Malta is at the forefront of the iGaming industry right now, and many companies are scrambling to take part in the opportunity. If you’re looking to get a slice of the action but are unsure about how the application process works, you’ve come to the right place.
We’ve prepared a quick mini-guide for you on how to apply for a Malta iGaming license today.
How to apply for an iGaming license in Malta
The best way for non-residents to operate in the Maltese iGaming sector is through a Maltese Gaming Corporate Structure, which would, in turn, have a Maltese Holding Company under it. The Holding Company is the one which will own the online gaming service company based in Malta.
The application process begins with the registration of these entities and it’s relatively easy and simple to get the application forms needed.
- From there, the Malta Gaming Authority will assess the applicant based on:
- The operator’s ability to conduct a gaming business
- Their business strategy
- Their ability to meet the statutory requirements according to Maltese regulations
- The effectiveness of their gaming operation based on a live test that has been conducted in a proper technical environment.
Types of iGaming Licenses
There are four different Malta gaming licenses to choose from and they are as follows:
- Class 1: This is the basic Online Gaming License that allows you to manage an online gaming operation.
- Class 2: This license allows you to operate as an online betting office or an online betting office exchange.
- Class 3: This license enables you to promote and abet gaming within Malta. Note that this includes the right to operate poker tournaments or games and betting exchanges.
- Class 4: This license allows you to host and manage online gaming operatives, except the licensee.
Applying for an iGaming license in Malta nowadays means that you can apply and receive all the licenses in one go.
To apply for an iGaming license in Malta, you need to pay certain administrative and license fees in accordance with the Lotteries and Other Games Act, Cap.438 of the Laws of Malta.
The fees are as follows:
- Application fee for a new license = EUR 2, 330 (once off)
- License fee = EUR 8, 500 (per year for each license)
- Approval Fee for Transfer or Assignment of License = EUR 1, 500 once off
- Approval of Share Transfer = EUR 1, 500 once off
- Approval of Simple Contractual Commercial Agreements = EUR 70 per year per of contract agreement
- Approval of Complex Joint Venture Agreements = hourly fee differs according to the situation
- Systems review = EUR 2, 330 once off
- Class 1 License – EUR 4, 660 per month for the first six months plus an additional EUR 7, 000 per month for the duration of the license
- Class 2 License- 0.5% of the gross amount of bets accepted in remote betting operations
- Class 3 License – 0.5% of the gross amount of bets accepted in remote betting operations
- Class 4 License – nothing for the first six months and EUR 2, 330 per month for six months after that. EUR 4, 660 per month after the first 12 months and for the duration of being a Class 4 license holder.
Malta is an established country with a well-preserved history dating back far beyond the Byzantine era. The country is also an EU member state with a stable economy and political sector. It’s successful in a number of different industries from real estate to tourism. Citizens enjoy uninterrupted travel throughout the EU and Schengen area, as well as state-of-the-art education and health facilities.
Over the past few years, the Maltese government has made it clear through regulation and investment that it’s serious about developing the country’s technology sector. It has done so by investing in several iGaming, eCommerce, eGovernment and blockchain initiatives.
That’s why it’s easier to do things like launch an ICO or apply for an iGaming license in Malta. In fact, Malta even offers superior anti-money laundering legislation to protect the financial services sector and provide iGaming sector operators with peace of mind. This is in addition to the attractive tax incentives on offer including:
- 0% withholding tax on outbound dividend payments
- Relief from double taxation
- Exemption of stamp duty
- Wide Double Taxation Treaty Network
- Full tax refund or participation exemption
Ergo, Malta is the best destination for iGaming enterprises and license applications are a breeze.