Gaming License – MGA
What is the MGA and what does it do?
The Malta Gaming Authority (MGA) is the regulatory body responsible for overseeing all forms of gaming in Malta, both land-based and online. Established in 2001, the MGA’s primary role is to ensure that gaming operations are fair, transparent, free from crime and corruption, protecting minor and vulnerable players. Its vision is to be a world-class gaming authority, implementing best practices, regulating and supporting the sustainable evolution of the thriving gaming sector’s.
Why obtain a Gaming License in Malta?
A Gaming License in Malta benefits from:
- Malta’s tax incentive framework effectively reduces the tax rate to 5%, making it a tax-friendly jurisdiction for gambling operations.
- Globally acknowledged, the Malta gaming license boosts company credibility, fostering confidence among players and stakeholders.
- Malta’s stringent but fair regulations ensure the safety and integrity of gaming platforms for players.
- As an EU member, Malta’s stable political and economic environment supports the growth of the gambling industry.
- More than 70 double taxation agreements help lessen additional tax liabilities, improving financial efficiency.
- The license’s international esteem facilitates companies’ expansion into global markets.
- Malta’s dedication to enhancing its gaming regulations creates a supportive atmosphere for business growth.
- The Maltese government actively supports the gaming industry, providing tax incentives and market access to operators.
Types of Gaming Licenses
The MGA offers two primary types of licenses for gaming operators, and entities intending to engage in all roles may require both licenses:
- Gaming Supplier License (B2B): Suitable for companies providing gaming products and services to other licensed operators. This includes:
- Game Providers
- Back Office
- Corporate Group License
- Gaming Service License (B2C): Designed for entities that wish to offer remote gaming services directly to consumers or end users. These licenses are categorized based on the type of activities offered:
- Type 1
- Type 2
- Type 3
- Type 4
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 table below:
| 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) |
Application Fees
A non-refundable application fee of 5,000 EUR needs to be paid for a gaming license application to be considered as complete. The initial license fee needs to be paid at the last step of the application process, prior to the issuing of the license.
Annual Fees
The annual contributions payable to the MGA vary based on the type of license. Additionally, the fees need to be paid upfront in advance, and are non-refundable.
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 remote gaming 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.
Obtaining an MGA Gaming License with SALVUS
The SALVUS Gaming Services Licensing team consists of specialised professionals able to support you in every step of your Gaming License application with MGA. Our experts employ high-quality project management and stand ready to support you in selecting the most appropriate type and structure of Gaming License based on your business objectives and vision.
We work closely with our clients and their teams in collecting and preparing the necessary documentation for submitting a complete application to the regulator, ensuring instantaneousness. We further provide guidance and assistance, in order to satisfy all your post-registration regulatory obligations for the successful launch of operations.
Contact us at info@salvusfunds.com if you are interested in obtaining a Gaming License in Malta under the MGA.
