Malta is one of the leading jurisdictions for obtaining a gambling license. This European country, located in the Mediterranean Sea, is known for its prestigious regulatory body, developed data security standards, and transparent legislation. When applying for a gambling license in Malta, a company confirms its readiness to comply with the norms, requirements, and rules set by the state.

 

The licensing process in this jurisdiction is characterized by complexity. Applicants need to overcome a detailed check, including their financial stability, the legality of the origin of funds, etc. However, the successful obtainment of a license will provide your company with a high status, recognition, and trust in the international gambling arena. To maximize the chances of obtaining this prestigious permit, we recommend that you use the help of our Lawrange Attorneys at Law. We provide all the necessary services, including on a comprehensive basis, thereby facilitating the process of registering a Maltese gambling license.

 

The concept of a gambling license

To organize a casino, lottery, betting shop, poker, betting exchange or any other type of gambling, you need to obtain a permit in the form of a gambling license from the regulatory authority of the country where you plan to conduct the relevant business. This permit is designed to make the gambling market more transparent and safe for all participants. It can provide your company with financial stability, the ability to conduct business on a legal basis, and broad prospects for the development of future gambling projects.

 

Gambling licenses differ in various parameters, including the level of complexity of registration, functionality (designed for certain types of games or, for example, complex), requirements to be fulfilled after obtaining them, etc. A gambling license in Malta is considered one of the most prestigious in the world, and it is more expensive, for example, than in the UK, but cheaper than in Curacao. There is a relatively high taxation of the gambling business, considerable state fees, and the cost of maintaining a real office.

 

The licensing procedure itself is considered to be quite complicated, as the licensee needs to prepare a massive package of documentation, each element of which must be executed in accordance with local law. Nevertheless, despite some difficulties, the number of those wishing to obtain a Maltese gambling license does not decrease. This is because it gives its holder access to a much larger number of significant advantages.

 

Why it is worth obtaining a gambling license in Malta

Malta is a small Mediterranean country with a population of about half a million people, high economic indicators, and a pleasant business climate. This jurisdiction is one of the most popular countries for conducting most modern types of business. It offers various advantages to entrepreneurs, individuals and investors looking for a safe and attractive business environment.

 

One of the most prestigious regulatory bodies

The Malta Gaming Authority (MGA) has been licensing gambling businesses for over 20 years. Players from all over the world trust this regulator more than any other global license provider. By displaying a license from MGA on its website, a company automatically inspires trust among potential customers. This Regulator is known for its strictness and integrity in the issues of compliance with all, even minor, norms and requirements of both operators and users. The presence of a license in Malta allows players to remain confident that their data is safe and the gaming environment is fair enough.

 

Well-designed regulatory framework

Malta has a set of well-established regulations, documents, and various decrees. They contain clear instructions and rules for online gaming providers as well as for their customers. This ensures a fair and transparent gaming environment that benefits both operators and players. The MGA ensures that all online gaming on the island is authorized and verified for legality and integrity.

 

Access to the international gambling market

Malta is a small state that is a member of the EU, so a gambling license issued in Malta is valid in all European countries. It can be used to accept players from many jurisdictions, including the Asian region, where online gambling regulation is not prevalent. This will help to significantly scale the business, thereby increasing its profitability and prospects.

 

Many tax benefits

One of the main reasons why Malta is so popular among online gambling companies is its tax incentives. Although the corporate tax rate here is 35%, it can be reduced to 0-10% for foreign gambling companies depending on the type of income. At the same time, entrepreneurs can avoid double taxation in many countries – Malta has concluded agreements with more than seven dozen jurisdictions around the world.

 

Skilled labor force

The high level of qualification of employees in the online gambling ecosystem in Malta proves to be vital for success in the gambling business. There is a large concentration of true professionals in the gambling sector in this country, and this number is steadily increasing year after year. Obtaining a gambling license in Malta allows operators and providers to attract the best specialists with extensive experience in the gambling industry.

 

Reliable technological infrastructure

Malta is interested in having as many organizations as possible obtain a license, so it does not stop making efforts to create an appropriate IT infrastructure and maintain it at a high level. Entrepreneurs have access to high-speed, uninterrupted Internet, modern business tools, such as payment gateways developed for the gambling industry, etc.

 

Requirements for obtaining a gambling license in Malta

In order to successfully overcome the licensing process, it is important to fulfill a number of conditions set by the MGA. This is a guarantee that all gambling business activities in Malta will be conducted on the basis of honesty and transparency, while protecting the interests of players and operators.

