| Regulator | Malta Gaming Authority (MGA) |
|---|---|
| Licence Timeline | 6–12 months |
| Min. Share Capital | €100,000 (B2C Gaming Service Licence) |
| Tax on GGR | 5% (Gaming Tax) |
| Corporate Tax | 35% (with refund mechanisms reducing effective rate) |
| EU Market Access | Broad (with country-specific exceptions) |
Malta is the European Union's primary iGaming licensing hub. More than 300 operators hold active MGA licences, representing a significant share of global regulated online casino GGR. For any operator targeting EU players — or seeking credibility with mainstream payment processors, affiliate networks, and advertising platforms globally — an MGA licence is the most efficient path to market.
Malta's regulatory environment is demanding by offshore standards but offers something offshore licences cannot: genuine EU legal standing, which translates directly into commercial access. This guide covers what it takes to obtain an MGA licence, what it costs, and what operating under Maltese regulation looks like day-to-day.
Is Online Casino Legal in Malta?
Yes. Online gambling has been fully legal and regulated in Malta since 2001 under the Lotteries and Other Games Act, subsequently updated by the Gaming Act of 2018 (Chapter 583 of the Laws of Malta). The 2018 reform modernised the framework significantly, introducing a risk-based licensing system and the current MGA structure.
Regulatory Authority: The Malta Gaming Authority
The Malta Gaming Authority (MGA) is the independent regulatory body responsible for all gambling in Malta, including online operations. The MGA operates a "licence follows the business" principle — it regulates operators based in Malta regardless of where their players are located, making it functionally an EU-wide licence for most purposes.
The MGA has enforcement powers including licence suspension, financial penalties, and criminal referral for serious breaches. Its public licence register allows players and business partners to verify an operator's status in real time — an important trust signal for player-facing operations.
Licence Types Available to Operators
The MGA issues two primary licence types relevant to online casino operators:
- Gaming Service Licence (B2C) — for operators offering games directly to players. This is the licence you need to run an online casino. Sub-categories cover casino games, sports betting, poker, and lotteries separately, though combined licences are available.
- Critical Gaming Supply Licence (B2B) — for software providers, game studios, and platform providers supplying technology to licensed operators. If you are building a platform business rather than a player-facing casino, this is your licence type.
Application Requirements and Timeline
An MGA Gaming Service Licence application requires extensive documentation. Core requirements include:
- Detailed business plan including financial projections, target markets, and marketing strategy
- Corporate structure chart and source of funds documentation for all UBOs (beneficial owners) holding 10%+ of shares
- Fit-and-proper assessments for all directors, key function holders, and qualifying shareholders
- AML/CFT policy, risk assessment, and internal control procedures
- Responsible gambling framework documentation
- Technical audit of your software platform by an approved testing laboratory (BMM, GLI, eCOGRA, or equivalent)
- Maltese corporate entity (or EU/EEA company) with a local registered office
- Evidence of minimum share capital (€100,000 paid up for B2C casino licence)
Timeline from complete application submission to licence decision is typically 6–9 months. Incomplete applications or requests for additional information extend this. Most operators begin platform setup, game integration work, and corporate substance establishment in parallel with the licence application to compress overall time to market.
Providers like PWP.bet provide pre-configured compliance documentation packages for MGA applications, which can materially reduce the preparation time and legal cost of the application.
Licensing Costs and Ongoing Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Application fee | €5,000 | Non-refundable, paid on submission |
| Annual licence fee | €25,000 | B2C Gaming Service Licence (casino) |
| Compliance contribution | Variable | 0.5%–1.5% of GGR depending on game type |
| Platform technical audit | €5,000–€15,000 | Paid to approved testing lab |
| Legal / consulting | €20,000–€50,000 | Estimate for application preparation |
| Maltese entity setup | €2,000–€5,000 | Corporate registration and registered office |
| Total year-1 estimate | €57,000–€100,000 | Excluding platform and working capital |
Tax and Revenue Obligations
Malta imposes a 5% Gaming Tax on GGR derived from EU players. This is a relatively competitive rate by EU standards (compare with Germany's 5.3% on slot stakes or Sweden's 18% GGR tax). Non-EU player GGR is not subject to Maltese gaming tax.
