Internet Gamming License
On Line Gaming ……..a serious business
companies understand the importance of a reputable licence. Being perceived
by players as safe and credible will provide greater credibility to online
game sites and therefore assist in making them more competitive on the
Malta offers the
E-Gaming Industry a package that few other jurisdiction can match. The
Remote Gaming Regulations issued in early 2004 by the Gaming and
Lotteries Authority continue to enhance on the existing rules and further
enhances Malta’s reputation as a jurisdiction to be trusted by both players
will grant licences to operate gaming offices to such persons who have
demonstrated “appropriate business ability to
conduct the betting office successfully”.
The new rules provide
for four different classes of licences, namely:
Class 1 – Remote
Gaming Licence for online gaming
Class 2 – Remote
Gaming Licence for online betting office,
Class 3 – Promotion
and abet gaming from Malta
Class 4 - Hosting
and managing only gaming operations, excluding licences itself.
Licences are issued
for a minimum period of five years and may be extended for further periods
of five years each.
btaining a gaming
licence in Malta is a serious affair and in the interest of the consumers
and the local reputation, the Authority would require to know that the
applicant can meet the licence obligations. The licensing procedure is quite
extensive but thanks to the professionality of the persons involved, this
procedure should not take more than 5 to 6 weeks.
The application for a
gaming licence requires the following documentation:
Detailed profile of the promoting company
A copy of the last audited accounts of the
promoting company, where applicable
A business plan indicating the economic
activity – including job creation if any – which will be carried out
A plan of the premises earmarked for
adoption as a call center.
Personal details of all shareholders
having more than 5% interest in the local operations.
Both hardware and software involved in the
operations must be located in Malta, and there exist companies that can
provide this service without the need for the licensee to obtain its own
The activities of the International
Trading Company are limited to those carried outside Malta. No Maltese
resident is permitted to place bets with such a company.
On submission of
application form – Lm1,000 (US$2,700) for any class of remote gaming licence.
On Issue of any
Remote Gaming Licence – Lm3000 (US$8100) per annum. Such a licence is
normally issued for a 5 year period.
On application for
renewal of any Remote Gaming Licence – Lm500 (US$1,350)
gaming – Lm2000(US$5400) per month for first six months and
Lm3000(US$8100) per month for the entire duration of the licence period.
On Class 4
Licences – Lm0.0 (NIL) per month for first six months and
Lm1000(US$2700) per month for the next six months and Lm2000(US$5400) per
month for the remaining period of the licence.
operations – one half of one per centum (0.5%) on the gross amounts of bets
exchanges – one half of one per
centum (0.5%) on the sum of all net winnings calculated per player per
betting – one half of one per centum
(0.5%) on the aggregate of stakes paid.
Provided that in no
case will the maximum of tax payable per annum by any licensee in respect of
any one licence, exceed Lm200,000.
based gaming operation must be carried out by a Malta registered company as
specified in Regulation 4 of the Remote Gaming Regulations (LN176/2004). For
non resident applicants we further recommend that such e-gaming operation be
carried out through an INTERNATIONAL TRADING COMPANY (ITC)
registered in Malta for that purpose. Although such a company is considered
an ONSHORE Malta company and taxed at the standard 35% company tax rate,
through a series of refunds, the shareholders of such an ITC will end up
receiving back 30.83% of the taxation paid in Malta when the company profits
are distributed as dividends. This actually brings down the effective tax
rate on profits to 4..17% .
he EU presently does
not regulate gambling and in accordance with the EU principle of solidarity,
EU member states are free to regulate the matter at a national level. In
fact the EU welcomes Malta’s approach to attract and regulate the online
In a number of test
cases, the European Court of Justice has held that the Treaty of Rome
applies to the sector since online gaming is classified as a service and
therefore guaranteed by one of the four freedoms enshrined in the treaty of
An important aspect
to remember is that in order to benefit from the application of the Internal
Market Principles and provide cross border services within the European
Union one should be established in the EU. Malta, being an EU
member since 1st May, 2004, offers such an opportunity which few
other e-gaming jurisdiction can match.
What Malta Offers
Low taxation on gaming
A low tax onshore tax regime -4.17% of
A network of double taxation agreements
A sound legal and financial system
A sound ICT infrastructure
Legislation on betting and e-commerce
Strong regulatory bodies
A solid international reputation
Skilled work force
Low cost of doing business
State of the Art telecommunications
An internal market of circa 500 million EU
The above information is
being provided as a general guide only and should not be considered as a
substitute for professional advice.
Please contact us if you are interested
every effort has been made to ensure that the details contained herein are correct and
up-to-date, it does not constitute legal or other professional advice. We do not accept
any responsibility, legal or otherwise, for any errors or omissions.
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