Malta is considered Europe’s egaming capital because it is one of the best places to open an online betting enterprise such as an online casino. And because it has signed many trade agreements and treaties giving access to Asian and African markets.
Online Casinos
We can help you to set up your online casino with the minimum of fuss. You must register with the Lotteries and Gaming Authority Malta and follow the regulations of the Gaming Act Regulations of the 7th of August 1998. A license is necessary in order to open an online casino in Malta and it will be granted only to companies registered here. Certain conditions have to be met before applying for licenses for eBetting: any person who controls a major amount of voting capital and the director of the company must be people of integrity and the representative must demonstrate the expertise to operate a casino.
An annual fee must be paid for the license. It is available for a period of 5 years and it is then renewable for another five years after this period.
The online gaming license must state:
- Its name
- The address and the address where the specific documents must be issued
- The maximum number of tables and machines that can be operated under the license
- The minimum opening hours
- The date of issuing
- The date of expiration
Four classes of license
The first class of license for eBetting is granted for lotteries, slots, and online casino style games.
The second class is offered for betting operators.
The third class must be requested by advertising and promotion companies that operate from Malta, such as game portals, poker networks and betting exchanges.
The fourth class of license must be requested by companies that are not operators of remote gaming operations, but host this type of business (companies that offers management and space on their platforms).
The Lotteries and Gaming Authority is the main entity which provides licenses for opening online casinos, if all the documents are properly submitted no later than 18 months from the initial submission.
Documents required
Applicants must provide the following documents:
- A three year business plan
- Copies of trademarks if available
- Last year’s audited statements (if applicable)
- Personal declaration form and a standard application (available on the LGA website)
- Power of attorney granted to the representative
- Registration certificate of the company
Also the LGA may request other documents such as a proof of residence of the beneficial owner, (utility bill) passport of the beneficial owners, a bank reference letter regarding the beneficial owners etc.
For any change in the status of the online casino the LGA must be informed by no later than 14 days from opened in Malta.
Our experts are on hand to assist you with every aspect of opening online casinos from:
- Arranging public notary procedures
- Drafting the memorandum and articles of association
- Drafting all other documents required for the incorporation of the company
- Setting up a bank account for your Maltese company
Online Betting
The Remote Gaming Regulations Law was enacted in 2004, and its link with the dispositions of the Income Tax Act for foreign companies made Malta one of the most attractive countries in Europe for internet sports betting, gambling, and casino games.
There are four different licenses for online gaming:
According to the Maltese Lotteries and Gaming Authority (LGA), there are four classes of licenses available to operators running remote gaming businesses:
- Class 1 licenses are for those who are in charge of their own risk of repetitive games, such as casinos and online lotteries. This type of operator is allowed to obtain a “class 1 on 4” license that enables them to manage games with software according to class 4 licenses.
- Class 2 licenses are for operators who administrate online gaming operations on outcomes based on matchbooks. Class 2 licenses are used in fixed odds betting.
- Class 3 licenses are for enterprises operating on commission from encouraging gambling games. These licenses are usually employed in peer-to-peer gaming, online poker, betting and lotteries. These operators are also allowed to obtain “class 3 on 4” licenses for running gaming software on their machines.
- Class 4 licenses are for gaming software retailers that want to offer maintenance and hosting services on their platforms. Online gaming licenses are established for a five-year period and you are required to have their headquarters in Malta.
Taxation of online gaming
The tax rate for chargeable income is 35% and, according to the taxation system, there is also a corporate tax applied to Maltese companies and to foreign companies that conduct business operations. Because, however, of the full imputation system, shareholders who receive dividend payments can ask for refunds that can be up to 6/7 of the taxes paid to the authorities. For interests and royalties, this can be up to 5/7 of the tax.
Online gaming benefits from special taxation that depends on the license class. Taxes apply in the following stages:
- For class 1 licenses, the tax is set at approximately 5,000 EUR for the first 6 months and then 7,000 EUR per month
- For class 2 licenses, the tax is 0.5% on the gross sum of bets
- For class 3 licenses, the tax is set at 5% on their income
- For class 4 licenses, there is no tax for the first 6 months; for the following 6 months, the license holders must pay approximately 2,400 EUR per month and approximately 4,500 EUR after
The maximum amount for payable income stops at 466,000 EUR per year for any type license.
If you’re already experienced the online gaming industry, you already appreciate that solid expertise is required to set up operations in the right way. We are only a message away and our experts will answer your questions and guide your and your team accordingly.