Everything you need to know about Malta Online Casino License
Malta, located in the Mediterranean Ocean is one of the smallest but most developed countries in the world. A member of the European Union, Malta has acquired prominence owing to the strategic location of the country placing it at the crossroads of international trade routes. On the other hand, the country also has a well-developed tourism industry which makes a significant contribution to the economy. In recent years, Malta has also developed as an offshore financial services hub owing to the establishment of a number of international banks and financial institutions in the country.
Malta Gaming License
Malta was the first country in the European Union to regulate the e-gaming (remote gaming) sector through regulations issued in 2004. The Gaming Licenses in Malta are issued by Malta Gaming Authority. The Gaming Authority was formed under the Operation of Betting Offices Regulations (S.L. 70.04). The remote gaming sector, on the other hand, is regulated under the Remote Gaming Regulations, 2004.
Types of Gaming Licenses in Malta
There are four types of Gaming Licenses in Malta:
1. Remote Gaming License. It allows operators to organize casino type games and online lotteries. Operators manage their own risk of repetitive games.
2. Remote Betting License. It allows operators to organize fixed odds betting. Operators manage their own risk based on a matchbook.
3. Gaming Promotion License. It allows the promotion or abetting remote gaming in or from Malta. This includes a peer to peer gaming or Poker rooms
4. Game Hosting and Management License. It allows hosting and management of remote gaming operations on behalf of other operators.
Also, there are three additional forms of licenses for special purposes:
Class 1 on 4 which allows a Class 1 License holder to operate games on the equipment/software of a Class 4 Licensee.
Class 2 on 4 which allows a Class 2 License holder to operate games on the equipment/ software of a Class 4 Licensee
Class 3 on 4 which allows a Class 3 License holder to operate games on the equipment/ software of a Class 4 Licensee.
Steps for a Malta Gaming License
There are four distinct stages in the process of applying for a Malta Online Casino License.
Stage 1: Evaluation if the applicant is fit and proper to apply
At this stage, the personal details of the applicant are evaluated by the Gaming Authority. Keeping in mind the provisions of the Regulations, the applicants are requested to submit-
a. Personal background information;
b. Financial information;
c. Participation in legal activities, including but not limited to, any interest or equity in any other commercial activity;
d. Criminal record information;
e. Information concerning all pecuniary, equity and other interests in the applicant;
f. Any other information required by the Authority, for every director, key official and chief executive officer of the applicant and for every shareholder with five percent or more ownership of, or controlling interest in the applicant.
Information is sought from domestic and international authorities about the applicants and their history.
Stage 2: Evaluation if the Business Plan
At this stage, the business plan of the applicant is evaluated and the specific metrics such as estimated revenues, estimated payouts, employee costs, tax payments, etc. are evaluated
Stage 3: Operational and Statutory Requirements
The basic eligibility for the company is now evaluated. Few of the important criterion to fulfilled after:
The company has to be incorporated according to Maltese Law.
Class 1 and Class 2 license holders need to have a minimum share capital of €100,000
Class3 and Class 4 license holders need to have a minimum share capital of €40,000.
Companies with multiple licenses need to fulfill both the above conditions mentioned cumulatively and must have a minimum share capital of €240,000.
Review of the laws of the games and the control systems.
Stage 4: Starting operations and Independent audit
On completion of all the three stages mentioned above, the applicant is permitted to implement the plan and start his operations within 60 days of permission. When the operations are started, an independent auditor can be requested within the period to validate the functioning of the operations. If the operations are validated, a license is issued for a period of 5 years.
After the issuance of a license, the operators have to make regular filings and audits by independent authorities at fixed intervals or as ordered by Gaming Authority
Malta gaming license cost
The cost of the Malta Gaming License involves a number of components and the costs can vary according to the type of license. A brief overview of the costs is as follows:
Category 1 Licenses
- Application Fee for New License/Paid for the first time — €2,330
2. System Review/Advance Fee for the audit by Independent auditor — €2,500
3. License Fee/Fixed Fee to be paid per annum per license — €8,500
4. Application Fee for Renewal of License/Paid on the application for renewal of a license — €1,500
5. Approval Fee for Transfer or Assignment of License/Paid upon approval for every license — €1,500
6. Approval of Share Transfer/Paid upon approval for every licensed company — €1,500
7. Approval of Simple Contractual Commercial Agreements/Paid per annum per contract. Value of Contract not to exceed €30,000 — €70
8. Approval of Complex Joint Venture Agreements/Depends upon pre communicate hourly fee — NA
9. Compliance Review/Advance Fee for the execution by Independent auditor — €3,500
Taxation Rates for Malta Gaming Licenses
The Income from the Gaming operations is taxed at different rates and they are as follows:
Class 1 License €4660 Per Month for the first 6 months
€7000 Per Month for the entire duration of the license
Class 1 on 4 License €1200 Per Month for the entire duration of the license
Class 2 License 0.5% Of the gross amount of bets accepted in remote betting operations
Class 2 on 4 License 0.5% Of the gross amount of bets accepted in remote betting operations
Class 3 License 5% Of real income
Class 3 on 4 License 5% Of real income
Class 4 License hosting and managing other remote gaming operators
For the first six months Nil
Per Month for the subsequent 6 months €2330
Per Month thereafter for the entire duration of the license €4660
Class 4 licensee hosting and managing an operator which is not in possession of the relevant Class 1, 2 or 3 license in terms of the regulations, however hosting an EEA licensed Business to Consumer operator €1165 Per Month per operator, paid by the Class 4 Licensee
Remote Gaming Tax Capping per licensee per remote gaming license €466,000 Per Annum.