Malta

Established following enactment of the Lotteries and Games Act 2001, the Lotteries and Gaming Authority of Malta has since carved itself an undeniably strong presence as a forward thinking regulatory body, operating solely in the interests of fair play and just legislation. LGA operate as a single governing organization, consolidating regulation for all gaming ventures in Malta, including land-based casinos and betting outlets. Lotteries and Gaming Authority Malta has significant influence upon changes to, and proposals for new gaming legislation, however, all formal decisions pertaining to enforceable law are made by Malta's Ministry for Justice and Home Affairs. LGA remain solely responsible for licensing grants and ensuring all legislation is adhered to, through appropriate auditing and regulatory reviews.

Application for a Malta Gaming License is a two-step process and subject to a provisional period of review, during which all companies are provided a Letter of Intent (LOI) allowing them to operate for a period of six months. LGA criteria requests all companies to have an updated business plan ready, along with a detailed report on financial activity – including capital gains and turnover. LGA will require demonstrable proof of security systems (either proposed for/ currently in use) and RNG (Random Number Generation) Software, should the service provider wish to offer casino or slot games online. Incorporation within the jurisdiction of Malta is a necessity for all applicants, whom must register with the Malta Financial Services Authority (MFSA) and submit the relevant fee of 5,500 Euros. Company formation takes less than four weeks. Applicants may then submit a formal application for licensing, inclusive of the mandatory Compliance Audit Questionnaire, references, Personal Declaration and the non-refundable fee of 7,000 Euros. Approval for a provisional LOI is usually given within 3-4 weeks of application.

Phase two of the Due Diligence and Audit Review takes place almost immediately after an LOI has been granted. LGA will conduct lengthy operational audits, seek references and examine information relevant to shareholders of the company. For shareholders with over 5% interest in the company, LGA Malta will serve an official request for legal documentation, including an official financial association reference, police conduct statement, SOA (Statement of Affairs) and identification documents, such as a passport or birth certificate. One company shareholder/ employee must be permanently resident within the jurisdiction and appointed legal “Key Official”, which will incur an additional cost of 6,500 Euros. Post review, applicants can expect a conclusive Remote Gaming License decision within 2 weeks, subject to the compliance of referees and key officials. Once granted, a license may be renewed annually subject to review, at a cost of 2,450 Euros.

In contrast to many offshore jurisdictions, Malta is not a nil-rate tax haven. Due to the overwhelming interest from offshore service providers, the Ministry of Finance has now approved a tiered tax system, designed with incremental percentage rates in accordance with turnover and license class. The highest gross tax amount a Class 1 licensee can be liable for is 466,000 Euros, or 5% of annual turnover, depending upon the platform operated. Class 4 licensees must pay upward of 1,125 Euros per month to satisfy tax liabilities.