There have been a lot of online gaming companies formed in Malta over the years, particularly in the gaming sector. On this island, it is not uncommon for an online lottery betting site and sports betting business to become the top gaming operators in their respective industries.
But why has the island grown to be so well-known for online gaming and what draws people to Malta? Malta presently has more than 300 e-gaming companies since it was one of the first nations to accept gaming and possibly regulate the online gaming operator sector. Moreover, the online gaming business contributed €1.56 billion to Malta’s GDP in 2019 alone and over 10% of the country’s total GDP. Further, the sector employs more than 7,000 to work in industry. Last but not least, the Malta Gaming Authority is one of the biggest gaming license providers in Europe to a huge number of gambling businesses situated in Malta that offer both casino games and online sports betting.
Tetra Consultants is an international consultancy firm that provides assistance with the setting up of an online gaming company and securing offshore gaming license in countries such as Malta. Our team provides continuous support at every step of registering company in Malta, corporate bank account opening services, provision of company secretarial services, outsourcing of local registered office, and the preparation and submission of Malta gaming license application.
Background of Malta
There are numerous factors that make Malta the best location for online gaming businesses. Malta has a strong regulatory framework, which is advantageous for Malta-based e-gaming businesses, in addition to a wonderful environment and a laid-back way of life. For this reason, several foreign businesses are moving there in addition to the ones that are set up there. A significant contribution is made by the Malta Gaming Authority (MGA), which provides measures that guarantee Malta’s status as a vibrant online gaming center. It has undoubtedly established a reputation as a reputable jurisdiction.
Malta is a major draw for online gaming businesses, but it has also had success drawing top talent from around the world. Numerous online casinos based in Malta provide their services in many countries throughout the world, including Canada, Sweden, Finland, Austria, and Japan. As a result, you can anticipate a very diversified workplace that will assist Malta’s ex-pat population growth. Malta’s attractive combination of charm, work-life balance, outstanding earnings, cost of living, and more than 300 days of sunlight is what attracts the majority of people who move there. If necessary, iGaming companies frequently give relocation packages to new hires as additional incentives, which makes the transfer considerably simpler.
Reasons why Malta is home to many online casinos
European Union membership and gaming regulations:
- Malta is a law-abiding state with years of experience in the online gaming industry since it was the first European Union Member State to introduce a complete legislative framework on remote gambling. Because this country is an EU member, businesses established here are allowed to provide cross-border services, which is a major advantage when trying to break into the expanding iGaming industry in Europe.
Easy regulation and licensing requirements:
- Businesses have a variety of considerations when it comes to the location and political climate of the region. Undoubtedly, a consistent and predictable set of laws is crucial for businesses in general and online gambling providers in particular. The operators are content if the regulations are simple to comprehend and flexible enough to maximize revenues from a single company.
- When gambling regulations change frequently, it is very challenging for service providers to remain updated and act appropriately. In addition, if regulations are not secure enough, it is very difficult for providers to develop a plan that will help them survive in the long run. Online gaming service providers are compelled to situate their corporate offices in a stable environment since the gaming business is a highly competitive place.
- The Malta Gaming Authority gives businesses a defined framework to work within while also requiring them to adhere to strictly enforced guidelines. Legislators in Malta spent a lot of time trying to develop a set of regulations that would be appealing to foreign operators. As a consequence, Malta today has gaming laws that give those that chose the Mediterranean island as their headquarters several benefits. Maltese legislation appears to be sensible while being extremely stringent. Furthermore, there are not many amendments that are passed frequently. And even if modifications do take place, they are discussed with all stakeholders to come to an amicable agreement.
- As mentioned above, an online gaming business that offers products or services to Maltese players in or from Malta must submit an application for a gaming license to the MGA. The license covers the services rendered as well as the kinds of games available. Both B2B and B2C services are covered.
- In comparison to other gaming jurisdictions, Malta’s gaming license fees are more affordable for licensees. A set yearly licensing cost of €25,000 is imposed on each licensee of B2C gaming services. Only Type 4 game providers are exempt from this rule; they must pay a set licensing cost of €10,000 per year instead.
- Contrarily, based on their yearly turnover, licensing fees for B2B Critical Gaming Supply licensees will range from €25,000 to €35,000. Additionally, if the licensee only offers essential supplies to Type 4 game providers, a reduced license fee of €10,000 shall be applicable. Lower yearly licensing fees are applicable to B2B licensees that exclusively offer back-office services, such as the provision and upkeep of software when delivering critical gaming supplies. Depending on the revenue generated, the Gaming License Fees Regulations impose a compliance contribution solely on B2C gaming service providers in terms of a sliding scale.
Reliable regulatory body:
- Malta became a sanctuary for gaming developers. The nation has a lot of online gaming businesses despite having a lower population than some countries. The country was a wise choice for casinos, bookmakers, and poker rooms, and they sought a local license. even if obtaining one is not very simple.
- Despite the fact that the Malta Gaming Authority (MGA) is one of the strongest regulatory authorities, gaming operators are pleased to follow its rules and regulations. It aids them in conveying the proper sense of trust necessary to win over potential competitors in this fiercely cutthroat sector. In recent years, the island has seen an increase in the number of online casinos.
Reasonable taxation and many opportunities
- The gaming business frequently pays extraordinarily high taxes since it is always the focus of tax authorities. Some of the taxes are so excessive that it is really unprofitable for companies to function. The main benefit of Malta is that there are no excessive taxes on the sector and efforts are made to provide a long-term, sustainable business opportunity.
- Malta is the ideal location for major gaming companies due to its affordable taxation and the reputation of the MGA license. Malta provides the ideal operating and working environments for online casinos while also allowing for complete compliance with the law.
A diversified, skilled labour market:
- The Maltese workforce is made up of qualified personnel, offering a consistent flow of top-tier specialists across the value chain, from software engineers to customer care representatives for online gaming. Malta’s iGaming employment market has never been better.
An unbeatable setting and standard of living:
- This Mediterranean gem offers an unmatched quality of life with its mild temperature and mesmerizing seascapes, and it has three times the number of brilliant sunlight annually. It provides a stable real estate market, cutting-edge telecommunications infrastructure, and a safe, highly secure environment, making it perfect for cross-continent networking. Its closeness to Europe and accessibility also make it suitable.
Malta, which is home to nearly 300 iGaming businesses and is overflowing with regulatory developments, business opportunities, and significant international networking platforms, offers a flourishing scene in one of the most exciting and lucrative industries in the world, making it a no-brainer for gaming companies looking to expand their reach and performance.
With gaming revenue expected to keep rising to new heights, Malta’s iGaming sector has no intention of slowing down. The bigger gaming companies may acquire the smaller ones in a consolidation effort. The online gaming sector in Malta will continue to be a leader in the field.
Tetra Consultants lets you get on the business expansion journey, handling all your company formation and licensing needs and freeing up time and headspace for you to focus on the bigger picture. Our qualified, experienced consultants get to work on transforming your online gaming business into pitch-perfect mirror images of your target market, all overseen by professional project managers well-versed in the e-gaming industry’s regulations and requirements.
So what are you waiting for? Contact us now and we will start brainstorming ways to elevate your business expansion journey while offering a well-coordinated package of expert services that are excellent for and accurately represent you for obtaining a Malta gaming license.