Malta Gaming Industry Participation and Market Forecast
According to the Malta Gaming Authority (MGA), 56% of Malta’s population participates in gambling activities. Statista predicts that Malta’s online gambling market revenue will reach US$331.4 million by 2024, and revenue is expected to continue to grow in the coming years, attracting more domestic and foreign customers.
Why is Malta famous for gambling?
Malta is constantly updating its legal framework to ensure the gaming industry enjoys a reputable and trusted reputation. Since 2018, the regulator has developed a complex set of regulations based on technological developments and changing customer trends, and gaming operators need to stay abreast of these ongoing legal developments.
Gambling license in Malta
All companies wishing to legally offer gambling services in Malta must obtain a gambling license. This is regulated by the Gambling Act, which came into force in 2018 and covers all types of gambling activities, including physical casinos, remote casinos, and gambling games.
All licenses are issued by the Malta Gaming Authority (MGA). The MGA is responsible for supervising companies, providing approvals and certifications and revoking licenses, as well as preventing and detecting criminal activity in the gaming industry.
License Type
MGA offers the following types of gambling activities:
- Games of chance using random number generators
- Fixed Odds Betting
- Peer-to-peer games (e.g. poker)
- Sports Betting
In addition, the MGA also provides “Notices of Approval” to licensed entities in other EU/EEA member states, allowing them to carry out gambling services in Malta.
License Fees
Applications must be submitted through the MGA's electronic services portal, and a decision usually takes 12 to 16 weeks. If approved, the company can pay the necessary fees and obtain a license. Fees include:
- Application fees range from 25,000 to 500,000 Euros
- Company registration fees
- Capital requirement guaranteed, between EUR 40,000 and EUR 240,000
- The annual license fee is €25,000
- Corporate Tax
Before paying the license fee, operators must complete an application process, including checks on suitability, technical areas, administrative areas and regulatory compatibility.
other requirements
The company needs to meet the following requirements after obtaining the license:
- Opening of office in Malta
- At least one shareholder
- At least one director has Malta residency
- Open at least two bank accounts
- Hiring relevant staff such as compliance officers, internal auditors and data protection officers
Regulatory requirements
After obtaining a license, a company needs to comply with a series of regulations and is obliged to establish an appropriate anti-money laundering (AML) program. Therefore, licensees must obtain and verify the identity of customers before allowing them to gamble. Information required includes, but is not limited to, the customer's name, address and date of birth.
Other regulatory requirements include:
- Appointment of Money Laundering Reporting Officer (MLRO)
- employee training
- risk assessment
- Screening for persons on sanctions lists, Politically Exposed Person (PEP) lists
- Transaction monitoring
- Continuously monitor customer behavior
- Keep records
- Report Suspicious Activity
Continuous Compliance
The license is valid for 10 years and can be renewed as long as the company continues to comply with regulations. During this period, the MGA can monitor companies, suspend or revoke licenses and impose penalties. Fines vary depending on the type of offense, ranging from €10,000 to €500,000, with a maximum penalty of five years in prison.
Through its strict legal framework and regulatory requirements, Malta has successfully established a reputable gaming industry that has attracted a large number of domestic and foreign customers and investors.
Frequently Asked Questions
1. Are online casinos legal in Malta?
Yes, online casinos are legal in Malta. The Malta Gaming Authority (MGA) is the main regulatory body responsible for regulating online casinos. MGA ensures that all online gambling activities comply with national regulations and maintains a fair and transparent gambling environment.
2. How to obtain a gaming license in Malta?
Companies must submit an application to MGA’s eService platform to obtain approval in the following areas:
Suitable person: The company needs to demonstrate that its management and major shareholders meet the standards of integrity and good reputation.
technology: Companies must demonstrate the security and reliability of their technology platforms and systems, including random number generators and data protection measures.
administrative: The company needs to provide a detailed business plan and operating structure to ensure that it has adequate management capabilities.
Supervision: Companies must comply with all relevant regulations and requirements, including Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures.
3. How long does it take to obtain a Malta gaming license?
Obtaining a gaming license in Malta usually takes between 12 and 16 weeks. The process involves submitting an application, undergoing review, and completing the necessary approvals. Once all requirements are met, the company can pay the necessary fees and obtain the license.
By following the above steps, any gaming company wishing to operate legally in Malta can obtain the required licenses, thus ensuring the legality and compliance of its operations.
