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
