i-Gaming

Caesars Entertainment Acquires William Hill Plc For A Whooping £2.9 Billion

February 22, 2024 William Mcmaster

Caesars Entertainment has made a big statement in the US casino and sports betting industry. They have done this by completing the acquisition of William Hill Plc for money valued at £2.9 billion (equivalent to about $4 billion) (Barber, 2021). This is a big statement because Caesars Entertainment has acquired one of the world’s leading betting and gambling companies in the US. This also gives them the ability to maximize the opportunity present within sports betting and online gaming in the United States. You have to be excited if you are an online gamer!

Reason for the Acquisition

Caesars Entertainment came out with a statement claiming that the reason for the acquisition is to bind its casinos ever closer to the fast-growing legal sports betting in the United States (Parry, 2020). They also indicated that they were interested in the company’s U.S. assets, and admitted that it would sell off William Hill’s assets in the United Kingdom and other countries. They announced that they would purchase all the shares of William Hill totalling about 1.08 billion and the shares would be sold at £2.72 apiece (Fletcher, 2021).

The CEO’s Statement

The statement was announced by the CEO of Caesars Entertainment named Tom Regg. He stated “The opportunity to combine our land-based casinos, sports betting, and online gaming in the US is truly an exciting prospect. We look forward to announcing future sports partnerships that will drive growth on a long-term basis”. He continued by saying “William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast-growing US sports betting and online market” (Parry, 2020).

The Chairman’s Statement

The chairman of William Hill, Roger Devlin, also came out with a statement to confirm the deal. He said in a statement “The William Hill board believes this is the best option for William Hill at an attractive price for the shareholders. The board recognizes the significant progress the William Hill Group has made over the last 18 months, and also the risks and significant investment required to maximize the US opportunity given the tough competition in the US betting industry and the potential for regulatory disruption in the UK and Europe”. (Parry, 2020) (Barber, 2021).

Regulations

Both Caesars Entertainment Inc. and William Hill Plc currently operate sports betting in 18 jurisdictions across the United States. Of these 18 states, 13 offer mobile sports betting. The new company is expected to be operational across 20 jurisdictions in the US by the end of 2021 (CISION PR Newswire, 2021).

Impact of this transactional deal on the casino and online betting industry

This deal will not affect how bettors will be able to place bets or what type of bet is offered. But, the deal will lead to the expansion of the brand which allows more online betting sites to emerge in States where online wagering is legalized by the Government.

This transactional deal will provide a positive impact on the US betting and gaming industry. This is because Caesars Entertainment Inc. will further expand the reach of Caesars Rewards. They will do this by providing William Hill members access to Caesars’s industry-leading loyalty program. This will include the ability to earn tier status that will be used at the Company’s online and land-based properties.

This transactional deal will also enable the company to further enhance its services to customers by providing a single-wallet offering of sports betting and online gaming products across the enterprise in the future (CISION PR Newswire, 2021).

About Caesars Entertainment Inc.

Caesars Entertainment Inc. (also known as NASDAQ: CZR or ‘Caesars’ of the company) is regarded as one of the largest casino entertainment companies present in the United States. It is also one of the world’s most diversified gaming entertainment providers. Its inception was in the year 1937 in the city of Reno (Nevada). Over the years, Caesars Entertainment has grown through the development of new expansions, resorts, and acquisitions.

Caesars Entertainment’s resorts operate primarily under different trademarked brand names. Some of them are Caesars®, Horseshoe®, Harrah®, and Eldorado®. They also offer diversified amenities each having unique destinations. These amenities are established with a focus to build loyalty and value with their guests through a unique combination of operational excellence, impeccable service, and technology leadership. Caesar Entertainment Inc. always shows commitment to its suppliers, employees, communities, and the environment through a framework. This framework is called the People Planet Play.

Caesars Entertainment Acquires William Hill Plc FAQ

Who were the law firms that represented both companies in the transactional deal?

Caesars Entertainment was represented by Deutsche Bank, Linklaters LLP, and Latham & Watkins; while William Hill was represented by Barclays Bank PLC, Slaughter & May, PJT Partners, and Citigroup Global Markets Limited (CISION PR Newswire, 2021).

Was there any other firm also interested in acquiring William Hill Plc?

