Serious gaming companies understand the importance of a reputable license. Being perceived by players as safe and credible will provide for greater credibility to online game sites and therefore assist in making them more attractive to potential players. This will in turn facilitate player acquisition and retention and consequently lowers the costs associated with such acquisition. As all operators know, the cost of player acquisition can be a determining factor in the success or otherwise of their online gaming operation.

• Malta Gambling License Prices
• Malta Gambling License Cost
• Malta Online Gambling License Cost

The casino license can be obtained for completing online (virtual reality) gaming activities, remote gaming activities and for the establishment of traditional casinos. If you want to set up a business or buy a property and need details about the special licenses requested by the authorities, you can contact our law firm in Malta. Malta The Maltese license is the most expensive both at the application stage and in terms of ongoing maintenance. There are fees every 12 months and depending on what games you offer, there may be additional taxes. License holders also have to pay a compliance contribution that can reach EUR 600,000 depending on how much revenue the entity makes. The Malta Gaming Authority (MGA) has downloadable documents that are associated with the gaming sector in Malta. The list includes; Application Forms, Guidance Notes, Public Notices, Regulatory Policies, Fact Sheets and Links.

Malta offers the Online Gaming Industry a package that few other jurisdictions can match. The Remote Gaming Regulations issued in early 2004 by the Lotteries and Gaming Authority continue to enhance on the existing rules and further enhances Malta’s reputation as a jurisdiction to be trusted by both players and operators. Thanks to such industry specific legislation and regulations, Malta has, over the past 7 years become the number one jurisdiction for online gaming operations.

The Authority will grant licenses to operate gaming offices to such persons who have demonstrated “appropriate business ability to conduct the betting office successfully”.

The new rules provide for four different classes of licenses, namely:

Class 1 – Casino style games, lotteries and slots

Class 2 – Betting , pool and sports betting

Class 3 – Online games such as poker, betting exchange, bingo, tournaments

Class 4 – Provision of online gaming platform

Licenses are issued for a minimum period of five years and may be extended for further periods of five years each.

Licensing Requirements

Obtaining an online gaming license in Malta is a serious affair. It is not an issue of just paying the required fee. There is a detailed application process and the applicant and the proposed operation is subjected to detailed reviews aimed to ensure they meet the legal requirements as provided by local and international legislation and directives. In the long run, such a rigorous licensing process is of benefit to the operation itself. Keeping away the problematic operators can only enhance the reputation of our jurisdiction, which in turn will reflect on the local licensed companies

The licensing procedure is quite extensive but thanks to the professionalism of the persons involved, this procedure should not take more than two to three months.

The application for a gaming license requires the following documentation:

1. Detailed profile of the promoting company

2. A copy of the last audited accounts of the promoting company, where applicable

3. A business plan indicating the economic activity – including job creation if any – which will be carried out from Malta

4. A plan of the premises earmarked for adoption as a call centre – when applicable

5. Personal details of all shareholders having more than 5% interest in the local operations.

6. A detailed narrative of the software proposed to be used by the operator.

Basic Requirements

1. Both hardware and software involved in the operations must be located in Malta, and there exist companies that can provide this service without the need for the licensee to obtain its own hardware or premises they so require.

2. All licenses are issued only to companies registered in Malta

3. The company must nominate one of its directors as KEY OFFICIAL who will act as the main communication channel between the Authority and the Operating company.

Licence Fees

The costs associated with an online gaming license application are:

• Payable on submission of the license – Euro 2,350
• Payable for software review – Euro 2,350
• Payable once the license is issued – Euro 7,000
• Payable every year thereafter – Euro 1,200

Taxation

Once a gaming license is obtained, gaming tax will become payable to the authority from the date the operations goes LIVE.

The gaming tax varies depending on which class of license one obtains as follows:

Class 1 – fixed at Euro 4,650 monthly for the first 6 months and Euro 7,000 per month thereafter.

Class 2 – Betting operation – 0.5% (half of one percent) on gross amounts of bets

– Betting Exchange – 0.5%(half of one per cent) on net winnings

– Pool Betting – 0.5%(half of one per cent) on aggregate stakes paid.

