October 11, 2016

Malta Gaming License

Malta was the first EU member state to introduce Remote Gambling regulations.

The single legislative body managing all gambling activities in Malta is the Malta Gaming Authority (MGA). It is responsible for regulating casino gaming, commercial bingo and communication games, remote gaming, sports betting, the National and other lotteries.

The authority aims at being neutral in terms of technology and game of any type of gambling by means of distant communication providing decent Online Gambling Jurisdiction in Malta. It means that any remote game which can be completely monitored under Malta MGA is considered for licensing.

To provide Internet betting/gaming services in Malta one should apply for a license of the relevant class B2C or B2B

According to Malta Internet Gambling laws, license of any class is issued for five years and could be renewed thereafter for the same periods. The obligatory requirements in Malta Online Gambling Regulation is to locate physically in the country the significant part of the online betting or gaming operations.

In granting a license the Authority may subject it to such conditions as it may deem appropriate, and after the grant of such license the Authority may from time to time vary or revoke any condition so imposed, or impose new conditions.

A Malta Gaming license granted by the Authority may impose conditions relating to, inter alia:
(a) the proper operation of interactive games
(b) the protection of players
(c) the prevention of money laundering
(d) exigencies of public interest.

The granting of a license is a revocable privilege, and no holder thereof shall be deemed to have acquired any vested rights therein or hereunder. The burden of proving the licensee’s qualifications to hold a license shall rest at all times on the licensee.

In all its actions, Licensee is also bound to maintain financial records, an updated control and gaming system, serious anti-money laundering (AML) policies & procedures, data protection procedures, responsible gaming and advertising policies. All this needs to be maintained in order to ensure the financial and personal protection of the player.

Basic requirements for licensing are:

  • Original Certificate of no criminal record of the owners of the company to ensure that there are no criminal records about these owners, not older than 3 months;
  • Notarized / Certified Copy(ies) of passport(s)
  • Original Bank references of the owners; not older than 3 months
  • Original or Notarized / Certified Copies of utility bills not older than 3 months
  • Detailed business plan
  • Details of all gaming software systems used
  • Compliance & Software audit
  • Declaration of owners that they have blocked access to the services for minors and information of problem gambling on the website;
  • Hosting of operations/gaming servers must be in Malta

Our turnkey package with an Online Gaming License in Malta includes:Maltese Limited Company

    1. Registered Office, Agent and Local Secretary.
    2. Business Plan preparation and submission
    3. Collecting, collating application requirements
    4. Documentation preparation and submission (Gaming & Control system based on MGA requirements)
    5. Application for B2C or B2B license
    6. Drafting and provision of Shareholding Structure Planogram
    7. Assistance setting up the corporate bank account in Malta
    8. Assistance setting up Visa and MasterCard Processing Account for the business at competitive rates.
    9. Assistance setting up an ecoPayz merchant account for the business

    The set up costs are 17,785 for all the aforementioned;

Additionally, government license fees composed of both a variable portion and a fixed portion apply

 

The Compliance Contribution

 The variable portion of the license fee consists of a “compliance contribution” which is payable for each and every license period and is calculated as a percentage of the gaming revenue. The manner in which gaming revenue is calculated is dependent of the type of gaming services offered.

During the transitory period, gaming services are to be defined as follows:

Type 1 Gaming Services Gaming services provided in terms of a Class 1 remote gaming license
Type 2 Gaming Services Gaming services provided in terms of a Class 2 remote gaming license
Type 3 Gaming Services Gaming services provided in terms of a Class 3 remote gaming license
Type 4 Gaming Services Gaming services provided in terms of a Controlled Skill Games license

 

Following the expiration of the transitory period, the type of gaming services will be defined in the First Schedule to the Gaming Authorizations Regulations, which have yet to be published at the time of writing.

 

For Type 1 and Type 2 gaming services, gaming revenue is calculated by taking the aggregate stakes and wagers, inclusive of any bonus or other player incentives which are comprised within any stake or wager, less the aggregate of player winnings and the aggregate of any bonus or other player incentives which are comprised within the amount of aggregate stakes and wagers.

For Type 3 and Type 4 gaming services, gaming revenue means a charge, tournament fees and other such like elements of revenue.

