It is important for any online casino to get a license as it establishes a trust to the platform, creates a good reputation and proves that the casino is reliable. There are many jurisdictions where gambling platforms can obtain a gaming license, but one of the most popular ones is Malta.

Maltese gambling jurisdiction

Malta was the first EU country which introduced legal online gaming regulations. The gambling jurisdiction started issuing licenses in 2000, and at that time the authorized body Lotteries and Gaming Authority was in charge of this process. One year later, the Malta Gaming Authority (MGA) was formed and took the responsibility for licensing online casino business.

Maltese gambling license types

Currently, Malta offers a Gaming Service license which refers to a B2C license for offering gaming services, and a Critical Gaming Supply license - a B2B license for providing gaming content.

In general, it is possible to choose a Maltese gaming license from 4 available options:

  • Type 1. License covering games of chance where the result is determined by a random generator (blackjack, baccarat, roulette, poker, slots).
  • Type 2. License for games of chance where the result is determined by the outcome of an event (sportsbook).
  • Type 3. License for games of chance where operators generate revenues by a commission based on stakes or prizes (player vs. player games - poker, bingo).
  • Type 4. License for controlled skill games where the result is determined by aggregating statistical performance results (fantasy sports).

Requirements for a gaming license in Malta

In order to apply for a gaming license in Malta, it is important to:

  • establish a legal entity, i.e., a company based in Malta, with phone and Internet lines registered on the current company address;
  • provide corporate company documents in English;
  • provide documents of all employees: CV, copies of passports, criminal records, recommendation letters, etc.;
  • provide a business plan, as well as financial and marketing plans (the business plan should include a detailed operation forecast with marketing strategies, HR planning, and growth targets);
  • provide all technical documentation, software quality certificates, records of stability, antivirus programs, information and data storage systems.

The MGA helps applicants during the process of getting a gaming license. Operators are going through the pre-application process together with the regulatory body to be sure all the requirements are followed. The actual application process consists of the 4 main steps:

  1. The MGA analyzes all information related to employees involved in financing and management, as well as conducts integrity investigations.
  2. The MGA analyzes the business plan.
  3. The applicant is examined on the instruments required to conduct the business (company’s documents, games, business processes, rules, terms, conditions, system architecture).
  4. In case the application is successful, the MGA invites the applicant to implement onto a technical environment in preparation for going live (60 days for operation). Then, a license is issued for 5 years.

After that, during the first and the third year of operation, an independent third party performs license compliance audits.

Maltese online gaming license costs and taxation

Application fee for a new license of any type

€5,000

Application fee for any type of license renewal

€5,000

Systems audit

€2,500

Compliance audit

€3,500

Annual 1, 2 or 3 license types fee

€25,000

Annual 4 license type fee

€10,000

Taxation

Type 1

€4,660 monthly during the first 6 months and €7,000 monthly after that

Type 1 operating on Type 4

€1,200 per month

Type 2

0.5% on the gross amount of all bets accepted

Type 3 and Type 3 on 4

5% of real income

Type 4

no tax levied for the first 6 months, €2,330 monthly for the following 6 months, and €4,660 per subsequent month for the entire license duration

Apart from that, there is a 5% Gaming Tax which is applied to Gaming Revenue generated from Malta-based players.

Main challenges while getting a gaming license in Malta

A Maltese gambling license is very reliable, however, the process of obtaining it is long and complicated. Apart from that, there are several challenges that operators licensed in Malta may face:

  • relatively high taxes and license fees;
  • the requirement to provide large amounts of financial reports;
  • operators must open an office in Malta;
  • long application procedure.

Main advantages of gaming license in Malta

Maltese jurisdiction license is popular among experienced gambling operators.

Entrepreneurs who start gambling business in Malta can operate in favorable conditions due to the loyal legislation.

Among the other advantages of Maltese gambling license there are:

  • stable regulatory framework;
  • players and operators protection;
  • prevention of money laundering;
  • prestige and reputation of a high-class casino;
  • possibility to obtain multiple licenses;
  • stable political and business environment;
  • chance to get a resident permit in Malta.

To make the online gaming platform operation successful, it is important to obtain a license for your online casino. As the process of getting a license is usually complicated and requires time while dealing with various legal issues, Slotegrator helps operators to undergo this procedure. Obtaining a gaming license with Slotegrator makes the document preparation and company registering faster and easier.