In 2023, the gambling industry accounted for 7% of Malta's Gross Value Added (GVA). This ratio remained consistent with 2022, marking a recovery from the early fluctuations caused by the COVID-19 pandemic. Over the past five years, the GVA of the gambling sector has grown by 25%, reaching approximately 1.34 billion euros in 2023. A report from the Malta Gaming Authority (MGA) revealed key data on industry performance, contributions, and future prospects.
Beyond direct contributions, the industry also fostered the development of related sectors such as professional services, information technology, and real estate. MGA's strategic focus on Business-to-Business (B2B) activities intensified these chain reactions, further consolidating Malta's reputation as a hub for high-value-added services.
Casino and Online Gambling Performance
The land-based casino sector saw a 17% increase in visitor numbers, reaching 925,088 by the end of the year, with foreign players accounting for over 62%. Consequently, total casino revenue also grew by 14.2%, benefiting from frequent gambling activities.
In the online gambling sector, active player accounts on MGA-licensed platforms grew by 1.7%, reaching nearly 37 million, although new account registrations decreased by 3.8% compared to 2022. The total number of issued gambling licenses reached 305, indicating stable growth in the sector.
Employment Growth
The gambling industry remains an important employer in Malta, directly employing 10,519 full-time employees engaged in MGA-regulated activities. Of these, 91% worked in the online gambling sector. Including indirect employment related to the industry (such as IT, legal, and real estate services roles), the total employment reached 16,428, accounting for 5.2% of Malta's total employment.
This growth was partly due to the expansion of service provider samples and increased outsourcing by gambling operators.
Taxation Changes
The "Pillar Two" rules introduced by the EU in 2023, requiring large multinational corporations to implement a minimum tax rate of 15%, marked a significant regulatory change. Malta has aligned with these rules, adapting to international standards while maintaining its competitive tax regime, as mentioned in the MGA report.
Future Outlook
Looking ahead, 72% of operators expect revenue growth in 2024, with many also predicting an increase in job opportunities. However, rising operational costs, particularly in legal, IT, and marketing sectors, pose challenges.
In terms of technology, innovations such as artificial intelligence (AI), cloud gaming, and blockchain are reshaping the industry. Operators are increasingly adopting these technologies to enhance personalized and immersive experiences, ensuring Malta's gambling industry remains at the forefront of global trends.
