Gaming Law 2025 Comparisons

The regulatory framework applicable to online and land-based gaming in Malta is consolidated under the Gaming Act (Chapter 583 of the Laws of Malta) and Subsidiary Legislation (SL) 583.01 to 583.12, adopted under that Law. The SL addresses various aspects of gaming operations, including:

• the establishment of the Malta Gaming Authority (MGA, or the “Authority”), including its functions and powers;
• the protection of players, minors and vulnerable persons;
• the establishment of a vulnerable gaming fund;
• gaming licence fees;
• the requirement for a licence or authorisation for certain gaming activities;
• key functions;
• compliance and enforcement;
• regulations relating to gaming premises;
• regulations relating to advertisement;
• regulations governing gaming tax;
• the establishment of a social causes fund; and
• data retention.

The MGA issued several directives between 2018 and 2020 that are binding on licensees, providing additional guidance in relation to the interpretation and implementation of the laws and regulations. Additionally, the MGA has issued several guidance notes that provide guidelines on certain provisions, procedures, standards and methods, with the aim of improving proportionality, participation, openness, accountability, effectiveness and coherence.

In December 2024, the MGA updated the financial reporting requirements for all licensees, introducing the annual financial reports (AFRs) and interim financial reports (IFRs). The AFRs cover the previous financial year and include key figures from the company’s financial statements (although the full audited financial statements are not required as part of this submission). The AFRs do not replace the obligation to file audited financial statements within 180 days from financial year end. The IFRs replace the previous interim financial statements, only requesting key figures from the company’s financial statements for the first six months of the financial year. Both the AFRs and the IFRs must be submitted within two months of the end of their respective reporting periods.

In July 2025, the MGA also issued its Capital Requirements Policy, aimed at strengthening the financial soundness of licensed remote gaming operators. The Policy seeks to safeguard the long-term sustainability of the sector by ensuring that licensees maintain sufficient capital resources to support both their ongoing operations and future growth.

In addition to existing minimum share capital requirements, which remain unchanged, the Policy introduces a new obligation for licensees to maintain a positive equity position. Where a negative equity position arises, licensees will be required to restore compliance promptly. This mechanism is designed to act as an early warning tool, allowing the MGA to intervene at an early stage and address potential financial instability.

Since the early 2000s, Malta has secured its position as a leading and well-regulated European remote gaming jurisdiction and is estimated to host around 10% of the world’s online gaming companies by trading volume.

The Gaming Authorisations Regulations provide that operators in both the online and land-based sectors require a licence when providing or carrying out a gaming service, or providing a critical gaming supply from Malta or to a person in Malta, or through a Maltese legal entity, unless exempt. A licence is required to provide or supply any of the following games (skill games are excepted):

• online betting;
• bingo;
• casino;
• lotteries;
• fantasy sports; and
• poker.

A licence is not required for games that the MGA classifies as low risk. In such cases, a low-risk permit would be required. Such permit is only issued for a single event, expires as soon as the event is concluded, is non-transferable unless the MGA’s prior approval is obtained and is non-renewable. Examples of low-risk games include non-profit games in which the stake does not exceed EUR5 per player and more than 90% of the net proceeds go to a good cause (charity, sports, education, etc).

With the adoption of the 2018 regulatory framework, online and land-based gaming activities are now regulated by the same legislation on a horizontal basis, except that applicants applying for a land-based gaming licence are required to seek and obtain an additional approval for both the gaming devices they offer to consumers and the premises from which the licensed gaming devices are operated. Land-based betting, bingo, casino, lotteries and poker are thus also permissible and regulated in the same manner as online games.

The key legislation that applies to the gambling sector is as follows:

• the Gaming Act – Chapter 583 of the Laws of Malta;
• the Gaming Malta Fund Regulations – SL 583.02;
• the Gaming Licence Fees Regulations – SL 583.03;
• the Gaming Definitions Regulations – SL 583.04;
• the Gaming Authorisations Regulations – SL 583.05;
• the Gaming Compliance and Enforcement Regulations – SL 583.06;
• the Gaming Premises Regulations – SL 583.07;
• the Gaming Player Protection Regulations – SL 583.08;
• the Gaming Commercial Communications Regulations – SL 583.09;
• the Gaming Tax Regulations – SL 583.10;
• the Social Causes Fund Regulations – SL 583.11; and
• the Retention of Data (MGA) Regulations – SL 583.12.

