Malta is the independent republic, the member of the British Commonwealth. Malta has become a part of the EU since May 1, 2004.This island state is also one of the biggest and the most honored online gambling licensing jurisdictions across the globe. The authorized body – Lotteries and Gaming Authority – began issuing online gambling licenses in 2000.
In 2004, gambling regulatory rules were reorganized and Malta established 4 types of gambling licenses.
Malta gambling license types
Maltese jurisdiction issues the following gambling licenses:
- Licenses for operators providing online casino games, lotteries, slots, gambling and random number generator games.
- Licenses for operators offering online sport betting, pool betting and spread betting.
- Licenses to abet and promote gambling, including P2P, poker networks, betting exchange and game portals.
- Licenses for companies dealing with hosting and managing game operations remotely. These companies are not operators, but software suppliers that provide controlling and hosting of the objects on their platforms.
Requirements for applicant companies
- 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: curriculum vitae, copies of passports, non-conviction certificates, recommendation letters etc.;
- provide a business plan, financial and marketing plans;
- provide all technical documentation, software quality certificates, records of stability, antivirus programs, information and data storage systems.
Licenses costs and taxation
Licenses are issued for 5 years.
Filing of a new license application costs € 2,330. Equipment audit costs € 1,770. Annual fee for Class 1, 2, 3 licenses is € 8,500.
- Tax for the Class 1 license is €4,600 for the first 6 months, then - €7,000. This license operates on the platform under a Class 4 license, which costs €1,200 per month.
- The Class 2 license is taxed at 0.5% from the total betting sum. This license also operates on the platform under a Class 4 license, which costs €1,200 per month.
- The Class 3 license is taxed at 5% from the net revenue.
- The Class 4 license is free for the first 6 months, the next 6 months cost €2,330, and beginning from the 13th month - €4,660 per each month.
There is a fixed profit tax rate, as well – 35%. The effective tax rate for shareholders who have the possibility to 6/7 tax refund can be 5%.
Maltese licenses advantages
Maltese jurisdiction license is authoritative and popular among experienced gambling operators.
Entrepreneurs who began gambling business in Malta can operate in favorable conditions due to the loyal legislation and preferential taxation.
Getting Maltese gambling license gives operators a chance to open Merchant Account for online financial operations.
Among other Maltese jurisdiction advantages one can determine the following:
- European legislation;
- sustained political and business environment;
- one of the most profitable offshore zones;
- prestige of the jurisdiction;
- high level of confidence among potential clients;
- profitable tax concessions;
- chance to get a resident permit in Malta.