Malta Gaming License

All operators of remote gaming in or from Malta must possess a valid license of the relevant class as set out in the First Schedule of the Remote Gaming Regulations. Licences are issued for a minimum period of five years and may be extended for further periods of five years each. Applicants must satisfy relevant criteria to obtain a gaming license in Malta, amongst other things they must be:

1. A Registered Company in Malta,

2. they must satisfy the “fit and proper persons” test which involves rigorous due diligence checks on all persons (individual or corporate) who have a significant stake in the Malta gaming enterprise,

3. Demonstrate business, financial and technical ability to carry out the gamng operation in Malta, and

4. Demonstrate its solvency in order to ensure player winnings and deposit returns are safeguarded.

The licensing procedure is quite extensive but thanks to the professionalism of the persons involved, this procedure should not take more than 5 to 6 weeks.

Four classes of Malta Gaming licenses

1. Class One – Remote Gaming Licence for online gaming

- operators managing their own risk on repetitive games (casino-type games, skill games and online lotteries)

2. Class Two – Remote Gaming Licence for online betting office

- operators managing their own risk on events based on a matchbook (fixed odds
betting, pool betting and spread betting)

3. Class Three - Promotion and abet gaming from Malta

- operators promoting and abet gaming from Malta & taking a commission from
promoting and/or abetting games (P2P, poker networks, betting exchange and game portals)

4. Class Four – Hosting and managing only gaming operations, excluding licences itself

operators hosting and managing online remote gaming operators, excluding the licensee himself (software vendors developing platforms from which gaming operators can operate).

Online betting operations – one half of one per centum (0.5%) on the gross amounts of bets accepted

Online betting exchanges – one half of one per centum (0.5%) on the sum of all net winnings calculated per player per betting market.

Online pool betting – one half of one per centum (0.5%) on the aggregate of stakes paid.

Gaming Tax

Gaming tax in Malta which varies depending on the type of license held as follows:

Class One: €4,600 per month for the first six months; thereafter a monthly flat rate tax of €7000;

Class Two: fixed odd betting: 0.5% on the gross amount of stakes accepted; on betting exchanges (where the exchange is involved in the risk): 0.5% on the sum of all net winnings calculated per player per betting market; pool betting: 0.5% on the aggregate of stakes paid;

Class Three: 5% on net income. The net income is defined as revenue from rake less bonus, commissions and payment processing fees (e-commerce fees);

Class One on a class Four: the gaming tax payable by the casino operator is €1,200 per month. The gaming tax payable by the host platform is zero TAX for the first six months of operation, €2,300 per month for the subsequent six months and €4,600 per month thereafter for the duration of the licence.

Tax Cap for Gaming license holders in Malta

There is a tax capping mechanism which limits the gaming tax payable annually by any one licensee to a maximum of €466,000. In the case of class one under class four situation, the tax cap of €466,000 is applicable to the total tax payable by ALL licensees.

Prior to the attainment of certification, the Lotteries & Gaming Authority (LGA) applies a 3-stage process in order to audit the business operation, the key personnel and the control & gaming systems.

Step 1- Fit & Proper Test and Gaming Business Adequacy

Step 2- Business and Technical Ability Assessment for gaming

Step 3 - Compliance Audit

Basic Requirements

• Both hardware and software involved in the operations must be located in Malta, and there exist companies that can provide this service without the need for the licensee to obtain its own premises.

• The activities of the International Trading Company are limited to those carried outside Malta. No Maltese resident is permitted to place bets with such a company.

Licence Fees

Application Fee: Euro 2,330 (one time fee)

Certification Fee : approx Euro 2,500 (one time fee)

License Fee: Euro 8,500 (yearly fee)