So you are looking for a Maltese gambling license. This document goes over the costs and processes in order to obtain the license.
Gambling licence; customer support; 2. What exactly do you want to include on your online gambling website for your customers? Once you decided to enter the online gaming market along an established name in the iGaming industry, there are a few questions you need to answer before you proceed. A license must be issued by DIA before gambling takes place, including the promotion. Applications should be received by DIA at least 30 days prior to the intended start of activity. License duration: Two years; Cost: $150; Access the Social Gambling License Application. Social Gambling License for Public Place, No Alcohol Allowed.
NOTICE
Malta is not the cheapest jurisdiction to obtain a casino license in, if you are looking for a more affordable license then we suggest taking a look at a Curacao gambling license which is better suited to tighter budgets.
Why Malta?
Malta is part of the European Union which makes it a very attractive jurisdiction to obtain a gambling license in. It comes with tax incentives and an expert work force.
What this document covers
This document covers the end to end application process with the Malta Gaming Authority (“MGA”) as well as an overview of the related prices for the setup and the maintenance of a gambling company in Malta.
- Malta Gaming Authority (MGA) license types
- Malta gambling license application process
- Malta Gaming Authority fees
- Gaming Tax as Applicable by the MGA
- Share Capital Requirements
- Administration services
- Key official Services
- On-going operation
- Financial Audit
- How long does it take to get the Malta gambling license
- How do I find out if a casino is licensed in Malta?
Malta Gaming Authority license types
The Malta Gaming Authority offers four types of remote gaming licenses:
- Class 1 – a remote gaming licence (examples of Class 1 licences would include casino-type games and online lotteries) whereby operators manage their own risk on repetitive games. It is also possible to have a Class 1 on 4 licence whereby the Class 1 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
- Class 2 – a remote betting licence (an example of a Class 2 licence would include fixed-odds betting) whereby operators manage their own risk on events based on a matchbook. It is possible to have a Class 2 on 4 licence whereby the Class 2 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
- Class 3 – a licence to promote and/or abet remote gaming in or from Malta (an example of a Class 3 licence would include poker rooms and peer-to-peer (P2P) gaming). It is also possible to have a Class 3 on 4 licence whereby the Class 3 licensee operates its games on the software and in certain cases through the equipment of a Class 4 licensee;
- Class 4 – a licence to host and manage remote gaming operators, excluding the licensee itself, whereby software vendors provide management and hosting facilities on their platform. In essence this is a business to business (B2B) gaming licence.
Malta gambling license application process
In order to prevent any unnecessary delays in the process, our clients will undergo a pre-application process together with the Malta Gaming Authority (MGA). This will ensure the quality of the application and will be followed by the actual application process that consists of a number of steps:
- 1) The MGA will conduct a fit and proper exercise by assessing all information related to those involved in financing and management and on the business viability of the operation. In addition the MGA conducts integrity investigations with national and international regulatory bodies and law enforcement agencies.
- 2) The MGA conducts an in depth financial analysis of the applicant’s business plan. It is expected to include a detailed forecast of the operation together with details pertaining to marketing and distribution strategies, HR planning, and growth targets.
- 3) Operational and Statutory – The applicant is examined on the instruments required to conduct the business. This process includes examining the Company’s incorporation documents, the games, the business processes related to conducting the remote games, the rules, terms, conditions, and procedures of the games, the application architecture, and the system architecture.
- 4) The MGA will inform the applicant that the application was successful and will invite the applicant to implement onto a technical environment in preparation for going live. 60 days are allowed for the applicant to complete such operation. Within those 60 days, the applicant may request an external systems audit where the live environment will be examined against the proposed application. Once the certification process is completed, a five-year license will be issued by the MGA.
- 5) Once the licence is issued, an independent third party will be contracted by the MGA to perform a number of compliance audits of the licensees operation throughout the first and the third year of operation.
Malta Gaming Authority fees
| Description | Fee |
| Fee for a new licence of any class | €5,000.00 |
| Application fee for the renewal of any class | €5,000.00 |
| Systems Audit | €2,500.00 |
| Compliance Audit | €3,500.00 |
Annual licence fee
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The annual license fee is paid to the MGA, previously this was a fixed fee for any class however as of 2018 this fee is changing as follows.
