The Republic of Malta is a former British colony, a neutral peaceful country with a population of about 380 thousand people. Valletta is the capital of Malta governed by a president. Malta is conveniently located in the Mediterranean Sea and is one of the smallest but most developed nations of the world. As a member of the EU, Malta has acquired prominence owing to the strategic location of the country placing it at the crossroads of international trade routes.
On the other hand, the country also has a well-developed tourism industry which makes a significant contribution to the economy. In recent years, Malta has also developed as an offshore financial services hub owing to the establishment of a number of international banks and financial institutions in the country. The iGaming industry is often hailed as the jet fuel which has propelled the Maltese economy to unprecedented heights.
According to industry experts, Malta has established itself as the ‘iGaming capital of the world.’ When online gambling started to grow in popularity in early 2000, Malta embraced it with open arms. Malta offers very attractive tax conditions for the gambling industry. After joining the European Union in 2004, its gambling companies licensed by the Malta Gaming Authority have started introducing themselves to the European markets.
Setting up a gaming company in Malta is attractive for multiple reasons that would surely include that Malta is an EU member state, has adopted the Euro as its currency, is geographically positioned in the center of the Mediterranean Sea. Malta has a temperate climate with a diverse highly-skilled and multilingual workforce imbued with a professional work ethic. With a sound jurisdiction that steers clear of bureaucracy and that has a proven track record, the iGaming industry in Malta is continuing to build on its successful trajectory.
Malta Online Gambling Regulations
The Malta Gaming Authority was formed in 2001, as part of Malta’s Lotteries and Other Games Act, which set out to regulate the various sectors of the gaming industry. Malta is one of the most important locations in the world with regards to online gambling and it was for this purpose that the Malta Gaming Authority was created in order to regulate the industry.
The MGA is set as a not-for-profit organization and is responsible for issuing gambling licenses to companies that meet its strict standards. National Anti-Money Laundering Regulations, Unusual Transactions Act, Counter-Terrorism Financing Regulations and Know Your Customer Policies are applicable to all Malta Gambling Companies. As part of its duties, the MGA monitors gaming businesses and services to ensure that they operate according to the standards and regulations of the Government of Malta.
Compliance audits are conducted on a regular basis to ensure that the terms of the license are met. Licensees must maintain a complete audit trail for each player making a deposit with an operator, including financial transactions and individual bets. Gaming systems, including back-end software logs, must be made available to third-party auditors.
The MGA aims to protect young and vulnerable people, protect the rights of players, promote responsible gaming, ensure integrity in games and service, and also ensure that the industry is free from criminal activities. Another hugely important area that the MGA explores in an online casino before granting a gambling license, is that the company completely separates its player funds from the rest of its operating funds.
The importance of the separation of funds can’t be underestimated, as in the case an online casino will go bankrupt, will ensure that players won’t lose the money in their accounts. The MGA takes separated player funds very seriously, and failure for a licensed online casino to do so is a serious breach of regulation. While the MGA is the main regulatory body for all gaming activities in Malta, it is also considered by many to be the preferred global remote gaming regulator – meaning it in many ways sets the standards for gambling practices across the world.
Gaming rules, results of the games, and the pay-outs are to be made available to the MGA for five years.
Let’s talk more about the benefits by understanding the reasons why obtaining a Maltese igaming license may be ideal for you.
How to Start An Online Gambling Business in Malta
When starting a Malta Online Gambling Business, first of all, it’s important to think about one of the most essential procedures, that is company registration and acquisition of the license. Malta Gambling License gives many excellent opportunities to each licensee and makes their business profitable.
Malta has worked hard to attract online gaming companies. Its taxes are low: although the official income tax rate is a flat 35% when dividends are paid by trading companies to shareholders, these shareholders can claim 85% of the tax back, effectively reducing it to 5%.
Malta has political stability, first-rate telecommunications facilities, and a well-established financial services industry. In addition, it maintains an attractive environment for international online gaming companies. Malta Gambling License is recognized by many countries all over the world, so you will have a large potential customer base after getting it.
In order to obtain a Malta Gambling License, the decision to approve the application is at the discretion of the MGA, based on the documentation submitted. Malta issues one Online Gambling license which covers all gaming operations, igaming service providers, network operators, affiliates, white-label operators, and igaming software suppliers.
With this Malta Gambling License, online gaming companies can operate legally. Each applicant undergoes a thorough assessment, ensuring that licenses are only awarded to those applicants who are able to demonstrate such a financial standing and integrity as to preserve the international reputation of Malta as an online gambling hub.
In case something does not correspond to requirements, the MGA will provide a checklist of necessary improvements. A Malta Gambling License covers all forms of online gambling including Casino, eSports, Poker, Sports Betting, Lotto, Bingo, Horseracing, Bitcoin Casino, Fantasy Sports, Games of Skill, and other gaming-related activities without being required to obtain one license for each individual product. Malta Gambling License enables the companies to operate all over the world.
Malta Gambling Requirements
Residence in Malta. Operators wishing to offer their services to Maltese gamblers must be residents of Malta, EU, or EEA and they must obtain the relevant licenses and authorizations from the MGA. In case the company is a foreign entity, it must appoint a local director, whose domicile is in Malta, to deal with the competent authorities in the country and have the power to conclude contracts on its behalf
Opening of a bank account with one of the banks in Malta where the operator would need to deposit the players’ money. Licensed remote gaming operators will only be allowed to make payments to players through the payment processors that have been approved by the MGA
Requirements regarding the minimum share capital of the company depending on the type of game it offers
A monthly declaration giving details regarding income from games of change as well as the fees due will have to be submitted to the MGA on a standard form
Compliance with the principles regarding the protection of minors as well as with the content of the promotional material used and the locations where they can be displayed
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