Malta has relatively young legislation on online Gaming and Betting legislation, but it has proved successful and, as a result, many operators have chosen this country to start activity in this sector.
The Lotteries and Other Games Act, integrated by laws related to gaming, governs all existing forms of gambling in Malta. The Lotteries and Gaming Authority (www.lga.org.mt), established under applicable law, releases gaming licenses after verifying the suitability of the licensees and their adequacy to fill their roles as gaming operators; LGA also ensures that licensees respect all the conditions of the license and that criminal activities are not carried out.
The law on Remote Gaming went into effect on 20 April 2004 and concerns all types of technology and games and, in particular, regulates the means and procures for monitoring remote gaming so that the fundamental principles of the game are respected.
All remote gaming operators in Malta must possess a valid license in the class corresponding to the activity performed.
Applicants must meet the following criteria: the limited liability company must be registered in Malta, the applicants must meet the established requirements, they must be able to demonstrate their business management abilities as well as technical abilities; finally, they must demonstrate that financial activity is guaranteed by a reserve of funds or sufficient securities, that the company is solvent and able to ensure player winnings and any refund of deposits.
There are 3 classes of gaming licenses, valid 5 years, which can be renewed once this period has expired. Class 1: for operators who manage Casino and lottery games online. Class 2: for operators who manage a betting schedule: fixed odds betting, pool betting and spread betting. Class 3: for operators who earn a percentage of revenues in exchange for the promotion of the gaming activity; this category includes: Poker networks, P2P, skill games, betting exchange and game portals.
Costs for obtaining the license include the registration fee (one-time non-refundable) of €2,300.
The main conditions for the granting of a license are:
The licensee must be operating.
Respect of the provisions for protection of players.
Compliance with anti-money laundering practices.
Appointment of an official to oversee all operations and ensure that the holder of the license respects all the laws and conditions of the license. The licensee must an administrator of the company and must reside in Malta.
Phase 1: the Gaming Authority verifies the applicant’s financial ability to perform the activity. The integrity of shareholders holding more than 5% of the company is also checked. Finally, the Gaming Authority requires an assessment of the company's business plan. Phase 2: the Gaming Authority examines the software and its structure, the rules of the games, the game procedures and the procedures followed by the operator. After this phase, the Gaming Authority issues a letter of intent, which is valid for temporary license for a period of 6 months. Phase 3: this phase concerns the licensee putting the games online. The Gaming Authority will carefully inspect the office supervising the games, which must be based in Malta, and its administrative and accounting procedures, to ensure compliance with applicable laws and regulations.
The monitoring systems must be certified and comply with regulations.
Certification is based on ISO/IEC17799 standards and no verification of the source code is required.
RNG certified games, or those which have a certificate detailing their level of randomness, do not need further inspection.
Checks for certification of the system must be carried out in Malta and must be performed under the direct supervision and coordination of the Remote Gaming Authority inspectors.
Certification must be made within six months from the date the letter of intent is issued.
The licensee if obliged to provide the players with all rules pertaining to the authorised games offered by the licensee and the costs of management, sustained by the player (if any).
Furthermore, the home page of the licensee's website must show, among other information, the details of the licensee, including the fact that the license was issued by the Maltese authority; finally, the home page must show the link to the LGA website.
The licensee may allow the user to start playing only if the registration procedure has been completed.
Registration details must include: the player's identity, age and place of
residence. The licensee may not lend or give any credit to players to allow them to play any game offered.
The licensee has a duty to keep precise and correct accounting documentation showing a true picture of the financial situation.
The owner is also required to provide financial statements to the competent Authority, within 60 days from the end of the accounting year.
The owner must provide the Authority with the interim financial statements, within thirty days of the end of the quarter.
Legislation for Gaming provides for a taxation which varies according to the type of license: Class 1: €7,000 per month Class 2: fixed odd betting: 0.5% of the gross amount of accepted betting pool bets: 0.5% of the total sum of stakes paid. Approved by LGA to certify the license holder, under legislation governing remote gaming. Class 3: the tax is equal to 5% of the real income. Real income means: the net income minus direct expenses (prizes, membership fees and the provider cost).
Class 1 on Class 4: the tax for Class 1 is €1,200 per month.
A fiscal reduction mechanism is applied to the taxation, limiting the tax payable by each licensee to a maximum of €466,000 per year.
Our platform is certified Class 4 with the Malta LGA, so the process for obtaining licenses through WM is very easy and quick.
WM, directly or through its partners, can provide you with complete consulting to obtain the Class 1, 2 and 3 (Casino, Poker and Betting) LGA licenses and comply with legal requirements.
WM, together with its consultants, will follow you through all the steps to become an operator:
Drafting of the business plan with financial projections for the first three years of activity.
Direct contact with the representative of the lotteries and gaming authority.
Preparation of the documentation necessary for Phase 1.
Presentation of the documentation for Phase 1.
Incorporation of the Company.
Opening of bank accounts, VAT number, tax code, etc.
Registration of the Legal Headquarters.
Drafting of strategies, procedures, technical documentation.
Drafting and review of contractual agreements.
Verification of compliance with regulatory requirements.
Consulting in the obtaining of LGA Licenses.
Accounting.
Payslips, work permits, LGA permits.
Data protection service.
Compliance of payments with PCI DSS standards.
Advise on: the payment of taxes, VAT, Gaming and other related topics.
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