Answer: Yes, a private equity firm called Apollo Global Management Inc. showed interest in acquiring William Hill. But it remains to be seen if they would acquire part of their European asset (Parry, 2020).

References

Parry Wayne (2020). Caesars entertainment buys bookmaker William Hill for $3.7 billion. AP News. 30 September 2020. https://apnews.com/article/atlantic-city-archive-united-kingdom-sports-betting-c0eea070009b7628c5d142ccae563770
Fletcher Robert (2021). Caesars completes the £2.9 billion acquisition of William Hill. iGaming Business iGB. 22^nd April 2021. https://igamingbusiness.com/caesars-completes-2-9bn-acquisition-of-william-hill/
CISION PR Newswire (2021). Caesars Entertainment Announces Completion of William Hill PLC Acquisition. Caesars Entertainment. 22^nd April 2021. https://www.prnewswire.com/news-releases/caesars-entertainment-announces-completion-of-william-hill-plc-acquisition-301274863.html
Barber Bill (2021). Court clears William Hill’s £2.9 billion takeovers by US casino giant Caesars. Racing Post. 20^th April 2021. https://www.racingpost.com/news/court-clears-william-hills-29-billion-takeover-by-us-casino-giant-caesars/485493

Acies Merges with PlayStudios in $1.1 Billion Deal

February 22, 2024 William Mcmaster

Recently, award-winning mobile game developer, PlayStudios and Acies acquisition Corporation, a publicly-traded Special Purpose Acquisition Company (SPAC), announced a merger. This means PlayStudios, which was formerly a privately owned company, is now available in public markets. Also, SPACs are referred to as blank cheque companies in many cases.

They do not have goods or services of their own, but they have huge capital used to fund/acquire private companies. Private companies entering the public markets through SPACs became popular in 2020 when other popular gaming companies like DraftKings, Rush Street Interactive and Genius Sports Group went public through different SPACs.

Acies Acquisition Corp.

Acies Acquisition Corp, the acquiring SPAC, is headed by Chairman Jim Murren, the former chairman and CEO of MGM Resorts International. The corporation is traded on the NASDAQ as the ACAC, a Class A ordinary share. In October 2020, Acies SEC filing revealed that it was seeking an initial public offering of $200 million.

In the SEC filing, Acies stated that it was “focused on identifying a business combination target within the live, location-based and mobile experiential entertainment industries. Specific sectors that we will target span live events, family entertainment, casino gaming, destination hospitality, sports, sports betting and iGaming, and social and casual mobile games.”

PlayStudios

PlayStudios, the target company which meets these requirements, is headed by its Founder, Chairman, and Chief Executive Officer, Andrew Pascal. After the merger, Andrew Pascal will continue his role at the company and a key figure in Acies Acquisition Corp. Over the years, PlayStudios has developed a reputation as a developer of free-to-play games. It was described recently as “an award-winning developer of free-to-play casual games for mobile and social platforms that offer real-world rewards to loyal players” in a news release.

PlayStudios portfolio consists of top-ranked games with amazing designs. They have a large following due to numerous playAwards that loyal players get. The same news release stated that “over 80 partners and 275 entertainment, retail, travel, leisure, and gaming brands,” contribute to the rewards that players get. Over 10 million rewards with a retail value of about $500 million have been purchased by users using their loyalty points. The app was awarded as a Top Developer by App Annie, the gaming industry’s best in-app analytics and app performance data.

In a public statement by Andrew Pascal, “From our inception, we set out to create wonderfully compelling games that were free-to-play and offered real-world rewards. We’ve now demonstrated the positive, long-term impact of this value proposition with our current portfolio of apps, and we’re poised to carry that success into new products and new game genres. Becoming a public company and securing the resources and support of key institutional investors will enable us to accelerate our growth as we launch new products, pursue new acquisition opportunities, and scale up our unique PLAYAWARDS loyalty program.”

Acies Chairman, Jim Murren said, “Within today’s vast and growing games market, PLAYSTUDIOS is unique in offering their audience the opportunity to play for fun and earn for real. They know how to make engaging and enduring games and stand apart in having harnessed the power of a robust and full-featured loyalty program. “

He went on to lay out plans for the company’s future; “the focus is now to take the PLAYSTUDIOS platform and super-charge its growth. We have abundant initiatives, including targeted, strategic acquisitions; an expansion of the rewards program into new categories such as sports entertainment; and the exploration of opening the PLAYAWARDS platform under a loyalty-as-a-service model. We look forward to leveraging Acies’ M&A knowledge and broad relationships for the benefit of PLAYSTUDIOS and its shareholders.”