Corporate income tax is 35%, but Malta's tax refund system allows foreign shareholders to recover up to 6/7ths of tax paid on trading income, reducing the effective corporate tax rate to approximately 5% for most iGaming structures. This has historically made Malta highly attractive for tax efficiency alongside regulatory credibility.
Technical and Compliance Requirements
All software used by MGA-licensed operators must be tested and certified by an MGA-approved testing laboratory. The technical standards cover RNG fairness, game mathematics, system security, player fund segregation, and AML monitoring capabilities. Your platform provider should be able to provide existing GLI or BMM certifications for their platform — verify this before signing.
Responsible gambling requirements include mandatory deposit limit tools, self-exclusion functionality connected to Malta's national self-exclusion register, session time limits, and reality check notifications. These must be technically operational at launch, not added post-approval.
Payment Methods Accepted in Malta
Malta itself has a small local market (population ~500,000), but an MGA licence enables payment processing across the EU. With an MGA licence, you can access major iGaming-friendly PSPs including Skrill, Neteller, Trustly, and specialist iGaming acquirers for card processing. Visa and Mastercard processing requires an iGaming-specialist merchant acquirer — standard business acquirers will not board casino merchants regardless of licence.
Market Size and Opportunity
Malta's domestic market is small (estimated online GGR of €40–60M annually as of 2024), but this is not the point of a Maltese licence. The commercial value is EU market access — the broader EU online casino market is estimated at €20–25Bn GGR annually. An MGA licence is the primary gateway to this market for non-EU operators.
Key Challenges for Foreign Operators
Substance requirements: The MGA's expectation of genuine local presence adds real ongoing cost (local staff, office, director). Remote compliance teams are not sufficient for a serious operation.
Country-specific restrictions: An MGA licence does not authorise you to serve players in all EU countries. Germany, Netherlands, Sweden, Denmark, and several others have local licensing requirements. Serving players in these markets without a local licence exposes you to regulatory action from those national authorities, regardless of your MGA status.
Application complexity: The MGA application is detailed and demanding. Engaging a specialist iGaming lawyer and licensing consultant is strongly recommended — the quality of your application materials directly affects approval timeline.
Frequently Asked Questions
Can a non-EU company obtain an MGA licence?
Yes. Non-EU companies can apply for an MGA licence, but they must incorporate a Maltese or EU/EEA entity to hold the licence. The non-EU parent company can be the ultimate shareholder, but the licensed operating entity must be Maltese (or EU/EEA registered). Non-EU founders undergo the same fit-and-proper assessment as EU applicants.
Does an MGA licence cover the UK market?
No. Post-Brexit, the UKGC no longer recognises MGA as a permitted jurisdiction for serving UK players. To legally serve UK players, accept UK card payments, and advertise to UK audiences, you must hold a UK Gambling Commission Remote Operating Licence. An MGA licence and UKGC licence are operated in parallel by operators targeting both markets.
What is the tax rate on online casino revenue in Malta?
Malta's Gaming Tax is 5% on GGR derived from EU players. Non-EU player GGR is exempt from Maltese gaming tax (though it may be subject to source-country withholding taxes depending on the player's jurisdiction). Corporate income tax is nominally 35% but Malta's imputation refund system typically reduces the effective rate to approximately 5% for qualifying iGaming structures. Always engage a Maltese tax advisor to confirm the applicable structure for your specific corporate arrangement.
How long does the MGA licence application take?
From complete application submission, the MGA's target decision timeline is 4–6 months, though 6–9 months is more typical in practice. Pre-application preparation (corporate setup, platform certification, documentation) adds 2–4 months. Total timeline from project start to licence approval is typically 8–14 months for a well-prepared application.
Planning an MGA-licensed launch? PWP.bet's platform is pre-certified for MGA operations — their compliance package covers technical audit documentation, responsible gambling toolset, and AML policy templates tailored to MGA requirements. See the full review for details.