Remote Gaming licensing and Operations
Malta is one of the first countries in the EU to accommodate and standardize the gaming industry. Its pioneering move towards introducing regulations and legislature for the registration and operation of this business structure is the major reason why Malta is one of the best countries in this sector.
Before getting a gaming license in Malta, most importantly you should meet a set of legal requirements. It is also imperative for your company to prove its capacity to conduct business from a financial, technical and operational standpoint. The authorities need to confirm the liquidity of the firm to warrant that clients get their earnings when they win games. The regulating authorities require a thorough review of the paperwork submitted by the applicants—including the documents of the stakeholders. Investigations could be made with other regulatory bodies and the police to make sure the applicants have no criminal records. These processes could take about 3-4 months before a license is issued.
Classes of licenses issued in Malta
This class includes games such as scratch cards, lottery, casino, bingo, etc. which involve repetition. The class one games attract a tax levy of 4,700 pounds in the first 24 weeks which will then become seven thousand pounds after that period.
Class 1 on 4:
It is basically class one games except that they will be hosted by a platform. A fixed tax rate of 1,200 pounds is paid monthly for casinos. The host doesn’t pay tax in the first six months. After that initial period, the platform becomes liable to 2,300 pounds monthly for the next six months. Finally, after 12 months have lapsed, a flat rate tax of 4 600 pounds is charged monthly.
This class includes mainly betting games such as pool betting, binary betting, etc. The tax levied is usually o.5% on gross bets, net takings per individual competitor and overall stakes paid.
These include live games between 2 or more players such as poker, live poker, and bingo or game portals. The class 3 games attract a tax levy of 5% on income.
Class 4 includes hosting platforms, online operators, remote gaming, live casino, etc. These are exempt from taxation in the first six months. However, in the following six months, a gaming tax of 2,300 pounds is charged monthly and later a flat rate of 4,600 pounds monthly.
For more insights on the Maltese gaming sector, you may contact SIGTAX. Our invaluable team, which consists of expert lawyers, accountants and consultants will give you detailed information and counsel during each step. Our lawyers can provide you with finer details on the legal aspects pertaining to gaming in Malta so that you don’t skip any necessary steps.
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