Other supporting legislation and directives that apply to the gambling sector are as follows:

• the Prevention of Money Laundering Act – Chapter 373 of the Laws of Malta;
• the Prevention of Money Laundering and Funding of Terrorism Regulations (PLMFTR) – SL 373.01;
• the Consumer Affairs Act – Chapter 378 of the Laws of Malta;
• the Electronic Communications (Regulation) Act – Chapter 399 of the Laws of Malta;
• the Data Protection Act – Chapter 586 of the Laws of Malta;
• the Prevention of Corruption in Sport Act – Chapter 593 of the Laws of Malta;
• the Requirements as to Advertisements, Methods of Advertising and Directions applicable to Gambling Advertisements – SL 350.25;
• the Social Causes Fund Regulations – SL 583.11; and
• the Retention of Data (MGA) Regulations – SL 583.12.

The term “gambling” is not specifically defined in the Gaming Act. However, the activity of gambling falls within the operative term “gaming”, which is used in Maltese legislation. “Gaming” is defined as “an activity consisting in participating in a game, offering a gaming service, or making a gaming supply”.

A “game” is defined as “a game of chance or a game of skill”. In light of this, a “game of chance” means “an activity the outcome of which is determined by chance alone or predominantly by chance and includes but is not limited to activities the outcome of which is determined depending on the occurrence or outcome of one or more future events”. On the other hand, a “game of skill” means “an activity the outcome of which is determined by the use of skill alone or predominantly by the use of skill, but excludes a sport event, unless otherwise established by or under this Act”.

The general definition of “gaming” applies to all gambling/gaming, regardless of the channel of distribution adopted by the operator to reach its consumers. There is no distinction between online and land-based gaming, and the general definition thus covers both types of gaming.

See 3.3 Definition of Land-Based Gambling.

The major offences under the Gaming Act are outlined in the Third Schedule of the Act and include the provision of a service or supply without the necessary authorisation, aiding or abetting such provision, and failing to effect payments to the MGA. Other key offences arising under other applicable laws include money laundering offences and data protection offences, both of which are directly relevant for gaming operators.

Sanctions also apply to lesser offences such as the breach of, or non-compliance with, other areas of applicable legislation, including a breach of advertising regulations or compliance breaches.

Any person found guilty of undertaking unlawful gaming activity as per the Third Schedule of the Gaming Act is liable to a fine of between EUR10,000 and EUR500,000, imprisonment for up to five years, or to both a fine and imprisonment. As an alternative to criminal court proceedings, the MGA may, by way of agreement with the offender and subject to rectification of the breach, impose a penalty of EUR500,000 for each infringement, or a sum of EUR5,000 for each day of infringement or non-compliance, or any other administrative sanctions. Once such agreement is concluded, the offender’s criminal liability under the Gaming Act will be extinguished. The agreement will only be effective if it is accompanied by the payment of the sum due or the provision of sufficient security for its payment.

Any machine or other device, and any money used in the commission of the offence, will be seized and forfeited in favour of the MGA and may be appropriated in favour of the Malta Gaming Fund. In the case of a breach of any other regulatory instrument that is not outlined in the Third Schedule, the MGA may impose an administrative penalty of up to EUR25,000 for every breach or non-compliance, or an administrative penalty of up to EUR500 for each day on which such breach persists. The MGA may impose fines for non-compliance in the following three main scenarios:

• to ensure that the licensee rectifies any default;
• to deter future non-compliance and thus ensure that Maltese licensees uphold high standards of behaviour consistent with regulatory requirements; and
• for the purpose of ensuring that any financial gain that the licensee may have made through non-compliance is eliminated.

On 26 November 2019, the MGA published an explanatory note on “Guiding Principles for the Application of Enforcement Measures”, setting out the principles that should guide the MGA in its application of enforcement measures when a breach occurs. This explanatory note lays down the aims that the MGA should be guided by in deciding the appropriate form of enforcement action – ie, in determining whether it should offer regulatory settlement or proceed with the commencement of criminal proceedings. It also lays down principles for the quantification of penalties.

The Gaming Act established the main regulatory body responsible for the governance of all gaming activities (including land-based and remote gaming sectors) in Malta, the MGA.

The MGA’s main functions include the issuance of licences, approvals, certificates and recognition notices, as well as monitoring the conduct of operators in the field. The MGA is also responsible for preventing, detecting and combatting criminal activity in the gaming sector, and for ensuring that games are operated and advertised fairly and responsibly.

