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MT

Is Gambling Legal in Malta?

Regulated
Malta has a fully regulated gambling market with strict licensing, compliance, and player protection standards.
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    Key Information Highlights Legislation Timeline Requirements Sources

    Key Information

    Last Update 2025
    Regulatory Authority Malta Gaming Authority (MGA)
    License Cost €10,000 - €25,000

    Regulation by Activity Type

    Casinos Regulated
    Online Casinos Regulated
    Betting Regulated
    Online Betting Regulated
    Lotteries Regulated
    Poker Regulated

    Highlights

    • Malta regulates gambling under the Gaming Act, with the Malta Gaming Authority (MGA) as the main regulator.
    • The MGA issues licenses for both land-based and online gambling, requiring strict compliance and player protection.
    • Operators must meet high standards for financial reliability, data security, and responsible gambling measures.
    • A non-refundable €5,000 application fee is required for an MGA license, with ongoing compliance and reporting duties.
    • Tax rates vary by game type, with remote gaming operators typically taxed at a fixed monthly rate per license.
    • Recent 2025 updates introduced a data-driven supervisory model and increased focus on transparency and compliance.
    • Operators must promptly report suspicious betting activities, especially in sports betting, to combat match-fixing.
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      Legislation

      Primary Legislation

      The gambling industry in Malta is governed by a comprehensive legal framework that establishes the foundation for all gambling activities within the territory. The cornerstone of Malta's gambling legislation is the Lotteries and Other Games Act of 2001 (Chapter 438 of the Laws of Malta), which initially established the regulatory structure for the industry. This legislation has been supplemented and enhanced over the years with additional laws and regulations that together form a robust legal framework. Another significant component of Malta's gambling legal structure is Chapter 400 of the Laws of Malta, which works in conjunction with the primary legislation to create a secure and regulated environment for both land-based and online gambling operations. These laws collectively establish the legal basis for licensing and regulation of various gambling activities including casinos, amusement and slot machines, betting offices, fantasy sports, lotteries, and online gambling services. The Maltese legal framework for gambling is designed to ensure fairness and transparency in gaming operations while preventing criminal activity and protecting vulnerable individuals. The legislation covers both B2C (business-to-consumer) and B2B (business-to-business) services, making Malta's regulatory approach comprehensive in addressing all aspects of the gambling industry.

      Regulatory Authority

      The Malta Gaming Authority (MGA), formerly known as the Lotteries and Gaming Authority (LGA), is the primary regulatory body responsible for overseeing all gambling activities in Malta. Established in 2001, the MGA regulates both land-based and online gambling operations within Maltese jurisdiction. The MGA serves as the gaming control board with extensive powers to implement and enforce the gambling legislation. It operates as an independent regulatory body with the authority to issue licenses, monitor compliance, and take enforcement actions against operators who violate regulations.
      • Ensuring security and transparency for players in all gambling activities
      • Preventing criminal organizations from infiltrating the gambling industry
      • Protecting minors and vulnerable individuals from gambling-related harm
      • Providing guidance to companies seeking gaming permits
      • Safeguarding player deposits, funds, and personal information
      • Monitoring licensees' activities to ensure ongoing compliance
      • Ensuring fairness and randomness in all gambling operations
      The MGA publishes an Annual Report that outlines the performance of Malta's gambling industry and provides statistics on the sector. The authority maintains high standards for gambling operators and has established Malta as a significant jurisdiction in the global gambling regulatory landscape. The MGA's regulatory approach has been so influential that many other countries reference its standards and guidelines in their own regulatory frameworks.

      License Types

      Types of Gambling Licenses in Malta

      • B2C (Business-to-Consumer) Gaming Service License: For operators providing gaming services directly to players. This covers online casinos, sports betting, lotteries, and other remote gaming activities.
      • B2B (Business-to-Business) Critical Gaming Supply License: For companies supplying gaming software, platforms, or systems to licensed operators. This includes game developers and platform providers.
      • License Classes: Malta previously had a four-class system, but now licenses are categorized as either B2C or B2B, with specific activity approvals (e.g., casino, betting, lottery) granted under each license as appropriate.

