Table of Contents Why Malta is Europe’s iGaming Mecca The Malta Gaming Authority: Your Gateway to Legality MGA License Types: Which Is Right for Your Business? MGA License Requirements: The Criteria You Must 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 the License The Most Common Mistakes and How to Avoid Them Malta iGaming Taxes: What Makes the Island so Attractive Conclusion and Your Next Steps Why Malta is Europe’s iGaming Mecca I get it: you’re considering an iGaming license and Malta keeps popping up. Not a coincidence. Over the past 20 years, this small Mediterranean island has turned itself into the absolute hotspot for online gambling. But why Malta, of all places? The answer is pragmatic: Malta offers the best overall package of legal security, tax benefits, and operational flexibility in Europe. The Malta Gaming Authority (MGA) is regarded as one of the world’s most trustworthy regulators—a reputation hard-earned by the island. The Facts Speak for Themselves According to the Malta Gaming Authority (2024), over 300 iGaming companies are currently licensed on the island. These companies employ more than 9,000 people directly and contribute about 12% to Malta’s GDP. These numbers are no coincidence—they’re the result of a well-thought-out national business model. But what really convinced me: Malta understood early on that iGaming must not just be regulated, but also actively promoted. While other EU countries are still debating gambling laws, Malta introduced its first comprehensive regulatory framework back in 2004 and has been consistently developing it ever since. EU Passporting: Your Key to the European Market The biggest trump card? As an EU member, Malta offers you EU passporting rights. What this means: with an MGA license, you can operate legally in all EU countries where online gambling is not explicitly banned. That’s your direct access to a market of over 440 million people. But hold on: EU passporting doesn’t mean a free pass everywhere. Countries like Germany, France, or Italy have additional local requirements. The MGA license is your entry ticket, but for some markets you’ll still need further permits. The Malta Gaming Authority: Your Gateway to Legality The Malta Gaming Authority (MGA) is not just another authority—it is the authority when it comes to iGaming in Europe. Founded in 2001, it has grown from a local supervisory body to one of the most respected gaming regulators worldwide. What Makes the MGA Stand Out? Having dealt with various regulators, the MGA stands out: tough but fair. Transparent, yet not bureaucratically overblown. The authority follows a risk-based approach—focusing their resources on real critical points, not nitpicking over details. Two-pillar system: The MGA divides licenses into B2C (Business-to-Consumer) and B2B (Business-to-Business) Ongoing surveillance: Not just during the application stage, but throughout the entire license period Clear rules: All requirements are public and transparent Fast processing: Complete applications are usually 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 sign of quality. Payment providers like Visa and Mastercard are happy to work with MGA-licensed operators—a major advantage in the iGaming business. The MGA is a member of the International Association of Gaming Regulators (IAGR) and closely collaborates with other European regulators. For you, this means: fewer bureaucratic hurdles when you want to expand into other markets later on. MGA License Types: Which Is Right for Your Business? The MGA differentiates between four license types. Sounds complicated? It’s not. The logic is simple: depending on what you want to do, you need different authorizations. Type 1: Gaming Service License (B2C) This is the main 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 divided: Category Permitted Games Special 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. It lets you sell your services to other licensed operators. Typical Type 2 holders are game developers, platform providers, or payment solutions dedicated to iGaming. Type 3: Gaming Host License Type 3 is for hosting providers and technical service suppliers. If you’re providing server capacity, cloud services, or infrastructure to gaming operators, you need this license. Type 4: Gaming Promotion License The marketing license for affiliate marketing and gaming promotion. If you’re working as an affiliate or providing marketing services for gaming operators, Type 4 applies. Which License Do You Need? Most applicants want Type 1—understandably, as that’s the direct route to your own online casino or sports betting platform. But ask yourself honestly: do you really need all types of games from the start? My tip: start with the minimum necessary for your business model. You can expand your license later—that’s easier and cheaper than applying for an all-in-one solution you don’t use at the beginning. MGA License Requirements: The Criteria You Must Meet Now it gets serious. The MGA has clear ideas about who can get a license—and who can’t. The good news: all requirements are transparently documented. The less-good news: they’re not trivial to meet. Personal Requirements (Fit & Proper Test) Anyone holding at least 5% of shares or having executive responsibility must pass the Fit & Proper Test. This means: Certificate of good conduct from all countries you’ve lived in during the last 10 years Financial reliability: No bankruptcy, no unpaid tax debts Industry experience: Proof of relevant qualifications or experience Integrity: No links to criminal organizations The Fit & Proper test is thorough. The MGA doesn’t just check your details—they also run background checks. Allow at least 6-8 weeks—just for gathering documents. Financial Requirements This separates the wheat from the chaff. The MGA demands substantial financial proof: License Type Minimum Capital Liquidity Proof Particularities Type 1A €40,000 €100,000 Plus 2.5% of annual Gross Gaming Revenue Type 1B €40,000 €100,000 Higher requirements for