Malta has established itself as a premier destination for gaming. With its robust regulatory framework, favourable tax conditions, and attractive lifestyle,
Malta has become a magnet for games not on GamStop UK.
The Malta Gaming Authority (MGA)
The Malta Gaming Authority (MGA) is the primary regulatory body overseeing gaming activities in Malta. Since its establishment in 2004, the MGA has earned a reputation for its strict regulatory standards and commitment to fair play.
The authority provides a secure and stable environment for gaming operators, ensuring player protection and industry integrity.
Types of Licenses
The MGA offers several types of licenses, each catering to different gaming activities:
- Games of chance with a random number generator (RNG)
- Fixed-odds betting
- Peer-to-peer games such as poker
- Sports betting
Additionally, the Malta gaming license provides a “Recognition Notice” for entities licensed in other EU/EEA Member States, allowing them to operate in Malta.
The Application Process
The application process for obtaining a gaming license in Malta is designed to be thorough yet efficient. Companies must submit their applications through the MGA’s eServices portal, where the application undergoes several stages of evaluation.
These stages include a fitness and properness check, a detailed review of the company’s technical and administrative capabilities, and an assessment of regulatory compatibility.
This comprehensive evaluation ensures that only reputable and capable operators receive gaming license Malta.
Fitness and Properness Check
The fitness and properness check involves a rigorous assessment of the applicant’s integrity, financial stability, and business competence.
This includes background checks on company directors and key personnel, ensuring they have no criminal history and possess the necessary experience and qualifications to run a gaming operation.
The MGA also evaluates the financial health of the company to ensure it can sustain its operations and meet its obligations.
Technical and Administrative Review
The technical and administrative review focuses on the company’s operational readiness. This involves scrutinising the gaming systems, software, and technical infrastructure to ensure they meet the MGA’s stringent standards for fairness, security, and reliability.
The MGA also assesses the company’s administrative processes, including its internal controls, accounting systems, and record-keeping practices.
Regulatory Compatibility
Regulatory compatibility ensures that the applicant’s operations align with Maltese laws and regulations. This includes compliance with the Gaming Act, anti-money laundering laws, and other relevant legal requirements.
The MGA works closely with applicants to ensure they understand and can adhere to these regulations, fostering a cooperative regulatory environment.
Setting Up Operations in Malta
Once a company is granted a license, it must establish a physical presence in Malta. This involves setting up an office, employing staff, and opening banking accounts within the country.
At least one shareholder and one director with Maltese residency must be part of the company’s structure. This local presence helps ensure that companies are genuinely committed to contributing to the Maltese economy and complying with local regulations.
Office Requirements
Companies must establish a registered office in Malta, which serves as the primary point of contact for regulatory communications and operational activities.
This office must be equipped with the necessary infrastructure to support the company’s gaming operations, including secure servers, reliable internet connections, and robust data protection measures.
Staffing Requirements
To operate in Malta, gaming companies must employ several key personnel, including a compliance officer, internal auditor, and data protection officer.
These roles are crucial for ensuring ongoing compliance with regulatory requirements and maintaining high standards of operation. The MGA mandates that at least one director reside in Malta, further ensuring that companies maintain a strong local presence.
Why Online Casinos Choose Malta
EU Membership and Regulations
Malta’s membership in the European Union (EU) provides a stable business environment and allows malta casinos to offer their services across the EU. This cross-border service capability is a significant advantage for gaming companies seeking to expand their reach.
Licensing Process and Costs
The MGA’s licensing process is clear and comprehensive, making it attractive for a range of online casinos not on gamstop. The application process typically takes between 12 to 16 weeks. The costs involved include:
- Application fee: €21,000 to €420,000
- Company registration fee
- Capital requirement: €34,000 to €200,000
- Annual license fee: €21,000
- Corporate taxes
Favourable Tax Conditions
Malta offers reasonable taxation rates for gaming companies. The tax structure is designed to be sustainable, allowing businesses to thrive while contributing to the local economy. This is a key factor in attracting gaming operators to Malta.
Skilled Labour Market
Malta boasts a diverse and skilled workforce, particularly in the iGaming sector. Educational institutions in Malta provide specialised courses tailored to the gaming industry, ensuring a steady supply of qualified professionals.
Quality of Life
Malta offers an attractive lifestyle with its Mediterranean climate, high standard of living, and robust infrastructure. These factors make it an appealing location for employees in the gaming industry.
