Malta is constantly improving the quality of its license in order to move forward in the field of online gaming. It has definitely made quite some progress. Yes, acquiring a license in Malta is easy but it is only easy if you showcase that you’re capable of handling a betting business. Not all license jurisdictions are created equally. Some offer loose standards, while others set top qualifications. One such area is in Malta. This Mediterranean island is the first EU state to champion a premier regulatory network for online gaming.

About Malta

Malta is a politically stable country, with dedicated legislation, real tax efficiency and a modern legal and business climate. As of May 2004 it is a member of the European Union, such Membership will benefit the country, given that it will now influence the decision-making process on European policies. Its fiscal and legislative framework emphasize on economic sectors, such as e-commerce, e-gaming and banking. As an official member, Maltese international companies can now trade freely under the “passport” system, since any license issued by the government is automatically recognized by the other EU members.

Malta's E-Gaming Industry package does not compare to any jurisdictions. The Lotteries and Gaming Authority through The Remote Gaming Regulations, issued in 2004, has made of Malta a reliable jurisdiction for both players and operators.

The Lotteries and Gaming Authority is only granting license to the persons that have demonstrated “appropriate business ability to conduct the betting office successfully”

According to the Regulations there are 4 types of gaming licenses available:

• Class 1 – Casino Style Games, Lotteries and Slots;
• Class 2 – Sports betting;
• Class 3 – P2P, Betting Exchanges, Skins, Tournaments and Bingo;
• Class 4 – Software vendors taking commission on wagers

Any kind of license is granted for five (5) years, and it can be renewed thereafter for the same period.

Malta's Licensing Requirements

In order to obtain a gaming license in Malta, the Authority must agree that the applicant can meet the license obligations according to the Regulations. The process is quite lengthy, but the level of professionalism in the ALG offices is very high, so it should not be longer than 5 to 6 weeks.

Documents Required:

• Detailed profile of the promoting company
• A copy of the last audited accounts of the promoting company, where applicable
• A business plan indicating the economic activity – including job creation if any – which will be carried out from Malta
• A plan of the premises earmarked for adoption as a call center
• Personal details of all shareholders having more than 5% interest in the local operations.

Basic Requirements

Both hardware and software involved in the operations must be located in Malta, there are companies within the territory that provide this service without having to obtain a license of your own.

Maltese residents cannot place bets with such company.

However, obtaining a license does not mean that any country will now welcome a new operator because the legal systems of some countries (almost all of the US states, Poland, France and others) forbid online casino games, in whole or in part. Moreover, local legal regulations may be inconsistent, and a country which had no issues with online casinos before may enact a law that blocks the activity of gambling sites on its soil. For example, until February 2017, Australia was being a favored place for online casinos of all stripes since the Australians were considered to gamble the most, spending about $8 billion a year according to a research made by Australasian Gaming Expo in 2018. This huge amount of money was going to foreign casinos bypassing the local budget. The new legal system, in particular Interactive Gambling Amendment Act 2017, prohibited the work of foreign casinos without a special Australian license, resulting in lots of gambling businesses leaving the country.

A gambling license enhances players’ trust and address concerns about slots “rigged” RTP (Return To Player) percent and non-payment of big winnings. The reason is that a licensed casino regularly has its random numbers generator audited, and a compliance certificate is given based on the results of the examination. Generally, gambling websites have licensing info in a footer, and experienced players at their first visit always scroll down to see the jurisdiction where the site was licensed.

Online casino owners face a difficult choice of a reliable jurisdiction, which provides licenses that are valid in many countries. As of today, the choice is not rich, and gambling business owners undergo licensing in one of the following countries and territories:

Curacao

The advantages of this small Caribbean island are zero percent tax on casino profits, fast licensing process (usually about 1.5-2 months) and low ongoing expenses. A casino owner has to place computing power (servers) in the Curacao territory. Online gambling industry forms a great part of the island’s budget, which is why Curacao has such an appealing tax system.

Online Casino Malta License Registration

Kahnawake

Canada is famous for its very tolerant attitude towards gambling in terms of legislation. In 1996, Kahnawake Gaming Commission was created, which, among other things, provides licenses for online casinos. The first annual license fee is $40,000, software inspection costs $15,000 and annual license renewal fee is $10,000.

Malta

Malta Gaming Authority provides two types of licenses (B2B and B2C) for a period of five years. Those operators who obtained a prestigious Maltese license are on the UK Gambling Commission’s ‘white list’, which allows them to offer their services to British players. The operators have to adhere to a number of requirements, such as filing financial statements, ensuring players’ personal data safety and creating a Responsible Gaming Policy.

The licensing procedure is conducted in several stages: the Authority considers an application—this takes 3-4 weeks—and then the casino obtains a temporary license for a period of six months. After that, based on the results of a thorough analysis, a five-year gambling license is given. In accordance with the new taxation rules, which came into effect on January 1, 2018, online casinos with “B2C – Type 1 Gaming Services” license (slots, board games, live games) pay annual taxes of 1.25% if their profit does not exceed €3.000.000, 1% for a profit of up to €4.500.000, 0.85% for a profit of up to €5.000.000, 0.70% for a profit of up to €7.500.000 and 0.55% for a profit of up to €10.000.000.

Casino License Cost

Gibraltar

In order to get a Gibraltar license, online casino owners have to prove their financial solvency, provide a business plan and be ready to perform transactions (winnings payouts, players’ credit card data processing) exclusively through Gibraltar’s banks. License holders pay 1% of their annual profit, but no less than £85.000.

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Dragonara Casino Malta

Apart from the jurisdictions above, online casino owners can also obtain a license from the UK, Alderney, Macao, Belgium, Denmark, Isle of Man and some other countries. Getting a license will help a gambling operator to work in compliance with laws and regulations, attracting players by complete transparency, financial transactions safety and fairness of the gambling process. Licensing leads to players’ loyalty. A client of a licensed casino is always sure that every reels’ spin, every blackjack deal is always determined by random number generator system where there is no space for any fraud and software manipulation.