It is estimated that around 30% of the world’s gaming companies are operating via Malta. The Maltese gaming scene, with its solid regulatory environment bolstered by the Malta Gaming Authority (“MGA”), has proven to have become a very popular gaming platform for companies wanting to operate within this sector.
The relative gaming laws in Malta have provided a varied tiered mechanism whereby different classes of licenses may be applied for, each of which have a separate gaming tax regime which is applicable.
The Chief Executive Officers and other high ranking personnel within such gaming companies have also been given some special tax breaks in terms of the Highly Qualified Persons Rules, as amended. Such recent additions to the fiscal regime in Malta have made this jurisdiction even more attractive for international clients setting up Maltese business in the gaming sector.
Gaming companies setting up in Malta need the correct guidance in order to apply for their gaming license with the MGA, and also would require the correct advice and set up in order to meet the ongoing regulatory obligations which the latter Authority would impose.
Tax Benefits for Malta gaming companies:
Malta is one of the first European countries to spring to mind when it comes to iGaming, and with good reason: according to MGA’s Annual Report and audited Financial Statements for the financial year ending 31 December 2020, the total Gross Value Added generated by the gaming industry during 2020 is estimated at €924 million, around 8% of the economy’s total.
62.3% of the total GR of the B2C licensees was generated through Type 1 gambling, 78.2% of which came from slot games.
At the end of 2020, the number of companies licensed by the MGA, including both online and land-based entities, stood at 323. Of these, there are four license types:
Class 1: Casino Style Games, Lotteries and Slots – 49%
Class 2: Sports betting – 37%
Class 3: P2P, Betting Exchanges, Skins, Tournaments and Bingo – 11%
Class 4: Software vendors taking commission on wagers – 3%
A lot of promising startups from Malta founded between 2016 and 2020, which are continuing to grow nicely despite these rather uncertain times, among them:
- Pixel.Bet: was founded in 2018 with the mission to create a transparent and tailored iGaming experience for everyone that loves esports.
- Cashcow: was founded in 2017 and is focused on generating valuable leads for a variety of partners and affiliation verticals.
- Rootz: a total iGaming solution built to manage all aspects of an online casino.
- KTO Group: an online gaming startup that was founded in 2018 and specialises in agile software solutions, developing unique and innovative mobile, desktop, and app packages, as well as UX, design, and additional support services.
- Gambling.com Group Plc: a multi-award-winning provider of digital marketing services for the global online gaming industry.
- Hero Gaming: was founded in 2014 by a group of passionate iGaming professionals with vast experience from industry leading gaming operators.
- Game Protocol: a crypto-based crowdfunding platform for games and decentralized game store.
- ProgressPlay: a full-service white label casino solution for smartphones, tablets, and PCs.
- Cryptic Legends: squad management game with strategic elements, automatic turn-based battles and player-to-player trading using blockchain.
- CoinMillions: a high-stakes gambling platform for cryptocurrencies.
- JumaPlay: a casino platform that delivers a massive amount of social synergy incorporated in high-quality actual 3D games.
- iGaming Group: vast portfolio of platform solutions and tech products in the iGaming business.
- White Hat Gaming: the market-leading technology platform for online gambling and sports betting in regulated markets.
- Chelbis Company Ltd: has adopted a multi-brand and multi-network approach in redefining the gaming operations world.
- SPORT.Guru: brings exciting DFS Games to Germany & the EU, with multiple sport type like Fantasy Football, Motorsports, and US Sports.
- PlayCrowd: the world’s first mobile cash treasure hunt adventure. Find cash prizes hidden in your city!
- The Mill Adventure: a provider of a gaming platform for rapid development and success in iGaming that includes licenses and operations.
The main reasons international gaming operations
have and continue to choose Malta include:
✪ The robust regulatory framework that is in line with the main EU directives;
✪ A highly effective and efficient regulator;
✪ A highly reputable licence;
✪ Easy setup and licencing process;
✪ Established financial services institutions (including payment gateways) for Maltese iGaming companies and;
✪ A very attractive fiscal regime for iGaming operators which allows gaming companies to retain a high portion of their profits.
Malta’s corporate tax rate is set at 35%, but businesses are allowed to claim back most of this as a rebate, meaning that companies effectively pay just 5% tax on their profits.
The personal tax regime is also very attractive, with top earners paying a maximum of 35%, while professionals with certain skills pay as little as 15%.
Malta Gaming License 2023:
Gaming License For B2C:
Non- Refundable Annual Fee paid in advance upon the issue of license — €25,000
Administrative / Renewal Fee — €5,000
Compliance Contribution Fees:
- 1 License Class, a minimum compliance contribution of €15,000 which is capped at €375,000, with a percentage range from 0.4% to 1.25%;
- 2 License Class, a minimum compliance contribution of €25,000 which is capped at €600,000, with a percentage range from 0.4% to 4%;
- 3 License Class, a minimum compliance contribution of €25,000 which is capped at €500,000, with a percentage range from 0.4% to 4%;
B2C licencees startups are exempt from paying their compliance contributions for one year.
Gaming License For B2B:
For a Class 4 license: an annual fee of €25,000 to €35,000, is paid dependent on gaming revenue.
B2B Licensees are not required to pay compliance contributions.