      Application Process

      • Initial Application: Applicants submit a detailed application to the Malta Gaming Authority (MGA), including business plans, financial projections, technical documentation, and information on key persons and shareholders.
      • Application Fee: A one-time, non-refundable application fee of €5,000 is required for each license application.
      • Due Diligence: The MGA conducts thorough due diligence on the company, its directors, and shareholders, assessing integrity, competence, and financial standing.
      • System Audit: Applicants must pass a systems audit by an approved third party, demonstrating technical compliance and readiness.
      • Decision Timeline: The process typically takes 3 to 6 months, depending on the complexity of the business and completeness of the application.

      Duration, Renewal, and Eligibility

      • License Duration: Licenses are granted for a term of 10 years.
      • Renewal: Licenses can be renewed upon application before expiry, subject to continued compliance and payment of renewal fees.
      • Eligibility: Applicants must be companies incorporated in Malta or another approved jurisdiction, with a local presence and key management functions located in Malta.

      Licensing Costs and Financial Requirements

      • Application Fee: €5,000 (non-refundable, per application).
      • Annual License Fees:
        • B2C License: Ranges from €25,000 to €35,000 per year, depending on the type of gaming activity and annual revenue.
        • B2B License: €25,000 per year for most suppliers.
      • Compliance Contribution: In addition to fixed fees, B2C operators pay a variable compliance contribution based on gaming revenue, with rates depending on the specific activity.
      • Additional Costs: System audits, annual compliance audits, and other regulatory checks incur additional fees, typically paid to third-party service providers.
      • Financial Reserves: Operators must maintain sufficient financial resources and provide evidence of ongoing solvency and liquidity.

      Key Requirements for Obtaining and Maintaining a License

      • Corporate Structure: The applicant must be a registered company, with clear ownership and management structure.
      • Fit and Proper Test: All key persons and shareholders must pass integrity and competence checks.
      • Technical Compliance: Gaming systems must meet strict technical standards for fairness, security, and player protection, verified through independent audits.
      • Player Protection: Operators must implement robust responsible gambling measures, including self-exclusion tools and player fund segregation.
      • AML and KYC: Compliance with anti-money laundering and know-your-customer regulations is mandatory, with detailed procedures and regular reporting.
      • Reporting and Auditing: Regular submission of operational, financial, and compliance reports to the MGA is required. Annual audits by approved auditors are mandatory.
      • Local Presence: Key management and compliance functions must be located in Malta, and a physical office is required.
      • Ongoing Supervision: Licensees are subject to ongoing supervision, inspections, and periodic reviews by the MGA, especially under the updated data-driven regulatory model for 2025.

      Gambling Tax

      Tax Rates for Gambling Operators in Malta

      Type of Gambling Operation Tax Basis Tax Rate
      Type 1 (Casino games, lotteries, RNG-based games) Gross Gaming Revenue (GGR) 1.25% of GGR
      Type 2 (Sports betting) Gross Gaming Revenue (GGR) 0.5% of GGR
      Type 3 (Peer-to-peer games, betting exchanges, poker) Gross Gaming Revenue (GGR) 4% of GGR
      Type 4 (Controlled skill games, eSports) Gross Gaming Revenue (GGR) 0.5% of GGR
      • Tax is calculated on the monthly GGR, which is the difference between the amount wagered and the winnings paid out to players.
      • There is an annual cap on total gaming tax payable per license, which may vary depending on the license type.

      Tax Reporting and Payment Requirements

      • Operators must file monthly gaming tax returns with the Malta Gaming Authority (MGA).
      • Tax payments are due monthly, typically within 20 days after the end of each month.
      • Operators must maintain detailed records of all transactions, GGR calculations, and supporting documentation for audit purposes.
      • Annual financial statements and reports must be submitted to the MGA for compliance checks.

