Ron Mendelson is the Director of Costa-Rica based business and financial consultancy firm, Fast Offshore
.More articles by Ron Mendelson
The many benefits of securing a Malta gaming license
16 April 2019
By Ron Mendelson
While some of you might struggle to locate the small island of Malta on a map, it shouldn't be underestimated in terms of its business potential. A flourishing hub not just for iGaming, but for industries such as blockchain, artificial intelligence (AI) and financial services, it also enjoys one of the strongest economies in Europe.
A European Union member state since 2004, the country is bilingual (Maltese and English) and has a population over just over 440,000. Famous as a holiday destination and the set for many famous media productions (Game of Thrones, Munich
and World War Z
, to name a few), it is now firmly established as a center of global and international business.
For the last 14 years, it has been a top center for online gaming and its gaming license is considered a gold standard in the global industry.
But what makes both Malta and its license so special, and why should you consider applying for a Malta gaming license?Malta's gaming license
There are a number of reasons why acquiring a Maltese online gaming license is a benefit. Firstly, the Malta Gaming Authority (MGA) is one of the most respected in the world, and holding a license from it is seen globally as a vote of confidence. In addition, the licensing application procedure is fast, yet offers a stable legal and regulatory framework for operators, service providers and online players.
Holders of a Maltese license can benefit from onshore status in Europe, which means Malta-registered operators can advertise across the EU. The MGA also employs strict anti-money-laundering laws and is in full compliance with EU legislation, meaning you will be as well.
Recent regulatory changes
In 2018, the Maltese government introduced a number of changes to the Gaming Act. These changes sought to both simplify the process of licensing in the country and ensure better protection for clients, operators and service providers.
The licensing procedure was significantly simplified, now providing for just two types of licenses — B2B and B2C. The B2C license will still be categorized in terms of the type of game provided, but it will eliminate the need for a new license per class of game. Under the new laws, a B2C licensee can just add on different game types without going through the full licensing procedure every time.
Other changes include an extended validity period for licenses from five to 10 years and a different fee structure, including the introduction of a cap on the variable license fee.Why Malta?
There are a number of other reasons Malta should be a jurisdiction of choice for your iGaming operations.
Apart from low gaming license fees and taxes, the corporate income rate for businesses can be as low as an effective 5% rate subject to meeting certain criteria and depending on individual circumstances. In terms of revenue derived from licensable gaming services, the rate is set at 5% of the Gross Gaming Revenue. Gaming operators are only required to pay tax in Malta on revenue from Maltese customers.
Aside from this, Malta enjoys a stable economy and political situation and a workforce with years of experience in the online gaming sector.How we can help?
Fast Offshore has years of experience assisting clients in applying for licenses within the jurisdiction of Malta. In addition, we are able to provide a full portfolio of supporting services, including company registration and associated roles, business plan preparation, preparation and submission of all documentation to the MGA, license applications, assistance with setting up a bank account, and a range of other services.
We are also on hand to provide advice on the jurisdiction when compared with other options, as well as local advice on other types of business interest. With personalized advice on offer 24 hours a day, we can take care of everything from engaging a credit card processing service provider to liaising with the Malta Gaming Authority on your behalf.
These are just some of the benefits of having a Malta online gaming license, but the list is not exhaustive. We know that each of our clients' needs are as individual as they are, and as such we prefer to engage in a discussion with you regarding your goals, your options and the solutions we can provide.
To find out more, please contact a member of our team.