Table of Contents Why Malta Is Europe’s iGaming Mecca The Malta Gaming Authority: Your Gateway to Legality MGA License Types: Which One Fits Your Business? MGA License Requirements: The Criteria You Need to Meet The Application Process: Step by Step to an MGA License iGaming License Malta Costs: Budget Planning for 2025 Compliance Obligations: The Real Work Begins After Licensing Common Mistakes and How to Avoid Them Malta iGaming Taxes: Why the Island Is So Attractive Conclusion & Your Next Steps Why Malta Is Europe’s iGaming Mecca I get it: You’re considering an iGaming license and Malta keeps popping up. That’s no coincidence. In the last 20 years, this small Mediterranean island has turned into the ultimate hotspot for online gambling. But why Malta of all places? The answer is pragmatic: Malta offers the best overall package of legal certainty, tax advantages, and operational flexibility in Europe. The Malta Gaming Authority (MGA) is seen as one of the world’s most trusted regulatory bodies—a reputation the island has worked hard to earn. The Facts Speak for Themselves According to the Malta Gaming Authority (2024), there are currently over 300 licensed iGaming companies based on the island. These companies directly employ more than 9,000 people and contribute about 12% to Malta’s GDP. Those aren’t random numbers—they reflect a country-wide, well-thought-out business model. What really convinced me, though: Malta realized early on that iGaming not only needed to be regulated, but actively promoted. While other EU countries were still debating gambling laws, Malta introduced its first comprehensive framework back in 2004—and has refined it ever since. EU Passporting: Your Key to the European Market The real trump card? Malta, as an EU member, gives you EU passporting rights. Simply put: With an MGA license you can legally operate in all EU Member States where online gambling isn’t expressly prohibited. That’s your direct line to a market of over 440 million people. But a word of warning: EU passporting does not mean free access everywhere by default. Countries like Germany, France or Italy have additional local requirements. The MGA license is your starter ticket, but for certain markets you’ll still need further approvals. The Malta Gaming Authority: Your Gateway to Legality The Malta Gaming Authority (MGA) is no ordinary regulator—its the authority for iGaming in Europe. Founded in 2001, it grew from a local watchdog into one of the world’s most respected gaming regulators. What Makes the MGA Stand Out? I’ve dealt with a range of regulators and the MGA shines: strict yet fair, transparent without being weighed down by bureaucracy. The Authority follows a risk-based approach—focusing its resources where it counts, rather than pestering you with trivialities. Two-tier system: MGA splits licenses into B2C (Business-to-Consumer) and B2B (Business-to-Business) Continuous oversight: Not just at application but throughout the whole license term Clear rules: All requirements are publicly available and easy to understand Fast processing: Complete applications are typically processed within 6-9 months Reputation and International Recognition An MGA license doesn’t just open European doors. Many international markets accept Maltese licenses as a mark of quality. Payment providers like Visa and Mastercard prefer working with MGA-licensed operators—crucial in the iGaming business. The MGA is a member of the International Association of Gaming Regulators (IAGR) and collaborates closely with European counterparts. That network makes it smoother for you to branch into other markets down the road, with fewer bureaucratic hurdles. MGA License Types: Which One Fits Your Business? The MGA distinguishes between four different license types. Sound complicated? It’s not. The logic is simple: what you plan to do dictates the approvals you need. Type 1: Gaming Service License (B2C) This is the primary license for online casinos, sports betting and poker. If you want to sell directly to end customers, you need this license. Type 1 is further subdivided as follows: Category Permitted Games Key Features Type 1A Sports betting, virtual games Lowest entry barriers Type 1B Casino games, slots Higher capital requirements Type 1C Peer-to-peer poker Special liquidity requirements Type 1D Bingo Additional software certification Type 2: Gaming Service License (B2B) Are you developing games or providing gaming software? Then Type 2 is your license. This allows you to sell your services to other licensed operators. Classic Type 2 holders are game developers, platform providers or payment solutions tailored to iGaming. Type 3: Gaming Host License Type 3 is for hosting providers and technical service suppliers. If you offer server capacity, cloud services, or other technical infrastructure for gaming operators, you’ll need this license. Type 4: Gaming Promotion License The marketing license for affiliate marketing and gaming