The regulatory approach adopted by the MGA is risk-based and prescriptive. In August 2018, the Gaming Act and various subsidiary legislation came into force. This framework broadened the regulatory scope and increased the MGA’s oversight. It moved towards an objective-based regulatory approach, allowing for innovation and ensuring that the regulatory objectives are attained.

In February 2025, the MGA issued a regulatory update, communicating that it is strengthening its regulatory oversight for 2025 by adopting a more evidence-driven and outcome-focused approach within its risk-based framework. This enhancement aims to improve supervision of the online gaming sector while promoting greater transparency and accountability.

The MGA’s key focus areas for 2025 were compliance, player protection and sports betting integrity. Through this strategy, the Authority seeks to uphold high industry standards and reinforce its reputation as a trusted regulator.

A gaming service is defined as the provision of the opportunity for participation in a game by players as an economic activity, whether directly or indirectly, and whether alone or with others. The MGA may issue the following licences.

• A gaming services licence – a business-to-consumer (B2C) licence to offer or carry out a gaming service. A B2C licence may constitute one or more of the following game types:
1. Type 1 gaming services – games of chance played against the house, the outcomes of which are determined by a random number generator, and which includes casino-type games;
2. Type 2 gaming services – games of chance played against the house, the outcomes of which are not generated randomly, but are determined by the result of an event or competition extraneous to a game of chance, whereby the operator manages its risk by managing the odds offered to the player;
3. Type 3 gaming services – games of chance not played against the house and wherein the operator is not exposed to gaming risk, but generates revenue by taking a commission or other charge based on the stakes or the prize (including player versus player games such as poker and bingo, betting exchanges and other commission-based games); and
4. Type 4 gaming services – controlled skill games.
• A critical gaming supply licence – a business-to-business (B2B) licence to provide or carry out a critical gaming supply that is indispensable in determining the outcome of a game or games forming part of a gaming service, and/or is an indispensable component in the processing and/or management of essential regulatory data.
• A corporate group licence – B2B or B2C corporate group licences may be issued to a corporate group that includes more than one company within its structure. This may be availed of where the entities concerned provide critical gaming supplies solely to other entities within the same group. In such instances, an additional B2B licence will not be required. However, if entities under the B2C corporate group licence provide critical gaming supplies in or from Malta to entities outside of the group, a separate B2B licence is required. The entities that can be covered by the corporate group licence must be established in Malta or another EU/European Economic Area (EEA) jurisdiction.

In instances where a game may be categorised under one or more of the game types, the MGA has complete discretion to categorise the game under the specific type it believes most closely reflects the nature of the game.

A standard licence term, whether original or renewed, is ten years, whilst a recognition notice is valid for one year. A recognition notice is a notice issued by the MGA whereby an authorisation issued by another member state of the EU or EEA, or a state that is deemed by the MGA to offer safeguards largely equivalent to those offered by Maltese law, is recognised as having the same effect as an authorisation issued by the MGA for the purpose of providing a gaming service or gaming supply in or from Malta. Licences that require government concessions, such as for the operation of land-based casinos and the island’s national lottery, would be granted for ten years or such shorter period for which the concession is valid.

Where a gaming service or a gaming supply is by its very nature temporary, consisting of a singular event or a number of game instances linked to the same event, such service or supply shall be eligible to apply for a limited duration licence.

Licences can only be purchased by entities that form part of the same corporate group.

Application requirements are similar in scope for remote and land-based operators. Prospective licensees must demonstrate that they are financially sound and capable of meeting the MGA’s requirements, and that they will comply with the applicable legislation. In this respect, all directors and persons performing key roles in the gaming company must be vetted by the MGA to ensure that they are fit and proper, based on a detailed disclosure set out in a prescribed form (personal declaration form), which must be submitted through the MGA’s portal together with all supporting documentation. Direct and indirect shareholders holding more than 10% in the applicant company are subject to the same strict vetting process.

The MGA issued the Directive on Start-Up Undertakings such that any undertaking that qualifies as a start-up would be subject to less stringent compliance obligations for a certain amount of time. The qualifications to be deemed a start-up have recently been amended as per Legal Notice 266 of 2019, wherein an undertaking must not have generated more than EUR10 million of revenue in the 36 months prior to the application. These amendments came into effect on 1 January 2020.

