Remote Gaming in Malta

In the last few years, a large number of remote gaming operators have established themselves in Malta and the Malta Gaming Authority has to date issued over 400 licenses.

The Gaming Licenses 

There are four (4) different gaming licenses that a prospective applicant may apply for, being: 

  1. Class 1 Remote Gaming License – a remote gaming license. Operators applying for this license shall manage their own risk by offering players repetitive games which results depend on random generation e.g.: casino type games, slots and other games of chance; 
  2. Class 2 Remote Gaming License - a remote betting office license. Operators operating this license manage their own risk by offering bets on events based on a matchbook e.g.: fixed-odds betting; 
  3. Class 3 Remote Gaming License - a license to promote and, or abet remote gaming from Malta) (e.g.: poker networks, bingo networks, betting exchange and other pool and Player to Player (P2P games) 
  4. Class 4 Remote Gaming License – a license to host and manage remote gaming operators) excluding the licensee himself. Operators with this license are B2B operators that provide management and hosting facilities on their gaming platform to other B2C operators and EEA licensees.  When a gaming operator uses the infrastructure of a licensed Class 4 operator, such operator will be deemed to be a Class 1/2/3 on 4 operator.

Gaming Tax

Gaming Tax must be paid to the MGA every month in accordance to the following schedule:

Class

Amount of Tax (payable monthly)

Class 1

€4,660        for the first 6 months

€7,000        for every month thereafter

Class 1 on 4

€1,200        flat fee

Class 2

0.5%          of the gross amounts of bets accepted in remote betting operations

Class 3

5%            of real income*  [* Real income = Rake less bonus less intermediary commissions less payment gateway processing fees]

Class 4

NIL (0)       for the first 6 months; €2,330 for the subsequent 6 months

€4,660        every month thereafter

 

Taxation of Gaming Companies

Malta gaming companies are subject to tax at the rate of 35% on their worldwide income and capital gains.  On distribution of the profits, a refund of tax is paid by the Maltese tax authorities to the company’s immediate shareholder/s amounting to 6/7ths of the corporate tax paid by the company.  Maltese companies may claim double taxation relief in terms of Malta’s extensive tax treaty network and also in terms of Malta’s tax legislation, where relief in terms of a treaty is not available.

Why Malta?

-          Malta is the only country within the EU which regulates remote gaming

-          A well-regulated jurisdiction which safeguards the interests of both operators and players

-          A very attractive fiscal regime

-          Attractive tax rates for highly qualified employees working with gaming companies in eligible offices

-          An efficient gaming license process

-          A stable political climate and a democratic country

-          A number of licensed financial services institutions already established in Malta

-          Support services by a number of professionals to assist Malta gaming companies

-          A highly qualified and skilled Maltese gaming workforce that is fluent in various languages

-          A state-of-the-art telecommunications infrastructure

How can we help?

We offer a wide range of consultancy, tax, compliance and accountancy services to assist you throughout in each step of the application process. Our multi-disciplinary team of professionals will not only assist you during pre-licensing process but will be able to provide you with the on-going support you may need with respect to regulatory compliance, accounting and tax matters.

For further information please contact the firm’s tax and corporate services partner Stephen Balzan (sbalzan@act.com.mt).

Please visit the following link for our article on Remote Gaming in Malta http://www.act.com.mt/articles-publications/Remote-Gaming-In-Malta.php

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