In review: licensing and taxation of gambling activities in Malta
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The legislative framework governing gaming in Malta consists of the Gaming Act, Chapter 583 of Law 5, and subsidiary legislation 5.03–583.12. The MGA is the primary regulatory body responsible for the governance of all gaming activities in the country. Remote and land-based gambling are permitted in both Malta. There are four licensed casinos and betting shops and arcade centres. Bingo halls offer Spanish game of bingo. The latter requires a government concession. All controlled gaming premises need a licence. They are different from casinos. It is not necessary to have a license to operate a casino.
The MGA may issue a gaming service licence (B2C) or a critical gaming supply licence B2B. Both licences are issued with one or more of the below game types. The Mga has complete discretion to categorise the game as it believes closest reflects the nature of it. Corporate group licences. In review: licensing and taxation of gambling activities in Malta.
In review: licensing and taxation of gambling activities in Malta. Type 1 gaming services include casino type games, roulette, blackjack, baccarat, poker played against the house, lotteries, secondary lottersies and virtual sports games.
Cruise casinos require a cruise casino permit from the MGA. The permit is valid only for the singular event or events for which it is granted and expires once the event is concluded. It cannot be renewed or transferred without the prior approval. There are no restrictions on the type of payment mechanisms that licensed operators may implement for processing payments from players. The Mga launched the first of two phases of its Sandbox Regulatory Framework on 1 January 2019. In September 2019, the second phase of the Sandboxes was launched for applicants using innovative technology arrangements (ITAs) and DLT platforms.
In review: licensing and taxation of gambling activities in Malta. UK entities must have an establishment set up within the EU/EEA and be at least 90 per cent owned by the same shareholder or UBO.
All B2C operators are subject to a gaming tax of 5%. There is also a tax on gaming devices. Malta's full-imputation system allows shareholders to claim a refund of all or part of the tax paid in Malta. Value added tax (VAT) is applied at the standard rate of 18%. Two sets of guidelines were published by the Maltese government in relation to the previous gambling VAT exemption. They became effective on 1 January 2018. The guidelines provide a specific list of exemptions applicable to particular gaming activities.
