If you look at the website of many online gambling companies, you will discover one main running theme. There are plenty of them that base themselves in Malta. Just why is this the case?
One major reason is the regulation that takes place regarding the gambling industry. Several countries are either placing tough restrictions on gambling or are planning to do so in the future.
Strict regulation can cause big problems for the gambling industry, so companies are keen to be based in areas where it is not fairer.
The companies that are based on the island are licensed by the Malta Gaming Authority (MGA). Those being granted the licences have to undergo strict tests before being accepted for them. The MGA is a strict regulatory body but there are advantages to holding their licence.
When someone is thinking which online gambling company to register with, there are important factors to take into consideration. The holding of a respected licence can give the potential site member confidence that they will be treated fairly.
The MGA may be strict but the rules they have are sensible and easy to understand. Companies are satisfied that abiding by the rules that are in place, they can continue to operate smoothly and make profits.
Stability is important because it allows long-term strategies to be put into place. That’s not easy in some countries such as the Netherlands and Germany where new stricter regulation has taken place.
Companies are also finding the UK to be a difficult place to run their business in. The government is due to announce shortly plans for amending the current gambling laws. This could see bans on advertising by gambling companies and stricter rules regarding how they deal with customers who may be addicted to gambling, the BritishGambler.co.uk, UK online gambling aggregator, reports.
Although companies such as Evolution Gaming flock to Malta, there are still problems for them. If for example, a company such as Paddy Power or Bet365 wish to operate in the UK, then they do need to have a licence granted to them by the Gambling Commission. They are a strict body and recently have been issuing fines that have seen companies such as 888 and Camelot being fined and having to pay millions of pounds.
Taxation is another reason why there are so many gambling companies with headquarters in Malta. The taxation level will cause companies many problems if it is too high. Their ability to make profits will be seriously affected. In Malta, the level of taxation on the gambling industry is not an excessive one.
There is the expense of the MGA licence but again this is lower than seen in some other countries in Europe. Another good reason to be based in Malta is recruitment. Gambling companies are often looking for new staff members. Malta, has good universities and this means plenty of possible members of staff when they finish their courses.
The iGaming industry contributes around 12 per cent of Malta’s GDP. It is important for Malta that the industry continues to see Malta with favourable eyes. Forecasters state that by 2027, the industry will be worth $127.3 billion. If that is the case, Malta will find themselves in a great financial position due to the number of companies based on the island.
Disclaimer: Play responsibly. Players must be +18. For help visit https://www.gamcare.org.uk.