Malta Gaming Authority
Malta is very popular among online casino operators. This is due to the fact that favorable conditions for gambling activities have been created on the territory of this European jurisdiction.
Malta became the first state in the European Union to regulate the remote gambling industry at the legislative level. The gambling business of this jurisdiction is regulated by the Remote Gaming Regulations S.L. 438.04″. To control the implementation of regulations and laws in the gambling entertainment industry, a special state body was created – the Malta Gaming Authority (MGA).
The Malta Gaming Authority issues 4 types of licenses to operators. The type of permit obtained will depend on the type of activity of the potential licensee.
General information about jurisdiction
Malta is the largest island of the Maltese archipelago. Gambling activity in the territory of this jurisdiction was licensed in 2000. And already in 2004 this state became a member of the EU. This was the impetus for serious and effective reforms. During this period, the procedure for licensing gambling establishments was also regulated.
Previously, the main state body that regulated the gambling entertainment industry was called The Lotteries and Gaming Authority (LGA). But in 2015, a rebranding was carried out, and this body received a new name – Malta Gaming Authority (MGA). The basis for the activities of this commission is the Law “On Games”. This legal act was adopted at the legislative level in 2018.
To date, the Malta Gaming Authority is engaged in issuing two types of licenses. The type of permit obtained will depend on the type of activity of potential licensees. Let’s take a closer look at each of these types:
- Business-to-Business (B2B) – This permission is issued to software vendors. Licensees of this type can supply gaming resources to other gambling establishments to ensure their activities;
- Business-to-Consumer (B2C) – This license is issued to operators who directly provide services to users.
In turn, these 2 types of licenses are divided into 4 classes. The class of the license obtained will depend on the type of activity of the company. Let’s take a closer look at each of them:
- Online Gaming License – this type of license is required for online casino operators whose gambling platforms offer lotteries and gambling based on the use of a random number generator. During the first six months from the date of obtaining the permit, the monthly license fee is 4660 euros, and in the future the cost will be increased to 7000 euros;
- Remote betting license — holders of this class of license are bookmakers and other operators that accept sports bets. License holders are required to pay a tax of 0.5% of their total income;
- License to promote and abet gaming – this license class is intended for operators who charge their users a commission for participating in games. These gambling entertainments include bingo, poker, stock bets and much more. Licensees are required to pay tax in the amount of 5% of the total profit;
- License to host and manage online gaming operators excluding licensee – licensees of this class of permission to carry out gambling activities are software and gambling equipment providers. During the first half of the year from the date of obtaining the permit, the operators are exempted from paying the license fee. In the future, this monthly tax will be 4660 euros.
Operators that are already licensees of a certain class can apply for an extension of the allowable range of services provided. To do this, they will need to submit a package of necessary documents for consideration by the regulatory level. Usually this procedure takes place in the shortest possible time.
Benefits of Obtaining a Malta Gaming Authority License
The gambling business plays one of the key roles in the economy of Malta. Over the past year, this industry has brought more than €1.5 billion to the state budget. This amount equals 13% of the GDP of this state. After analyzing the statistics, it can be concluded that this industry is the third largest private sector in Malta.
Realizing the value of gambling as a source of filling the state budget, the authorities are doing everything possible to create a favorable climate for the development of the gambling business.
In 2018, a complete restructuring was carried out. Thanks to such a reform process, the procedure for obtaining a gambling license has been significantly streamlined. The taxation system has also been improved. Now the legislation of Malta eliminates the possibility of double taxation in the gambling entertainment industry.
Despite the fact that the size of taxes decreased, the state budget began to fill even more rapidly. By creating favorable conditions for doing business and an honest taxation system, local authorities have managed to achieve recognition and loyalty from global gambling operators and many investors.
And although many large operators operate in Malta, every year more and more start-up casinos prefer this particular jurisdiction to conduct their gambling business. Favorable conditions were created on the territory of the island, both for large entrepreneurs and for novice operators. The simplified taxation system also contributes to the development of the gambling business. All companies that were opened less than 5 years ago and whose income does not exceed 10 million euros are completely exempt from paying taxes and license fees for the first year.
Malta is rapidly developing every year in the industry of modern technologies, science and technology. What is the annual large-scale SiGMA exhibition held here worth? This event is attended by thousands of entrepreneurs and potential partners, which also contributes to the development of the online gambling industry.
Another advantage of this jurisdiction is the availability of highly qualified workers. The gambling industry also attracts thousands of professionals to the island every year. At the end of last year, more than 11 thousand highly paid vacancies directly related to the gambling entertainment industry were opened in Malta. This number is about 4.5% of all employed labor resources of the state.