promotion. If you work as an affiliate or supply marketing services to gaming operators, Type 4 is what you’re after. Which License Do You Need? Most applicants go for Type 1—for good reason, as that’s the direct path to running your own online casino or sportsbook. But think carefully: Do you really need all game categories right from the start? My tip: Start with the minimum you need to launch your business model. You can always expand your license—it’s easier and cheaper than applying for a full package you won’t use. MGA License Requirements: The Criteria You Need to Meet This is where things get serious. The MGA is clear about who can qualify for a license and who can’t. The good news: All requirements are transparently documented. The not-so-good: They’re not trivial to fulfill. Personal Requirements (Fit & Proper Test) Anyone with at least 5% shareholding or a leadership role must pass the Fit & Proper Test. Meaning: Criminal record certificate from all countries where you’ve lived in the past 10 years Financial reliability: No bankruptcies, no unpaid tax debts Industry experience: Show relevant qualifications or experience Integrity: No ties to criminal organizations The Fit & Proper Test is thorough. The MGA doesn’t just take your word, they’ll run background checks as well. Plan at least 6-8 weeks just to gather documents for this phase. Financial Requirements This is where the wheat is separated from the chaff. The MGA demands substantial financial proof: License Type Minimum Capital Liquidity Proof Key Points Type 1A €40,000 €100,000 Plus 2.5% of annual Gross Gaming Revenue Type 1B €40,000 €100,000 Higher standards for live casinos Type 2 €40,000 €100,000 Depends on services offered Type 3/4 €40,000 €100,000 Reduced requirements possible Important: These are the bare minimums. In practice, the MGA often expects higher amounts depending on your business plan and projected revenues. Realistically, count on having €200,000–€500,000 in available capital for a solid launch. Technical and Operational Requirements The MGA is technically savvy—they know what counts. Your platform must tick these boxes: Certified gaming software: All games must be tested by accredited labs Responsible gaming tools: Deposit limits, self-exclusion, reality checks Anti-Money Laundering (AML): KYC processes, transaction monitoring Data protection: GDPR compliance, secure data processing Server location: Key systems must be EU-based Maltese Presence You don’t have to move your whole firm to Malta, but a substantial on-the-ground presence is mandatory. That means: Registered business address in Malta (no mailbox company) At least one senior manager living in Malta Bookkeeping and central business functions based in Malta Bigger operations: dedicated office space and local staff The MGA takes this seriously, regularly carrying out surprise inspections to check your business is genuinely operating in Malta. The Application Process: Step by Step to an MGA License Landing an MGA license is a marathon, not a sprint. Here’s the whole process—realistic timelines and practical advice included. Phase 1: Preparation (8–12 weeks) Before you even think about filing, you need to do your homework. Many applicants underestimate this stage entirely. Define your business model: Which games, markets, target audiences? Set up a Maltese company: You’ll need a local business structure Fit & Proper documentation: Criminal records, references, CVs of all key persons Proof of funding: Bank guarantees, capital proof, business plan Technical specifications: Software, certifications, hosting setup Phase 2: Submitting the Application (2–4 weeks) The actual application is a 50–100 page complex document. The MGA provides detailed forms, but it’s the quality of your answers that determines success or rejection. Pro tip: Have your application prepared by a specialized attorney or advisor. It’ll add €15,000–€25,000 to your costs, but hugely boosts your chances. DIY applications are often rejected—meaning you’ll have to start over. Phase 3: MGA Review (4–6 months) Now it’s time to wait—but not to sit idle. MGA will vet your application thoroughly and usually request additional info: Requests for documentation: Missing items or clarifications Fit & Proper interviews: Face-to-face meetings with key persons Due diligence: Background and reference checks Technical review: Software testing, security audit Expect 2–3 rounds of queries. That’s normal—not a bad sign. MGA is thorough, which works in your favor. Phase 4: Final Steps (4–8 weeks) If you get MGAs initial approval, here’s what’s next: Conditional approval: Advance approval with requirements Fulfill requirements: Last technical or operational tweaks Pay license fees: First annual fee + one-off costs Go-live approval: Final authorization for operations Estimated Total Duration: 12–18 Months Yes, it’s a long road. But remember: An MGA license is a valuable asset. Established license holders are often sold