Although no timeframes are officially issued by the MGA, a new remote gaming licence application review generally takes between three and six months from the date of submission. There are five application stages wherein the MGA will assess whether the applicant and its key function holders are fit and proper to conduct gaming business in accordance with Maltese laws and regulations, whether the applicant is sufficiently organised and prepared to undertake its proposed business strategy, and whether the applicant satisfies all key operational and statutory requirements. The MGA will also consider whether the applicant has correctly implemented its technical infrastructure in accordance with its approved business plan and systems documentation. The five application stages are as follows.

• A fit-and-proper assessment of the applicant, conducted by assessing all information related to persons involved in financing and management, and on the business viability of the operation.
• Business planning ‒ an in-depth financial analysis of the applicant’s business plan is conducted by the MGA.
• Operational and statutory requirements ‒ the applicant is examined regarding the instruments required to conduct the business, including incorporation documents; the games; and the rules, terms, conditions, policies and technical documentation of the gaming and control system. Applicants must also meet the established minimum issued and paid-up share capital requirements.
• System review – the MGA informs the applicant of the outcome of the application. Should the application be successful, the applicant will be invited to implement the operation in a technical environment, in preparation to go live. A 60-day time limit is allowed for this technical roll-out. Once the process of certification is completed successfully, the Authority will issue a ten-year licence.
• Compliance review ‒ after going live, a licensee must undergo compliance audits of its operations, which must be completed by an approved service provider within 90 days of the MGA’s notice.

In May 2025, the MGA issues a regulatory update announcing some changes to the system audit, system review and compliance audit procedures to ensure the efficiency and effectiveness of these processes.

Licence application fees vary according to the licence/authorisation being applied for. A one-time, non-refundable administrative fee of EUR5,000 is payable to the MGA upon the submission of any application for a B2C or B2B licence, for the renewal of such a licence or for a recognition notice. Gaming licence applications also include individual applications for directors, beneficial owners and key function role holders, at EUR50 per person and per role. An application for a material supply certificate and requests for the addition of a new gaming vertical, the addition of a new delivery channel or major changes to an operator’s software and infrastructure involve a fee of EUR1,000. These specifications are found in the Gaming Licence Fees Regulations.

Any person in possession of a gaming services licence issued by the MGA must pay a licence fee of between EUR10,000 and EUR35,000, depending on the class of licence held and the annual revenue. The fees are established in the Gaming Licence Fees Regulations.

Types of Authorisations and Licences

In accordance with the gaming rules, key function certificates are issued for individuals holding key roles within the company. These roles are in accordance with Part II of the Gaming Authorisations and Compliance Directive.

Application Process

The key application requirements are as follows.

• Directors, owners and senior management – any individuals applying for directorship and/or key function roles are required to submit a change in personal details application through the personal timeline of the Licensee Relationship Management System (LRMS).
• Disclosure thresholds – such applications are required for shareholding individuals/beneficial owners holding 10% or more, whether directly or indirectly, in the licensed entity.
• Timeframes – the MGA does not issue timescales for any type of application. The duration of an application review depends on the completeness of the personal declaration form and the accuracy of the documentation.
• Fees – for key function roles, there is an administrative fee of EUR50 per person and per role. For a beneficial owner application, no additional fees are required (other than the EUR1,500 application fee for the change in structure notification outlined in 10. Acquisitions and Changes of Control).

Ongoing Annual Fees

A key function certificate is renewed every three years, with an administrative fee of EUR50 per person and per role.

Ongoing Requirements

Key function role holders need to accumulate a certain number of continuous professional development (CPD) hours, in line with the MGA Policy on the Eligibility and Ongoing Competency Criteria for Key Persons.

Personal Sanctions

In accordance with the Guiding Principles for the Application of Enforcement Measures, the enforcement measures that the Authority may take consist of issuing an order or a warrant or adding, removing or amending conditions attached to the authorisation held by the relevant authorised person. In the case of a breach that is not an offence against the Gaming Compliance and Enforcement Regulations (SL 583.06), the Authority can impose an administrative penalty in accordance with Article 25(3) of the Act. In the case of a breach that is an offence against the Act, and without prejudice to the possibility of offering a regulatory settlement in lieu of criminal proceedings in line with Article 25(1) thereof, the Authority can file a report to the Executive Police for the commencement of criminal proceedings. The Authority may also suspend or cancel a licence, as the case may be.

