Gambling license in Malta - YB Case 2024

Gambling license in Malta

Gambling license in Malta

Malta stands out as one of the most attractive destinations for obtaining a gambling license. The Malta Gaming Authority (MGA) provides a regulatory framework that ensures the legality and reliability of gaming operations. This article will explore the advantages of obtaining a gambling license in Malta, the required documentation, the licensing process, tax obligations, and other critical aspects.

What are the benefits of a Malta gambling license?

A gaming permit in Malta furnishes online casino operators and wagering firms with numerous notable benefits:

  1. Legal compliance and openness: holding a gaming permit from Malta allows firms to lawfully carry out their activities. This is essential not just for adhering to regulations but also for drawing in customers. Gamblers favor interacting with internet casinos that function within lawful structures and provide clarity about their activities.
  2. Access to the European market: Malta, as a member of the EU, provides licensed companies with entry to the vast European market. The European gambling market is one of the largest and most profitable in the world. Therefore, possessing a Maltese license enables companies to attract a broad audience of players from various European countries.
  3. Reputation and confidence: Malta is widely respected for its excellent standing in the gaming sector. A gaming license from Malta is widely regarded as trustworthy, honest, and held to high standards. The confidence inspired by a Maltese license can be a compelling factor for both players and investors. Players gravitate toward platforms holding this license, as it guarantees a safe and equitable gaming atmosphere.

Overall, a gambling license in Malta enables companies to operate legally and attract clients, provides access to the large European market, and is associated with high reputation and trust. These factors make a Maltese license an attractive choice for online casino operators and gambling companies seeking to successfully conduct their business in the gaming industry.

Online casino license in Malta: required documents

To obtain a gaming license in Malta, a company must submit a series of essential documents that enable regulators to evaluate their business and ensure compliance with legal requirements. One of the key documents is the business plan, which must contain a detailed description of the company's business.

A business plan has to include the company's development strategy as well as well-stated objectives. It should outline the target markets and markets to be covered, the marketing tactics to be used to attract new customers, and more. In the company plan, financial estimates such as profit and loss forecasts and strategies for expenses and revenue must also be included.

A critical aspect also entails a detailed description of the company's business model. This includes information about the type of gambling services offered by the company and the terms and conditions under which they will be provided to customers. Additionally, the business plan must outline the AML policy and other measures the company takes to ensure compliance with Maltese regulations and legislation.

In addition to a business plan, companies must also provide other documents verifying their legitimacy and compliance with regulatory requirements. This may include the company's founding documents, financial statements, audit reports, professional summary of executives and key team members, as well as evidence of adequate financial resources to conduct business.

Preparation and submission of all required documents is a crucial step in obtaining a gaming license in Malta. Meticulous drafting of the business plan and providing comprehensive and accurate information about the company and its operations will help increase the likelihood of obtaining the license and launching an online casino in Malta.

What is needed to obtain gambling licenses in Malta

For the acquisition of a gambling license in Malta, a company must adhere to specific requirements outlined by Maltese regulators. These requirements serve to ensure the legality and reliability of the gambling business within the territory of Malta.

Firstly, the company must be registered in Malta and maintain a permanent office within the country. Company registration necessitates the provision of pertinent documents, including constitutional documents, information about shareholders, and other requisite paperwork.

The presence of qualified personnel capable of effectively managing gambling business operations is also required. The company must have sufficient staff possessing professional skills and knowledge in the field of gambling and relevant legislative norms.

The financial stability of the company is also a crucial factor. The company must demonstrate its ability to provide payouts to players in the event of their gaming operations' success. Therefore, the provision of financial information, audit reports, and other documents confirming the company's financial solvency is required.

In addition, the company must adhere to high standards of professionalism and ethical conduct. Regulators will conduct a reputation and past activity check of the company to ensure its reliability and compliance with Maltese standards.

Compliance with all these requirements will allow the company to obtain a gaming license in Malta and conduct legal and transparent activities in the field of gambling.

Gambling license in Malta: business plan

A business plan is a crucial component of the process of obtaining a gambling license in Malta. It must intricately delineate the business model, encompassing types of gambling services provided, target audience, marketing and promotional strategies. Additionally, financial forecasts, including revenue and expenditure plans, profit estimation, and potential investments, should be provided. The business plan must be thoroughly prepared and demonstrate the financial and operational viability of the company. Here is a list of key elements that should be included in the business plan:

