Malta's Remote Gaming Licenses Regulations
Under the new
Remote Gaming Regulations,
in April 2004.
These regulations were a much awaited
mile-stone superseding the previous law regulating offshore betting
Operation of Betting Offices Regulations, 2000 - LN 34).
Under the old law, licensing of a betting office setting up shop in Malta
required a presence in Malta
in the form of a premises from which the betting office's operations were carried out.
These regulations covered only betting operations and did not cater for computer-generated
games. Infact the internet was merely sanctioned as a communication medium
to the call centre.
Other factors also hit the Maltese offshore
betting regime badly: the UK responded to the
exodus of UK operators by changing its betting tax to 0%, hence
resulting in 16 operators closing down shop in Malta; the Maltese offshore
regime was being phased out and the need was being felt that new
Regulations were necessary. These had to reflect the needs of a changing
market and to cater for other emerging forms of gaming, besides betting.
The new Remote Gaming Regulations,
presented a completely new solution to all types of operators and
activities. Activities range from betting, online casinos, casino-style
games, betting exchanges, lotteries and bingo to gaming software houses
and marketing companies.
The aim of the new regulatory regime is to
provide a Cyber-Space
Gaming License that is both technology neutral and game neutral – encompassing any type of gaming
using any means of distance communication, including internet, digital TV,
mobile phone technology, telephone and fax.
Raison d'Etre behind the Regulations
proper operation on interactive games
protection of players
prevention of money laundering
of public interest
The regulatory authority in charge of issuing
remote gaming licenses is the
Lotteries & Gaming Authority.
The Licensing Process
The licencing process is regulated by the
Remote Gaming Regulations 2004 issued under the Lotteries and Other Games
Act. To provide remote betting/gaming services from Malta, an operator
needs to obtain a licence of the class appropriate to its operations. The
framework requires licensees in accordance to
policies, laws and
regulations , as well as anti-money laundering laws, e-commerce
legislation and any other applicable legislation.
The new licensing laws give particular focus
to player protection. In fact, the operator has to follow particular
Players funds to
be kept separate from Licensee’s own funds
instruct and authorize the credit financial institution by which a
players’ account is held to disclose any information as may be requested
by the Authority to the LGA
Funds in the
player’s account, including funds in transit or in the process of being
cleared through the banking system must be at all times at least equal to
the aggregate of the amount standing to the credit of players’ account
held by the licensee
Four classes of licenses
Class 1 – Online
Gaming License (covering casinos & casino-style games);
2 – Online betting office license or an online betting exchanges;
Class 3 – License to promote and abet gaming from Malta (includes betting
exchanges & poker operations)
to host and manage online gaming operators, excluding the licensee
platforms from which gaming operators can operate).
Taxation on all Three Classes
License - a sum of LM 2000/month in the first six months after the issue
of the license & Lm3,000 per month for the entire duration of the of the
gaming operated by a Class 4 Remote Gaming licensee, licensee who operates
the hosting platform shall not pay any tax for the first six months after
the issue of the license, then he pays one thousand Maltese Liri (Lm1,000)
per month for the subsequent six months and subsequently two thousand
Maltese Liri (Lm2,000) per month for the entire duration of the license.
operating from the hosting platform - a sum of Lm500/month.
Betting Operations -
a sum equivalent to 0.5% on
gross amounts of bets.
Betting Exchanges - a sum equivalent to 0.5% on the sum of all net winnings
calculated per player
betting – a sum equivalent to half of one per centum (0.5%) on the
aggregate of stakes paid.
Provided that in all cases the total maximum
of tax payable per annum by one licensee in
respect of any one license shall not exceed Lm200,000
Our i-Gaming Unit:
licensing, company formation & administration, recruitment, accounting &
tax planning, web hosting...
Malta International Trading Companies