Valuation

The SPAC transaction, supported by Jim Murren’s former employer, values PlayStudios at $1.1 billion; that is 2.5x projected 2022 revenue of $435 million or 12.3x projected 2022 pro forma Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization EBITDA of $90 million. Therefore, PlayStudios will have ACAC stock worth 89.1 million shares and up to $150 million in cash.

PlayStudios and Acies are backed by institutional investors’ funds and accounts managed by BlackRock, ClearBridge Investments, Neuberger Berman Funds, and MGM Resorts International. These investors are top participants in the $250 million private investment in public equity (PIPE) financing round at $10 per Acies share towards the transaction closing.

A statement regarding the transaction stated that, After giving effect to the transaction, the company is expected to have approximately $290 million of cash and a public equity currency to accelerate PLAYSTUDIOS’ growth initiatives, including substantially expanding product development and acquisitions of other gaming and related companies.

Upon the closing of the transaction, and assuming none of Acies public stockholders elect to redeem their shares, existing PLAYSTUDIOS shareholders are expected to own 64%, the Acies sponsors 3%, PIPE participants 18%, and public stockholders 15%; all of the combined company.”

At the end of the transaction, the combined company will be named PLAYSTUDIOS and listed on NASDAQ under the new ticker symbol “MYPS.” The board of directors of the concerned parties has approved the transaction, and it is expected to be finalized at the end of the second quarter. Also, the stockholders at Acies will have to approve the transaction, and other closing conditions could affect the transaction.

More SPAC Mergers

The transaction between Acies and PlayStudios is not the only ongoing merger; other keepers are in the works. Announced around the same period is the merger between Tilman Fertitta’s Fertitta Entertainment confirmed and FAST Acquisition (traded on the NYSE as FST), with the operator of five Golden Nugget casinos and the Landry’s restaurant consortium valued at $6.6 billion. Also, this merger is expected to close at the end of the second quarter.

Conclusion

This is exciting news for the industry, with PlayStudios taking the lead as the first mobile game company offering real-life rewards to go public. This will pave way for more mergers and acquisitions, and overall growth for the casino industry, as well as its individual players.

US Gambling Stocks — What Will Happen in 2021?

February 22, 2024 William Mcmaster

When it comes to stocks you can buy stocks from several companies that are selling shares of their companies at reputable stock exchangers. Gambling stocks are currently a hot topic for several stock exchange enthusiasts and professionals.

There have been big changes in regulations for sports gambling across the US which could lead to a massive increase in stock prices of companies that implement sports betting on their platforms. In this article, we’ll go through what gambling stocks are and the massive potential they’ve got for 2021.

What are Gambling Stocks?

Stocks are a share of the company that is registered to sell portions of its company on the stock market. Gambling stocks are just that, It’s a share of the gambling company. The gambling company can decide on how many stocks it would like to sell and these stocks are traded, and the success of the business will either drive the price up or down depending on if good or bad news is released. We anticipate that 2021 will be a good year for gambling stocks.

Gambling stocks are exchanged and traded on several stock exchanges. Two of the top stock exchanges in the US include:

New York Stock Exchange (NYSE)
Nasdaq

These two companies have massive market caps. The NYSE is the biggest with a market cap of $19.3 trillion while Nasdaq has a market cap of $13.8 trillion. In case you were wondering, the world’s biggest stock exchange is the NYSE. The top 10 exchanges across the world are here www.marketinsider.com.

Why Will There Be a Price Pump?

The gambling industry has been significantly growing over the past 3 years within the US specifically. This has occurred due to the fact that gambling, in general, had been slowly legalized across several states. In 2018 the gambling industry raked in $6.5 billion, in 2019 a massive $13 billion was made. This was due to the legalization of online sports betting in the US. However, several of these betting forms were restricted. In 2021, some of these restrictions may be lifted which could lead to a massive increase in stock prices.