  1. A detailed description of the gaming services your organization intends to offer should be included in the business model. This might apply to internet poker rooms, sportsbooks, casinos, and other gambling enterprises.
  2. Target audience: define your target audience, such as players in a specific region or with specific gaming preferences.
  3. Marketing and promotion strategy: explain how you plan to attract and retain customers. This may include the use of online advertising, social media, affiliate programs and other marketing tools.
  4. Financial projections: provide a plan for income and expenses for a specific period of time. Include information about projected player revenue, commissions, taxes, and other financial aspects of your business.
  5. Profit estimation: present your company's projected profit based on expected revenues and expenses. This will help demonstrate the financial strength of your business.
  6. Potential investments: if you plan to attract investments to develop your gambling business, indicate possible sources of investment and how they will be used.
  7. Operating structure: describe your company's organizational structure, including leadership, departments, and employee roles. Explain how you plan to manage and control the gaming operations.
  8. Anti-Money Laundering Policy: provide details of your KYC/AML policy. Explain how you will verify the identity of players, detecting and preventing financial fraud.
  9. Legal aspects: define how you intend to comply with all Maltese legal and regulatory requirements, including gambling, data protection and privacy laws.
  10. Resources and partners: specify the requisite assets for launching and sustaining your gambling enterprise, encompassing IT infrastructure, payment systems, and prospective collaborators.

Here's a broad compilation of components that might be integrated into a business proposal when seeking a gaming permit in Malta. The precise prerequisites can fluctuate, contingent upon the Maltese regulatory body and the category of permit you aim to secure.

Launch of an online casino in Malta, main stages

The process of opening an online casino with a gambling license in Malta consists of several important stages. Let's look at each stage in more detail:

  1. Application submission: Before opening an online casino in Malta, a business must submit an application for a license to the MGA. The application must contain all necessary data about the company, its structure, management, and planned gaming services. As mentioned above, all necessary documentation attesting to the company's legitimacy and capacity to operate as a gambling operator must be submitted with the application.
  2. Company check: MGA conducts a thorough company verification encompassing financial aspects such as the company's financial resilience and adequacy of funds for player winnings payouts. The commission also analyzes the company's business model, security protocols, and compliance with Maltese legislative requirements.
  3. License acquisition: upon satisfactory verification and approval by the MGA, the company secures a gaming license. This permit confirms the legality and authenticity of the company's operations, allowing it to offer gaming services within Malta and specific other regions.
  4. Launching operations: upon securing the permit, the corporation can initiate its operational endeavors and offer gambling services. It is crucial to comply with all criteria and benchmarks established by regulatory authorities in Malta, encompassing security protocols, safeguarding player information, and adherence to AML and financial fraud protocols.
  5. Routine monitoring and refreshing: A corporation possessing a betting permit in Malta should undergo periodic inspections and revalidate its permit in compliance with the stipulations of the MGA. This involves furnishing financial operation summaries, revising protocols and methodologies to align with statutory amendments, and upholding elevated benchmarks of security and dependability.

The entire procedure of obtaining a license and launching an online casino in Malta requires meticulous preparation, adherence to requirements, and standards set by Maltese regulators. Regular collaboration with lawyers and consultants specializing in the gaming industry can be a crucial factor for success when opening an online casino in Malta.

List of taxes for companies holding a gambling permit

Entities possessing a gambling permit in Malta are obliged to remit taxes in accordance with domestic regulations. Here's an elaboration on the levies that might be relevant to such entities:

  1. All companies incorporated in Malta should conform with the obligation of paying corporate taxes. In Malta, the usual corporation tax rate is 35 percent. The effective tax rate is lowered, nevertheless, by a system of partial tax refunds, with a maximum decrease of 5%. The amount of the return is determined by the dividends that the firm has earned.
  2. Charges on gambling: There is an extra tax on gambling that applies to businesses who hold a Malta gaming license. Tax rates are determined depending on the category of permit held, and the revenue generated from gambling. The customary levy on gambling operations is delineated as follows:
    • Slot machine licenses: 5% of revenue.
    • Casino licenses: 5% of revenue.
    • Sports betting licenses: 0.5% of volume.

It should be mentioned that Malta provides gaming enterprises with a number of tax breaks and advantages. The Tax return System, which enables businesses to get a return of a part of the taxes paid, is one such benefit. This might be especially appealing to businesses that draw on foreign capital.

Conclusion

Obtaining a gaming license in Malta provides companies with a number of advantages and opportunities in the gambling industry:

  • Obtaining a gambling license in Malta ensures legality and trust, crucial for attracting clients. Malta's stringent standards foster a favorable reputation for licensed companies.
  • Malta provides access to the vast European gambling market, attracting a broad audience from multiple countries.
  • Development and investment: Malta offers a conducive environment for the expansion of gambling enterprises. Thanks to its legislative framework, it attracts investments in this sector. Companies licensed in Malta can capitalize on numerous opportunities for business growth and expansion.

Overall, obtaining a gaming license in Malta allows companies to operate legally, have access to a large European market, enjoy a prestigious reputation and attract investment. This opens up many opportunities for companies seeking to take their place in the global gambling industry.

For more detailed information, you can contact our lawyers; all contacts can be found on the website in the “Contacts” section.

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