      Tax Incentives, Exemptions, and Special Provisions

      • Malta does not levy Value Added Tax (VAT) on gambling services provided to players outside Malta.
      • Corporate income tax incentives are available, allowing effective tax rates on distributed profits to be reduced significantly through Malta’s tax refund system for qualifying shareholders.
      • Startups and new market entrants may benefit from reduced compliance fees or temporary incentives, depending on current government initiatives.
      • There are no gaming taxes on revenue generated from players located outside Malta if the operator is licensed and compliant with MGA regulations.

      Prohibited Individuals

      Age Restrictions and Identification Requirements

      • The minimum legal age for participating in any form of gambling in Malta is 18 years.
      • Operators are required to implement robust age verification procedures to prevent underage gambling. This includes mandatory identity checks for all players before they can deposit or withdraw funds.
      • Players must provide valid identification documents (such as a passport or national ID card) to verify their age and identity.
      • Operators must perform ongoing monitoring to detect and prevent account sharing or fraudulent use of player identities.

      Prohibited Activities and Game Restrictions

      • Gambling activities that are not explicitly licensed or authorized by the Malta Gaming Authority (MGA) are prohibited.
      • Operators are not permitted to offer games or betting products that are deemed illegal or contrary to public policy, such as unlicensed lotteries, unauthorized betting exchanges, or games that do not meet fairness requirements.
      • Specific restrictions may apply to certain game types, such as games with excessive payout ratios or those that target vulnerable player groups.
      • Match-fixing, cheating, and the use of unauthorized software or bots are strictly forbidden.

      Advertising and Marketing Limitations

      • Advertising and marketing of gambling products must not target minors or vulnerable individuals.
      • All promotional materials must clearly display responsible gambling messages and provide information on support resources.
      • Operators are prohibited from making misleading claims about odds, winnings, or the likelihood of success.
      • Bonuses and promotions must be presented transparently, with all terms and conditions clearly communicated to players.
      • Direct marketing, such as email or SMS campaigns, must only be sent to individuals who have provided explicit consent and must include opt-out options.
      • Advertising is not permitted in locations or media primarily intended for minors, such as children’s websites or schools.

      Responsible Gambling Requirements and Player Protection Measures

      • Operators must provide players with tools to set personal deposit, loss, and session time limits.
      • Self-exclusion options must be readily available, allowing players to exclude themselves from gambling activities for specified periods or permanently.
      • Operators are required to monitor player behavior for signs of problem gambling and intervene when necessary, including by providing information on support services and offering cooling-off periods.
      • Information about responsible gambling, including links to helplines and support organizations, must be easily accessible on all gambling platforms.
      • Staff must receive regular training on responsible gambling policies and how to identify and assist at-risk players.
      • Operators must ensure the protection of player funds, keeping them segregated from operational accounts to safeguard against insolvency risks.
      • Regular audits and compliance checks are conducted to ensure ongoing adherence to player protection standards.

      Geographic and Location Restrictions

      • Land-based gambling venues in Malta must be located in approved areas and comply with zoning regulations to prevent clustering near schools, places of worship, or other sensitive locations.
      • Remote (online) gambling operators licensed in Malta must ensure that their services are not accessible in jurisdictions where online gambling is prohibited.
      • Operators are required to implement geo-blocking measures to restrict access from countries where their license does not permit operation.
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        Timeline

        Year/Date Event
        1964 Malta legalizes betting through the Public Lotto Ordinance, marking the first formal regulation of gambling in the country.
        2001 Malta enacts the Lotteries and Other Games Act, establishing a comprehensive legal framework for both land-based and online gambling.
        2002 The Malta Gaming Authority (originally the Lotteries and Gaming Authority) is established as the primary regulatory body for gambling activities.
        2004 Malta becomes the first EU member state to regulate remote (online) gaming, issuing the first online gambling licenses under the new regime.
        2018 The Gaming Act (Cap. 583) comes into force, introducing a streamlined, risk-based regulatory framework and replacing previous fragmented legislation.
        2023 Malta Gaming Authority publishes its Annual Report, highlighting ongoing regulatory updates and industry developments.
        2025 Malta Gaming Authority implements significant regulatory updates to increase transparency, safety, and resilience, with a shift towards a data-driven supervisory model for operators.

