How to get an online gambling license in Malta 2023?
Malta is one of the most desirable and profitable online gambling jurisdictions in Europe. Its ever-growing industry is attractive to entrepreneurs looking to establish their own online business, offering a range of gambling licenses, application processes, and costs that need to be taken into consideration. To that end, this guide provides everything you need to know to gain legitimate licensure in Malta by 2023: uncovering different types of gaming licenses available, navigating the application process step-by-step, covering related costs, and detailing the role of MGA in all these.
Benefits of obtaining a gambling license in Malta
There are several benefits to obtaining a gambling license in Malta, making it one of the most attractive jurisdictions for online gambling businesses:
- Access to the European market and competitive taxes will benefit from Malta’s gambling license. The jurisdiction is renowned worldwide, providing operators with credibility and respectability. Operators further benefit from generous taxation rates. Additionally, the licensing process is agile and efficient; granting operators a fast track to one of the world’s most profitable gambling markets without lengthy bureaucratic delays.
- Malta Gaming Authority’s stringent regulation of the online gambling industry has set a precedent for ethical and responsible practices. Their regulatory framework is beneficial to all involved, from operators to stakeholders, since it offers consumer protection, responsible gambling measures, and anti-money laundering efforts. Thanks to the MGA’s reliable standards and regulations, Malta’s online gaming sector is highly trusted.
- Malta is widely known for its reliable and effective gambling regulation. The Malta Gaming Authority (MGA) can boast of a stellar reputation for its regulatory capabilities, with companies having a Malta gaming license being associated with trustworthiness in the eyes of customers and other industry members.
Getting a gambling license in Malta is an extremely attractive proposition for an online casino. This jurisdiction provides access to a large and highly profitable market, along with incredible tax benefits, strong regulatory oversight, and an excellent reputation. All these factors make it a top destination for businesses seeking to establish an online gambling enterprise.
Types of gambling licenses available in Malta
The Malta Gaming Authority (MGA) offers four different types of gaming licenses for online gambling businesses. These licenses are:
- Type 1, games of chance played against the house with outcomes determined by a random generator (e.g., casino-style games such as roulette, blackjack, baccarat, and poker against the house, lotteries, secondary lotteries, and virtual sports);
- Type 2, games of chance not played against the house but whose outcomes are determined by the result of an event or competition extraneous to a game of chance (e.g., player versus player games like poker and bingo);
- Type 3, games of chance not played against the house but wherein the operator is not exposed to gaming risk (i.e., commission-based games such as betting exchanges);
- Type 4—controlled skill-based games that comply with pertinent regulations.
The process for licensing and regulating business activities under the Malta Gaming Authority (MGA) is long and rigorous. Gambling businesses must provide evidence of their economic stability and capabilities to abide by MGA rules, in addition to paying both an application fee and an annual license fee. Regular audits are carried out by the MGA to ensure that all businesses remain compliant with the law.
Steps to obtain a gaming license in Malta
Obtaining a gambling license in Malta requires a detailed and thorough process. Applicants must first submit an application, which includes gathering all necessary documentation and demonstrating that they have a physical presence in the country, as well as sufficient capital and business plans. Business owners and directors will be subject to background checks and technical capability assessments by the MGA. If approved, businesses are granted a provisional license for six months; during this time, systems audits must be conducted to show compliance with regulatory standards set out by the MGA. Successful applicants must then meet ongoing compliance obligations.
Cost of obtaining a gambling license in Malta
The Malta Gaming Authority (MGA) assigns fees for different types of licenses and services to acquire a gaming license in Malta. The overall cost can be impacted by components such as the complexity of the application process, required due diligence, and associated legal and consulting costs. It is important to research these potential expenses before investing in the application process.
Fee and cost of gambling license
Malta has strict guidelines when it comes to issuing a gambling license. Companies must register in Malta and submit an application to the Malta Gaming Authority (MGA). The screening process takes into account documentation, gaming policies, procedures, technical documentation, and the control system of the company.
- for Types 1 & 2 the minimum authorized capital is EUR 100,000,
- for Types 3 & 4 it is EUR 40,000.
If multiple licenses are being applied for then the amount must be totaled up accordingly but with a minimum of EUR 240,000. Along with the application submission, a registration fee of EUR 2.300 must also be paid. Obtaining a Maltese License lasts 6-7 months and upon being granted one it’s valid for five years.
Factors that may impact the total cost
It is essential to understand the costs associated with obtaining a gambling license in Malta. Depending on the type of activity and income level, the annual Malta gaming license price can range from EUR 10,000 to EUR 25,000. The compliance price for:
- Type 1 licenses can range from EUR 15,000 to EUR 375,000,
- Type 2 licenses can reach up to EUR 600,000,
- Type 3 licenses up to EUR 500,000,
- Type 4 licenses start at 5,000 and up to 500,00.
Progressive interest rates based on your gambling income level also apply when calculating compliance fees. You can also check the article about online casino software providers.
Role and Responsibilities of the MGA
The Malta Gaming Authority (MGA) oversees all forms of gaming in Malta, from online to brick-and-mortar. Its primary goal is to maintain the integrity of the industry and protect consumers by enforcing a stringent regulatory framework. Additionally, the MGA promotes accountable gambling practices while combating illegitimate gambling activities. The authority’s functions include licensing and regulating gaming operators in Malta, conducting due diligence on license applicants, adhering to regulatory standards, pursuing illegal gambling outlets, and providing guidance for the gaming sector.
FAQ
A gambling license in Malta allows access to the European market, establishes credibility and respectability with clients globally and provides operators with a strategic tax environment. The Malta Gaming Authority (MGA) is known for its solid regulatory framework that includes customer protection, responsible gambling, and anti-money laundering efforts, ensuring a secure business environment.
The Malta Gaming Authority issues four types of gaming licences: Type 1 for games of chance played against the house, Type 2 for games not played against the house but with outcomes determined by an external event, Type 3 for commission-based games, and Type 4 for controlled skill-based games.
The process involves submitting an application to the MGA, providing all the necessary documentation, demonstrating a physical presence in Malta, sufficient financial capital, and a viable business plan. Applicants are vetted through background checks and a technical audit before a six-month provisional license is granted. Once this provisional period is over and the business has shown compliance with MGA regulations, the licence will be granted.
The costs involve an application fee, an annual license fee, potential due diligence expenses, and legal and consulting fees. An application fee of EUR 2,300 is required upon submission. Depending on the type of activity and income level, the annual license fees can range between EUR 10,000 and EUR 25,000.
