Malta has grasped the iGaming industry and its iGaming firms are currently leading when it comes to being the best in business. The success of iGaming in Malta has made the Maltese people to become experts when it comes to iGaming and this makes us rename Malta as Europe’s Silicon Valley when it comes to their expertise in the iGaming industry.
What are the benefits of allowing Malta to set-up your iGaming business?
1. Malta has a worldwide recognized legal framework that helps people set up their i-Gaming Malta business.
2. Malta offers people modern telecommunications infrastructure.
3. Malta has cost-effective and well-structured licensing process.
4. Malta has an extraordinary level when it comes to expertise in the financial sector.
5. Malta has one of the most attractive EU-wide recognized tax refund system.
6. Malta has a Unwavering Economy.
The major requirement for the online gambling types listed below is a that they must have a license issued by the Malta Gaming Authority (MGA). The Malta Gaming Authority or the MGA is the only autonomous controlling body that controls all the online and international gambling activities in Malta.
There are currently four classes or types of iGaming license that the Malta Gaming Authority issues:
1. Class 1 is the Casino License: Organizers offer repetitive games. Some of the games they offer include online lotteries, casino games, and various gambling games. Everyone has an equal chance of winning.
2. Class 2 is the Sports Betting license: Organizers offer sports betting services for example spread betting and fixed odds.
3. Class 3 is the Poker license: The license allows providers to take a commission for the gambling services. This includes poker networks, gambling portals, betting exchanges and other pool games.
4. Class 4 is the Software Platforms License: B2B providers whose services are limited to the management and hosting of other B2C gaming websites on their platform.
How does one apply for the iGaming Licenses?
The application for an iGaming license is a one-step process; the MGA finds out the following before issuing the license.
- Professional suitability and reliability: Is the applicant technically capable and reliable to conduct a gambling business?
- Business Plan: Does the candidate have a realistic business strategy.
- Legal and operational requirements: Does the applicant fulfil the legal and operation requirements. The requirements include a completely paid-in minimum capital amounting to: € 100,000 for class 1 and 2 & € 40,000 for call 3 and 4.
- System test: Before authorizing, the candidate must go through a practical test of the requested system in a trial run.
- Throughout the submission process, the candidate must undergo a series of audits mandated by MGA and conducted by independent gaming professionals.
If the candidate fulfils all of the above requirements, the MGA grants them a 5 year license.
Further requirement for the License:
- Key Official: It is essential to elect a so-called “Key Official” as link between the Gambling Provider and the MGA. The liaison must be a resident in Malta and a Director of the Company.
- MLRO: It is essential to employ a Money Laundering Reporting Officer (MLRO) and obey all anti money laundering regulations.
- Fraud Prevention Management Regulations.
- Payment procedure rules.
- Know your clients.
iGaming fees for online gaming and betting companies.
The tax on online gaming is very moderate.
- Class 1 license have a minimum fee of € 15,000 and is capped at € 375,000 and the percentages range from 0.4% to 1.25%.
- Class 2 license have a minimum fee of € 25,000 and is capped at € 600,000 and the percentages range from 0.4% to 4%.
- Class 3 license have a minimum fee of € 25,000 and is capped at € 500,000 and the percentages range from 0.4% to 4%.
- Class 4 license have an annual fee that ranged from € 25,000 to € 35,000.
iGaming Related Industries:
Online Affiliate marketing companies that support the online gambling companies, have liberty to trade and do not require any MGA licenses.