        Requirements

        Software Certification and Technical Standards

        • All gaming software and systems used by operators must be tested and certified by independent, MGA-approved testing laboratories. Certification ensures compliance with requirements for fairness, randomness, and security.
        • Operators must implement robust technical controls to guarantee the integrity and reliability of gaming operations, including secure random number generators (RNGs), game logic, and payout algorithms.
        • Gaming platforms must be capable of providing real-time monitoring, logging, and reporting of all gaming transactions and player activities.
        • Any changes or updates to the gaming system, software, or critical components require prior notification to the Malta Gaming Authority (MGA) and may be subject to re-certification.

        Data Protection, Privacy Measures, and Server Location

        • Operators are required to comply with the EU General Data Protection Regulation (GDPR), ensuring the confidentiality, integrity, and availability of player data.
        • Personal and sensitive data must be encrypted both in transit and at rest, using industry-standard cryptographic protocols.
        • Access to player data and sensitive information is restricted to authorized personnel only, with strict access controls and regular audits.
        • Gaming servers hosting critical player data and gaming operations must be located in Malta or in an approved jurisdiction that meets MGA standards for security and data protection.
        • Operators must implement robust cybersecurity measures, including regular penetration testing, vulnerability assessments, and incident response protocols.

        Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

        • Operators must establish comprehensive AML policies and procedures in line with the EU’s 5th Anti-Money Laundering Directive and Maltese regulations.
        • Mandatory KYC checks are required before allowing players to deposit, wager, or withdraw funds. This includes identity verification, proof of address, and source of funds checks for higher-risk transactions.
        • Operators must monitor player activity for suspicious or unusual transactions and report any such activity to the Financial Intelligence Analysis Unit (FIAU) of Malta.
        • Ongoing due diligence and risk assessments are required for all player accounts, with enhanced scrutiny for high-risk or politically exposed persons (PEPs).
        • Operators must maintain detailed records of all AML and KYC checks, including documentation and transaction histories, for a minimum period as specified by the MGA.

        Financial Reporting, Auditing Standards, and Record-Keeping

        • Operators are required to maintain accurate and up-to-date financial records, including all player transactions, deposits, withdrawals, and game outcomes.
        • Annual financial statements must be prepared in accordance with International Financial Reporting Standards (IFRS) and audited by an independent, MGA-approved auditor.
        • Operators must submit regular financial and operational reports to the MGA, including the annual Risk Evaluation Questionnaire (REQ) as required by the FIAU.
        • All records related to gaming operations, financial transactions, and player activities must be securely stored and readily accessible for inspection by the MGA for a minimum period, typically five years.
        • Operators must implement internal controls to detect and prevent financial irregularities, with regular internal and external audits of financial and operational processes.

        Responsible Gambling Tools and Technical Implementation

        • Operators are required to integrate technical tools that allow players to set deposit, loss, wager, and session time limits directly through the gaming platform.
        • Self-exclusion mechanisms must be available, enabling players to suspend their accounts for specified periods or permanently.
        • Gaming systems must provide real-time notifications and reminders to players about their gambling activity, including time spent and amounts wagered.
        • Operators must ensure that responsible gambling features are clearly visible, easily accessible, and technically robust to prevent circumvention or manipulation.
        • All responsible gambling interventions and player requests must be logged and auditable by the MGA.

        Sources

        Primary Regulatory Authorities

        Legislation Resources

        Contact Information

        • Malta Gaming Authority (MGA) Address: Building SCM 02-03, Level 4, SmartCity Malta, Ricasoli SCM1001, Malta Phone: +356 2546 9000 Email: info.mga@mga.org.mt
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          Important Information Notice

          Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.

          Last updated: 15 July 2025