All you need to know about the Malta Gaming Licence

Breaking down the Malta Gaming License to fully inform players and avid punters

The Malta Gaming Authority provides one of the most reputable licenses in the gaming sector. According to an article by iGambling Business, players tend to register more accounts with websites licensed by Malta compared to others. In 2020, casinos with MGA licenses saw over 19 million active players. Although there was a drop in 2021, an 8.7% year-on-year growth has been observed since then.

A strong regulatory framework, an easy licensing process, and a high degree of trust in the license from players are some of the reasons why an Australian real money casino, as well as numerous other international gaming platforms, opt for the MGA seal of approval. Leading platforms like Amonbet recognize the importance of such licenses, ensuring a safe and transparent gaming experience for their players while offering a diverse range of entertainment options.

This article will guide you through the types of licenses issued by the Malta Gaming Authority, along with the requirements, fees, application process, and benefits if you are considering applying for an MGA license.

Types of Malta gambling licences

Malta offers two primary types of gambling licenses: Business-to-Business (B2B) and Business-to-Consumer (B2C).

Business-to-Consumer license: Operators holding this license can provide gaming services directly to players. The license covers four gaming services, which are divided into four categories:

Type 1: Games of chance played against the house, including lotteries and casino games like slots, blackjack, and roulette.
Type 2: Fixed-odds wagering, where players place bets on the outcome of events against the casino. This includes sports betting and event wagering.
Type 3: This category covers pool betting and betting exchanges, where participants wager against one another. Type 3 games include pari-mutuel betting, poker, and bingo.
Type 4: This category includes all skill-based games, where the outcome is mainly determined by the player's skill rather than chance. It covers specific e-sports and fantasy sports.

Business-to-Business licence: The Malta B2B licence is designed for companies that provide platforms, products, or services to B2C iGaming operators. It includes software and platform providers, game developers, and other iGaming service providers.

Once obtained, the MGA license is valid for ten years, after which reapplication is required.

Malta gaming licence requirements

The following are the standard requirements and documents that must be provided by every officer, shareholder, director, authorized person, and beneficial owner.

A "good conduct" certificate from the police, dated within the last three months, for each company owner and applicant.
Successfully pass a "fit and proper test."
Provide original bank references for all owners and applicants, dated within the last three months.
Notarized copies of passports for all applicants and owners.
A comprehensive business plan.
A compliance and software audit.
Details of all gaming software used and third-party agreements.
All gaming servers and operations must be based in Malta.

The owners and applicants must submit all required documents in English. If any documents are not in English, certified English translations must be provided.

Malta's gaming licensing framework operates on the "open window" principle, meaning there is no limit to the number of licenses the iGaming licensing authority can issue. As a result, casino operators can apply for a license at any time, except for the national lottery license.

Additionally, only legal entities based in Malta or the EU/EEA, with all their casino operations and game services conducted in Malta, are eligible to apply for a Malta gaming license.

The minimum share capital requirement for a licensee depends on the type of license they wish to apply for. For a B2C gaming license, the share capital requirement varies based on the game type.

Malta gaming licence share capital requirements

Type	Minimum Amount
1	EUR 100,000
2	EUR 100,000
3	EUR 40,000
4	EUR 40,000

Organizations with multiple approvals must collectively meet the above share capital requirements, with a total of at least EUR 240,000.

Annual Licence Fees

According to the gaming license fee regulations, all licensed casino operators are required to pay the compliance contribution.

This contribution is due for each license period. Operators must also pay the non-refundable, fixed annual license fee. The annual fee is payable in advance for the 12 months following the issuance of the license, as well as on each anniversary throughout the license period.

Below are the annual, non-refundable fees, which vary based on the license type.

Гaming service licence

Type 1–3: EUR 25,000
Type 4: EUR 10,000

Critical gaming supply license (for organizations supplying and controlling the material features of a game):

If the company's yearly revenue is below $5 million - EUR 25,000
If the organization's annual revenue is less than $10 million - EUR 30,000
If the company's annual revenue exceeds $10 million - EUR 35,000
If the business holds a Type 4 license, EUR 10,000, regardless of annual revenue

Companies providing and managing software to process regulatory records, etc.:

If the company's yearly revenue is below $1 million - EUR 3,000
If the operator's annual revenue exceeds $1 million - EUR 5,000

Malta gaming licence countries

Below are some countries where the MGA license is accepted and expected:

Austria
Croatia
Denmark
Estonia
Finland
Germany
Ireland
Latvia
Lithuania
Malta
Netherlands
Norway
Poland
Slovakia
Slovenia
Sweden

Note that this is not an exhaustive list. Additionally, online gambling regulations can change over time. As such, casino operators should conduct thorough research and ensure they comply with the laws and regulations of each country they intend to target.

How to apply for an MGA licence

Below is a step-by-step guide on how to apply for an MGA license.

Application accepted or incomplete

The MGA license application must be fully completed. Additionally, all required information must be uploaded through the LRMS (Licensee Relationship Management System) before the license application is officially considered submitted.

Once the application is received, it will be reviewed. Any incomplete application will be placed in a one-time preliminary mode for 60 days. Failure to resubmit the complete application within this period will result in the rejection and closure of your application.

As part of the license application process, directors, ultimate beneficial owners (UBOs), and critical individuals must submit a personal declaration form. After submitting the PDF, a "request for involvement approval" will automatically be generated on the organization's profile timeline.

The involvement approval allows clients with access to the organizational profile to sign up and approve various members in the gaming license application. This involvement is created when the "change in personal information" application is submitted. The application enables anyone with access to the organization’s profile to approve or reject involvement requests.

