The Maltese igaming market belongs to the most flourishing ones in Europe. The question is why the ground on Malta is so fertile for iGaming businesses?
As a EU member Malta appeared to be the first to regulate the law concerning iGaming in 2004 what was based on a well established gaming tradition of lotteries, casinos and betting, supported by good infrastructure and available workforce. The regulations forwarded on 1st May 2004 enabled to conduct protection policies for players and public interest, and set preventive measures for money laundering.
These policies has been regulated by the Malta Lotteries and Gaming Authority (LGA), an institution which provides licenses and registers iGaming operations. Actually, LGA offers 4 classes of licenses. The first two classes are directed to opearators who participate in the gaming risk (casino games, lotteries, and betting), the third class concerns promotion of games and revenues from p2p transactions; and the fourth is a host platform for other classes of licenses.
The licenses are granted for five years after three-step qualification process for every applicant company. The first step entails meeting with LGA representatives and outlining the business plan, filling in necessary application for a chosen licence. In the second step the business plan is scrutinized by the LGA body and assessed if it possesses all required documentation. Then, the body checks if a company’s business plans are compliant with legal matters and policies. And further analysis of an infrastructure and software is conducted, especially to find any failures in protection measures for players and transactions.
The taxation system is fairly low and it allows different variant forms in four licence classes. There are few administrative fees to pay at the process of registration like application fee for new license (2.330 Euros) or system audit fee (1,770).
Malta possesses the most adaptable taxation system for iGaming purposes in the whole EU.