit, which can be decreased to 5% after refunds. But foreign-owned companies can reclaim 6/7ths of the tax paid. For example, if the company earns €1M in net profit, with 35% corporate tax they will pay €350,000. Then, foreign shareholders reclaim 6/7ths, which is €300,000, leaving final tax payment of €50,000.