Here’s why many online casinos and bookies are licensed in Malta

Whenever you choose an online casino or bookie to make an account, one of the most important things to check is the operator’s license.

You may have noticed that many online casinos are based and licensed offshore. You’ll also find that many are licensed in Malta.

Maltese Live Casino Studios and betting operators have many reasons as to why they choose to be on the island. Malta has successfully established itself as one of the best places for the iGaming sector, mainly due to the robust gaming framework, which has been in place since 2004.

The gaming/gambling industry in Malta is regulated by the Malta Gaming Authority (MGA). The MGA implements the Remote Gaming Regulations, which were published in April 2014.

This made Malta the first European Union state that was allowed to regulate remote gaming operations.

In August 2018, the regulations were repealed by the Gaming Act. In this way, the licensing process in Malta.

Since then, Malta has been providing two kinds of licenses: the B2C and the B2B.

A B2C license is opted for depending on the types of games that an operator is offering. Having this type of license means that the operator would not need to apply for a new license every time they release a new game.

They may add various games to their catalogue, without going through the procedure every time.

As it stands, Malta is home to over 500 gaming companies, including gambling operators. In the last three years alone, the country gained 160 remote gambling providers.

Here are a few reasons as to why gambling operators are heading over to Malta for a license:

• Low gaming tax

Like with many other jurisdictions, gambling operations are taxed and license applications also come with a fee. When it comes the amount of gaming tax, it is dependent on the games offered by the operator and the kind of license they have.

Remote gaming operators are subject to two kinds of taxes. The first is corporate tax, which translates to 35% of profits. Paying corporate tax makes such companies eligible for incentives that are subject to applicable conditions.

The second is the gaming tax. This translates to just 5% of revenue. Even more enticing is that the total tax paid by remote gaming operators is capped at €460,000.

• Cheaper licensing fees

When compared to other jurisdictions, licensing fees in Malta are generally cheaper. A B2C license requires operators to pay an annual fee of €25,000 as a fixed amount. Meanwhile, B2B license fees vary.

A B2B license can range between €25,000 to €35,000. This mainly depends on the annual revenue of the operators. The licensing fee may be reduced by €10,00, if the company supplies solely to Type 4 game providers.

• Location

Malta is located in the Mediterranean Sea, close to North Africa, Gibraltar and Sicily. Since 2004, Malta has been a member of the European Union, making the country a part of the Schengen area. This means that Malta-licensed operators can offer their services freely to other EU countries.

• The country is an expert

The MGA has strict laws when it comes to money laundering. The regulations they have in place with regards to gambling, go hand-in-hand with the country’s economic and political stability.

iGaming is also well-regulated, thus safeguarding the interest of the players, as well as the operators themselves.

The country also has excellent telecommunications and technological structures. In fact, in November 2019, Malta ranked as first place in terms of IT and e-government services. In addition, it also scored 100% in online availability and sophistication.

This just shows how well equipped Malta is when it comes to appropriately regulating remote gambling operators. It’s no wonder, therefore, why Malta has become many operators’ first choice for licensing.