Currently, two new states, Virginia and Michigan are set to release sports betting for online/mobile devices. This will lead to several companies taking advantage of a larger market audience in two big states. There is also expected action to occur with gambling laws in the states of:

North Carolina
Ohio
Massachusetts
Connecticut
Georgia
Nebraska

There are still states which we’ve heard no news from in terms of easing restrictions for online sports betting. Those states currently include:

Nevada
Mississippi
Montana

What Does This Mean for the Industry?

With two states releasing online/mobile sports betting in their states, several providers will start to bring their sportsbooks to the market. Companies that were previously struggling with the restrictions on sports betting will have the pressure eased as opportunities will start to arise.

The consensus seems to be that other states will begin to ease restrictions and allow online sports betting. Slowly this will cause a domino effect and result in almost all states passing similar laws. The industry will start booming as an influx of money will start pouring into these casinos and sportsbooks. This will inevitably increase the stock prices of several gambling companies.

Yearly Returns On Gambling Stocks

As there have been some great gains for yearly returns for several gambling stocks, here is a list of some of these stocks and their crazy returns:

Gravity Co Ltd ADR: 433.29%
Penn National Gaming, Inc: 286.25%
Bally’s Corporation: 100.90%
Boyd Gaming group: 66.83%
Scientific Games Corporation: 63.67%
Churchill Downs Inc: 46.20%
Elys Game Technology Corp: 32.45%
Caesars Entertainment Inc: 29.76%
International Game Technology Inc: 19.86%
Full House Resort Inc: 18.30%

The US. News has in-depth information on each of the stocks mentioned above, including what they do within the gambling industry.

Conclusion

In the past 3 years, we’ve seen a surge in stock prices for several gambling companies. This occurred even though there were still restrictions in sports gambling across multiple states. This time around when the restrictions are lifted even more hopefully in 2021 expect a significantly higher increase in stock prices.

The Future of Online Gambling in the USA

February 22, 2024 William Mcmaster

USA Online Gambling is something that has only just started to explode. In previous years it was something that was carried out by Blackmarket sites that had no regulation in place.

It still had a strong level of support from underground players and with the popularity of brick and mortar casinos, it was no surprise that states started to move towards legalizing gambling.

There were two main reasons behind this move. Firstly, to take online gambling away from shady influences. Secondly, to increase the amount of tax revenue that was available to each state. It’s led to the market becoming one of the fastest-growing in the country.

Go to our USA Compare Casino Page for the Best Legals US Casino or our US Online Sportsbook Page to get started playing stateside right now!

A Growing Market

2020 was the year that online gambling was born in the USA. However, it is safe to say that 2021 will be the future of online gambling in the USA. The market has a lot of potential for growth due to it being in its infancy. This means two main things.

Firstly, US players could see a lot more coming to the market over the next year. Both in terms of companies entering the market and new games being allowed. Players could expect to see a lot more US gambling sites.

Secondly, more states could pass bills which allow online gambling to take place. This will enhance the growth of the industry and allow many more citizens the opportunity to place online wagers.

Changes in Regulation: State to State

Currently there are 19 states, and Washington D.C, that have passed bills to legalize online gambling. This is a number that is changing all of the time though.

On top of the 19 states that have already passed bills, there are another 28 that have brought bills or have recently had bills passed. So this means that 47 states in total, plus Washington D.C, either already has online gambling regulation in place or will have it in place in the near future.

As 2020 was when most sports betting bills were pushed forward, it’s no surprise that 2021 is likely to be the year where the majority of states will have some form of online gambling available to players. In fact, expect to see legal US gambling sites in those 47 states during the course of 2021.

Of the 3 remaining states, both Idaho and Wisconsin have not made any mention of either being for or against iGaming in the USA. The only state where it is unlikely to be available is Utah, which has a strong history of being against USA gambling.

Legitimized

Because New Jersey fought for the right to offer online gambling in the USA in the Supreme Court, it has become extremely legitimized in the eyes of the general public. It means that players no longer have to play at unregulated sites that were likely run by criminals, but they can now play at legit online gambling sites in the USA.

It has ensured that not only can players avoid shadier sites, but the introduction of regulations means that USA online gambling sites now have to have certain levels of safety and security in place. It’s no longer a pastime that causes players to worry about the safety of their bank details and personal data.

It means that the market now has an influx of safe online gambling sites in the USA. It’s something that players have been looking forward to for quite a while. The fact that many players used black market sites shows that there was an interest for the market. The rise of legitimate sites can only be good for both the industry and players.

