Malta Gaming Company
Lotteries and Gaming Authority
The Lotteries and Other Games Act, supplemented by gaming regulations, governs all forms of gaming in Malta. The Lotteries and Gaming Authority (LGA) established under the Act is responsible for issuing gaming licences, ascertaining that licensees are fit and proper persons to carry out the functions relative to gaming, ensuring that licensees comply with all of their licence conditions and that games and gaming are kept free of criminal activity.
The Remote Gaming Regulations apply to all types of technologies and games. They were enacted with a view to regulating the means as well as to control the procedures of remote gaming such that the fundamental principles of gaming enunciated in the Act are preserved.
Licensing of Remote Gaming Operations
All operators of remote gaming in or from Malta must possess a valid licence of the relevant class as set out in the First Schedule of the Remote Gaming Regulations. Applicants must satisfy relevant criteria amongst other things they must be limited liability companies registered in Malta, they must satisfy the ‘fit and proper persons‘ test which involves rigourous due diligence checks on all persons (individual or corporate) who have a significant stake in the enterprise, demonstrate business, financial and technical ability to carry out the operation and demonstrate its solvency in order to ensure player winnings and deposit returns are safeguarded.
Maltese Company as a Corporate Vehicle for Remote Gaming Operations
An applicant must:
Be a Limited Liability company registered in Malta. An Maltese Company is a tax efficient vehicle. Briefly a Maltese company is taxed at the normal company rate of tax which is currently 35% thus making it a non-tax evasion vehicle. On distribution of dividends shareholders would be able to claim refunds amounting 6/7ths out of the 35% paid by the company – meaning that non-resident shareholders will be taxed at a reduced rate of only 5%.
Provide information about directors, shareholders (with 5% or more ownership or, controlling interest in the applicant) and key officials of the company disclosing
- personal information,
- financial information and business reputation,
- information on participation in other entities
- a clean criminal record.
Must appoint at least one key official.
Classes of Remote Gaming:
The Remote Gaming Regulations offers four different types of Classes of Licenses:
Class 1 Remote Gaming Licence – applies for operators who offer games which are based on repetitive events and the gaming risk is managed by the operator/casino. This type of license covers casino table style games, lotteries and slots. Since the licensee bears the full risk of the gaming activities conducted, the winnings are therefore guaranteed by it. The operator would require his software to have an LGA approved RNG (Random Number Generator)
Class 1 on 4 Remote Gaming License - shall be an online gaming license for all types of games of chance and games of skill operating on an existing Class 4 licensee. The Class four operator may either be a company owned by the Class 1 operator or it may also be an independent third party operator. There are various software providers we may direct you to.
Class 2 Remote Gaming Licence – the license covers operators who manage risk based on a singular event using markets. This license covers the traditional fixed odds betting and some forms of pool betting, such as for example sports betting.
Class 3 Remote Gaming Licence – this license is for operators who organise player to player games but they do not partake in the risk and receive only a commission or a ‘rake‘. This license is suitable for betting exchange providers, pools and poker rooms.
Class 3 on 4 Remote Gaming Licence - shall be a licence to promote and abet gaming from Malta. For operators who promote or abet gaming from Malta on an existing Class 4 licensee.
Class 4 Remote Gaming Licence – this license is for software vendors who intend to host and manage remote gaming operators having any class of the above. They cannot partake in the gaming risk and can only receive a commission.
Malta Gaming Tax and Licence Fees
Licensing fee applicable by the Malta Lotteries &Gaming Authority:
- Processing fee (non-refundable) in respect of an application - Eur2,330;
- Annual license fee in respect of class 1, class 2 and class 3 - Eur7,000 per class / license. The annual license fee for class 4 is nil for the first 6 months, Eur2,300 per month for the next 6 months (month 7 to 12) and Eur4,600 from month 13 onwards;
- The annual licence fee is to be paid within fifteen days from the formal granting of licence and repeated annually accordingly.
Gaming tax applicable by the Malta Lotteries &Gaming Authority:
- Gaming Tax for Class 1 (online gaming) - Standalone is Eur7,000 per month. Gaming Tax for Class 1 on 4 is Eur1,200 per month.
- Gaming Tax for Class 2 (online betting) - A sum equivalent to half of one per centum (0.5%) on the gross amount of bets accepted in online betting operations.
- Gaming Tax for Class 3 is 5% on net income which is defined as the net revenue less direct costs: bonuses, commissions and payment processing fees (eCommerce Fees)
- The Gaming Tax for Class 4 – no gaming tax (inherits tax of its sub-licensees).
In the case of Classes 2, 3 and 4 licenses, the total maximum amount of tax payable per annum by one licensee in respect of any one license shall not exceed Eur466,000. In the case of Class 3 on 4, tax will be paid proportionally depending on the number of licensees operating on the Class 4 gaming platform.