Class 3 – 5% of net income

Class 4 – fixed at NIL per month for first 6 months, at Euro 2,330 monthly for next six months and at Euro4,660 monthly thereafter.

Company Registration

A Malta based gaming operation must be carried out by a Malta registered company as specified in Regulation 4 of the Remote Gaming Regulations (LN176/2004). Gaming companies are not subject to any special tax regime. In fact, online gaming operations may be carried out through a normal limited liability company registered in Malta under the Companies’ Act.

Taxation of Online Gaming Companies

Companies registered in Malta are taxable at the rate of 35% . However in view that Malta has the INPUTATION system of taxation, wherein tax paid by the company is transferred to the shareholders when a dividend is paid, shareholders are entitled to claim back any excess of tax paid by the company over their own personal tax rate. In the case of non resident shareholders such personal tax rate is just 5% which means that such non resident shareholder has a right of refund of 6/7ths of the tax paid by the company.

In addition, Malta does not levy withholding tax on any outbound distributions of dividends. The refund system and the absence of a dividend withholding tax ensures that profits derived by gaming companies are taxed and repatriated outside Malta in the most efficient manner.

Other Legal Issues

Malta became a member of the European Union on 1st May, 2004. Therefore companies registered in Malta have the right to operate in the Single European Market which itself is covered by various directives. Unfortunately online gaming is still the subject of heated discussions between member states and currently the industry is awaiting the results of the GREEN PAPER issued in 2011. Therefore every operator is encouraged to familiarize himself with the legislation of his target markets.

Obtaining a Malta online gaming license does not exclude you from complying with the laws of other countries

What Malta Offers

Fiscal Benefits

• Low taxation on gaming operations in Malta
• Tax leakage in Malta may be as low as 5%
• A wide network of double taxation agreements

Other Advantages

• A sound legal and financial system
• A sound ICT infrastructure
• Legislation on betting and e-commerce
• Strong regulatory bodies
• A solid international reputation
• Skilled work force
• Low cost of doing business
• State of the Art telecommunications facilities
• An internal market of circa 500 million EU citizens.

Disclaimer

The above information is being provided as a general guide only and should not be considered as a substitute for professional advice.

George Farrugia is the founding partner of MGI Malta. He can be reached at [email protected]

Malta is an island country in Europe that grants online casino licenses with low taxes. Here is the secret of the popularity of Malta among the owners of gambling clubs: it has excellent tax legislation, loyal conditions, and a whole ocean of prospects.

Malta has been issuing online casino licenses since 2000 and is a pioneer in this field. Today, this jurisdiction is considered to be reliable and authoritative, and many operators are trying to get a work permit in Malta.

If you are considering options for obtaining a license, it will be a good decision to sign up for a consultation with the managers from Gaminator. They will help you to understand the differences between various jurisdictions and choose the one that is perfect for your gambling project. Sign up right now!

A Review of the Malta Gaming License and its Advantages

Malta is a member of the European Union and, on the legislative level, has fixed criteria for the provision of services to clients. In the case of gambling clubs, these are: focus on the interests of gamblers, resolution of every issue that arises, and provision of the data protection of the highest level.

This is one of the reasons why players trust gambling clubs that have the Malta gaming license and feel safe to deposit money to such websites. But, of course, the jurisdiction still has more advantages.

Why Getting a Permit in Malta is Worth it:

• Malta is a member of the EU, and it gives operators from different countries many opportunities for their business: for example, there will be no difficulties in opening bank accounts, it will be easier to negotiate with partners, work with clients from all over the world, etc.;
• the Malta gaming license is recognised by all other EU members;
• excellent taxation system;
• the presence of a European license allows you to connect to a direct Merchant Account and process credit cards on the Web;
• business is under the protection of the government!

We would like to add that the list of the world's largest online casinos includes companies that operate under the Maltese permit, which is already a good reason to decide on this particular jurisdiction.