Innovations Expected to Aid Growth

One area that iGaming is well known for is driving innovation. It’s long been behind a number of different technological advancements or has been the first to adopt tech that is now mainstream. This is unlikely to end in 2021 and here are just some of the advancements that players can expect to see.

Cryptocurrency

Crypto is already used as a payment method at a large number of online casinos and sportsbooks. However, one area that is only just having the surface scratched is blockchain games. There are already games that use blockchain technology to prove that they are fair, but this is just scratching the surface.

Blockchain technology could potentially open up a whole new genre of casino games and betting platforms. It’s actually theoretically possible that an entire online casino could be housed within cryptocurrency with the coin owned renting out the virtual land to casino operators. What the blockchain offers in the future is almost endless and 2021 could see it making a big splash in how US players play online.

VR and AR Gaming

This is another area that already has a small amount of market penetration but could grow significantly over the next year. Augmented Reality and Virtual Reality games could help to create the casino of the future for players.

Offering the ability to actually see and experience a full online casino as if you are actually there is getting close to being a possibility. If this launches during 2021, which is especially likely after the pandemic issues that 2020 brought, then US players could get to visit Vegas without leaving their homes.

Higher Levels of Optimization

One area that US players haven’t got the best of yet is optimized apps. A lot of apps have been created quickly in order to provide players with something to use for the new sites. It’s likely that these apps will be improved and optimized over the course of the next year. So US players can expect to get much better performance from their games in 2021.

A Bright Future for USA Online Gambling

Online gambling in the USA is just getting started. Players have a lot to look forward to in 2021 and beyond. The improvement of games, services, and features from online gambling sites added to more states offering regulated gambling means that it is likely to become the largest market on the planet by the end of the year. It has almost limitless potential.

Up and Coming Game Providers in 2022

March 13, 2024 William Mcmaster

Game providers are responsible for developing the games played at online casinos around the world. These companies are often well known for delivering specific types of games such as modern slots, table games, or classic slots. Some of the best-known game providers include big names such as NetEnt, Microgaming, Play’n GO, and Pragmatic Play.

Over the past few years, as the size of the online casino industry has grown, the number of software providers has too. Today, there are hundreds of different companies all producing different casino games for players to enjoy.

New and upcoming companies are constantly innovating and introducing new features to stand out against the established providers. 2020 was a great year for the online gambling industry as more players than ever signed up to play. 2022 is shaping up to be another great year for the industry, and there are loads of excellent game providers that are ready to shine.

We’ve made a list of some of the most exciting up and coming casino game providers for 2022. Each of the companies on this list is fast-growing and focused on innovation and growth in the upcoming years.

Booming Games

Fresh from winning the Rising Star of the Year award at the 2020 International Gaming Awards, Booming Games are set to have another great year. The Malta-based company was founded in 2014 but has recently made a big impact on the industry after releasing several top-rated games.

The company focuses on delivering high-quality online slots that feature lots of bonuses, features and plenty of exciting wins. Some of Booming Games recent releases include Hooked, Gold Vein and Booming Deluxe. The graphics of these games are fairly simple, but they have lots of colour, great animations and great sounds and music.

In 2022, Booming Games are expected to build on their success over the last few years and continue to release quality games that are fun to play and include plenty of exciting features. All of the releases from Booming Games are developed using HTML5, allowing them to be played on mobile devices and offering greater accessibility to all players.

Yggdrasil Gaming

Yggdrasil may already be a fairly well-established name in the iGaming industry, but the company has always been at the forefront of innovation when it comes to developing games. Yggdrasil Gaming was founded in 2013, and in that time has quickly risen to become one of the top casino game developers. Having recently won the award for Innovator of the Year at the 2020 International Gaming Awards, Yggdrasil looks set to have another massive year in 2022.

Yggdrasil games are featured at some of the biggest and most popular online casinos, and the games company continues to be featured at top sites all over the world. Some of Yggdrasil’s best games include the Vikings series, Atlantis Megaways, Syncronite Splitz, Elemental Princess and Hades. Yggdrasil is well known for introducing innovative features such as Splitz, MultiMax and Gigablox features among others.