For a class 1, 2 or 3 license the annual fixed MGA fee is €25,000 and for a class 4 license €10,000. If a licensee has multiple classes of licenses (1, 2 or 3) the annual combined fixed fee is calculated on Gross Gaming Revenue:
| Revenue | Fee |
| Fee for a new licence of any class | €5,000.00 |
| -5Mln EUR | €25,000.00 |
| 5mln – 10mln EUR | €30,000.00 |
| + 10mln EUR | €35,000.00 |
Compliance contribution
The MGA has introduced this new fee which is based on Grosse Gaming Revenue and has minimal annual contributions which differ per class:
| Class 1: Annual Compliance contribution – Minimal fee €15.000, Max €375.000 | Rate |
| For every euro of the first €3,000,000 | 1.25% |
| For every euro of the next €4,500,000 | 1.00% |
| For every euro of the next €5,000,000 | 0.85% |
| For every euro of the next €7,500,000 | 0.70% |
| For every euro of the next €10,000,000 | 0.55% |
| For every euro of the remainder | 0.40% |
| Class 2: Annual Compliance contribution – Minimal fee €25.000, Max €600.000 | Rate |
| For every euro of the first €3,000,000 | 4.00% |
| For every euro of the next €4,500,000 | 3.00% |
| For every euro of the next €5,000,000 | 2.00% |
| For every euro of the next €7,500,000 | 1.00% |
| For every euro of the next €10,000,000 | 0.80% |
| For every euro of the next €10,000,000 | 0.60% |
| For every euro of the remainder | 0.40% |
| Class 3: Annual Compliance contribution – Minimal fee €25.000, Max €500.000 | Rate |
| For every euro of the first €2,000,000 | 4.00% |
| For every euro of the next €3,000,000 | 3.00% |
| For every euro of the next €5,000,000 | 2.00% |
| For every euro of the next €5,000,000 | 1.00% |
| For every euro of the next €5,000,000 | 0.80% |
| For every euro of the next €10,000,000 | 0.60% |
| For every euro of the remainder | 0.40% |
| Class 4: Annual Compliance contribution – Minimal fee €5.000, Max €500.000 | Rate |
| For every euro of the first €2,000,000 | 0.50% |
| For every euro of the next €3,000,000 | 0.75% |
| For every euro of the next €5,000,000 | 1.00% |
| For every euro of the next €5,000,000 | 1.25% |
| For every euro of the next €5,000,000 | 1.50% |
| For every euro of the next €10,000,000 | 1.75% |
| For every euro of the remainder | 2.00% |
Gaming Tax as Applicable by the MGA
- Class 1 – €4,660.00 per month for the first six months and €7,000.00 per subsequent month;
- Class 1 on 4 – €1,200.00 per month;
- Class 2 – 0.5% on the gross amount of all bets accepted;
- Class 3 and Class 3 on 4 – 5% of real income;
- Class 4 – No Tax levied for the first six months of operation, €2,330.00 per month for the subsequent six months, and €4,660.00 per subsequent month for the entire duration of the licence
Share Capital Requirements
When incorporating the company on Malta, the MGA requires that companies operating a class 1 or 2 license have a share capital of €100.000. For class 3 or 4 license holders this amount is €40.000. Companies applying for multiple licenses amounts will be cumulative.
An idea of corporate setup fees for a Maltese gambling company
| Description | Fee |
| Incorporation Fee (This includes name reservation, customer due diligence process, M&As, Share Register, VAT application, income tax application, excl. MFSA Registration Fee) | €1,200.00 – €2,000.00 |
| Registered office (optional) | €500 – €1000.00 |
| Corporate Director (optional) | Price on request |
| Company Secretary | €500 – €1000 |
| Annual Compliance (KYC) Maintenance | €250 – €500 |
| Management Fee Package | €3,000.00 – €5,000.00 |
| Assistance opening a bank account | €1,000.00 – €2,000.00 |
Administration services
| Description |
| Book Keeping |
| Legal Administration |
| The legal and financial administrational services will be charged against the applicable hourly rates which may vary from €60 to €250 per hour, depending on the experience of the employee involved. |
The above fees are per class of license.
Typically the fees will include assistance with the drafting of the business plan, financial prognosis, and system documentation.
