Malta – The iGaming hub of Europe

Over the years, the iGaming industry in Malta has grown significantly. Currently, there are hundreds of online gaming companies operating from the small island. In fact, 10% of the iGaming companies in the world have a Malta Gaming Authority licence. The iGaming sector contributes over 10% of the nation's GDP and supports thousands of jobs directly and indirectly. Players also consider MGA-licensed casinos to be fair, reliable, and secure. But how did this small island grow to become the iGaming hub of Europe? Let's find out.

Why are there so many gambling companies in Malta?

Pro-Business Regulation

Malta has one of the most established and respected regulatory frameworks in the world. It started regulating online gambling in 2004. It was actually the first EU member to do so.  Any company that wants to provide gaming services in or from Malta needs to acquire a gaming licence from the Malta Gaming Authority (MGA). The MGA has laid down rules and regulations that iGaming companies must adhere to and also monitors them to ensure fair play, financial stability, and that players are protected. This has given them a loyal customer base all over Europe.

Access to the EU Market

Many European countries recognise the MGA licence as legitimate and credible. This allows MGA-licensed companies to operate across borders with fewer barriers.

Tax Incentives and Financial Appeal

In other countries, the gambling sector is often burdened with high taxes and expensive licences. This leaves these companies struggling to survive or even make a profit. Contrarily, the corporate tax structure in Malta is very competitive. Although the corporate tax rate is 35%, there are various tax refund systems that can lower the rate down to a single digit.

Licences are also affordable compared to other European countries. B2C businesses pay an annual licence fee of €25,000, and B2B between €25,000 and €35,000. Those offering Type 4 games pay €10,000.

Strong Support Infrastructure

Malta offers a complete ecosystem to support the gaming industry. They have invested in digital technologies, co-location data centres, fast internet, and cloud services to support high-performance gaming operations.

There is also a well-established network of local experts, including law firms, compliance consultants, payment processors, and marketing agencies.

Skilled Workforce

One key consideration when a company is looking for a location to launch is a skilled workforce. Malta ensures there's a consistent stream of skilled professionals in the iGaming sector by investing in education and training. For instance, local universities offer courses in gaming and betting laws.

That said, some companies also bring in specialised international staff when needed due to Malta's flexible immigration policies.

Are Malta online casinos safe?

Yes. Online casinos operating from Malta are safe. Here is why:

1. Before the MGA issues a licence, it ensures each applicant company meets all requirements.
2. MGA-licenced casinos must provide responsible gambling tools, such as self-exclusion, and resolve player complaints and disputes fairly.
3. The MGA requires all its licencees to use independently tested Random Number Generators (RNGs) to ensure fair outcomes.
4. Operators protect consumer data by using the latest cybersecurity measures.
5. The MGA requires all licencees to carry out business risk assessments to understand the risks they are exposed to and, therefore, implement measures to deter money laundering or data breaches.

Bottom line

There's no doubt that Malta continues to gain popularity among iGaming companies and players. The force behind this success is the MGA. They continuously develop clear regulations that support the broader gambling ecosystem while also monitoring their operations to ensure compliance.

Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.rgf.org.mt/