While the majority of games Yggdrasil produces are slots, the company has also released plenty of table games including versions of Blackjack and Roulette alongside progressive jackpot games. As well as developing games, the company has recently launched its Beyond Aggregation platform, which aims to accelerate the growth of online casinos and introduce new sources of revenue. If the company keeps growing and innovating at the rate it has been, 2022 will no doubt be a great year for Yggdrasil Gaming.

Dice Lab

Dice Lab are relatively new on the scene having been founded in 2018. The company has a focus on developing dice games, both 3D and 2D alongside slots. Recently, Dice Lab was bought by Relax Gaming, a big developer and publisher in the industry. This partnership will no doubt lead to Dice Lab becoming a much bigger name in the industry over the next few years as they continue to produce quality dice games.

Dice Lab’s library only consists of a few titles so far, but each one offers something new and exciting to casino players. The company’s first release, SlotsDice, was a unique blend of dice and slots, offering innovative gameplay and providing something different for players to experience. Since then, Dice Lab has released a handful of other games that aim to bring a similar gaming experience to online casinos.

Thanks to the studio being purchased by Relax Gaming, we’re expecting big things from Dice Lab in 2022 and beyond. Relax Gaming is one of the world’s largest online casino software providers. Relax Gaming’s library features hundreds of games, and its games are featured at some of the most popular online casinos. With this partnership, it’s expected that Dice Lab will produce loads more exciting games and will soon be available at some big online casinos.

Hacksaw Gaming

Another developer that first emerged in the iGaming industry back in 2018, Hacksaw Gaming may be new, but they’ve already had a big impact on the world of casino games. This developer has already achieved multiple partnerships with big sites such as VideoSlots, iSoftbet, and Wildz Casino. Hacksaw Gaming has produced more than fifty games across ten regulated markets and shows no signs of slowing down.

With a strong focus on slots and online scratchcards, Hacksaw Gaming has over thirty scratchcards released and is currently working on more. On top of that, the company has released plenty of online slots that combine modern designs with exciting bonus features and big winning potential. Some of Hacksaw Gaming’s most popular games include Cubes, Mystery Motel and Scratch ‘Em.

Having already established several strong partnerships in the last few years, we expect to see a lot more of Hacksaw Gaming in the Future. The company has managed to produce loads of quality games already. 2022 will no doubt see more of the same as they continue to innovate and create new and interesting games.

B Gaming

B Gaming is a game developer formed from the SoftSwiss brand, an established casino provider. B Gaming was founded in 2018, and using the experience and connections of its parent company SoftSwiss, the developer has made great progress. Based in Belarus, B Gaming has already developed and released forty games, including classic table games, poker, and online slots.

All of B Gaming’s releases have been optimised for mobile play, adding intuitive touchscreen controls and allowing players to access their top games from a variety of devices. Some of the top B Gaming titles include Deep Sea, Fire Lightning and Avalon the Lost Kingdom.

As well as developing quality games, B Gaming has also taken steps to bring new ideas to the industry, including the provably fair system. Using cryptography, the provable fairness feature allows players to easily verify that games are fair and events are random. In 2022, B Gaming is projected to continue its success and launch some exciting new titles.

Final Thoughts

2020 was a great year for the iGaming industry as more players than ever signed up and joined in the fun at online casinos across the world. With the industry growing and more players joining casinos, game providers have their work cut out for them in keeping up with the demand. Thankfully, there are loads of great developers out there who are continually innovating and creating new games and features that will entertain players.

Why Do So Many iGaming Companies Operate From Malta?

February 22, 2024 William Mcmaster

Over the years, the iGaming industry in Malta has grown exponentially. More and more i-Gaming companies like online casinos choose Malta as their center of operations. They either set up or move their gambling businesses in Malta to have a sought-after Malta license.

What makes them choose Malta, though, when there are several licensing bodies around? There are Alderney, Gibraltar, Curacao, the Isle of Man, and others to choose from. What sets Malta apart?

Factors That Make iGaming Companies Choose Malta

Much of a Malta gambling license’s appeal comes from the well-regulated laws of the land. We’ll talk about that later. First, let’s look into other factors that make iGaming industries plant their roots in Malta.

Taxes and Incentives

Malta has a reasonable personal and corporate tax rate — the lowest in the entire European Union. The 35% corporate tax rate reduces to as low as 5% after the distribution of dividends amongst shareholders. Employees of gaming businesses, on the other hand, can enjoy reduced income tax rates and other attractive incentives.