Key official Services
A Key Official is a natural person, approved and licensed by the MGA to act as a main point of contact towards the said authority on behalf of the gaming company licensed in Malta. Key Official services cost on average €1,000 per month. This will also include the preparation and submission of the player liability reports of the company, gaming tax reports, the quarterly returns, completion of any other returns due by the company (such as questionnaires/consultation papers) to the MGA amongst other duties generally incumbent upon directors by application of the law.
On-going operations
If preferred a service provider can assist with the on-going daily financial and legal matters of the company. The type of service will depend on your personal preferences and below is an example of the services a gaming company may expect to be made available to them:
- Filing of the annual returns
- Preparing and processing bank transactions
- Preparation of bookkeeping and related annual financial statements
- Company VAT(quarterly), annual tax and tax refund filings
- Payroll services
- Mini One Stop Shop (Moss) VAT compliance
- Preparation of dividend warrants
- Certification of documents
- Legal administration (e.g. drafting/reviewing contracts or agreements)
- Liaising with the auditors
- Residency applications and opening of bank accounts for employees
We would recommend negotiating fixed monthly fees to cover the above services allowing you to budget appropriately.
Financial Audit
Audit fees (external auditor) start at €1,500. The actual fee highly depends on the amount of activities within the company.
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How long does it take to get the license?
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Where can a Malta Gambling license be used?
Casinos licensed under a Malta Gambling License can offer services to players in over 180 countries.
It is far simpler to list the countries where the Malta Gambling License can not be used: USA, Australia, China, Hong Kong, Macau, Turkey, Iran, Iraq, Syria, Indonesia, and Malaysia. Some European countries are barred too: France, Spain, Italy, Portugal, Austria, Belgium, the Czech Republic, Slovenia, Lithuania, Estonia, and Denmark.
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How do I find out if a casino is licensed in Malta?
It is not uncommon for casinos to “pretend” to have a Malta Gambling License. If you want to find out for sure if a casino is indeed registered and licensed in Malta you can visit
the MGA Gaming License Register for further information.
Gaming license is an essential factor in starting a standalone online casino. Besides improving the casino reputation and contributing to players’ trust, the license is required for creating the financial infrastructure and working with many software and game content providers.
Why is a gaming license required
A gambling license is a prerequisite to working legally and without complications. It is needed:
- To open a bank and a merchant account
- To work with electronic payment system providers
- To use gaming content from reputable, white-market providers
- For more effective marketing and oftentimes better player conversion
- For increased player loyalty stemming from perceived reputability of the casino
Getting a gaming license starts with making the most important decision on the gambling jurisdiction. The available jurisdictions mainly vary by the requirements to the casino operator and the software, the time of processing applications, and licensing costs.
Steps to follow before applying for the license
- Learn the available gambling jurisdictions, their requirements, costs, taxation policy and application processing time.
- Choose the jurisdiction that better corresponds your current needs and possibilities.
- Make sure that the casino software you are going to use meets the requirements of the jurisdiction. Licensing bodies in different jurisdiction pose various requirements to the software used by the casino. For example, the software shall have the appropriate functionality for supporting casino self-exclusion policy.
- Be prepared to incorporate a legal entity in the required jurisdiction: most of the jurisdictions require that the casino is run by a locally registered company.
- Start preparing personal documents in advance. Documents which are usually required for incorporation include passport copy, recent utility bill or other proof of address, certificate of no criminal record from the police, bank reference letter, and some other.
- Prepare documents on the gaming software. The list would usually include certificate of the RNG, detailed description of the software functionality and games, agreements with software providers, etc.
- Check if the online casino website contains the information required by your gambling jurisdiction. Many gambling jurisdictions check the availability of the information on terms and conditions, responsible gambling, self-exclusion policy, withdrawal policy, etc.
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Getting a gambling license is an effort and cost consuming procedure which may last from several weeks to a year and make the online casino time to market very long. Professional help can play a decisive role in speeding up the process and eliminating unnecessary risks for the casino operator. SoftSwiss offers consulting and support in choosing the gambling jurisdiction, helps prepare the documents, makes sure that the software meets all requirements and facilitates communication between the operator and the licensing body. For those who want to launch their online casino within the shortest time frame and are not ready to wait until the license is ready, SoftSwiss is glad to offer its White Label solution.
Related materials:
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