The regulations further outline the maximum and minimum compliance contribution payable, depending on the type of gaming services offered, outlined hereunder:

Gaming Service Type Min Compliance Contribution Max Compliance Contribution
Type 1 Gaming Services €15,000 €375,000
Type 2 Gaming Services €25,000 €600,000
Type 3 Gaming Services €25,000 €500,000
Type 4 Gaming Services €5,000 €500,000

 

The variable license fees payable in terms of the regulations are outlined in the First Schedule of the regulation, reproduced hereunder:

Type 1 Gaming Services
Compliance Contribution for the License Period Rate
For every Euro of the first € 3,000,000 1.25%
For every Euro of the next € 4,500,000 1.00%
For every Euro of the next € 5,000,000 0.85%
For every Euro of the next € 7,500,000 0.70%
For every Euro of the next € 10,000,000 0.55%
For every Euro of the remainder 0.40%

 

Type 2 Gaming Services
Compliance Contribution for the License Period Rate
For every Euro of the first € 3,000,000 4.00%
For every Euro of the next € 4,500,000 3.00%
For every Euro of the next € 5,000,000 2.00%
For every Euro of the next € 7,500,000 1.00%
For every Euro of the next € 10,000,000 0.80%
For every Euro of the next € 10,000,000 0.60%
For every Euro of the remainder 0.40%

 

Type 3 Gaming Services
Compliance Contribution for the License Period Rate
For every Euro of the first € 2,000,000 4.00%
For every Euro of the next € 3,000,000 3.00%
For every Euro of the next € 5,000,000 2.00%
For every Euro of the next € 5,000,000 1.00%
For every Euro of the next € 5,000,000 0.80%
For every Euro of the next € 10,000,000 0.60%
For every Euro of the remainder 0.40%

 

Type 4 Gaming Services
Compliance Contribution for the License Period Rate
For every Euro of the first € 2,000,000 0.50%
For every Euro of the next € 3,000,000 0.75%
For every Euro of the next € 5,000,000 1.00%
For every Euro of the next € 5,000,000 1.25%
For every Euro of the next € 5,000,000 1.50%
For every Euro of the next € 10,000,000 1.75%
For every Euro of the remainder 2.00%

 

As per the Regulations, the minimum amount of the compliance contribution shall be paid before the expiration of the 20th day of the month immediately following the month in which the license period commences. Any other part of the compliance contribution falling beyond the minimum amount, shall be paid by way of monthly payments to be calculated on gaming revenue accrued during each and every month falling within a license period. The amount due shall be paid before the expiration of the 20th day of the following month.

At the end of each month, the gaming revenue generated from each type of gaming service during that month shall be determined and the compliance contribution due shall be computed as a percentage of gaming revenue, as prescribed in the regulations.

For the purpose of determining the rates at which the compliance contribution is to be computed, the gaming revenue generated from each type of gaming service during the relevant month shall be aggregated to the gaming revenue from the corresponding type of gaming services during each of the prior months of the relevant license period. Provided that any amount of compliance contribution which has been paid in respect of the relevant license period by reference to the minimum amounts stipulated in the regulation, shall first be deducted from the corresponding amount due in terms of the regulations before any additional payments shall be due.

 

The Fixed Annual License Fee 

Unlike the compliance contribution, the fixed annual license fee is payable in advance for the twelve running months following the issue of the license and on every anniversary thereof. Where operators are offering more than one type of gaming service, the fixed annual license fee remains unchanged.

The fixed portion of the license fee payable in terms of the regulations are outlined in the First Schedule of the Regulation, reproduced hereunder:

Fixed Annual License Fee
One-time, non-refundable license application fee

 

€5,000

 

Fixed Annual License Fee
Non-refundable Fixed Annual Licence Fee €25,000

 

Fixed Annual License Fee
Non-refundable Fixed Annual License Fee for operators providing solely Type 4 gaming services €10,000

 

The Gaming License Fees Regulations represent the first of a series of developments which Malta’s remote gaming regulatory framework will be undertaking throughout 2018. The Regulations build upon the White Paper published by the MGA in June of this year, and make reference to concepts outlined therein, such as allowing for a corporate group to be considered as a license holder. The Regulations further make reference to other subsidiary legislation making up the legal framework, such as the Gaming Authorizations Regulations, which have yet to be published.

There is no better time to take advantage of an Online Gaming License in Malta

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