Malta Gaming Authority – Everything You Need to Know (2024)

Malta Gaming Authority

The Malta Gaming Authority is one of the most recognised gambling jurisdictions in the world. Operating from Malta, it can give licences to all sorts of operations including casino games, fixed odds betting and games of skill. Operators that are regulated by the Malta Gaming Authority can provide their services all across the EU and member states of the EEA. Established in 2001, the Malta Gaming Authority makes up 12% of the country's GDP.

Gambling in Malta

Around the world, gambling dates back to ancient times. One of the first games of chance in Malta was the Ic-Cippitatu. It was a simple game in which a four-sided teetotum was spun to determine how much a player would win or lose. The name Cippitatu comes from a rendering of the Latin, Accipe Totum – meaning take all. In the 17th century, small lotteries became all the rage in Europe. It did not take long for Malta to catch on, and with that, regulations had to follow.

Regulation of gambling in Malta started in 1921, with the establishment of the Lotto Regulations. Lottery games were legalised in 1922 and in 1948 the Malta National Lottery was launched. The state lottery garnered plenty of domestic and international attention, as more players from abroad took part. 

In 2001, the Malta Gaming Authority was formed. It is the official gaming board of Malta and regulates both land-based casinos and online gambling operations, comprising B2C and B2B services. It was among the first countries to create legislation for online gambling companies and make a safe environment for players. After joining the European Union in 2004, the Malta Gaming Authority licence became one of the most popular jurisdictions for online operators. Nowadays, the Gaming Authority is responsible for regulating over 300 online operators, and around 50% of the country's international bandwidth is used by remote gaming.

Types of Licences (and Operators)

The Malta Gaming Authority provides legislation for the following operators:

• Remote Gambling Services
• Land-Based Casinos
• Commercial Bingo Halls
• Controlled Gambling Premises
• National Lottery Licence

Online casinos and sportsbooks can obtain licences from Remote Gambling Services legislation. There are four classes of licences:

• Type 1: Casino
• Type 2: Fixed Odds Betting
• Type 3: Pool Betting
• Type 4: Controlled Skill Games

The casino licence applies to operations that provide online table games, live casino games, poker played against the house, virtual sports games and lotteries. The fixed odds licence includes the right to provide sports pregame betting markets and live markets. With the pool betting licence, operators can provide all sorts of games where players play against each other. Games of skill are distinguished in their own right and do not fall under the category of casino games. This basically involves wagering on outcomes that are predominantly determined by skill and knowledge rather than chance. An example of skill games is fantasy sports.

Application and Cost

When submitting an application to the Gaming Authority, operators need to declare any Ultimate Beneficial Owners, Directors and Key Persons. The Key Persons is responsible for personally submitting the Personal Declaration Form. In addition to these, a company needs to consult the authority about the System Documentation Checklist. This is an extensive document in which the company needs to address its business plan, company policies and procedures, and comply with the anti-money laundering and customer due diligence procedures. They will also need to comply with the player protection, betting integrity and fairness standards set by the Malta Gaming Authority.

The application fees are the following:

• One-time non-refundable application fee – €5000
• Initial Gaming Licence fee for B2C or B2B operators – €25,000
• Fixed Annual Licence Fee – €25,000
• Initial Gaming Licence fee for B2C or B2B operators providing only Type 4 games – €10,000
• Fixed Annual Licence Fee for operators providing only Type 4 games – €10,000

Companies will also need to meet the shared capital requirements. These are basically funds that need to be submitted as collateral in case the operator fails to pay out any of its customers. For Type 1 and 2 licences, this must be at least €100,000 and for Type 3 and 4 licences this is a minimum of €40,000. It may take 12-16 weeks for an application to attain approval from the Malta Gaming Authority. Once they have approval, the operator will receive a licence that is valid for 10 years and has 60 days to go live.

Taxation and Fees

The Compliance Contribution is a fee that must be paid by operators based on their GGR, or Gross Gaming Revenue. These vary based on what type of gaming services the operator provides.

Type 1:

• 1.25% for every € in the first €3 million
• 1% for every € in the next €4.5 million
• 0.80% for every € in the next €5 million
• f0.70% or every € in the next €7.5 million
• 0.55% for every € in the next €10 million
• 0.40% for any remaining € (after the thresholds)

Type 2:

• 4% for every € in the first €3 million
• 3% for every € in the next €4.5 million
• 2% for every € in the next €5 million
• 1% for every € in the next €7.5 million
• 0.80% for every € in the next (first) €10
• 0.60% for every € in the next (following first) €10 million
• 0.40% for any remaining € (after the thresholds)

Type 3:

• 4% for every € in the first €2 million
• 3% for every € in the next €3 million
• 2% for every € in the next (first) €5 million
• 1% for every € in the next (second) €5 million
• 0.80% for every € in the next (following second) €5 million
• 0.60% for every € in the next €10 million
• 0.40% for any remaining € (after the thresholds)

Type 4:

• 0.50% for every € in the first €2 million
• 0.75% for every € in the next €3 million 
• 1% For every € in the next (first) €5 million
• 1.25% for every € in the next (second) €5 million
• 1.50% for every € in the next (following second) €5 million
• 1.75% for every € in the next €10 million
• 2% For any remaining € (after the thresholds)

After the Compliance Contributions are paid, the remaining GGR is subject to a 5% gaming tax.

Pros For Players

Now find out what a Malta Gaming Authority means for players.

Popular Choice Amongst Players

There is no hiding the fact that the Malta Gaming Authority is hugely popular amongst players. Those who are familiar with regulatory bodies of online casinos and sportsbooks usually swear by the Malta Gaming Authority or the UK Gambling Commission. This stems from the strict regulations that are in place to protect gamers.

Direct Communication

If you have a dispute with a casino/sportsbook that is licenced by the Malta Gaming Authority, you can always reach out. The authority has safety measures in place that benefits players.

Reliable Payment Options

Licensed operations usually offer many options when it comes to placing deposits and withdrawing funds. Reducing the hassle of banking at any establishment can make players feel more comfortable playing there.

Cons For Players

There are not many disadvantages to a casino/sportsbook having a licence with the Malta Gaming Authority. Here are some cons to take into consideration.

Restrictions

The Malta Gaming Authority is recognised in 180 jurisdictions around the world, but there are some notable omissions. Players from the US are banned from playing on licensed sites for real money. As are some big markets such as Australia, China, Turkey, Indonesia, and more. There may also be licensed providers that can be accessed in certain jurisdictions but are not recognised by the laws of that jurisdiction. If you are unsure about a site, it is worth checking the terms and conditions just to be 100% sure.

Sites May Be Limited

Licensed operators may have limited gaming services. It is expensive to obtain all four licences, thus having permission to supply virtually any type of game or bet. Therefore, you may find that some operators only obtain 2 or 3 licenses and do not offer a complete variety of games. Of course, you can find bigger operations that will have all licenses, but you may have to make some research before committing to a smaller operation.

No Standardised Self-Exclusion Tool

To be clear, the Malta Gaming Authority does require operators to supply self-exclusion tools. The only problem is that these are site-independent. There is also a register with which players can self-exclude themselves from all sites that are licensed under the Malta Gaming Authority, but this needs to be done with the authority, not the operator.

International Presence

It was mentioned earlier how the Malta Gaming Authority is recognised in 180 jurisdictions around the world. Whilst there are some key markets that are lacking from that list, the licence ranks highly.

Applicants must be entities established in the EU or the EEA. They need to meet the requirements of Shared Capital and the annual Financial Statements, that reports data. If a corporate body is applying, the regulations will be deemed for each and all members of the corporate group. Thus, each member individually and as a collective will be considered a licencee.

Conclusion

There are not many negatives to the Malta Gaming Authority. If you see their stamp of approval on a website, you know that it is a fully legitimate and safe establishment to join. Operators go under frequent and rigorous tests, ensuring their content continuously meets industry standards. This preserves the honour-bound mission of the jurisdiction and gives players full assurance of quality service.