PL pledges advanced e-sports and igaming investments

Prime Minister Robert Abela announced that a Labour government  will create over 1,300 new jobs in the e-sports and iGaming industry.

In a political event on Friday, the PL declared an investment of €60 million in the gaming industry, and a 10% increase in careers, aimed at prospective Gozitan and Maltese workers in this business.

A new e-sports centre was proposed, which will provide further facilities for gaming, tournaments, and other competitive sports. Consequently, the Malta Gaming Authority (MGA) will be permitted to give out licenses, authorising narrative studios in Malta.

The prime minister outlined seven further proposals during the conference, with more to be communicated in the coming weeks.

Abela stressed that the digital and AI sector is central to a resilient economy which is both competitive and intelligent, saying, “we cannot have a digital divide in our country.”

Abela claimed that Malta is among the most advanced countries in the European Innovation Scoreboard and that we are among those with the highest rate of businesses using AI. Currently, 30% of workers and 17% of negotiations use AI, which is above the EU average.

A tax credit of 60% on investments made by negotiations and companies in digitalisation, automation, and AI will be given out according to Abela, whilst stating that the budget will continue to be revised to ensure that the PL will continue to invest in these companies above.

“It’s time for our country to introduce a 175% tax credit on research and innovation spending that applies to all businesses,” he added, whilst further highlighting the acceleration of the depreciation rate over two years for investment in AI, digitalisation, automation, and cybersecurity.

In total, it is predicted that around €100 million of investments will be dedicated towards AI.

A new e-residency scheme which was proposed will allow foreign entrepreneurs, freelancers, digital nomads, amongst others, to set up a company in Malta digitally, carry out administrative obligations online, access digital services, and use Malta as a regulated and credible base in the European Union.

Following this, self-employed individuals will see a lower social security tax rate at 10% compared to the previous 15%. Individuals will still pay 15% but will receive a tax grant back amounting to the 5%, in order to not impact their liquidity. These persons will see between €627 and €1,428 back in their pocket, Abela claimed.

Innovations within the tourism sector were also discussed, with measures targeted towards better products. Restaurants will be given up to €300,000 to better their products and experience, while a tax credit on renovation, a measure targeted to this sector which does not create anomalies, will allow them to offer higher quality services to clients.

Abela also addressed the creative sector, proposing a cash rebate scheme where local artists will be able to benefit from a 10% reimbursement on their costs up to a maximum of €50,000.

The event was also addressed by Minister Owen Bonnici and Minister Silvio Schembri.