Obtaining a Gaming License in Malta in 2024
Malta has emerged as a premier hub for casino and gaming operations, renowned for its robust regulatory framework and attractive licensing regime. The Malta Gaming Authority (MGA) is the single regulatory body responsible for the governance of all gaming activities in Malta. Its mandate is to protect the Maltese Gaming jurisdiction by providing a comprehensive and transparent licensing process, along with ensuring that operators meet stringent standards of fairness, security, and compliance.
Throughout this article, the SALVUS Gaming Services Licensing team will guide you through the essential requirements for securing a gaming license in Malta, ensuring a smooth and successful entry into this dynamic industry. Additionally, this article analyses the following:
1. Why obtain a Gaming License in Malta?
2. What are the types of Gaming Licenses?
3. Gaming Services and Capital Requirements
4. Application Timeframe
5. How can SALVUS support your MGA application?
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1. Why obtain a Gaming License in Malta?
Malta, as the first EU Member State to adopt an online gambling framework, has been significantly navigating regulatory developments in the field. Obtaining a gaming license in Malta offers a wealth of opportunities for businesses seeking to establish a presence in this vibrant market.
Although the country is relatively small, the Maltese economy is strong, stable and constantly advancing. Due to its favourable tax environment with more than 70 double tax agreements, strategic location within the European Union, and a well-established infrastructure, Malta presents an ideal setting for gaming enterprises to thrive. Elaborating, Malta’s tax incentive framework effectively reduces the tax rate to 5%, making it a tax-friendly jurisdiction for gambling operations.
Another factor that makes Malta standout, is its skilled workforce in the internet Gaming (iGaming) sector, attracting numerous companies and professionals. The country’s education system, combined with specialized training programs, has cultivated a pool of talent with expertise in various aspects of iGaming. This is because the Maltese government actively supports the gaming industry, providing also tax incentives and market access to operators.
2. What are the types of Gaming Licenses?
The MGA grants two fundamental categories of licenses for gaming operators:
- The Gaming Supplier License (B2B) that is appropriate for entities supplying gaming products and services to other licensed operators:
- Game Providers and Back Office
- Corporate Group License
- The Gaming Service License (B2C) that is appropriate for entities intending to offer remote gaming services directly to consumers or end users and are categorized based on the activities offered into:
- Type 1
- Type 2
- Type 3
- Type 4
Entities intending to engage in both roles may require both B2C and B2B licenses.
Contact us at info@salvusfunds.com if you are interested in obtaining a Gaming License in Malta under the MGA.
3. Gaming Services and Capital Requirements
The table below outlines the business activities permitted under each license type for the Gaming Service License (B2C), along with the minimum initial capital requirement:
| Gaming Service License | Business Activities | Capital Requirements |
|---|---|---|
| Type 1 | - Casino; Random Number Generator (RNG) based casino games (live casino, roulette, blackjack etc.) - Lotteries - Secondary lotteries - Poker played against the house - Virtual sports games | 100,000 EUR |
| Type 2 | - Fixed odds betting (including, live betting) | 100,000 EUR |
| Type 3 | - Pool betting (including, betting exchange) - Peer-to-peer poker, bingo and other peer-to-peer games (excluding, pool betting) - Lottery messenger services - Commission based games | 40,000 EUR |
| Type 4 | - Controlled skill games | 40,000 EUR |
As for the Gaming Supplier License (B2B), the services and capital requirements are included in the following table:
| Gaming Supplier License | Business Activities | Capital Requirements |
|---|---|---|
| Game Providers and Back Office | - Supply and management of software, whether as a stand-alone, or as part of a system, to generate, capture, control, or otherwise process any essential regulatory record, or - Supply and management of the control system itself on which such software resides, and - Provide or carry out a critical gaming supply and management of material elements of a game from Malta to a Maltese person or through a Maltese legal entity. | 40,000 EUR |
| Corporate Group License | - Offer B2C services to its customers (via any types of verticals agreed to) - Provide its in-house software, platform and games to its own entities within the structure. - Subject to additional requirements. | 40,000 EUR – 240,000 EUR (Subject to additional requirements) |
4. Application Timeframe
The duration of the entire application process, from the applicant’s initial interaction with MGA to the start of operations, largely hinges on the applicant’s choice of the License Type and the iGaming services and products to be offered. Usually, the application process is concluded in 4 to 6 months. However, the complexity of the proposed business model and activities, along with the applicant’s readiness to comply with MGA’s specified requirements, significantly impacts the timeline.
5. How can SALVUS support your MGA application?
The SALVUS Gaming Services Licensing team employs a tailored project management approach, acknowledging the unique aspects of each licensing project. By understanding your business vision and objectives, we provide a carefully curated selection of license types aligned with your business plan.
Our experts, work closely with our clients and their teams, to ensure the preparation of a complete and robust application package, leading your interaction with the regulator.
Finally, we ensure that your application to the MGA is detailed and well-prepared, fulfilling all regulatory requirements for the successful launch of operations. Leveraging on our profound understanding of Malta’s financial regulations, we constitute a prominent choice for companies seeking to achieve regulatory compliance.
Contact us at info@salvusfunds.com if you are interested in obtaining a Gaming License in Malta or any other jurisdiction.
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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.