How to set up an iGaming Company in Malta
Why set up an iGaming Company in Malta?
Malta is a highly advantageous base for setting up an IGaming company for various reasons. Some of these reasons include;
- Malta is a member state of the EU, enjoying a strategic position in the heart of the Mediterranean, having a professional workforce and a strong work ethic;
- Malta has established itself as one of the most attractive Financial Services centres in Europe, providing a highly advantageous fiscal regime;
- A serious and professional regulatory board (LGA);
- A regulated Gaming Industry which strives to protect and promote responsible gaming at all times;
- A highly reputable licence which players have faith in and which is based on a sound legal regime;
What are the different classes of iGaming Licences available?
The Remote Gaming Regulations establish four classes of Remote Gaming Licenses, and these are the following:
- CLASS 1 – this is a Gaming Licence which regulates Casino Games and online lotteries, whereby operators manage their own risk on repetitive games.
- Class 1 on 4 – whereby a Class 1 licensee would operate its games on the software through the equipment of a class 4 licensee.
- CLASS 2 – this is a Gaming Licence whereby operators manage their own risk on events based on a matchbook. (ex. Fixed odds betting)
- Class 2 on 4 – whereby the operator uses a licensed Class 4 as its platform.
- CLASS 3 – this is a Gaming Licence which is used to promote remote gaming whereby operators take a commission from promoting and/or abetting games. (Ex. P2P gaming, Poker networks)
- Class 3 on 4 – whereby the operator uses a licensed Class 4 as its platform.
- CLASS 4 – this is a Gaming Licence to host and manage remote gaming operators, and whereby software vendors provide management and hosting facilities on their platform.
How do I register my iGaming Company in Malta?
The LGA applies a rigorous process in granting a remote gaming license, and this is done to ensure the element of credibility inherent to the Licence. The application process is divided into three stages. In Stage One, the LGA analyses all the ‘KYC‘ and all the relevant information related to the person involved in the financing and management of the applicant. Furthermore, at this stage, the applicant‘s business plan will undergo a fit and proper review.
Once Stage One is successfully completed, the applicant is informed that he may proceed to the next stage. In Stage Two the business and technical aspect of the proposed remote gaming operation is assessed by the Compliance Department.
Upon the successful completion of Stage Two, the applicant is issued with a provisional licence (valid for six months) in the form of a Letter of Intent (LOI). This brings the applicant to Stage Three, in which period the applicant is expected to commence his operations, while he will also undergo a compliance system audit.
How will my iGaming Company be assessed?
The LGA performs what is known as a System Audit. Such audit is conducted in such period stipulated by the LGA after the provisional licence is issued. The aim of the System Audit is to ensure that what is presented in the business and technical stage of the application process (namely stage two) is implemented in the actual operating system.
Is the Licence renewable?
Yes the Licence is renewable. The LGA issues a Gaming licence for a term of five years. After such period lapses, and following an application for renewal by the licensee, the LGA may renew the licence subject to continuous compliance by the licensee in the previous license term.
What are the applicable Remote Gaming Licence Fees?
The fees due to the LGA include the following:
- Application Fees;
- Yearly Licence Fees;
- Renewal Fees;
- Approval Fees;
- Administrative Fees (where applicable)
How much tax will I pay?
The Remote Gaming Industry in Malta benefits from an attractive fiscal regime. A company issued with a Gaming Licence is subject to the following:
i) Gaming Tax - the amount of Gaming Tax due differs according to the Class of Gaming Licence held.
ii) Corporate Tax - Maltese companies are taxed at a flat rate of 35%, however, shareholders are generally entitled to a refund of 6/7ths of the tax paid upon payment of dividends out of such profits. This results in an effective tax rate of 5%.
How long will it take to get my iGaming license?
If all the relevant documentation and information required is delivered successfully to the LGA, the process leading to the provisional licence takes approximately twelve to eighteen weeks.