Gaming premises must be licensed, and any person renting out or allowing another person to use the premises as a gaming premises must ensure that the lessee is in possession of a valid approval or licence. The Gaming Premises Regulations, which were published in July 2018, are applicable in this regard. The Gaming Premises Directive, which was published by the MGA and came into force on 1 February 2019, delineates further requirements to which gaming premises must adhere. The MGA has carried out several amendments to the 2019 Gaming Premises Directive to guarantee the proper functioning of the regulatory mechanisms applicable to gaming premises and controlled gaming premises. The amendments relate to different aspects of the Directive, including the provisions pertaining to the conversion of regular players into junket players, the identification of employees, the count procedure and the “no objection procedure” relating to the approval of controlled gaming premises.

Gaming premises operators are obliged to register all players upon entry into the gaming premises. These activities must be licensed and approved by the MGA and are not subject to any prescribed limitation in their number, although their physical location is subject to several rules. Any person renting out or allowing another person to use the premises as a gambling premises must ensure that the lessee is in possession of a valid approval or licence. Gaming premises operators are expected to make the possibility of self-exclusion readily available to every person and must provide assistance and guidance to any person who wishes to exclude themselves. More stringent regulations apply in relation to the self-exclusion of pathological gamblers. Casino licences are issued by the MGA but the issuance is dependent on the applicant holding a concession from the government for such operation.

There is no limit on the total number of gaming premises for the Maltese islands. However, gaming premises are subject to several criteria obliging them to be located at a pre-set minimum distance from schools, places of worship and other gambling premises. There are also restrictions regulating the number of gaming devices within the licensed gaming premises to one gaming device per two square metres, and a maximum of ten gaming devices in any gaming premises. In terms of lottery ticket and sale venues, a valid permit is required to sell tickets for the national lottery. An application for this permit is to be made to the MGA by the proposed seller. There are currently approximately 240 “Maltco Lottery” points of sale across the Maltese islands.

See 4.3 Types of Licences.

See 4.3 Types of Licences.

There are currently no measures in place to regulate the use of affiliates. In accordance with Directive 3 of 2018 (the Gaming Authorisations and Compliance Directive), outsourcing service providers such as affiliates shall be deemed to be acting for, and on behalf of, the licensee. In such cases, the licensee is responsible for the affiliate’s actions insofar as the activities concerned are covered by the licence issued by the MGA.

Notably, the Authority holds that when the service of the outsourcing service provider is constrained only to marketing and advertising activities, the regulatory framework that shall be adhered to is that of advertising. In light of this, the liability lies with the licensee to comply with such laws. However, when the outsourcing service provider conducts other activities that are related to the gaming service, this may differ. In fact, where the outsourcing service provider processes payments and handles player registration, the service provider shall itself be deemed to require a B2C licence, unless such services are only being completed on behalf of the licensee; in that case, they shall be considered to be under the authorisation of the licensee. In the latter case, the service provider would require approval of the service as a material supply.

There are currently no measures regulating requirements that apply to the use of white-label providers. Similar to affiliates, white-label providers are deemed to be intermediaries. In accordance with Directive 3 of 2018, outsourcing service providers such as white-label providers are deemed to be acting for, and on behalf of, the licensee. In such cases, the licensee is responsible for the actions of the white-label providers insofar as the activities concerned are covered by a licence issued by the MGA in favour of that white-label service provider.

There are currently no technical measures, such as ISP blocking, in place to protect consumers from unlicensed operators.

Maltese gaming legislation and regulations provide for a number of responsible gaming requirements aimed at protecting minors and vulnerable persons from unscrupulous operators. The Responsible Gaming Foundation, set up in Malta in 2014, has launched several projects and initiatives in this regard. A National Gambling Helpline (1777) was launched by this Foundation in 2015. Furthermore, in addition to Directive 2 of 2018 (the Player Protection Directive), the MGA imposes requirements ranging from strict advertising and marketing regimes to the possibility of self-exclusion.

In May 2020, the MGA published a consultation paper to gather feedback on “Suspicious Betting Reporting Requirements and Other Sports Integrity Matters”, aimed at safeguarding the integrity of sports and sports betting. A guidance paper was subsequently issued in this regard, advising all MGA licensees on matters relating to sports betting integrity.

Gambling management tools adopted by the MGA are focused principally on obligations placed on operators to assist players with determining whether or not they are problem gamblers, making leaflets or other material regarding organisations that assist problem gamblers readily available to players and ensuring that there are procedures in place to enable players to exclude themselves from playing for a definite or indefinite period of time.