 

Thorough preparation for running a gambling business

The applicant must prove its readiness and ability to conduct gambling business, as well as confirm that it has a clear understanding of the risks and responsibilities associated with such activities. Preparation is important:

 

  • A business plan – a document that not only describes the company’s activities but also sets out marketing plans, budget, profit forecasts, and describes possible risks.
  • Sufficient resources to support the business – the company should demonstrate its solvency to convince the Regulator that it will definitely provide players with winnings. Depending on the type of activity, the size of the authorized capital can range from 40-240 thousand euros.

 

The applicant should also take care of opening a bank and merchant account in advance. In the first case, it is an account that the company uses to store and manage its own assets. A merchant account is necessary to accept payments from players and conduct financial transactions.

 

The candidate must have a clearly defined business strategy that meets the goals and objectives of the company. This means the development of:

 

  • a comprehensive marketing plan;
  • identification of target markets;
  • setting clear goals and revenue forecasts, etc.

 

Compliance with the law

The ability to meet the operational and legal requirements set by the government is one of the most important regulatory requirements. The company is obliged to comply with every regulatory and legislative regulation related to the operation of the gambling business. This includes direct licensing, necessary reporting, development and implementation of policies and procedures for combating money laundering and developing social responsibility.

 

Successful implementation and testing of a gaming system in a virtual environment

Before starting a business, an applicant must successfully test and verify the gaming system in a virtual environment. This is necessary to make sure that the system is functional and meets all technical requirements. The company is obliged to ensure the convenience and high quality of the user experience for customers.

 

Important! The applicant’s constituent documents, business processes, policies, procedures, technical documentation, and gaming system are evaluated during the process of reviewing the application for licensing. The type of license determines the minimum share capital required to be deposited to the company’s bank account.

 

The process of obtaining a gambling license in Malta

To obtain a Malta gambling license, you need to take several important steps. The entire licensing process can take from 4-5 to 12 months, depending on the correctness and completeness of the application. Incomplete applications for a gambling license in Malta within 60 days are marked with the appropriate status – “incomplete”. If the licensee fails to fulfill all the requirements or provide missing documents within this period, the application will be rejected and closed.

 

Choosing the appropriate class of permit

This jurisdiction offers 4 classes of gambling permits. The choice depends entirely on the type of activity of your company – casino, gaming provider, betting shop, lotteries, etc. Sometimes it can be difficult to make a choice, especially if you have a complex project that includes several types of activities, so we recommend that you seek professional help.

 

Registration of a legal entity

You need to decide on the legal form and register the company. A full package of documents and an application are submitted to the regulator. The application for registration of a legal entity takes several weeks to be processed. Company registration in Malta requires a local legal address, as well as registration with the Commissionerate of Revenue (CFR) to participate in the taxation system.

 

Opening a bank account

To do this, you need to contact a local bank or any bank in the EU. However, it is important to understand that quite often in other jurisdictions, opening an account for gambling companies can be associated with a number of problems, since not all banking organizations are ready to cooperate with the gambling business. At the same time, there are no such difficulties in Malta.

 

Preparation of documents

In addition to the business plan, the constituent documents (the Charter, the registration certificate) must be submitted to the Regulator:

 

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  • Police clearance certificates (issued no later than 3 months prior to the application) for each owner of the company, as well as for the applicant.
  • Documents confirming the fact of hiring employees for the positions to be filled.
  • Copies of the passports of the owners and the applicant, certified by a notary.
  • Compliance and software audit.
  • Data on the use of software and third-party agreements.
  • Proof of the use of Maltese gaming servers.
  • A document on the deposit of the start-up capital to the bank account (depending on the type and class of license).
  • Documents confirming the company’s ability to ensure the security of players’ personal data.

 

Submitting an application

It is necessary to submit an application and all documents to the MGA. The applicant is checked for the availability of tools necessary for running a business. If the check is successful, the licensee is informed about the need for an external inspection of the company’s technical equipment to ensure its readiness for commissioning. A 60-day period is allocated for this purpose. The applicant chooses who can conduct the technical inspection – the MGA or an independent third party.

 

If significant deviations are detected during the testing of the system, the applicant will have to resubmit the application using a new form. In case of successful completion of the licensing process, the license is issued for a period of 5 years.

 

Types of gambling licenses in Malta

Initially, various types of licenses were used in this jurisdiction, which greatly complicated the licensing process. The choice of a specific permit depended on the game that the operator planned to provide. However, about 2 years ago, the MGA simplified the situation by reducing the number of licenses to 2 options:

 

  • B2B (business-to-consumer), i.e. for companies that intend to provide gambling services aimed at consumers.
  • B2C (business to business) – for software providers.

