Gambling business in Malta
Malta Gambling Business The Republic of Malta is a small island state located in the Mediterranean Sea, where all types of gambling activities are legalized. The gambling business is regulated by law. Malta was the first EU member state to define the practice of the online gambling business. Today, the gambling business in Malta accounts for about 11% of the country's GDP. According to MGA reports, the state regulator from gambling, taxes from the gambling business brought about 80 million euros to the state budget. Maltese citizens can enter casinos from the age of 25, although any tourist from the age of 18 is allowed to play in casinos.
Gambling business regulation features
Features of regulating the gambling business Malta is one of the oldest states that has legalized gambling. At the end of the 17th century, the lottery game was legal in the country. In 1992, the first official decree on the People's Lottery was issued, according to which the state was given a monopoly on organizing lotteries. In 1934, horse and dog racing license requirements were introduced in Malta. In 1958 even casinos. At the end of the 20th century, the above regulations were replaced by modern legislation:
In 1998, the Law on Gambling was adopted, which defines the peculiarities of organizing and controlling the activities of land-based casinos;
In 2001, the Lottery Law was approved. The new legislation incorporates most of the existing provisions. At the same time, a special department of the Game Management Service (LGA) has been set up to run the gambling business in the country.
MGA - State Gambling Regulator in Malta
Today, the Maltese Gambling Authority (MGA), known before the rebranding as the Lottery and Gambling Authority (LGA), is the only independent state regulator in the gambling industry. The organization manages all gaming processes both in surface facilities as well as in the online segment.
The MGA structure combines several sections:
The multi-stage structure allows the regulator to operate efficiently.
The Malta Gambling Authority regulates all types of gambling activities:
The exception is binary activities carried out under the supervision of the State Financial Services Department, in accordance with the Investment Services Act.
The main functions of the MGA are the issuance of gaming licenses and control over the implementation of legal provisions by operators. Also, the tasks of the department include the prevention and fight against criminal activities. In addition, MGA provides consulting documents and feedback to gambling market participants.
There are no restrictions on licenses issued to surface facilities. Permission is required for documentation from the Minister of Finance.
Malta Online Casino Licensing
Similarly, there are no restrictions on the number of licenses issued to online resources by surface institutions. Moreover, the operators argue that the production of documentation in Malta is significantly simplified compared to other jurisdictions.
There are currently 4 types of licenses for gambling establishments in Malta:
Class I license that allows online casinos to operate with RNG-based video slots, including slot machines and table games. Issued for a period of 5 years. The amount of taxes is 4,660 euros per month.
Class II license - allows you to organize the activities of bookmakers. The fee is 0.5% of the total tariffs
A Class III license allows you to create and organize poker rooms, lotteries, bingo and other resources. Operators pay 5% tax on total revenue from the online portal;
Class IV licenses are issued to companies specializing in hosting management, gaming operations, and gaming equipment supply. Manufacturers and providers are exempt from tax for the first six months. For the next 6-12 months, companies are accrued a monthly fee of 2,330 euros. Further tax is up to 4,660 euros.
License conditions
The main requirement to obtain an online casino license is to have a legal address in Malta. At least two people must become shareholders of the company.
They have to pay a state fee for registration. This will be followed by obtaining the VAT payer number and registering the legal address. Company directors and other managers are appointed. A prerequisite is the submission of a detailed business plan for the organization to the MGA.
Companies using the permit for the first time will receive a temporary six-month license. Next, a thorough inspection of the facility is carried out. After receiving a positive evaluation, the business owner receives a permanent license that is valid for 5 years.
Extensions of permits are allowed. MGA has the right to suspend or revoke the license if the requirements of the law are not met.
The starting fee does not vary globally. The registration fee for any type of license is 2,300 euros. In addition, a system audit commission has been set up - € 1,770 and an annual fee of € 8,500.
The corporate tax rate for gambling companies is 35%. However, after paying dividends to shareholders, about 30% of the tax will be refunded. Thus, the real interest rate is 5%.
The largest online casinos in Malatya
According to statistics, about 10% of all online casinos in the world today operate under Maltese licenses. The online gaming industry online sector is one of the fastest growing in the country itself. If land-based casinos are represented by only four establishments, the list of online portals is much longer.
Among the most popular online casinos are:
Casino Mr. Green - Online casinos company Mr. Green Ltd., head office in Malia, Sliema;
Videoslots.com - a gambling site owned by Maltese operator Panda Media Limited;
Casino Room, has been operating successfully in the market since 1999. Owner is Ellmount Gaming Limited; Slots Magic is a gaming portal Skill On Net Limited. Also popular are online casinos owned by the Kindred Group, formerly known as Unibet. The operator network includes more than 13 portals, including Unibet, Maria, 32Red, Stan James and other well-known sites.
Each online casino has significant advantages:
Extensive collection of games. Entertainment on the sites includes video formats of different formats, roulettes, card games, scratch cards. Some online platforms offer options related to dealers and sports betting;
A variety of payment methods;
Decent bonus policy.
Multiplatform sites have been translated into dozens of languages and offer programs from various well-known manufacturers.
Popular slot machines
Gamers' preferences regarding the choice of video slots are not varied. The following models are listed in the "Popular Slots" sections:
The creators of many video slots presented in online casinos are the manufacturers of Malta machines themselves. Among the most famous creators of gambling that have taken their niche in the market are:
World Match is a company founded in 2003. The company creates devices in several versions, they can be run through the browser and from mobile devices running iOS and Android operating systems.
The manufacturer's board games include:
Playson
Playson is a company that started operations in 2001. The main specialization of the company is the production of slot machines for online casinos. The manufacturer's collection includes several dozen devices of different themes. Among Playson models, 3D slots are popular. The company offers users to download high quality programs online.
GameArt
GameArt is a company founded in 2013. The developer has offices in several countries around the world, but is headquartered in Malta. Despite the manufacturer's "young" age, the company's collection includes more than seventy slot machines for online casinos. In addition, the company is engaged in the creation of terminals for the sale of lottery tickets.
Prospects for the development of the gambling business in Malta
Gambling licensing in Malta has many significant advantages. Possibility to obtain the status of an international company, relatively low taxes, speed of the registration process, no restrictions on activities - these are just a short list of advantages.
Malta gambling business is actively expanding. According to the MGA, total annual turnover increases by an average of 4%. Representatives of the country gambling market are constantly looking for new development prospects. Simplifying the regulatory framework, holding international thematic exhibitions, licensing new manufacturers and online casinos, and partnering with regulators in other countries - the gaming world in Malta is developing dynamically.
Given the active participation of specialized agencies and gambling business owners in Malta in the expansion of the industry, it is possible to predict the success and effectiveness of its development.