For eight years, the tax side of an MGA license was easy to explain: gambling was exempt from VAT, and gaming tax was a flat 5% on revenue from local players. Both statements stopped being true on 1 October 2026. Two legal notices published on 1 April 2026 rewrote the rules: one narrowed the VAT exemption for gambling, the other replaced the flat gaming tax and the separate device levy with rates that depend on the type of game.
Here is what changed, what licensees pay now, and which deadlines are coming up.
What Changed in Malta on 1 October 2026
The reform was announced in the 2026 Budget and implemented by two instruments:
- Legal Notice 84 of 2026, the Gaming Tax (Amendment) Regulations, 2026, amending the Gaming Tax Regulations (S.L. 583.10).
- Legal Notice 86 of 2026, amending item 9 of Part Two of the Fifth Schedule to the VAT Act (Cap. 406), which contains the exemption for betting, lotteries and other gambling.
The Malta Tax and Customs Administration (MTCA) issued guidelines in April 2026 on what stays exempt, plus related guidance on electronically supplied services and streamed activities.
VAT: From Exempt to Taxable
Before 1 October, betting, lotteries and gambling were exempt without credit: no output VAT was charged, and input VAT on related costs could not be recovered. That exemption now covers only approved categories. According to the MTCA guidelines, only three remain exempt:
- low-risk games, as defined in the Gaming Authorisations Regulations (S.L. 583.05);
- occasional junket events (not routine and requiring specific planning);
- betting on real-life events that can only be accessed physically at the venue, such as bookmakers and betting exchanges at a sporting event.
Everything outside those categories is, in principle, a taxable supply. That includes online sports betting, online casino and poker, online bingo, live casino and B2B supplies to the sector such as platform and game content.
Online betting, access to online gambling platforms and online bingo are treated as electronically supplied services. For B2C supplies, VAT is due where the player is established, has a permanent address or usually resides. A player in Malta means Maltese VAT; a player in another EU Member State means that country’s VAT, accounted for through the One-Stop Shop (OSS) or a local registration. The upside is input VAT recovery: costs attributable to taxable supplies become deductible, with apportionment where a business also makes exempt supplies and possible capital goods adjustments where assets switch from exempt to taxable use.
Malta’s New Gaming Tax Rates
Under the old regime, gaming tax was 5% of gaming revenue, with separate device levies on top for land-based equipment. Legal Notice 84 removes the device levy and sets rates by game type and mode of offer:
| Qualifying activity | Rate (of aggregate gaming revenue) |
|---|---|
| Type 1 gaming services (casino-type games, lotteries) | 15% |
| Type 2, Type 3 and Type 4 gaming services | 10% |
| Activity within controlled gaming premises | 5% |
| Activity classified as a junket or junket event | 5% |
Two points are often misreported. First, gaming tax still applies only to qualifying activity with players in Malta: for remote gaming, players established, permanently resident or usually resident there; for land-based gaming, players physically present when they play. Revenue from players abroad is not taxed under these rules. Second, 15% is not a general “remote gaming tax”; it is the Type 1 rate.
Legal Notice 84 also raises the studio broadcasting levy for live casino studios from €500 to €3,000 a year and extends “qualifying activity” to casino concessionaires and the National Lottery.
Reporting Deadlines
- 20 October 2026: September 2026 returns, filed through the current portal under the old rules.
- By 1 November 2026: the updated portal for the new reporting requirements goes live.
- 20 November 2026: October 2026 returns, the first under the new rates, filed through the updated portal.
License fees are unchanged by this reform. Under the MGA’s guidance on license fees and taxation, a B2C gaming service license carries a fixed annual fee of €25,000 (€10,000 for operators offering only Type 4 services), payable 12 months in advance, plus a revenue-based compliance contribution paid monthly by the 20th of the following month.
Impact by Business Model
B2C online operators
Expect two changes. On Malta-facing revenue, gaming tax rises from 5% to 10% or 15% depending on the game mix, and VAT now applies. On EU-facing revenue, VAT is due in the player’s Member State, so OSS registration and country-by-country reporting become routine. For groups with few local players, VAT is the bigger operational project.
B2B suppliers
Platform providers and game studios now make taxable supplies, which changes invoicing but makes input VAT on development and hosting costs recoverable. Live casino studios pay the higher €3,000 studio levy. If you are entering the B2B segment, our overview of game provider certifications covers the technical side.
Land-based operators
Casinos and gaming parlours lose the separate device levy and move to the unified rates, with 5% retained for controlled gaming premises. In-venue betting at sporting events and occasional junkets keep the VAT exemption; most other land-based activity should be reviewed against the MTCA categories.
Checklist for MGA Licensees in Malta
- Map every product to a game type and to the VAT categories; do not assume “gambling” means exempt.
- Confirm how players are located (residence for remote, presence for land-based) and that your data supports it.
- Register for OSS or local VAT where EU players create obligations elsewhere.
- Update billing, pricing and accounting systems, including B2B contracts that are silent on VAT.
- Build an input VAT recovery and apportionment method, and check capital goods adjustments.
- File September returns under the old rules by 20 October, then test the new portal before 20 November.
The tax change also reopens the jurisdiction question for some groups. Our comparison of Curaçao, Malta and Isle of Man and the note on new MGA capital requirements show the full cost picture. If you are applying for or restructuring a license, our Malta gambling license team can help.
Frequently Asked Questions
When did Malta’s new gaming tax and VAT rules take effect?
On 1 October 2026, under Legal Notices 84 (gaming tax) and 86 (VAT) of 2026, both published on 1 April 2026.
What are the new gaming tax rates in Malta?
15% of aggregate gaming revenue for Type 1 services, 10% for Types 2, 3 and 4, and 5% for controlled gaming premises and junkets. The separate gaming device levy has been removed.
Does the gaming tax apply to players outside Malta?
No. It applies only to qualifying activity with players in Malta. VAT on supplies to players in other EU countries is due there, usually via the OSS.
Which gambling supplies remain VAT-exempt?
Low-risk games, occasional junket events, and betting on real-life events accessible only physically at the venue. Online betting, casino, poker, bingo, live casino and B2B supplies are in principle taxable.
When is the first return under the new rules due?
The October 2026 return is due by 20 November 2026 through the updated portal. September 2026 returns follow the old rules and are due by 20 October 2026.
Sources: MGA, Revised VAT and Gaming Tax Frameworks Come into Effect (30 September 2026); MGA, Guidance Note on License Fees and Taxation; Legal Notices 84 and 86 of 2026; MTCA Guidelines on item 9, Part Two, Fifth Schedule to the VAT Act; KPMG, EY and Deloitte Malta tax alerts. Last updated: October 2026.
Disclaimer: This article is general information as of October 2026 and is not legal or tax advice. VAT and gaming tax treatment depends on your products, players and structure; confirm your position with the MGA, the MTCA and a qualified adviser before acting.
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This article is for general informational purposes only and is not legal, tax, or financial advice. Consult a qualified professional before acting. Editorial Policy.