 

In turn, these types of licenses are divided into 4 classes (categories).

 

Class 1. Remote gambling license

This class of permit is issued to those who want to open casinos, lotteries, slot machines, and other similar types of games based on the recurrence of events. In this case, operators need to manage gambling risk. The issuance of a Class 1 license is possible only if the company is physically present in the country and meets the technical and financial requirements of the MGA. The minimum amount of initial capital is 100,000 euros.

 

Class 2. Licenses for betting shop operators

This class of permit applies to online sports betting (betting), including fixed odds and spread betting. Operators are subject to the same requirements as for the previous class of license. The minimum capital share of this type is 100,000 euros.

 

Class 3. Licenses for peer-to-peer games

This license is issued by organizers of peer-to-peer games (between players), such as poker, bingo, and others, in which certain skills are important for participation. In this case, operators are not exposed to gambling risk but receive their income from commission fees, the amount of which depends on the bets or prize. The company can be located anywhere in the world, but it must have a legal address in Malta, following the technical and financial conditions of the MGA. The minimum share of capital for this class of license is 40,000 euros.

 

Class 4. Licenses for software providers

This type of license applies to suppliers of software and other solutions that are important for the gambling industry. The manufacturer of gambling software can be located outside the country, but must also have a company registered in Malta and meet the requirements of the MGA. The amount of start-up capital for legal entities with this class of licenses is 40,000 euros.

 

Maltese taxation

Malta has a favorable tax system for the gambling business. It is regulated by the Malta Income Tax Act and the Value Added Tax (VAT) Act.

 

Although the corporate tax rate of this jurisdiction is 35%, a gambling license in Malta gives the right to use a reduced rate of 5%. This is possible if the company meets certain criteria, for example, it is registered in Malta and has at least one resident director in its management team.

 

In addition to corporate tax, gambling operators are also subject to VAT, the standard rate of which is 18%. At the same time, in case of providing services in the form of gambling, a 5% rate applies. It is applicable, in particular, to online gambling services.

 

Malta is a member of the European Union VAT regime. As a result, Maltese-licensed gambling operators can benefit from the European VAT rules (for example, the reverse VAT mechanism, which allows operators to shift the responsibility for paying this type of tax to their customers under certain circumstances).

 

Why you should contact Lawrange

Our law firm has many years of experience in supporting the gambling licensing process in Malta. We provide a full range of basic and various ancillary services, the need for which arises depending on the specifics of each case. For example, our assistance will be useful not only for obtaining a gambling license in Malta, but also in the following cases:

 

  • company registration
  • preparation of a business plan;
  • preparation of documentation in accordance with the requirements of the MGA;
  • opening a bank account, etc.

 

We will advise you in detail not only on the advantages of this jurisdiction, but also point out the main difficulties that you may face in the process of licensing and further management of a legal entity. Due to our individual approach and readiness to be in touch with our clients 24/7 every day, we can take into account all the nuances: from engaging a credit card processing provider to interacting with the MGA on your behalf.

 

Lawrange’s experienced specialists take into account the business needs of each client and offer only relevant services that are suitable for solving specific problems. When you contact us, you can count on:

 

  • Honesty and diligence in the provision of services of any kind, which ensures the protection of the client’s interests.
  • Competitive pricing policy – we offer transparent prices.
  • Reliable and professional team – many years of experience of each member of our association will allow us to achieve great heights in business.

 

Conclusions

Malta is highly valued by investors in terms of business potential. This small European country with a strong economy and developed infrastructure is, among other things, a hub for various iGaming projects. It is here that one of the oldest and most respected gambling regulators in the world – MGA – operates. Obtaining a gambling license in Malta can add prestige to your business and significantly expand the range of customers. To successfully complete the licensing process, we recommend using the services of Lawrange. We are ready to provide prompt, comfortable registration of a Malta gambling license, so you will not have to be distracted by solving various legal tasks.

 

FAQ

How long does it take to obtain a gambling license in Malta?

The duration of this process depends on several factors, for example, the completeness of the application, the class of the license, and the level of complexity of the business. On average, the licensing process can take about 16-24 weeks, however, it is possible that this period may be extended if additional documentation or data is required.

 

Where can I use a Malta gambling license?

The Maltese gambling license is recognized in many European countries, as well as in some other countries, such as Canada, Australia, and New Zealand. However, in order to use it legally outside of Malta, it is important to familiarize yourself with the specific conditions and rules of each country in which operators plan to work.

 

What is the amount of the annual license fee in Malta?

The amount of annual fees depends on the class of license and can start from 10,000 euros for B2B and B2C enterprises.

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