Types of Permits for Online Casinos in Malta

Some jurisdictions issue single licenses for all types of gambling activities. But Malta has its own special feature in this matter. Here, gaming regulations provide for the issuance one of four types of permits, depending on what exactly you are planning to do.

Categories of Maltese gambling licenses:

1. Licenses for operators of online clubs that use a random number generator: online casinos, lotteries, slot machines, etc.
2. Permits for bookmaker’s offices.
3. Licenses for promotional agencies, poker networks, and exchange rates.
4. Permits for gambling software vendors that produce gaming platforms, payment solutions, and security systems for the gambling business.

We recommend you to decide in advance on your future plans and file the necessary applications in order to avoid the need to obtain another license.

Conditions for the Acquisition of the Malta Gaming License

In any country, casino licensing is a rather complicated process, and in such a serious and respected jurisdiction as Malta, it is necessary to have a strong background.

Operators from countries listed under the Malta gaming license has to meet the following requirements:

• registration of a company in Malta;
• submission of a package of documents for each shareholder that owns more than 5% of the shares, as well as for the whole management team: copies of passports, bank statements, reference letters, resumes, etc. ― all that can be used to create a financial portrait of the participants;
• confirmed availability of technical and financial resources for conducting activities in the gaming sector;
• availability of the authorised share capital: from one hundred thousand euro for the first and the second class, and from forty thousand euro for the third and the fourth;
• drawing up a detailed business plan.

Malta is one of the few jurisdictions that are really interested in developing new business. Therefore, in Malta, a permit cannot be issued without a clear and well-developed business plan. We have decided to tell you in more detail about the requirements for drawing up this document since its validity can also be checked.

The business plan should contain:

1. The description of the goals of a future gambling project.
2. An approximate period when the project will pay off.
3. Business models for income generation.
4. The description of the structure of a company, job responsibilities, staff that needs to be involved, and the cost of its services.
5. The list of software, which is necessary for a successful operation of the casino.
6. The amount of money that is planned to be invested in the project and the proof of the legality of these funds.
7. The description of a marketing strategy.

Summarising the above, we can say that the business plan should fairly present the prospects of your future business.

As our experience shows, the Malta gaming license is issued to organisations with a strong business background and ambitious plans. So, it is exactly the business plan that can be essential to the commission.

Malta Gambling License Prices

Stages of Casino Licensing in the Jurisdiction of Malta

Stage №1

Submission of a package of documents to the MGA (Malta Gaming Authority), which includes a written application with a request for a permit, a business plan, information on founders and managers of the company, and other documents.

The commission analyses a business plan, the history of the founders, their characteristics, and the motivation for starting a business in Malta. If additional documents are not required, the stage is completed in two or three weeks.

Malta Gambling License Cost

Stage №2

The registration of a company in Malta and opening accounts in banking institutions.

At this stage, the technical aspect of the project is been checked: operating principles, the used software, data transfer schemes, etc. After verification, a temporary work permit is issued for a period of six months (with a possible extension for three more months).

During this time, an operator has to start carrying out his activity and be prepared for the audit. The second stage lasts on average from twelve to sixteen weeks.

Stage №3

The audit by an MGA specialist who keeps an eye on the development of the project during the period when the operator has a temporary license. In case of successful completion of the audit, a permit is issued for five years. Please remember that the regulator may prescribe additional conditions for work or a subsequent renewal of the document.

How to Obtain the Malta Gaming License?

Malta Online Gambling License Cost

If you have not faced the need to obtain a permit before, it will definitely be better for you to ask for the help of a more experienced partner. The Gaminator company offers you support during the entire licensing period.

We will answer all your questions including the Malta gaming license cost, deal with the preparation of documents, their translation, certification, and submission.

In addition, we will be happy to help you to create an online casino from scratch: together, we will select a gaming platform, the necessary software, and payment solutions. From us, it is also possible to rent a casino or purchase it on a turnkey basis. Entrust the development of your business to Gaminator.

Write to us right now:

• by e-mail: info@gaminatorsystem.com;
• on Skype: gaminator.deluxe;
• via the feedback form.