for millions—thanks in part to the lengthy licensing process. My advice: Use the waiting time productively. Develop your platform, build your team, secure partnerships. When the license arrives, you’ll want to hit the ground running. iGaming License Malta Costs: Budget Planning for 2025 Let’s be honest: An MGA license isn’t cheap. But it’s an investment that pays off long term. Here’s a realistic cost breakdown based on current (2024) prices. One-Off Licensing Costs Cost Item Type 1 (Casino/Betting) Type 2–4 (B2B/Services) Notes MGA Application Fee €25,000 €25,000 Non-refundable Due Diligence Fee €5,000 €5,000 Per key person Lawyer/Consultant €25,000–40,000 €15,000–25,000 Depending on complexity Malta Company Setup €3,000–5,000 €3,000–5,000 Incl. notary, registration Compliance Setup €10,000–20,000 €5,000–10,000 AML, GDPR, policies Total (one-off) €68,000–95,000 €53,000–70,000 Excludes software/marketing Ongoing Annual Costs The license is just the start—ongoing expenses will often outstrip your set-up costs: MGA Annual Fee: €25,000 + 0.5% of Gross Gaming Revenue (minimum €35,000) Compliance Officer: €60,000–80,000 (full-time, Malta-based) Maltese accounting: €15,000–25,000 per year Malta office rental: €12,000–30,000 per year Ongoing legal costs: €10,000–20,000 per year Realistic annual costs: €120,000–180,000 for a smaller operation with €2–5 million annual turnover. Hidden Costs Many Forget From my own experience, here are items many applicants miss when budgeting: Software certification: €20,000–50,000 per game provider Payment provider setup: €10,000–25,000 plus deposits Marketing compliance: Extra legal reviews for each campaign Cybersecurity: Professional security audits, €15,000–30,000 per year Banking: Maltese banks often demand six-figure minimum deposits Funding Options Not everyone has €500,000 in cash lying around. Realistic funding options: White label partnership: Partner provides the license, you pay a revenue share Investor/VC: Equity for capital—common in iGaming Bank financing: Challenging, but possible with a solid business plan Staged licensing: Start with Type 4, expand later My tip: Be conservative. Plan for at least 18 months’ operating costs before turning a profit. iGaming is lucrative—but cutthroat. Compliance Obligations: The Real Work Begins After Licensing Congratulations, you have the license! Now, the real work starts. The MGA monitors you continuously—and that’s a good thing. Clean compliance not only shields you from penalties, it makes your company more attractive to partners and investors. Ongoing Compliance: Your Everyday Essentials Compliance is not a “project”—it’s an ongoing process. These tasks always need to be on your radar: Player protection: Proactively monitor and use responsible gaming tools AML/CFT: Report suspicious transactions, run KYC continuously Technical compliance: Keep all games certified Financial reporting: File monthly financial returns with the MGA Advertising standards: Every marketing campaign must be compliant Reporting Obligations: What and When to File with the MGA The MGA wants to be kept in the loop on all important developments. Here’s your reporting calendar: Report Frequency Deadline Content Monthly Return Monthly 15th of following month Revenue, player stats, compliance KPIs Annual Return Annually March 31st Comprehensive business review Audited Accounts Annually 6 months after fiscal year-end Audited annual financial statement Material Changes As required Prior approval Shareholders, management, business Player Protection: Core to the MGA Philosophy The MGA is serious about player protection—and you should be too. It’s not just ethically right, but also smart business: problem gamblers cost more in the long-term than they’re worth. Mandatory Player Protection Tools: Deposit limits (daily, weekly, monthly) Loss limits and cooling-off periods Self-exclusion (temporary and permanent) Reality checks and session time limits Automated risk detection tools Anti-Money Laundering (AML): Stopping Financial Crime AML is complex, but essential. MGA works closely with the Maltese Financial Intelligence Analysis Unit (FIAU). Violations can mean your license is suspended on the spot. Your AML program must include: Customer Due Diligence (CDD): Verify every player on registration Enhanced Due Diligence (EDD): For high-value transactions or risk factors Transaction monitoring: Automated systems for suspicious patterns Suspicious Activity Reports (SARs): File with FIAU within 48 hours Record keeping: Store all AML data for at least 5 years Technical Compliance: Keeping Your Software in Check All games on your platform must be MGA-approved. That means: Certification by accredited testing labs (iTech Labs, eCOGRA, GLI) Return-to-player (RTP) rates must be disclosed Random number generators (RNG) regularly tested Game modifications only allowed with MGA approval New games can only go live after MGA approval. Plan for 4–6 weeks lead time—even