The island state of Malta is a popular jurisdiction for online gambling and today the regulatory authority (Lotteries and Gaming Authority) is actively issuing licenses to new operators in light of the impending restrictions on operators with a Curaçao license. The following is a detailed description of the reasons for the attractiveness of the Maltese license. 

The advantages of Maltese licenses:

• Tax benefits; 
• EU license allows you to operate in the EU countries which do not have their own license; 
• Confidence from the players;
• Possibility to cooperate with worldwide banks and payment systems; 
• Impeccable reputation; 
• The country is not an offshore zone; 
• Licensing a large number of different games. 

Malta issues B2C licenses of the following four types: 

• Class 1 – Games whose outcome is determined by a random number generator: casino,roulette. The required share capital is 100,000 euros. 
• Class 2 – Games the outcome of which is not determined by a random number, but an independent event. The operator only offers odds to the player The required authorized capital is 100 000 euros. 
• Class 3 – Games where the operator is not at risk, but receives income from commissions or other fees. The required share capital is 40,000 euros. 
• Class 4 – Controlled skill games (Fantasy sports). The required share capital is 40,000 euros. However, if a company chooses to play several types of games, the total amount of the share capital can be 240,000 EUR. This capital can be used to pay expenses/operations in the process.

Any person offering any gaming service which constitutes a qualifying activity, whether by remote communication or in gaming premises or by any other means to any player who is physically present in Malta at the time the gaming service is actually provided, shall, in addition to the gaming device tax, if any, levied under regulation 4, pay to the Authority for each tax period a gambling tax calculated at the rate of five percent (5%) of the gaming income received.

In order to appoint an employee to a key function, the employee must obtain approval (personal license) from the regulator. This certificate is issued for 3 years.

It is not possible to hold the following positions without this license:

A number of positions can be combined, but positions should not be in conflict with each other.

The first step is to open a legal entity in Malta, as well as a bank account to deposit the share capital. Next is the collection of all necessary documents, with their subsequent check by the regulator. 

MGA (Malta Gaming Authority) conducts a compliance check of the applicant, assessing all information relating to the persons involved in the funding and management, as well as the viability of the business. Particular attention is paid to possible money laundering and terrorist financing that is closely monitored by MGA. 

All information is submitted at a moment’s notice.  

We would like to pay special attention to the list of people needed for registration of a company. In addition to the standard Director and UBO in the case of Malta will be required:  

• Internal Auditor (to be appointed no later than 6 months from the date of receipt of the license) 
• Key legal (to be appointed no later than 6 months from the date of receipt of the license) 
• Money Laundering reporting officer (“MLRO”) – must be appointed at the time of license application  

These officers may be outsourced. 

• The original or certified true copy of the birth certificate;  
• Original or certified true copy of passport; 
• Original or certified true copy of the certificate of no criminal record;
• A receipt must be submitted for each jurisdiction in which the applicant has resided for more than six months within the past two years; 
• A certified true copy of any gaming license issued in favor of the applicant in his or her individual capacity in any jurisdiction (optional); 
• Original or certified true copy of bank statement (updated within six (6) months of filing date for shareholders and PSUs);  
• Original or certified true copy of utility bill or bank statement showing applicant’s current address or any other document.  
• Applicant’s current address or any document showing address of residence;  
• Letter of appointment/occupancy as a key person;  
• Permission from other licensees for this new appointment; and Declaration of source of shareholder income.  

Obtaining a license with all documents will take 7 to 12 months. All of the above documents, if in a foreign language, must be submitted to the Malta Gaming Authority translated into English and certified according to the standards of the MGA.

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The applicant is screened for the tools necessary to conduct the business. This process includes a review of the registration documents, games, rules, conditions, terms and procedures of the game, the business process involved in conducting remote games, rules, conditions, terms and procedures of the game, and control systems. At this stage, even the business plan of the applicant is checked, which should be made for three years with the goals spelled out in it.

The aforementioned components make up the verification of application requirements. Non-compliant and substandard applications are rejected and the applicant in question will have to reapply.

After successful completion of all steps, the MGA will inform the applicant that the application has been satisfied and invite the applicant to implement in the technical environment in preparation for the launch. In the case of any non-compliance, a period of 6 months will be given to correct the non-compliance.

After successful completion of the certification process the MGA will issue a license for a period of five years.

On receipt of the Malta licence an annual non-refundable fee of €25,000 shall be payable for all licence types except 4. For the latter such fee will be 10,000 EUR.

Information that must be on the operator’s website: 

• Information about the operator (company name, legal address, contact information);  
• MGA Dynamic Seal; Link to gambling-related harm support organization;
• Website must be in at least English/Maltese;
• A message about responsible gambling, information about available player support measures, and a sign indicating that underage gambling is not tolerated;
• Terms & Conditions; Permanently available and accessible to players (including before registration); Only one applicable version of T&C.
• If a player does not accept the new T&C, they are not allowed to continue playing;
• Players must accept substantive changes before they take effect;
• Substantial changes must be brought to the attention of the MGA;
• The rules of the game must always be easily accessible and understandable, and must be within one click of the game; Information about any commissions or fees;
• Unfair terms under the EU Consumer Protection Act.

The MGA anticipates that after launch, it must undergo a series of audits conducted by the Internal Auditor we mentioned above. Such audits must be completed within 90 days of notification from the MGA.