Application review

During the application stage, the MGA evaluates whether an applicant:

Is fit and proper to operate a gaming business.
Has a viable business strategy.
Meets statutory requirements and possesses the operational capabilities needed to fulfill legal and policy obligations.
Has fully implemented all technical requirements before going live.

Fit and proper review

At this stage, the MGA conducts a fitness and preparedness test on the applicant by reviewing all details related to its shareholders, UBOs, relevant key individuals, and the business viability of the operation. The licensing authority also coordinates investigations with various national and international regulatory organizations.

Funding review

The MGA then evaluates the applicant's funding sources by reviewing the capital and overall financials of its ultimate beneficial owners. The financial sources are scrutinized by analyzing the economic activities that generate the UBO's income, which may include earnings from employment, business ventures, or inheritance.

The source of funds refers to the activity, business, occupation, event, or employment that generated the funds used for the gaming operations of the applying entity.

The process of assessing the source of wealth and funds involves verifying that UBOs are financially stable enough to sustain the license throughout its life cycle. It also includes confirming that the sources of funds are legitimate.

Business plan and operating policies and procedures review

At this stage of the MGA license application, the authority conducts a thorough analysis of the proposed business operations, including their funding and viability, as well as a detailed financial review of the applicants' projected financials.

The MGA requires the applicant to submit a detailed business plan that includes a comprehensive forecast of the operation, covering marketing and distribution strategies, as well as growth targets.

Additionally, this stage of the license application involves reviewing incorporation documents and the operating policies and procedures as part of the System Documentation Checklist.

Technical set-up review and system audit

This stage includes reviewing the technical documentation of the gaming and control system. Once the review is successfully completed, the authority notifies the applicant to implement the system in a technical environment as they prepare to go live.

The applicant is given 60 days to complete the operation. During this period, the license applicant may request an external system audit to be conducted by an independent third party from the pre-approved list of service providers.

Clarifications or requests for further information

The MGA may then request additional information regarding the license application. The application will be marked as "amendments required," allowing the license applicant to submit the requested documents.

Any significant changes that occur during the license application process, prior to approval, will require the submission of a new application. Major changes include:

Changes affecting more than 75% of the equity ownership, control, or funding of the prospective applicant.
Changes that necessitate the submission of a new business plan, including significant alterations to the products offered or the markets served, which will require revised financial projections.
Changes that require a fresh review of the submitted policies, procedures, and various documents.

To assist applicants in the case of significant changes, any information previously submitted to the MGA that remains valid will not need to be resubmitted. However, any new or updated documentation, forms, or information, as well as the application form details, must still be submitted in full via LRMS along with the respective application fee.

Licence approved or rejected

Upon completing the application review, the applicant will be granted an MGA license valid for ten years. If the application is rejected, the process must be restarted from the beginning.

Advantages of a Maltese gambling licence

Below are several reasons why casino operators should consider a Maltese gambling license:

High credibility

The MGA collaborates closely with the Maltese government to ensure that both players' and businesses' interests are safeguarded within a secure gambling environment.

The MGA also frequently suspends the licenses of operators who fail to meet their compliance obligations. This practice contributes to the MGA's excellent reputation and its strong track record of ensuring strict adherence to regulations.

Companies with MGA licenses are generally seen as more credible, as the license serves as proof that the operator is fair, honest, and transparent.

Fair games

Casino operators with MGA licenses are subject to regular checks to ensure that their gaming mechanisms remain fair, honest, and free from manipulation or tampering by the operator.

Independent licensed testing firms, not affiliated with the casino operator, also test and verify online games to ensure that the software does not produce pre-determined outcomes. The MGA also plays a role in ensuring that prize money is properly transferred to players. As a result, operators with MGA licenses are regarded as safe and fair places to play.

Gaming friendly

iGaming has become a vital part of the economy, with a highly skilled and experienced workforce in the gambling sector. Malta boasts a large pool of employees who are fluent in both Maltese and English. Additionally, the country is home to a substantial number of supporting gaming service providers, including those offering software, hardware, advertising, data, and marketing services.

Player trust

Displaying proof of an MGA gambling license on your website can significantly enhance the trust and confidence players have in your platform. In such a competitive market, building trust in your services is essential.

Trust in MGA licenses is bolstered by the extensive player protection measures and stringent control mechanisms enforced by the Malta Gaming Authority. The authority also ensures robust anti-money laundering standards and full compliance with relevant EU legislation.

Stability

Malta has been a fully-fledged EU member since 2004 and is also part of the British Commonwealth.

The licensing authority is a stable institution, both socially and politically. Economically, Malta boasts a consistently strong economy driven by technology, innovation, and financial services.

The authority is recognized for being friendly and welcoming to operators, with a flexible regulatory environment that caters well to technology-driven companies.

Double taxation treaties

The Maltese government is a signatory to over 70 double taxation treaties with various jurisdictions worldwide and is actively working to establish more for the mutual benefit of citizens in those countries.

As a result, an organization holding a Maltese online gambling license may not be required to pay tax in their home country.

Access to more markets

Casinos with a Maltese online gaming license can operate in multiple countries. However, they are prohibited from offering gambling services to players in FATF-blacklisted countries and regions where online gambling is banned. Additionally, they cannot provide services in areas that require a locally issued license.

Final thoughts on the Malta Gaming Authority Licence

As mentioned earlier, the MGA license offers numerous benefits. However, these advantages come at a significant cost. Securing a license will require careful financial planning and consideration.

The license application process is not only time-consuming but also intricate and costly. Applicants must provide numerous documents, demonstrate patience, and attend in-person meetings with the authorities.

However, establishing an EU base is a great choice if you are a large gaming company or a brand with a solid budget. Visit the Malta Gaming Authority website to begin your license application process.

Players must be 18 or older to engage in any gambling or online casino activities. Those who need assistance are encouraged to seek help. Players participate at their own risk.