iGaming & Gambling Law

1. Which license categories are currently issued by the Malta Gaming Authority (MGA)?
Answer: Maltese gaming law fundamentally distinguishes between two primary categories of licenses, each with a validity period of 10 Years :

• B2C (Business-to-Consumer): For operators offering games or betting services directly to end customers.

• B2B (Business-to-Business): For software providers, white-label platforms, and game developers.

Within the B2C license, the offering is classified into game types classified. A major advantage of the MGA framework: when expanding their portfolio (e.g., adding sports betting to slots), operators do not need to apply for an entirely new license, but merely extend their existing certificate by the corresponding type.

2. What do the four game types (Type 1 to Type 4) entail?
Answer: The law divides the offerings as follows:

• Type 1: Random number generated (RNG) games played against the house (e.g., online slots, roulette, blackjack, baccarat, as well as live casino streaming).

• Type 2: Games whose outcome is determined by an event independent of the game (e.g., traditional sports betting and fixed-odds betting).

• Type 3: Peer-to-peer games where the operator bears no risk of its own, but retains a commission (e.g., poker networks, betting exchanges, and online bingo).

• Type 4: Controlled skill games (e.g., fantasy sports).

3. What changes for licensees under the new MGA Compliance Update 2026?
Answer: The MGA has fundamentally shifted its supervision from periodic checks to a proactive, data- and risk-based supervisory model (Risk-Based Supervision). This means: Obtaining the license is no longer the final objective, but the starting point of continuous auditing.

Operators are now categorized according to their individual risk profile and compliance track record. The focus lies primarily on real-time systems reviews regarding player protection and automated AML controls. Concurrently, the audit results framework has been structured more flexibly: auditors can now document deficiencies as "resolved during the audit" or as "time-bound remediation orders," providing operators with the opportunity to adjust processes without facing immediate license revocation.

4. Which substantial tax changes come into effect on 1 October 2026?
Answer: On 1 October 2026, a fundamental reform of Maltese gaming taxation (Gaming Tax (Amendment) Regulations) came into effect. The previous flat gaming tax of 5% on gross gaming revenue (Gaming Revenue) is abolished and replaced by differentiated tax rates depending on the game type replaced:

• 15 % Tax on revenue from Type 1games of chance (online casino, slots).

• 10 % Tax on revenue from Type 2, 3 und 4 (Sport Bets, Poker, Peer-to-Peer).

At the same time, device-based levies are eliminated and a higher flat-rate levy is introduced for land-based studio broadcasting (e.g., live dealer studios). This fiscal restructuring requires an immediate adjustment of your financial projections and accounting logic.

5. Why is Malta tightening value-added tax (VAT) for gaming activities as of October 2026?
Answer: Parallel to the Gaming Tax, the VAT exemption for gambling (Fifth Schedule to the Value Added Tax Act) was significantly narrowed with effect from 1 October 2026 (via Legal Notice 86 of 2026).Legal Notice 86 of 2026) significantly restricted. Previously, almost all gaming services were exempt from VAT on a blanket basis. Going forward, only only three precisely defined exceptions remain VAT-exempt: state-defined Low-Risk-Games, occasional approved Junket-Events as well as betting facilities that are physically accessible directly at the venue where a real-life sporting event takes place.

All typical B2C online offerings (online slots, RNG poker, online bingo) are treated for tax purposes as electronically supplied services (ESS) classified. This has significant implications for your accounting practices, pricing structures, and particularly for the eligibility for input tax deduction (Input VAT Recovery), which we must calculate precisely for you in advance.

6. What is understood by MGA-compliant "Zero-Entry" platforms via Open Banking?
Answer: In order to reconcile the MGA's extremely stringent KYC and AML requirements with a modern, friction-free user experience (UX), the regulator increasingly permits the use of Open Banking protocols and Payment Initiation Services (PIS).

With these so-called "Zero-Entry" or Pay & Play"Pay N Play" platforms, the player's traditional, manual document upload procedure during onboarding is almost entirely eliminated. The player's identity is verified within seconds in the background directly via the user's secure bank authentication. The system is fully compliant with the MGA's player protection directives, yet eliminates friction during registration.

7. How does the law firm support operators and founders in the iGaming sector?
Answer: The path to obtaining and maintaining a successful MGA license leaves no room for error. We provide end-to-end legal and regulatory project management:

• Licensing: Execution of the entire application process, including the Fit and Properchecks of the shareholders, the drafting of the business plan, and legal counsel throughout the System Review.

• Technical Compliance: Legal safeguards for the platform architecture, data and funds segregation (ring-fencing of player funds), and the certification of random number generators (RNGs).

• Fiscal Optimization: Advising on and structuring your setup in light of the new gaming tax rates and tightened VAT rules taking effect from October 2026, aimed at maximizing your input tax recovery.