Expert Guidance for Remote Gaming Licensing and Compliance in Malta
Malta remains one of the most favoured jurisdictions for establishing remote gaming operations. Its popularity comes from a well-developed ecosystem built to support the gaming industry. The country offers first-class legal and IT infrastructure, a skilled workforce with competitive salaries, reasonable office rents, and an excellent quality of life with a mild Mediterranean climate.
Setting up in Malta requires local expertise. You need someone who knows the licensing process and can guide you from start to finish at your preferred pace. Since 2000, Kyte’s management and team have actively shaped the remote gaming industry in Malta, supporting the first operators to establish local operations. The Malta Gaming Authority first accredited Kyte’s directors to carry out certification reviews. Kyte continues to perform these reviews and maintains full expertise in Malta’s remote gaming industry.
Kyte is also an approved ISO 27001:2022 Lead Auditor and can conduct security audits for regulators such as UKGC who require such audits as part of licensing conditions.
In addition to full licensing assistance, Kyte can prepare you for the system certification review. We advise on all requirements and can conduct a mock review before the official audit. This helps our clients pass the system audit without major issues.
Kyte has all the knowledge and expertise to handle every remote gaming service you need to obtain a license and run a compliant operation. This means you have a single point of contact. More importantly, it gives you peace of mind with fixed costs upfront and no need to shop around for other services.
To find out more about the remote gaming licensing process contact us for more information.
Remote Gaming Licensing in Malta: Frequently Asked Questions
Why is Malta a preferred gaming jurisdiction?
Malta offers a favourable tax environment and a strong reputation. Over the past 19 years, it has developed a mature ecosystem, starting with its first remote gaming licenses for sportsbooks in 2000. Operators prefer Malta’s license because it allows them to accept bets beyond Malta and the EU, making it ideal for businesses with a global outlook.
What types of licences are available in Malta?
There are two main categories of gaming licences, the critical supply licences for B2B operators and the gaming services licence for B2C operators. The game types are divided into four different ones, further divided in verticals, namely:
- Type 1 – RNG games such as casino, lotteries.
- Type 2 – Fixed odds betting.
- Type 3 – Peer to Peer games. Such as bingo, poker, pool betting.
- Type 4 – controlled skill games
You can apply for a B2C or B2B licence and one or more game types. The licence fees remain the same, however, compliance contributions will vary based on the number of game types you apply for.
- B2Bs do not pay any compliance contribution and just pay the annual licence fee which is based on the revenue of the previous years.
There is also a corporate group licence which was designed to facilitate group structures where supplies of various services are provided by different entities and also gaming services provided by different entities. The corporate group licence is necessary so that entities within the group that provide services only to group companies do not need to obtain separate licences. To qualify as a group company 90% of the shareholding must be the same.
I am a start-up. Are there any special dispensations available for us?
The new licensing regime required careful handling of start-up companies and their need for time to generate turnover and revenue. Consequently, the authorities published the Directive for Start-Up Undertakings. The directive lists conditions that, when met, exempt companies from paying compliance contributions during their first 12 months.
For ‘New Operators’ which do not qualify as ‘Start-ups’, in accordance with the Directive on the Calculation of Compliance Contribution, the full minimum amount of compliance contribution shall not be due to the Authority by new operators until a full licence period elapses or the financial year ends, whichever comes first.
What are the annual licencing costs for a standard iGaming operator?
The Malta Gaming Authority sets the annual fee for a B2C licence at €25,000. Operators must also pay a €5,000 licence application fee. Additional costs depend on the game types included in the B2C licence, with each game type having a minimum and maximum annual contribution calculated on the operator’s GGR per game type. Authorities also charge a 5% gaming tax on GGR generated from Maltese players.
Do I need to have a company in Malta to obtain and maintain an iGaming licence?
It is not a requirement to have a Maltese company and any EU/EEA entity may apply for a Maltese gaming licence. However, it is recommended to have a local company due to various advantages designed for gaming companies in Malta.
