Quote from wealthideas on July 30, 2025, 1:14 pm

Obtaining a Malta Gaming License from the Malta Gaming Authority (MGA) is a rigorous but rewarding process for operators aiming to establish a reputable online gambling business.

 

Below is a concise step-by-step guide based on the latest information available, tailored to provide a clear path to securing this prestigious license.

Step-by-Step Guide to Obtaining a Malta Gaming License

1. Determine the License Type
   • Decide whether you need a B2C (Business-to-Consumer) license for direct player interaction (e.g., online casinos, sportsbooks, poker) or a B2B (Business-to-Business) license for supplying gaming software or services to operators.
   • B2C licenses are categorized into four types based on game offerings:
     • Type 1: Random Number Generator (RNG) games like slots, casino games, and lotteries (minimum share capital: €100,000).
     • Type 2: Sports betting or event-based games (minimum share capital: €100,000).
     • Type 3: Peer-to-peer games like poker or bingo, where revenue comes from commissions (minimum share capital: €40,000).
     • Type 4: Controlled skill games like fantasy sports (minimum share capital: €40,000).
   • A single license can cover multiple game types, but you must specify the categories in your application.
2. Register a Legal Entity
   • Establish a company in Malta, preferably as a private limited company (Ltd), or in another EU/EEA country. Registering in Malta is advantageous due to tax benefits.
   • Reserve a company name (valid for three months) and set up a registered office address in Malta or the EEA.
   • Open a local bank account to deposit the required minimum share capital (€40,000–€100,000, depending on license type, with a cumulative cap of €240,000 for multiple licenses).
   • Appoint key personnel, including a director, company secretary, and an Anti-Money Laundering (AML) officer, all subject to MGA approval.
3. Prepare and Submit Application Documentation
   • Compile a comprehensive application package, including:
     • Business Plan: Detailed three-year plan outlining goals, strategies, financial projections, marketing, and distribution.
     • Financial Records: Audited financial statements proving financial stability and liquidity.
     • Identification Documents: Police conduct certificates (not older than three months) and background checks for key personnel, shareholders, and ultimate beneficial owners (UBOs) owning more than 5% of the company.
     • Operational Policies: Procedures for player protection, AML, Know Your Customer (KYC), data protection (GDPR-compliant), and responsible gaming measures.
     • Software Details: Information on gaming software, RNG certifications (for Type 1), and server hosting (must be in Malta for remote gaming).
   • Submit the application via the MGA’s Licensee Relationship Management System (LRMS) with a non-refundable application fee of €5,000.
4. Undergo the MGA’s Fit and Proper Assessment
   • The MGA conducts a thorough due diligence process, including:
     • Background checks on key individuals to verify integrity, competence, and financial stability, often in collaboration with local and international law enforcement.
     • Review of the business plan to ensure operational viability and compliance with MGA standards.
   • This stage typically takes 12–16 weeks. Incomplete applications are flagged as “incomplete” and given 60 days for correction, or they will be rejected.
5. Technical and Compliance Audit
   • Within 60 days of passing the initial review, set up the technical environment (e.g., gaming platform, servers) in a controlled setting.
   • Arrange an independent system audit by an MGA-approved third party to verify compliance with the submitted business plan, including player registration, game logs, payment systems, and AML/KYC processes.
   • If significant discrepancies are found, the application may be rejected, requiring a new submission.
6. License Issuance and Fee Payment
   • Upon successful completion of audits, pay the license issuance fee (€25,000 for Types 1–3; €10,000 for Type 4) and any applicable annual fees (minimum €25,000, varying by license type and revenue).
   • The MGA issues a license valid for 5–10 years, depending on the type, renewable upon compliance.
7. Ongoing Compliance and Post-Licensing Obligations
   • Conduct a compliance audit within 90 days of going live and periodically thereafter to ensure adherence to MGA regulations.
   • Pay a 5% gaming tax on revenue from Malta-based players and a compliance contribution based on Gross Gaming Revenue (e.g., 1.25% for up to €3,000,000 for Type 1 B2C licenses).
   • Maintain robust AML, KYC, and player protection measures, with regular reporting to the MGA.

Additional Considerations

• Timeframe: The entire process typically takes 4–12 months, depending on the complexity of the business model and readiness of documentation.
• Costs: Beyond application and license fees, account for corporate tax (35%, reducible to ~5% via a two-company structure with tax credits), legal fees, and ongoing compliance costs.
• Benefits: The MGA license is globally respected, granting access to EU markets, fostering player trust, and enabling partnerships with top software and payment providers.
• Restrictions: MGA licenses cannot be used in jurisdictions like the USA, Australia, the UK, or FATF-blacklisted countries, and operators must verify local regulations.
• Expert Assistance: Due to the process’s complexity, engaging legal and corporate service providers (e.g., Gofaizen & Sherle, Fintech Simple, or SALVUS Funds) can streamline the application and ensure compliance.

Why Choose Malta?

Malta’s robust regulatory framework, strategic EU location, skilled workforce, and tax incentives make it a premier hub for iGaming. The MGA’s stringent standards enhance operator credibility, attracting players and partners while facilitating market expansion.

For personalized guidance or to start the application process, contact us or the MGA directly at [email protected] or via the MGA’s eServices portal.

Disclaimer: Regulations and fees may evolve, so always consult the MGA’s official documentation or a legal expert for the most current requirements.