If you spend enough time gaming online and reading through the fine print, you’ll soon realise that many online casinos are based in, have offices in or have obtained licences from Malta. The reason for this is twofold: Malta is one of the first European Union members to regulate the online gambling industry successfully; and it offers very appealing corporate tax conditions which benefit online casino industries with low duty. Here we look at why a Maltese gaming license attracts so many gaming companies, developers and offices.

Obtaining a License in Malta

Malta became an important gaming hub over the last few decades owing to revisions in its licensing law and the introduction of regulated remote gaming in 2000. As a result, Malta’s gambling industry now represents upwards of 12% of the nation’s annual GDP. Unlike other countries in the European Union, Malta has sophisticated regulations in place which allow all gambling types to be understood through a single law, and they specify the legality of gambling as an industry.

Malta have very well organised licensing laws which have developed over time to allow for remote gaming, something that is very beneficial when setting up an online casino or gaming business. Understanding the legality of a business is of the utmost importance, so many new companies choose Malta because of the clarity of its licensing. As an EU member state, licenses in Malta can operate elsewhere in the EU.

Low Tax

There are specialised and efficient processes for obtaining a gaming license, which are issues for a five year period with extensions. Each license — of which there are four, covering simple casino games through fixed-odds betting — is taxed according to its type, but these taxes are extremely low when compared to other EU member states. Currently, sports betting licenses have a tax rate of only 0.5%, making them among the lowest in Europe. Because EU law states that a company pays its taxes in any chosen country of operation without having to pay them elsewhere, we can see why Malta’s tax incentives are so attractive to European gambling businesses.