How long does it take to get an iGaming licence, from application to issuance?
Whilst it cannot be guaranteed, a well presented and documented submission should take between 12 -16 weeks from submission to be reviewed and the licence issued by the MGA. Of course, one needs to take into consideration the timing of the submission of the application and holiday seasons as well as the promptness in replying to any queries raised by the MGA.
If I have a licence and I want to start offering new products is it a complicated process?
The new licensing regime simplifies the process of adding new products. iGaming operators constantly seek to expand their game offerings, so the authorities introduced a simpler procedure. Previously, operators needed a separate licence for each new content provider. Now, if the game type or vertical is already approved on your B2C licence, you must submit a notification to the MGA via the Portal within five days of going live. If you want to offer a new game type or vertical, such as adding the Lotteries vertical to an already approved Type 1 Casino, you must obtain prior approval. The process is now much faster and simpler.
How do I know if I need a licence, I only offer back-office software?
It all depends on how you offer the software. If you are hosting it and managing it on a day to day basis and you process data such as player data, betting data which fall within the description of regulatory data you will require a B2B licence of the lesser type (3 [b]). If you also manage the game, e.g. RNG or in the case of sports betting you handle the risk management then you will need the full licence (3[a]).
I provide Risk Management and Customer Support services, do I need a licence?
No, you do not need a licence. The supplies listed in the regulations fall under the category of Material Gaming Supply. You may choose to obtain a certificate from the Malta Gaming Authority, but if you do not, each operator you supply must get you approved. You can find a full list of Material Gaming Supplies in the Gaming Authorisation Regulations – 3rd Schedule.
What is ADR? Do I need to do something?
This is a requirement that is stipulated in the new Gaming regulations but emanates from the Consumer Affairs (MCCAA) Act. All operators are to find a licenced Alternate Dispute Resolution arbitration provider, inform the MGA and insert the necessary details on the operator’s licenced websites. Should an operator enter into a dispute with a customer the customer can resort to the ADR provider to air his complaint and ask for intermediation.
I outsource all my IT and systems to a licensed operator. Do I need to do the risk assessment on essential components?
There should be no need to do so if you have no essential components under your control. The entity from whom you are receiving these services should have carried out the risk assessment therefore you would not need to do another one yourself.
Can key functions be outsourced?
Yes, all the key functions can technically be outsourced with the exception of the Money Laundering Reporting Officer function. The person satisfying this role must be an employee or officer of the company. The persons need not be resident in Malta. One person can occupy more than 1 role but they must not be conflicting roles. Each person, unless already approved by MGA, would need to undergo due diligence exercise and obtain the relevant certificate from the MGA.
Do I need to come to Malta to obtain the licence?
It is always a good idea to meet the regulator, but you do not have to travel to Malta. You can also meet the regulator at events such as conferences or exhibitions. You can prepare and submit all documentation using various communication channels or courier services, depending on the type of document. For example, you must send due diligence documents as originals or certified true copies, while you can exchange policies and procedures in soft copy.
Do I need to have all my software and hardware in Malta?
The MGA allows parts of the gaming and control system to reside in the cloud or at data centres in the EU/EEA. However, the MGA requires that real live replication of the regulatory data is effected onto servers in Malta.
Do I need to have an office, director, presence in Malta?
You definitely need a registered address in Malta to satisfy the companies act. For various other reasons it is always advisable to maintain a physical presence in Malta and carry out key functions in Malta. The Board meetings should also take place in Malta.
I heard that its difficult to obtain a bank account, is this true?
Yes, it is a fact that finding banks that accept gaming operators are few and far between and each have their own specific requirements or exceptions. However, eventually we always manage to find a bank that will accept properly licenced gaming operators. We are hoping that with increased regulation and with gaming operators becoming obliged entities under AML regulations, banks will become more open to considering gaming operators as clients. Fees charged by the banks are also quite high as they consider the accounts to be high risk and high maintenance.