Gaming and Betting in Malta Over the past years Malta has successfully established itself as a serious, well-regulated European jurisdiction attracting reputable on-line betting companies. The benefits arising from choosing Malta as the place of establishment of a gaming operator are various: Licences for all types of online gaming: casino-type games, betting, betting exchanges, gaming platforms Competitive licence fees Very attractive corporate tax at an effective rate of 4.17% Low gaming tax set at 0.5% Serious regulatory regime ensuring credible protection of players and players monies while reducing operators' exposure to risks with regard to fraud and money laundering Strict regulatory monitoring procedures High standards of professional services. Licences The Lotteries and Gaming Authority is the competent regulator of all gaming operations taking place from Malta. The Licensing regime covers four different types of licences: Class 1: Online gaming licence - for operators providing online casino games, games of chance, and games that use a random number generator. This class covers casino-type games, skill games and online lotteries. Class 2: Online betting office licence - For operators managing their own risk on events based on a matchbook. Under this class falls fixed odds betting, pool betting and spread betting. Class 3: Online betting exchange licence - license is for advertisers and promotion companies taking a commission from promoting and/or betting games. This class includes P2P, poker networks, betting exchange and game portals. Class 4: Online gaming platform - licenses are for companies that host and manage remote gaming operators but are not themselves operators (this class covers software platforms from which casinos can operate). Each license type has a 5 year duration and may be renewed thereafter for periods of five years. Corporate Vehicle for a Remote Gaming Operation In order to establish an online gaming operation in Malta (i.e. with gaming transactions taking place in Malta), an operator must establish a limited liability company registered for this purpose in Malta. The appropriate corporate vehicle for online gaming operators is in fact the 'International Trading Company' established in accordance with Maltese law. The major requirement for an International Trading Company (ITC) is that it must carry out business from Malta but not in Malta. Effectively, for an online gaming company this means, inter alia, that such company may not offer its online services to residents of Malta. In so doing, the company may however avail itself of the various tax refunds which are afforded to shareholders upon a distribution of dividends to same. The net effective rate of tax is thus reduced to 4.17%. TAXATION OF REMOTE GAMING OPERATIONS One of the main benefits for establishing an online gaming company in Malta is the advantageous tax rates enjoyed by such companies. In fact, taxation of an online betting operation in Malta has two aspects: corporate tax and gaming tax. Corporate tax Being an International Trading Company, the corporate tax of 35% on profits shall apply just like any other Maltese company. However, upon a distribution of dividends, the non-resident shareholders avail themselves of a number of refunds which reduce the effective rate of tax to 4.17%. Gaming Tax The gaming tax is differentiated according to the type of licence as follows: 1. Class 1 (casino-type games): Lm 2,000 (appr. Euro4600) per month during the first 6 months after issue of the licence and subsequently Lm3,000 (appr. Euro 6,900) per month for the entire duration of the licence period. However, in case where Class 1 licensee (a casino operator) operates from the host with Class 4 licence (i.e., from the platform licensed under Class 4) the gaming tax payable by casino operator is Lm500 (appr. Euro 1,150) per month. 2. Class 2 (betting): 0.5% on the gross amount of bets accepted. 3. Class 3 (betting exchange): 0.5% on the sum of all net winnings calculated per player per betting market. 4. Class 4 (platform): a. NO TAX for the first 6 months of operation; b. Lm1,000 (approx. Euro2,300) per month for the subsequent 6 months; and c. subsequently Lm2,000 (approx. Euro 4,600) per month for the entire duration of the licence. Maltese law has also introduced a capping on the gaming tax. In fact, the maximum gaming tax payable annually by any one licensee in respect of any one licence is Lm200,000 (approx. Euro460,000). JACS International Ltd assists you in all stages involved in applying for a particular gaming licence in Malta which start with the incorporation of an International Trading Company in Malta and end with the successful obtaining of the relative licence. Please feel free to contact us should you require any further information regarding any of the aspects connected with Remote Gaming in Malta. 
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