The Malta government also has enticing tax programs for nonresidents of the country who choose to relocate to Malta. The High Net Worth Individuals Scheme and the Global Residence Programme are only two of those. Furthermore, there are several incentives to help iGaming businesses in setting up and establishing operations in Malta.

Industry-Knowledgeable Workforce at an Affordable Price

The Maltese acknowledged the importance of the iGaming industry in its economy. Because of that, the government and several institutions work hand-in-hand to educate its people about the iGaming industry. Thus, there is a steady pool of manpower already equipped with the knowledge and skills needed to work in the industry. Moreover, the cost of employment in Malta is lower compared to other gaming hubs in Europe.

Strategic Location and European Union Membership

Its location in the Mediterranean Sea and the direct flights to major European cities make traveling convenient. Moreover, since its membership to the European Union, it became a part of the Schengen area. For Malta-licensed operators, this means that they can offer services at no additional cost to other countries that are EU members.

Technology Readiness

Among 144 countries, the Global Competitive index from 2014 to 2015 ranked Malta as the 21st most technology-ready country in the world. In 2019, Malta also ranked first place when it comes to e-government and IT services.

Moreover, the country has a 100% score in terms of online sophistication and availability. There are multi-fiber links in Malta connecting the country at Gigabit capacities to several carriers around the globe. A technology-ready country with quality connections worldwide is of the utmost importance when running iGaming businesses.

An iGaming License from Malta Has Its Pros and Cons

For players, online casinos with a license from Malta guarantees their safety, security, and protection. While it seems all sunshine for online gamblers, such is not the case for the stakeholders. An iGaming license from Malta has its benefits and drawbacks.

The Pros

Below are some of the advantages of having an iGaming license from Malta.

Exemplary Regulatory System

The Maltese government welcomes the gambling industry with open yet firm hands. It has strict gambling laws and even established a control board to regulate all forms of gambling in the land — The Malta Gaming Authority (MGA). The MGA’s formation makes Malta the first European Union country to regulate gambling laws. They set the standards high not only in the European gambling industry but also worldwide.

Awards Multiple Licenses

If you’re an operator who manages a land-based gambling establishment and an online casino, Malta will be a good choice for you. Malta accepts multiple licensing applications from a single operator and awards the license as long as all requirements are met.

Authorized By The European Union

There are significant variations in the gambling laws and regulations of each member country of the European Union. However, the EU has a set of high-class standards when it comes to online gambling licenses. As part of the EU, Malta follows such excellent licensing standards.

Free From Money Laundering

Malta complies with the European Union’s Anti-Money Laundering Directives. As such, the country has unparalleled stringent anti-money laundering law, preventing any form of illegal money transaction through gambling.

Safeguard For Players and Operators Alike

The MGA only awards licenses to gambling operators that pass the thorough licensing process. The control board also monitors the gambling operations from the time it awards the license, protecting gamblers from unfair play.

The Cons

If you’re planning on obtaining an iGaming license from Malta, consider if these drawbacks will be a deal-breaker for you.

Licensing Fees

As of 2020, the MGA has a fixed annual license fee of €25,000 for B2C (business to customer) companies. On the other hand, B2B (business to business) companies pay a fee of €10,000. Aside from that, there is also a processing fee that needs to be paid. This is higher when compared to other gambling jurisdictions such as Curacao. If you’re a startup with a tight budget, the Malta gaming industry might not be a good fit.

Lengthy Application Procedure

Because Malta’s licensing body scrutinizes all areas of an iGaming business, the process can be painstaking for operators. This is not a bad thing in its entirety. However, there are business owners who won’t choose a lengthy process when there is a shorter alternative elsewhere.

Final Thoughts

Malta’s continuous effort in iGaming innovations allows the country to remain at the forefront of the gaming industry. It seems to be gaining an edge in the competition even with countries like Sweden where various iGaming companies originated.

More iGaming businesses such as online casinos favor Malta operations. On the other hand, Sweden is in hot waters because of recent changes in its gambling laws. The Swedish Gambling Authority, Spelinspektionen, received criticism from Swedish gambling license holders like William Hill, Betsson, NetEnt, Kindred Group, and LeoVegas.

If more issues arise with other gambling jurisdictions, the industry might witness more iGaming businesses swimming towards Malta shore