In March 2019, the MGA issued a preliminary market consultation (PMC) document to request information pertaining to the possibility of implementing a unified self-exclusion system to be applied to the regulated gaming industry in Malta across gambling operators, irrespective of the channel.

The PLMFTR oblige online gaming operators to conduct high levels of customer due diligence (CDD), with a risk of steep penalties for non-compliance.

The MGA has issued a new directive dealing with the Key Function of the PLMFTR. Directive 3 of 2020, which came into force on 20 July 2020, obliges B2C licensees to have at least one of the key function holders vested with the key function of the PLMFTR. This key function holder must also be a money laundering reporting officer (MLRO) registered by the Financial Intelligence Analysis Unit (FIAU) in accordance with the procedures laid down in the Directive.

The FIAU is the Maltese government agency responsible for the combating of money laundering and financing of terrorism. It has published two sets of implementing procedures in terms of the PLMFTR, applicable to land-based casinos and the remote gaming sector. These implementing procedures focus on specific areas of the PMLTFR and their application at an industry-specific level, in order to highlight those aspects of money laundering prevention that are of most relevance to the industry, and to ensure they are understood and interpreted consistently by all Maltese licensees or other licensed operators based in Malta.

As an EU member state, Malta has implemented all EU Directives regulating the prevention of money laundering. Malta is part of MONEYVAL (the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism), which was established in September 1997 by the Committee of Ministers of the Council of Europe to conduct self- and mutual assessments of the AML measures implemented. The principal sources of Maltese law on money laundering are two statutory instruments, namely the Prevention of Money Laundering Act (Chapter 373 of the Laws of Malta) augmenting other provisions found in the Criminal Code (Chapter 9 of the Laws of Malta) and the PMLFTR (SL 373.01).

The EU’s Fourth Anti-Money Laundering Directive (4AMLD) classifies gambling operators as “subject persons”, which means that gaming operators are required to comply with stringent reporting and procedural obligations. The 4AMLD was transposed into Maltese law, and gaming operators became subject to risk-based AML obligations from 1 August 2018.

The 4AMLD takes the form of a minimum harmonisation directive and sets out minimum standards that must be met by transposing national legislation, while affording member states the option to exceed this standard and vary in the implementation thereof. Whilst the 4AMLD lays down an obligation for B2C operators to apply CDD measures for single transactions amounting to EUR2,000 or more, Malta applies this threshold on the basis of a rolling period of 180 days.

Further to the transposition of the 4AMLD, the Anti-Money Laundering Unit was set up within the MGA, with the purpose of conducting AML/CFT supervisory assessments of licensed operators through inspections carried out both on and off site. Reports of findings are subsequently forwarded to the FIAU.

Any operator found guilty of the offence of money laundering could be exposed, on conviction, to a fine not exceeding EUR2.5 million, and its officers could be exposed to imprisonment for a period not exceeding 18 years, or to both a fine and imprisonment. The court may, inter alia, also order the forfeiture to the government of the proceeds or of property with a value that corresponds to the value of such proceeds, whether such proceeds have been received by the person found guilty or by the company.

To further combat any breaches of AML regulations, the FIAU published the Risk Evaluation Questionnaire in 2025 (REQ 2025), which became available to gaming operators licensed in Malta froon 3 March 2025, on the Compliance and Supervision Platform for Assessing Risk. Operators also had to ensure that their subject person profile was fully updated, including ownership details, financials, target markets and their business risk assessment.

Failure to submit the REQ by the deadline constituted a breach of Regulation 19 of the PLMFTR and Section 5.12 of the implementing procedures, which could lead to administrative penalties under Regulation 21 of the PMLFTR.

Furthermore, the MGA and the MFSA entered into a memorandum of understanding (MoU) aimed at collaborating on the enforcement and governance of areas related to AML, the financing of terrorism and the proliferation of weapons of mass destruction.

See 4.1 Regulatory Authority.

Advertising is defined as text, images, sound or any other media transmitting information that is designed to promote, directly or indirectly, the goods, services, image or brand of a person pursuing a licensable gaming activity. For the avoidance of doubt, this also includes product placement and any emerging advertising techniques.

The key provisions can be found in the Gaming Commercial Communications Regulations, 2018; Legal Notice 247 of 2018; and SL 350.25, under the Requirements as to Advertising, Methods of Advertising and Directions applicable to Gambling Advertisements. The MGA issued the Commercial Communications Guidelines as part of its mission to prioritise player protection and responsible gaming. These legal instruments lay down the basis for acceptable advertising practices in respect of gaming services. The MGA also set up a Commercial Communications Committee, the role of which is to review commercial communications issued by gaming operators in Malta and assess any possible breaches.

