Companies that are opening an iGaming business in Malta need to apply for a valid gaming licence, which is granted by the Malta Gaming Authority (MGA). In order to receive such a license, the applicant needs to go through a lengthy application process, which in some cases, can take up to 18 weeks. There are various Gaming license types in Malta and one can choose to either apply for a B2C license or a B2B license.
Gaming Licence Types
B2C Gaming Licence – Business to Customer
This type of licence is known as a Gaming Service Licence, and operators applying for this licence can provide a gaming service. In order to carry out the or both of the following service, this type of licence is required;
- If the operator offers or operated a gaming service
- If the operator is hosting a gaming service in his own premises which is accessible by the public. This also includes physical locations that offer one or more gaming devices and/or systems
B2B Gaming Licence – Business to Business
This type of license is known as a Critical Gaming Supply Licence and is required if the operator intends to:
- Supply, provide, and manage the material elements of a game.
- Supply, provide, and manage the gaming software, with the aim to control or process important regulatory records. This may also include the supply and management of the control system, where the gaming software is kept
Gaming Types in Malta
Whether the applicant is applying for a B2C or B2B license, the MGA offers the following game types that one can operate;
Type 1
Risk-based games in which a player, plays against the house. The outcome of the game does not depend on the player but is generated in a random manner. This includes;
- Roulette
- Poker against the house
- Lotteries
- Blackjack
- Roulette
Type 2
Risk-based games in which a player, plays against the house. The outcome is not generated randomly but depends on the result of a competition, event, or game of chance. In this situation, the operator manages her or his odds that the player is betting against
Type 3
Risk-based games in which a player, does not play against the house. Furthermore, the operator does not liable for any risk during the game but instead receives a commission on the stakes of the game or prize. Types of games included are;
- Player vs Player poker
- Tombola (bingo)
- Betting exchanges
Type 4
This includes controlled skill games based on the Gaming Authorisations Regulations – Part 8
Operators that are providing a service and/or supply or targeting local players are required to be authorised by the MGA, in order to operate in Malta. Furthermore, if the operator wishes to opt for more than one of the game types mentioned above, the MGA will designate a type that it believes relates closest to the game. The main difference will be that the operator will be required to issue higher share capital.
Different gaming verticals require to have separate approval for each vertical. This includes the category of games that are required to have a specific safeguard, so that it is ensured that it is in line with the regulations and the objectives, promoting responsible gaming. These are to be submitted to the MGA through the LRMS. Gaming verticals include;
- A physical or online casino
- Lotteries including second lotteries
- Betting based on fixed odds
- Betting exchanges and pool betting
- Commission based games
- Player to Player games
- Lottery messenger services
- Controlled skill games
- Any other gaming vertical which doesn’t compromise with the above mentioned
Group Licences
If the applicant is a company, the applicant can choose to either apply for a license for him or herself, or for a corporate group. For individuals that make part of the same corporate group, a license or material supply certificate can be transferred. This, however, has to be approved by the MGA. In this case, each member of the company can be deemed as a licensee.
What type of Games are exempt from requiring a Licence in Malta?
Skill Games
According to the 2nd Schedule of the Gaming Authorisations Regulations, skill games are considered to be exempt from requiring a license. The law defines the skill games as those games which do not require a stake or amount of money to participate. This means that the player does not receive a prize when winning. However, there are a number of games that the MGA considers it as a controlled skill game, but a stake might be required to participate and a prize might be won.
In order to opt for this exemption, the operator has the role to prove that the game activity offered is a skill game.
Material Gaming Supplies
The gaming authority defines this as;
“Material Gaming Supply is a gaming supply of such importance that any weakness or failure in its provision could have a significant impact on the operator’s ability:
- to meet the operator’s obligations under the Act and all applicable regulatory instruments; or
- to manage the risks related to such supply; or
- to continue in business. “
Material Gaming Supply includes operators offering services such as; risk management, for a regular gaming operation, fraud management, managing player funds, customer due diligence, and co-location services.
Low-Risk Games
This includes games that as the name implies, have a low risk. Instead of a license, the operator will obtain a Low-Risk Games permit. These include games that in order to participate, the stakes are no more than 5 Euro, commercial communication games which prize does not exceed 50,000 Euro, on a singular time. Apart from that, this includes limited commercial communication games, where in order to participate, the stakes do not exceed 2 Euro, and value of the prize does not exceed 250 Euro, per one game.
Recognition Notices
If an operator is offering licensable games that were not authorised in Malta, but instead, in another EU Member state or EEA, or any state, which the MGA deems acceptable and considers it in line with offering the same safeguards, as the Maltese law. In this case, operators may obtain a Recognition Notice, equivalent to the local gaming license.
Faq's
What are the types of gaming licenses available in Malta?
Malta offers several gaming licenses categorized mainly into B2C (Business to Customer) and B2B (Business to Business) licenses. B2C licenses include Gaming Service Licenses, which allow operators to offer or host gaming services. B2B licenses, known as Critical Gaming Supply Licenses, are intended for those who provide essential gaming software or systems that manage regulatory records.
What are the specific game types covered under Malta gaming licenses?
Malta gaming licenses cover different game types based on the risk and nature of the game:
- Type 1: Games of chance where the outcome is randomly generated (e.g., roulette, poker against the house).
- Type 2: Games where outcomes depend on an event or competition (e.g., sports betting).
- Type 3: Player versus player games where the operator earns a commission (e.g., poker rooms, betting exchanges).
- Type 4: Controlled skill games, including e-sports and fantasy sports
What is the application process for a gaming license in Malta?
The application process is rigorous, involving multiple stages such as the fitness and properness test, technical documentation review, administrative procedures, and a regulatory overview. Applicants must use the MGA eServices portal to submit their documentation and undergo a systems audit. Once all criteria are met, the MGA issues the license.
What are the financial requirements for obtaining a gaming license in Malta?
The minimum share capital required depends on the type of license:
- Type 1, 2, and 4 licenses require a minimum of EUR 100,000.
- Type 3 licenses require EUR 40,000.Operators must also pay annual compliance contributions and license fees, which vary depending on the license type and the operator's annual revenue.
What are the key roles and responsibilities for licensed gaming operators in Malta?
Gaming operators in Malta must appoint key function holders to manage various compliance and operational aspects, such as anti-money laundering, data protection, and player protection. These key function holders must meet specific qualifications and are responsible for maintaining the ongoing compliance of the gaming operation.