for games from big-name providers. Common Mistakes and How to Avoid Them I’ve seen plenty of licensing journeys—successful and failed. These are the most common pitfalls and how to sidestep them. Mistake #1: Incomplete Documentation The classic: You submit your application and get back a laundry list of missing documents. Not only does that delay the process, it also makes you look unprofessional. How to avoid it: Follow the MGA checklists to the letter Have a Malta-based lawyer review all docs Allow 2–3 extra weeks just for document gathering With international documents: don’t forget apostilles Mistake #2: Unrealistic Financial Planning Many applicants massively underestimate costs. If the MGA senses your financing is too tight, they’ll get wary. Realistic budgeting: Add at least 50% buffer on all cost estimates Budget 18–24 months operational costs before profitability Show MGA multiple funding sources Explain your plan for covering losses Mistake #3: Unclear Business Models MGA wants to know how youll make money. “We’re running an online casino” won’t cut it. They expect details: which games, which markets, customer acquisition, unique selling points? Pro tip: Build a 30–40 page business plan tailored for MGA. It needs more than just numbers: explain your strategy, competition, risk management etc. Mistake #4: Downplaying Maltese Presence Requirements Some applicants try to minimize local presence. That’s a mistake. MGA makes regular surprise office inspections. What MGA expects to see: Real offices with workstations (not just a PO box) Maltese employees physically working on-site Local phone system and IT infrastructure Management regularly present in Malta Mistake #5: Underestimating Marketing Compliance iGaming marketing is strictly regulated. Many operators run into trouble by ignoring advertising rules. Critical marketing compliance points: All advertising must be “fair and not misleading” Responsible gaming messages are mandatory Targeting under-18s is strictly prohibited Social media posts follow the same rules as TV ads Influencer marketing must be clearly labelled as advertising Mistake #6: Neglecting IT Security Cyber attacks on iGaming operators are routine. MGA expects professional IT security—not just at launch, but ongoing. Minimum IT security standards: Annual penetration tests by external specialists 24/7 security monitoring and incident response Encrypted data storage and robust disaster backups Regular staff security awareness training DDoS protection and redundant server infrastructure Don’t underestimate these. A single data breach can cost you your license—and your reputation for years. Malta iGaming Taxes: Why the Island Is So Attractive Let’s talk about the elephant in the room: taxes. Malta’s popularity isn’t just about liberal regulation, but also its favourable tax regime. However: Malta hasn’t been a “tax haven” for a long time now. The Maltese Tax System for iGaming Malta runs a full imputation system. Sounds complex, but it’s elegant: Companies pay 35% corporate tax, but shareholders can reclaim most of that. How it works: Your Maltese company pays 35% corporate tax When profits are distributed to shareholders, 6/7ths of the tax can be reclaimed Effective tax: only 5% on distributed profits Profits not paid out remain taxed at 35% Special iGaming Tax Breaks Licensed iGaming operators enjoy extra benefits: Tax Type Standard Rate iGaming Benefit Conditions Gaming Tax Variable 0.5% of Gross Gaming Revenue Alternative to standard corporate tax Withholding Tax Up to 35% Often reduced/exempt Depends on double taxation treaties Stamp Duty 5% Waived for gaming transactions Licensed activities only The Gaming Tax Option: 0.5% vs 35% The major win for iGaming: you can choose between standard corporate tax (35%) and the special gaming tax (0.5% of Gross Gaming Revenue). When is the Gaming Tax better? An easy rule: High revenue, low margins: Gaming tax is almost always cheaper Low revenue, high margins: Corporate tax might be cheaper Break-even point: Around 14% profit margin, both are the same Example calculation: Your casino makes €10 million Gross Gaming Revenue at an 8% net margin (€800,000 profit). Gaming tax: €50,000. Corporate tax: €280,000. You save €230,000 per year. EU Compliance and International Developments Malta is an EU member and must comply with EU tax directives. That means for you: Substance requirements: You need genuine activity in Malta BEPS compliance: International tax planning is more closely monitored DAC reporting: Automatic information exchange with other EU countries Country-by-country reporting: Transparency rules for large companies Tax Planning: Do’s and Don’ts What works (and is legal): Build genuine business activity in Malta Strategically choose when to distribute vs retain profits Leverage double tax treaties Move IP rights to Malta What no longer works (or is too risky): P.O. box companies with no substance Aggressive tax structures with no