The Malta Gaming Authority inspires confidence and loyalty not only in players, but also in many potential partners and competitors. MGA is whitelisted by the UK Gambling Commission (UKGC). Thanks to this, the holders of this license have the opportunity to advertise and promote their companies in the UK. In addition to the UKGC, the Malta Gaming Authority has entered into bilateral cooperation agreements with many other regulatory bodies. Most often, their cooperation relates to the dissemination of information.
Obtaining a license from Malta Gaming Authority
Only applicants who have passed a rigorous verification process will be able to obtain a license from the Malta Gaming Authority. Due to this responsible approach to issuing licenses, players associate this regulatory body with reliability, safety and prestige. In order to apply for an MGA license, you must adhere to the following algorithm of actions:
Complete the company verification process. At the initial stage, representatives of this regulatory body will analyze the information provided by the operator regarding the financial administrative aspects of doing business. Relevant operations will be carried out jointly with international bodies and legal agencies. The past of shareholders and directors of the company will also be taken into account.
Evaluation of the business plan. After the verification of all documents and certificates is completed, the Malta Gaming Authority will proceed to review the business plan of a potential licensee. All key points will be carefully considered: the level of staff qualifications, marketing policy, financial prospects and much more.
Compliance check. The next step in obtaining a license from the Malta Gaming Authority is to check the business incorporation documents, company verticals, its terms and conditions, policies and procedures. Also, a potential licensee must confirm the financial stability and independence of their company. Depending on the type of license, it is mandatory to pay a membership fee:
- Type 1 – €100,000
- Type 2 – €100,000
- Type 3 – €40,000
- Type 4 – €40,000
Technical check of the equipment. The fourth stage of obtaining an MGA gambling license is a technical check and testing of the relevant hardware and software. The verification will be carried out by a qualified representative of the Malta Gaming Authority. If the conducted system audit confirms the correct functioning of the gambling platform, the operator will receive a notification about the successful completion of the audit and will be able to proceed to the next stage of the application. If the operation of the casino differs from the business plan, then the applicant will be forced to re-apply.
The procedure for checking compliance with the standards of the regulator. After successfully passing the technical license, the operator can begin to carry out its gambling activities. Within 3 months, he is obliged to find an auditor who will be confirmed by the Malta Gaming Authority. This representative will conduct a series of checks to ensure compliance with the requirements and standards of that regulatory body.
Strengths and weaknesses of the MGA gambling license
Malta attracts thousands of online casino operators with favorable business conditions and simplified tax policies. Having such a work permit from a powerful and prestigious Commission instills a sense of safety and security for players. Consider the main advantages of obtaining an MGA gambling license:
- Malta is a member of the European Union, which opens up new opportunities for cooperation with many international organizations and global operators;
- Having such a work permit from an influential and prestigious Commission instills a sense of safety and security for players;
- The government authorities of Malta have developed a balanced and competent legislative framework based on the international practice of similar regulatory Commissions. This allows you to monitor the compliance of licensees with the requirements of the organization and reduce the likelihood of criminal acts in the gambling entertainment industry;
- The Malta Gaming Authority sets affordable license fees for online casino operators in comparison to other global gaming licenses;
- Every year more and more modern and promising IT companies operate in Malta, which can also provide their services in organizing and promoting gaming platforms;
- The Malta Gaming Authority may also issue temporary gambling permits to its licensees. Obtaining such a license will be free. This allows you to test the effectiveness of the gambling platform development strategy in practice;
- Highly qualified experts conduct thorough regular checks, so players can be sure of the quality of the services provided;
- The presence of division of the license into 4 classes. Operators with a narrow specialization can save on obtaining an extensive license;
- Long term – 10 years;
- The ability to cooperate with all popular and popular payment systems for the convenience of players.
Malta Gaming Authority is a prestigious and responsible regulator that can guarantee players the safety of financial transactions and the honesty of payments. But still, there are some drawbacks of the MGA license:
- Double taxation: the need to pay income tax and gambling tax;
- Mandatory monthly activity reporting, which includes details of tax payments, balances of each player, game logs and all bank statements;
- Annual detailed financial reporting and regular auditing.
Online casinos that have received an MGA license allow only verified users to conduct financial transactions. Players who have not identified their identity will not be able to claim no deposit bonuses or other online casino promotions.
Do not forget that the gambling business is an extremely complex segment of the economy that requires compliance with many formalities. Companies that know how to get MGA permission claim that despite some difficulties, the game is worth the candle: the Maltese gambling license increases the size of the target audience at times. A reliable casino is visited by residents of different countries, attracting money to the institution.
The Republic of Malta was one of the first in Europe to organize the regulation of online gambling. A casino with a Maltese license is a guarantee of a pleasant, exciting and profitable pastime. You no longer need to worry about the timeliness of payments, receiving well-deserved rewards, replenishing your account with a bonus. On this page, you will be able to find online casinos that have received Malta Gaming Authority license and enjoy a safe and fun gaming experience.