Anti-Money Laundering (AML) and Responsible Gaming
Malta’s regulatory framework places a strong emphasis on anti-money laundering (AML) measures and responsible gaming practices.
Licensees must implement comprehensive AML procedures, including customer identity verification, transaction monitoring, and reporting of suspicious activities. These measures help prevent financial crimes and protect the integrity of the gaming sector.
Customer Identity Verification
Before customers can participate in gaming activities, licensees must verify their identities. This process involves collecting and verifying personal information such as the customer’s name, address, and date of birth. The MGA requires this information to prevent underage gambling, money laundering, and other illegal activities.
Ongoing Monitoring and Reporting
Licensees are required to continuously monitor customer transactions and behaviour to identify any suspicious activity. This involves using advanced analytics and monitoring tools to detect patterns that may indicate money laundering or fraud. Suspicious activity reports must be promptly submitted to the MGA, ensuring regulatory oversight and intervention when necessary.
Regulatory Requirements and Compliance
After obtaining a license, companies must comply with several regulations, including:
- Appointing a Money Laundering Reporting Officer (MLRO): Companies must designate a qualified individual to oversee anti-money laundering policies and procedures.
- Staff training: Employees must be trained regularly on compliance, anti-money laundering, and responsible gaming practices.
- Risk assessment: Companies need to conduct thorough risk assessments to identify and mitigate potential threats to their operations.
- Screening for persons on sanctions lists and Politically Exposed Persons (PEPs): Companies are required to screen their customers against international sanctions lists and identify any Politically Exposed Persons (PEPs).
- Transaction monitoring: Continuous monitoring of financial transactions is necessary to detect and prevent suspicious activities.
- Ongoing customer behaviour monitoring: Companies must monitor customer behaviour to identify any unusual or potentially illegal activities.
- Recordkeeping and reporting suspicious activities to the MGA: Detailed records of all transactions and activities must be maintained, and any suspicious activities must be promptly reported to the MGA.
Penalties for Non-Compliance
The MGA can impose penalties ranging from €8,000 to €420,000 for non-compliance. In severe cases, the maximum penalty can be five years of imprisonment.
Licensing Costs
| Item | Cost Range |
| Application Fee | €21,000 – €420,000 |
| Capital Requirement | €34,000 – €200,000 |
| Annual License Fee | €21,000 |
| Corporate Taxes | Varies |
The Future of Online Gaming in Malta
Malta’s online gaming industry shows no signs of slowing down. With continuous regulatory improvements and a strong commitment to maintaining high standards, Malta remains an attractive destination for gaming companies.
The country’s strategic location, coupled with its favourable business environment, positions it well for future growth and development in the online gaming sector.
Technological Advancements
Malta is keen to stay at the forefront of technological advancements in the gaming industry. The MGA encourages innovation and supports the adoption of new technologies, such as blockchain and cryptocurrencies, within a regulated framework.
This forward-thinking approach ensures that Malta remains competitive and attractive to cutting-edge gaming companies.
Market Expansion
As the global online gaming market continues to grow, Malta is poised to benefit from this expansion. The MGA’s recognition of licenses from other EU/EEA Member States facilitates cross-border operations, allowing Malta-based companies to tap into new markets.
This not only boosts the local economy but also enhances Malta’s reputation as a leading hub for online gaming.
FAQ
Why do online casinos choose Malta?
Malta offers a stable regulatory environment, favourable tax conditions, and access to the EU market. Its robust licensing process and attractive lifestyle make it a preferred location for gaming companies.
What types of licenses does the Malta Gaming Authority (MGA) offer?
The MGA offers licenses for games of chance with RNG, fixed-odds betting, peer-to-peer games like poker, and sports betting. It also provides a “Recognition Notice” for entities licensed in other EU/EEA Member States.
How long does it take to obtain a gaming license in Malta?
The application process typically takes between 12 to 16 weeks, involving a fitness and properness check, technical and administrative review, and regulatory compatibility assessment.
What are the costs associated with obtaining a gaming license in Malta?
The costs include an application fee of €21,000 to €420,000, a capital requirement of €34,000 to €200,000, an annual license fee of €21,000, and corporate taxes.
What are the AML requirements for gaming companies in Malta?
Gaming companies must implement AML procedures, including customer identity verification, transaction monitoring, and reporting of suspicious activities to the MGA.
What penalties can the MGA impose for non-compliance?
Penalties for non-compliance range from €8,000 to €420,000, with the maximum penalty being five years of imprisonment.
