The Malta Gaming Authority's Mission and History
Since its inception in 2001, the Malta Gaming Authority's aim has been to regulate the various sectors of the gaming industry that fall within its remit by ensuring gaming is fair and transparent, preventing crime, and protecting minor and vulnerable players. The numbers give the MGA credit, because at the end of 2022, it had 358 active licenses for betting companies operating in Malta - including online and land-based entities. The entity declared that in 2022 alone, the MGA collected €78.7 million in compliance contribution fees, levies, and consumption tax. These impressive figures showed steady growth, which only strengthens Malta's reputation as a trusted iGaming hub.
Because of the thorough process that companies must go through in order to obtain a gambling license, an MGA license is highly perceived by players and operators alike, which is why the MGA has become one of the standard licences for casino operators to acquire. Gaming, including online casino gambling, is regulated by the MGA under the provisions of the Gaming Act (Cap. 583 of the Laws of Malta).
How The MGA Was Created
Early on, the Maltese government recognized the opportunity to setup a legislative infrastructure around a budding remote gaming industry. In doing so, it managed to attract some of the world’s leading online gaming companies to its shores. By 2008, Malta’s gross gaming revenue was already over 7.8% of the country’s GDP, eleven times the EU average of 0.68% of that time.
Thanks to convenient tax rates, and the fact that Malta is within the Eurozone, Malta continued to attract online gaming companies. The official income tax rate is 35%, but there is a tax rebate that companies can claim to effectively reduce the final tax down to 5%. The sector employs over 12,000 individuals, an impressive number considering that Malta's population is only half a million people.
The initial regulations that were created in 2001 under the Lotteries and Other Games Act got an update in 2004. The new, and more flexible, Remote Gaming Regulations offered greater support and protection to players, while providing a more comprehensive set of rules to remote gaming companies. The legislative structure that is in place today was implemented when the industry was largely unregulated, setting an official standard for others to follow.
Today Malta is still at the forefront of the industry thanks to the MGA's ‘one-stop-shop’ for gambling licensing. Malta’s strict and structured gaming regulations, together with a policy of openness, fairness and honesty keeps attracting new licensees. The online gambling regulations are frequently refreshed, ensuring that gaming activities are performed in a safe environment at all times, and ensuring the integrity of games and devices.
The MGA offers four types of gaming licenses:
- Class 1 – a remote gaming licence suitable for casino games and online lotteries
- Class 2 – a remote betting licence for sports betting
- Class 3 – an advertising licence with which to promote gaming in Malta (suitable for poker rooms and peer-to-peer gaming)
- Class 4 – a hosting and managing licence for remote gaming operations
The MGA licenses these products:
- Advertising lotteries
- Amusement machines
- Commercial bingo halls
- Cruise Liner casinos
- Gaming devices
- National lottery
- Non-profit games
- Racecourse bets and sweepstakes
- Remote gaming
Horse racing and spread betting are two types of gaming that are not licensed by the MGA.
The regulations imposed by the MGA extend to thorough testing of real money gambling software. This testing makes sure that outcomes are entirely random and immune to manipulation.
Applications for a new gambling licence issued by the MGA can be submitted through the MGA's Licensee Portal. The process is initiated by selecting New Licence Application and following the simple process steps. The Portal is able to give users status updates about the progress of their request.
Information about licence fees, the regulations and directives, as well as a technical checklist, can be found under the Regulatory Framework of the MGA website. The Portal’s homepage provides a link to some tutorial videos, with common application requests.
To contact the Malta Gaming Authority, you can send an email on [email protected].