The prohibitions and restrictions on advertising generally provide that advertisements must not portray, condone or encourage behaviour that is criminal or socially irresponsible; could lead to financial, social or emotional harm; or directly or indirectly encourage antisocial or violent behaviour.

Authorised gaming operators are permitted to advertise and market their products and/or services, subject to various restrictions aimed at protecting minors and vulnerable persons. The same restrictions apply to persons providing any service to, or acting in collaboration with, licensed and authorised persons offering a licensable game. The regulations and guidelines detailed at 9.3 Key Legal, Regulatory and Licensing Provisions also prohibit portraying gaming as socially attractive; suggesting that gaming enhances personal or professional qualities; and indicating that gaming is a means of gaining control, superiority, recognition or admiration. The portrayal of gaming as being associated with toughness/resilience, or as being indispensable or taking priority in life, is also illegal. Furthermore, advertisements must not suggest that solitary gaming is preferable to social gaming, or that skill can influence the outcome of a game that is purely a game of chance. In addition, advertisements cannot provide false information about the chances of winning or exploit cultural beliefs or traditions about gaming or luck. Operators cannot make reference to instantly available consumer credit services or other ways of providing credit to players.

The sending of unsolicited communications is prohibited, as is the sending of solicited communications to persons who have requested that they stop receiving such communications, or who are undergoing a period of self-exclusion.

Advertisements must clearly display the name of the gaming company responsible therefor, and a reference must be made in the advertisement to the fact that the company holds a valid licence issued by the MGA or another licensing authority duly recognised in Malta. Advertisements made via social media account portals held by the gaming company itself, or by third parties, are subject to the same restrictions.

Gaming advertisements cannot be issued or distributed in any public places or on any means of public transport in Malta, but this does not apply to advertisements displayed or broadcast within authorised gaming premises, locations frequented mainly by tourists (including airports, seaports, hotels and holiday complexes, excluding bars and restaurants), conferences/events specifically organised by the gaming sector, the premises of operators, newspapers or magazines, etc.

The regulations also provide that responsible gaming messages are to be prominently displayed within all advertisements, and that advertisements must not:

• be directed towards minors or vulnerable persons;

• encourage minors or vulnerable persons to play a game;
• feature minors or appeal to them in any way;
• exploit the susceptibilities, aspirations, credibility, inexperience or lack of knowledge of minors; or
• present gaming as a sign of maturity or the transition to adulthood.

If the MGA determines that a particular advertisement is in breach of legislation, it may order its modification, retraction or termination. The MGA may also take any administrative action it deems necessary, including the issuance of sanctions. Furthermore, where the MGA deems it necessary, it may also instruct the licensee to suspend the advertisement until it reaches a final decision. The Court of Magistrates, in its criminal jurisdiction, is competent to take cognisance of any offences committed in this respect. However, criminal proceedings cannot be undertaken without the approval of the MGA. The prescriptive period in relation to actions in breach of advertising regulations is six years.

Advertising Recommendations of the MGA in Light of the COVID-19 Pandemic

With regard to the COVID-19 pandemic, the MGA has taken into consideration all relevant developments and is constantly proposing adequate and proportionate measures, bearing in mind the distress the pandemic has caused players and operators. The MGA has reiterated that operators are bound by their obligations, pursuant to the Commercial Communications Regulations, to ensure that all commercial communications are socially responsible. Any direct or indirect reference to COVID-19, or any related circumstance, is considered to amount to a breach of this regulation.

Article 37(2) of the Gaming Authorisations and Compliance Directive (Directive 3 of 2018) requires operators licensed by the MGA to notify the Authority of any change in their direct or indirect qualifying shareholdings no later than three working days after the change. All documentation required by the MGA as part of the notification process for the approval of the new qualifying shareholder must be submitted to the Authority within 30 days of the change in shareholding taking effect. Changes in the shareholdings of a licensee representing less than 10% of the operator’s issued share capital, either directly or indirectly, will not require the Authority’s approval.

If the MGA takes the view that the change in direct or indirect shareholding has the effect of prejudicing the fitness and propriety of the licensee, or otherwise hinders its suitability for a licence, it may order the licensee to reverse the transaction, reverting to the status quo ante within a timeframe established by the MGA.

