Level Up with Prestige: The Malta Gaming License from the Malta Gaming Authority (MGA) – Your Passport to Unmatched Online Gaming Worldwide

Malta stands as the pioneering Member State within the European Union (EU) to establish regulations governing online gaming. Recognized as a leading online gaming jurisdiction, it has become the preferred destination for operators seeking licensing for their online gaming ventures. The Malta Gaming Authority (MGA) issues the Malta gaming license, widely acknowledged as one of the most esteemed licenses in the global online gaming landscape.

The MGA license encompasses a comprehensive range of gaming verticals, spanning casino games, RNG-based games, lotteries, sports betting, fantasy sports, p2p games, online poker, and game provision. These are all encompassed under either a B2C license or B2B license, in alignment with the Gaming Act introduced by the Malta Gaming Authority in 2018.

A recognition Notice

A Recognition Notice is an official acknowledgment from the Malta Gaming Authority (MGA) where an authorization granted by another Member State of the EU or the EEA, or a State that the Authority deems to provide safeguards comparable to those offered by Maltese law, is acknowledged to possess the same effect as an authorization issued by the Authority. This recognition is specifically to offer gaming services or gaming supplies in or from Malta.

This primarily pertains to licenses granted by another EU Member State (or EEA) that, upon authorization by the MGA, can operate in and from Malta without the necessity of obtaining an MGA license.

Recognition notices can be granted for both B2C-type services and B2B supplies, encompassing all MGA Types: Type 1, 2, 3, and 4.

In cases where the license issued in a particular EU member State differs from the licenses issued by the MGA, the decision to accept or reject the issuance of a recognition approval will always be contingent upon the discretion of the Maltese gaming authority.

A Recognition Notice incurs a fee, payable in advance to the MGA, amounting to €5,000 per year, in adherence to Regulation 22 of the Gaming Authorizations Regulations.

Advantages of establishing your business in Malta

In addition to possessing some of the most innovative and robust online gaming regulations globally, Malta is actively expanding on its 15+ years of success, earning the prestigious title of the iGaming capital in Europe. The country achieves this by enhancing various benefits and incentives designed to attract gaming businesses to its shores.

Among these incentives are special advantages for employees of online gaming companies holding a Malta Gaming Authority (MGA) gaming license. Such perks include reduced rates of income tax on personal income for highly qualified individuals, dividend refunds for online gaming companies resulting in an effective tax rate as low as 5%, and the provision of double taxation relief.

Non-residents choosing to relocate to Malta can also enjoy attractive incentives through programs such as the Residence Program and the Global Residence Program.

Combined with favorable gaming taxes covering online gaming in Malta, the MGA license stands out as one of the most sought-after gaming licenses, contributing to Malta’s overall competitive tax rates globally. This has led to a consistent year-over-year increase in the number of licensees operating under a Malta (MGA) license, along with a growing influx of gaming operators making Malta their preferred base of operations.

Malta License categories

The MGA primarily provides two main types of licenses, and applicants have the option to apply for either a Gaming Service License or a Critical Gaming Supply License, as elaborated below.

A Gaming Service License is a business-to-consumer (B2C) license for offering or conducting a gaming service. On the other hand, a Critical Gaming Supply License is a business-to-business (B2B) license for providing or executing a critical gaming supply.

The term “gaming service” includes activities such as offering, providing, or operating a gaming service, as well as hosting gaming devices or systems accessible to the public on one’s premises. Meanwhile, “critical gaming supply” encompasses the supply and management of essential elements of a game, as well as the supply and management of software used to generate, capture, control, or process essential regulatory records. It also includes the supply and management of the control system itself, housing the software.

Applicants seeking a gaming service or critical gaming supply license have the flexibility to offer one or more of the following game types:

• Type 1: Games of chance played against the house, determined by a random generator, including casino games like roulette, blackjack, baccarat, poker against the house, lotteries, secondary lotteries, and virtual sports games.
• Type 2: Games of chance played against the house, where outcomes are determined by an event or competition outside the game, with operators managing risk by adjusting odds.
• Type 3: Games of chance not against the house, where operators earn revenue through commissions or charges based on stakes or prizes. This category includes player-versus-player games like poker, bingo, betting exchange, and other commission-based games.
• Type 4: Controlled skill games as defined by regulation 8 of the Gaming Authorizations Regulations. Additional information can be found here.

In cases where a game exhibits elements falling under multiple types, the categorization is at the discretion of the MGA to reflect the game’s nature most accurately.

The MGA mandates separate approval for each gaming vertical to ensure compliance with the law and regulatory objectives.

• Casino;
• Live casino;
• Lotteries and secondary lotteries;
• Fixed odds betting;
• Pool betting, including betting exchange;
• Poker and other commission-based, peer-to-peer games such as bingo, but excluding betting exchange;
• Lottery messenger services; and;
• Controlled skill games.

Malta Administrative & License Fees

License & Compliance Obligations

The Gaming License Fees Regulations (L.N. 409 of 2017) came into effect on January 1, 2018.

Individuals holding a license issued by the MGA are required to remit the relevant non-refundable fixed annual license fee to the Authority. Additionally, licensees must fulfill the compliance contribution, the amount of which depends on the type of approval granted by the Authority.

For a gaming license application to be deemed complete, a non-refundable application fee must be submitted.

The annual license fee must be settled before the license is issued and subsequently paid on an annual basis. This fee is non-refundable and is required to be paid in advance. The specified amounts for the initial payment of the gaming license fee are as follows:

Following the initial year, the license fee is calculated as per the following guidelines:

Compliance Contribution

The payment of the Compliance Contribution is mandatory monthly, starting immediately after the month in which the license period commences. Subsequently, monthly payments are required, calculated based on the gaming revenue accrued during each month within a license period (referred to as ‘the reference month’). The due amount must be settled before the twentieth (20th) day of the month following the reference month.

The specific compliance contributions differ across license categories and are contingent on the nature of gaming activities conducted. The calculation can be determined according to the Gaming License Fees Regulations:

5% Gaming Tax

For gaming services provided to players physically located in Malta, the licensee is obligated to remit a gaming tax computed at a rate of five percent (5%) of the gaming revenue generated from the gaming service within a year.

As per Directive 4 of 2018 outlining the Calculation of Compliance Contribution, new operators are not required to pay the full minimum amount of compliance contribution to the Authority until a complete license period has transpired.

** Start-ups meeting the criteria outlined in the Directive on Start-Up Undertakings, by the requirements of the Gaming License and Regulations Fees Directive, will enjoy a twelve (12)-month moratorium period during which they are exempt from compliance contributions.

Other Annual Fees

Other Annual Fees, which apply to specific license types include: