Malta’s gaming tax has changed for the first time since 2018, as amendments to the Gaming Tax Regulations and the VAT Act are implemented.

Following the introduction of Legal Notices 84 and 86 of 2026 in April, the legislative changes to Malta’s gambling market took effect at the start of October.

The amendments are part of the Government of Malta’s 2026 budget and its commitment to safeguarding the ‘long-term sustainability and competitiveness of Malta’s gaming sector’, according to the Malta Gaming Authority (MGA).

Going through changes

Regulations previously applied a 5% levy to gaming revenue from players physically present in Malta, in addition to the device levy for machines deployed in gaming premises. These were charged at 30% for Types 1 and 2 services, 12.5% for Types 3 and 4, and lower rates inside controlled gaming premises and for junkets.

Under Legal Notice 84, these two charges become one. Casino and slot games fall under Type 1 and are now taxed at 15%, while fixed-odds sports betting, peer-to-peer games, and controlled skill games under Types 2, 3 and 4 are now taxed at 10%. The rate is 5% for revenue inside controlled gaming premises and junkets.

As for VAT, the exemption that previously applied to most gambling activities in Malta has been significantly restricted.

Under Legal Notice 86, VAT exemption now only applies to low-risk games as defined in the Gaming Authorisations Regulations, approved occasional junket events, and on-site betting facilities for live sporting events.

All other gambling and betting services will be subject to an 18% VAT rate.

Balancing act

In a statement, the MGA said: “The reforms have been developed in tandem to provide a balanced overall framework for the sector, while maintaining Malta’s position as a stable, competitive and internationally recognised gaming jurisdiction.

“The Malta Tax and Customs Administration (MTCA) and the Malta Gaming Authority (MGA) will continue to provide relevant guidance to support stakeholders in applying the revised frameworks.”

The MGA is providing support to licence holders to ensure a smooth transition to the new regulatory framework, with its reporting portal catering for submissions relating to September 2026 under the current regime, due by 20 October 2026.

From 1 November, the portal will support reporting under the revised frameworks, with October 2026 submissions made through this update and due by 20 November 2026.

Source