Gaming licences are not transferable, unless between entities forming part of the same corporate group. However, in the case of a change of corporate control, the continuance of the licence will be subject to the MGA’s vetting and approval of the new owners, and of any incoming directors and/or key function holders.

Passive investors are caught by the general change of control rules outlined in 10.1 Disclosure Requirements.

The enforcement measures that the MGA can adopt are as follows:

• an order directing the authorised person to do something, refrain from doing something or otherwise correct its conduct and/or operations;
• a warning directing the authorised person to do, or refrain from doing, something in the future;
• adding, removing or amending conditions attached to the authorisation held by the relevant authorised person;
• in the case of a breach that does not constitute an offence under the Gaming Act, imposing an administrative penalty in accordance with Article 25(3) of the Gaming Act;
• in the case of a breach that does constitute an offence under the Gaming Act, filing a report to the Executive Police for the commencement of criminal proceedings; and
• suspending or cancelling a licence.

The MGA has, in various situations, also suspended and cancelled a licence in cases of a breach. In fact, pursuant to Article 7(1) of the Gaming Compliance and Enforcement Regulations (SL 583.06), the Authority has the right to commence a formal investigation when it suspects that there is a breach of any applicable regulatory instrument, or if it believes that such authorised person is no longer fit to hold such authorisation. In these circumstances, a notice of suspension or cancellation is served on the authorised person.

Further to this, suspension or cancellation of the authorisation does not affect any obligation(s) of the authorisation holder for anything done or omitted to be done, or for any amounts due that may have already accumulated prior to the date of suspension or cancellation.

Financial penalties are enforced as certain, liquid and due money claims against the licensee through the normal enforcement procedures available under Maltese law. These generally consist of the filing of a claim by way of special summary proceedings in the Maltese courts, and the issuance of the relevant precautionary warrants against the assets of the licensee to secure the sum due pending the outcome of the judgment. Once a favourable judgment is obtained by the MGA, an executive warrant is issued against the licensee to recover the sum due, together with any relevant interest and eligible legal costs.

Any gaming service subject to the requirement of a licence, carried out from Malta or by any person in Malta, is subject to a gaming tax calculated at the rate of 5% on the gross gaming revenue (GGR) generated from said gaming services during the relevant tax period. This tax is levied on the gaming revenue, as defined in the Gaming Tax Regulations 2018, Legal Notice 248 of 2018, generated by operators from end customers located in Malta.

There is also a gaming levy imposed on gaming devices, calculated based on the aggregate gaming revenue generated during the relevant tax period. The rates of this gaming levy depend on the type of gaming service offered. The gaming levy imposed in relation to gaming devices deployed within gaming premises for the provision of Type 1 and/or Type 2 gaming services is 30%, while that imposed on gaming devices deployed for the provision of Type 3 and/or Type 4 gaming services is 12.5%. The levy on gaming devices deployed within controlled gaming premises for the provision of Type 1–4 gaming services is 15%.

Operators are obliged to pay a compliance contribution to the MGA, as well as other applicable licence fees. The compliance contribution is determined by the gaming revenue generated by the licensee under its MGA licence and is calculated in accordance with the Gaming Licence Fees Regulation based on the type of gaming service or critical gaming supply offered. A Maltese company holding licences in several jurisdictions would not account for the compliance contribution imposed by the MGA for those activities conducted under its non-Malta licences. Player winnings are generally exempt from taxation in Malta, provided that the gaming activities are not undertaken with such frequency by the player as to be deemed to constitute a trade, business, profession or vocation.

Maltese-resident and -domiciled companies are subject to tax on their worldwide income, minus permitted deductions, at the standard corporate tax rate of 35%. However, based on Malta’s full-imputation system, upon the receipt of a dividend, shareholders of a Maltese company may claim a refund of all, or part, of the tax paid in Malta at the level of the company, depending on the type and source of the income from which such dividend was paid. Specific tax advice should be obtained in each case.

VAT

VAT is applied at the standard rate of 18% on every taxable supply of goods, services or importation, with lower rates applicable to certain sectors.

Two sets of guidelines have been published by the Maltese government in relation to the previous gambling VAT exemption. These guidelines became effective on 1 January 2018 and provide a specific list of exemptions applicable to particular gaming activities. Therefore, in contrast to the previous regime (where a blanket exemption was applicable to all gaming activities), VAT will apply under the current framework, unless the particular gaming activity is specifically exempt. The VAT exemptions applicable to the respective gaming activities are exemptions without credit.