Malta: European Leader in Online Gaming

Malta: European Leader in Online Gaming

28 September 2020
Gaming Licenses are now valid for 10 years

Malta is still the leading international online gaming jurisdiction. With over 250 registered online gaming companies, more than 600 active licenses and over 8,000 professionals, the online gaming sector is one of the most dynamic economic sectors in Malta.

Since the law reform in August 2018, the remote gaming application process has changed:

1. Gaming licenses are now valid for 10 years
After the successful completion of the application process, the Malta Gaming Authority (MGA) will issue a gaming license with a validity period of 10 years instead of 5 years, as it was previously.

2. Categories of licences
The MGA issues licenses in the following categories:

Gaming Service Licence (Business to consumer licence)

The following services constitutes a gaming service:

  • a. offering, provision or operation of a gaming service;
  • b. hosting by a person in his premises accessible to the public, the operation or making available for use a gaming device or gaming system.

Critical Gaming Supply Licence (Business-to-business licence)

The following services constitutes a critical gaming supply:

  • a. supply and management of material elements of a game;
  • b. supply and management of software, to generate, capture, control or process essential regulatory record and/or supply and management of the control system itself on which the software resides.

The Remote Gaming Regulations distinguish between 4 types of games. The gaming operator can offer one or more of the gaming types mentioned:

  • Type 1 – Games of chance played against the house, the outcome of which is determined by a random generator, and shall include casino type games, including roulette, blackjack, baccarat, poker played against the house, lotteries, secondary lotteries and virtual sports games; and/or;
  • Type 2 – Games of chance played against the house, the outcome of which is not generated randomly, but is determined by the result of an event or competition extraneous to a game of chance, and whereby the operator manages his or her own risk by managing the odds offered to the player; and/or;
  • Type 3 – Games of chance not played against the house and wherein the operator is not exposed to gaming risk, but generates revenue by taking a commission or other charge based on the stakes or the prize, and shall include player versus player games such as poker, bingo, betting exchange, and other commission based games; and/or;
  • Type 4 – Controlled skill games as per regulation 8 of the Gaming Authorisations Regulations.

3. Key Functions

The former so-called 'key official', who was usually the director of the gaming company and the liaison person between the MGA and the gaming provider, no longer exists. This requirement has been replaced by 15 Key Functions, which must be performed by different persons and approved by the MGA. For further details please book a consultation with Kresse International.