business purpose Ignoring CRS/DAC reporting duties Opaque shareholder structures My advice: Get professional tax advice early. A Big4 tax advisor in Malta may charge €300–500 per hour, but will often save you five or six figures a year. Conclusion & Your Next Steps Now you see the full picture: An MGA license is doable, but not a quick win. It takes time, money and patience—but it’s also an extremely valuable asset that opens doors across the entire European iGaming market. Is an MGA License Right for You? An honest self-assessment is critical. An MGA license makes sense if you: Think long-term: ROI usually comes after 2–3 years Have substantial capital: At least €500,000 in available funds Take compliance seriously: Ongoing obligations are the core, not a side task Want to tap into EU markets: For purely local markets, other options may suit you better Run professionally: Half-baked businesses don’t get MGA licenses Your 6-Month Action Plan If you’ve decided to move ahead, here’s your roadmap: Month 1–2: Strategy & Team Develop and validate your business plan Identify a specialized law firm in Malta Define key persons and start Fit & Proper preparations Month 3–4: Structure & Funding Set up a Maltese company Secure funding (bank guarantees, proof of capital) Rent and set up office space in Malta Month 5–6: Technology & Application Select software partners and begin certifications Develop compliance framework Submit MGA application Alternatives to Your Own License An MGA license isn’t the only route. Here are alternatives worth considering: White label solution: Partner with an existing licensee, revenue share model License rental: Use a sub-license for fixed fees Joint venture: Partner with an established operator Other EU licenses: Germany, Netherlands or Spain—depending on target markets Final Thoughts Getting an MGA license is a marathon, not a sprint. But if you approach it with realistic planning, enough capital and proper professional support, it paves your way into one of Europe’s most lucrative industries. The iGaming space is fiercely competitive—but also incredibly exciting. Every day brings new technologies, fresh gaming ideas, new markets. With solid regulatory footing, you can be part of that evolution, not just watching from the sidelines. One last piece of advice: invest in compliance and long-term partnerships from day one. The cheapest solution is rarely the best. This market is too valuable—and the risks too great. Malta is waiting for you. The only question left: Are you ready for Malta? Frequently Asked Questions (FAQ) How long does it take to get an MGA license? The full process typically takes 12–18 months. That includes 8–12 weeks preparation, 4–6 months MGA review, and 4–8 more weeks for the final steps. Incomplete applications significantly extend the timeline. What does an MGA license really cost? Expect €200,000–300,000 for the first year (including licensing and operating costs) and €120,000–180,000 in annual recurring expenses thereafter. MGA fees alone are at least €35,000 per year plus 0.5% of Gross Gaming Revenue. Do I really have to move to Malta? You don’t have to relocate personally, but at least one senior manager must be a Maltese resident. You’ll also need real office premises and substantial business activity on the island—a PO box isn’t enough. Can I operate in Germany with an MGA license? Partially. EU passporting allows cross-border services, but Germany introduced local license requirements in 2021. For the German market, you’ll need a separate license from the Joint Gambling Authority of the Länder. Which license do I need for online casinos? For online casinos, you’ll need an MGA Type 1B license. This covers casino games, slots and related gambling. The minimum capital requirement is €40,000 plus €100,000 liquidity proof. What’s the tax burden in Malta? iGaming companies can pick between standard corporate tax (35% with refund option) or gaming tax (0.5% of Gross Gaming Revenue). For most business models, the gaming tax is much cheaper. What happens if I breach compliance requirements? The MGA can issue warnings, impose fines (up to €466,000), suspend or—in extreme cases—revoke your license. Serious AML or player protection breaches can result in instant license suspension. Can I expand my license later? Yes, you can apply for more game categories or license types. That’s cheaper than a brand new application, but still takes 4–6 months and incurs extra fees. Which software providers does MGA accept? All games must be certified by MGA-accredited testing labs (like iTech Labs, eCOGRA, GLI). Most major providers—Microgaming, NetEnt, Evolution Gaming—already have MGA approval for their game portfolios. Is an MGA license worth the investment? For substantial turnover (>€5 million a year), definitely yes. The license gives you access to the entire EU market and is respected worldwide. For smaller operations, white label solutions may be more cost-effective.
