Positive news from the MGA increases Malta’s iGaming reputation

Malta is well regarded as one of the world’s leading online gambling jurisdictions. A fully-fledged EU member state with an English-speaking workforce and two decades of experience in the sector, the Malta Gaming Authority has licensed some of the world’s biggest iGaming operators.

In December, the MGA published an interim report that outlined how the gaming industry developed during the first half of 2019. In the first half of the year, iGaming contributed an impressive 13.6% of the value of the Maltese economy with 283 companies having received a license to operate in and from the country.

In terms of employment, as of June, the online gambling industry in Malta employed some 7011 full-time jobs, an increase of 200 on the amount employed in December 2018. Out of these 7011 individuals, 6142 work in iGaming with just 860 in the land-based industry.

These are impressive statistics if you consider Malta is one of the smallest countries in the world, both by population size and landmass.

But this is not all the MGA told us about 2019. During the six months covered by the report, the MGA cracked down on corruption and money laundering through intensifying its intelligence gathering and knowledge sharing activities. In the first half of the year alone, the MGA’s Fit and Proper Committee refused 13 applications- six at onboarding and seven due to ongoing monitoring due to individuals linked to them not being considered reputable.

In addition to this, the MGA issued 11 Notices of Reprimand, suspended another 11 licenses and cancelled seven. It also administered eight administrative fines. Further to investigations carried out by them, the MGA cooperated with Authorities in other jurisdictions on 33 cases including criminal activity, licensing issues, and other regulatory matters.

But what does this mean for you?

It means several things. Firstly, it means that Malta’s gaming sector is thriving and shows no sign of slowing down. Consistent growth in terms of applications, operators, and contribution to the gross domestic product signals a positive future in the world of iGaming and means it is a safe bet to set up your business there.

Secondly, it means that Malta’s gaming Authority means business. Its license already has a stellar reputation internationally but its latest tightening of rules and no-nonsense approach to those who violate them means its credibility will increase. Operators holding a Maltese license will find it easier to work in other jurisdictions as well as to open bank accounts and conduct a range of transactions.

Holding a Malta Gaming license means the operator benefits from onshore status in Europe and can advertise across the EU. The strict regulations, particularly in terms of money laundering are in line with EU standards, meaning you will be also.

The application process is straight forward with only a B2B or B2C license to choose between. While getting a Malta license may be more costly than some other jurisdictions, the corporate tax rate for businesses can be as low as an effective rate of 5% and tax on gross gaming revenue is 5% as well. This means you can make significant savings on the revenue your iGaming operations generate.

For those serious about setting up an online casino or any other online gambling-related business, Malta is an important jurisdiction to consider. If you are already established elsewhere, are looking for an EU license, want to upgrade your operations, or are starting up and want to start with the best, contact us today to help guide you through the process.