Malta Jurisdiction profile

Malta is a small island nation located in the Mediterranean Sea, around 35 miles south of the Italian city of Sicily. The country has always been a haven for operators seeking to set up their offshore businesses within the country’s borders, especially due to the attractive conditions and other advantages. Malta offers a sound legal and financial system, as well as excellent ICT infrastructure. Operators are drawn to the country’s betting legislation, its strong regulatory bodies and its skilled, bilingual workforce. To top it all off, Malta has exceptional telecommunication facilities.

From 2000, online gambling sites were taxed under the Public Lotto Ordinance, with new policies developed by the Lotteries and Gaming Authority (LGA) in the years that followed. In 2005, the country’s Remote Gambling Regulations were enforced, creating a more streamlined system and dividing remote gaming licenses into four distinct classes. All licenses are valid for five years, and can be extended for a further five thereafter.

• Class 1 – Covers operators that provide online casino games, games of chance and games that use Random Number Generators (RNG).
• Class 2 – Covers online sports and betting operators.
• Class 3 – Covers promotions and advertising companies that operate from within the Maltese borders.
• Class 4 – Covers companies that host and manage remote gaming operations but are not operators themselves, per se.

In 2005, the Malta Remote Gaming Council (MRGC) was created to promote a more active role in the industry. Some of the MRGC’s activities included the creation of a forum that attracts gaming operators and service providers to discuss all issues surrounding the industry in a legal, administrative and technical framework.

One of the turning points in Malta’s remote gaming history occurred in 2007 when it was accepted onto the United Kingdom’s ‘white list’ of offshore locations that meet the stringent standards of the UK’s new gambling legislation. As a result, the number of licensees that have applied for operating licenses since then has increased dramatically.

The fact that Malta is a member of the European Union, with a potential customer base of over 500 million players, is another big drawcard for operators. In addition, the EU has embraced the Malta government’s policy on remote gambling, praising its honoring of free trade treaties and the regulation of the industry. All this combined means that obtaining an operating license from Malta is considered a very lucrative achievement.

All potential licenses need to meet the stringent requirements of the authorities in order to obtain a gaming license. Although the procedure itself is thorough and exhaustive, it should not take longer than five to six weeks.

Operators need to provide the necessary documentation, such as a detailed company profile, audited accounts, a complete business plan and details of shareholders with more than 5% interest in the company. To obtain a license, it is required that the companies ensure that all hardware and software involved in the operation, need to be situated within the country. Ironically, operators also need to ensure that no Maltese residents place bets at their sites.