live casinos Type 2 €40,000 €100,000 Depends on the offered services Type 3/4 €40,000 €100,000 Reduced requirements possible Important: These are minimum values. In practice, the MGA often asks for higher amounts depending on your business model and planned turnover. Realistically, plan on €200,000–500,000 in available funds for a solid start. Technical and Operational Requirements The MGA is technically savvy—they know what matters. Your platform must meet the following criteria: 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: Critical systems must be hosted within the EU Maltese Presence You don’t have to move your whole business to Malta—but a substantial presence is required. This means: Registered business address in Malta (not just a mailbox) At least one senior manager residing in Malta Bookkeeping and central business functions in Malta For larger operations: own office space and local staff The MGA takes this requirement seriously. They perform regular unannounced checks to verify business activity is truly happening in Malta. The Application Process: Step by Step to an MGA License The path to an MGA license is more a marathon than a sprint. I’ll walk you through the full process—with realistic timelines and practical tips from experience. Phase 1: Preparation (8-12 weeks) Before you even think about submitting your application, you have homework. Most applicants seriously underestimate this phase. Define your business model: Which games, which markets, which target groups? Set up a Maltese company: You need a local corporate structure Fit & Proper documentation: Certificates of conduct, references, CVs of all key persons Proof of financing: Bank guarantees, capital confirmation, business plan Technical specifications: Software selection, certifications, hosting setup Phase 2: Submitting the Application (2-4 weeks) The application itself is a complex document of 50-100 pages. The MGA provides detailed forms, but the quality of your answers determines success or rejection. Pro tip: Have the application prepared by a specialized lawyer or consultant. It costs €15,000-25,000 extra, but the success rate is much higher. DIY applications are often rejected—and then you start over. Phase 3: MGA Review (4-6 months) Now it’s waiting time—but you shouldn’t be idle. The MGA reviews your application and usually comes back with questions: Additional documentation: Missing or clarifying documents Fit & Proper interviews: Personal conversations with key persons Due diligence: Background checks, reference reviews Technical review: Software tests, security audit Expect 2-3 rounds of requests. That’s normal—not a bad sign. The MGA is thorough—and that’s in your best interest. Phase 4: Final Steps (4-8 weeks) Once the MGA basically gives the green light, the final steps follow: Conditional approval: Pre-approval with conditions Satisfy conditions: Final technical or operational fixes Pay license fees: First annual fee plus one-time charges Go-live approval: Final authorization to launch operations Realistic Total Duration: 12-18 Months Yes, it’s long. But remember: an MGA license is a valuable asset. Companies with established licenses are often bought for millions—also due to the lengthy licensing process. My advice: use the waiting period productively. Develop your platform further, build your team, make partnerships. When the license comes through, you 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 in the long run. Here’s a realistic breakdown, based on current rates (as of 2024). One-Off Costs for Licensing 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 Company formation Malta €3,000-5,000 €3,000-5,000 Including 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 Excluding software/marketing Ongoing Annual Costs The license alone won’t suffice. Ongoing costs are often higher than the initial outlay: MGA annual fee: €25,000 + 0.5% of Gross Gaming Revenue (minimum €35,000) Compliance officer: €60,000-80,000 (full time in Malta) Maltese accounting: €15,000-25,000 per year Office costs Malta: €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 in annual turnover. Hidden Costs Often Overlooked In my experience: these items are often forgotten in initial calculations: Software certification: €20,000–50,000 per games provider Payment provider setup: €10,000–25,000 plus deposits Marketing compliance: Extra legal reviews for all campaigns Cybersecurity: Professional security audits, €15,000–30,000 per year Banking: Maltese banks often require six-digit minimum deposits Financing Options Not everyone has €500,000 in cash. Here are realistic funding routes: White label partnership: Partner provides the license, you pay revenue share Investor/VC: Offer equity for funding—common in iGaming Bank financing: Hard, but doable with a solid business plan Tiered licensing: Start with Type 4, expand later My tip: plan conservatively. Budget at least 18 months of operational expenses before turning a profit. iGaming is lucrative—but fiercely competitive. Compliance Obligations: The Real Work Begins After the License Congratulations, you got the license! Now the real work starts. The MGA monitors you continuously—and rightfully so. Good compliance not only protects against fines, it makes your business more attractive to partners and investors. Ongoing Compliance: Your Daily Duties Compliance is not a project—it’s an ongoing process. You need to keep a close watch on these tasks: Player protection: Actively monitor and use responsible gaming tools AML/CFT: Report suspicious transactions, run KYC continuously Technical compliance: All games must remain certified Financial reporting: Monthly financial returns to the MGA Advertising standards: Every marketing campaign must be compliant Reporting Duties: What the MGA Needs and When The MGA wants to be informed of all important events. Here’s your reporting calendar: Report Frequency Deadline Content Monthly Return Monthly 15th of following month Revenue, player stats, compliance KPIs Annual Return Yearly 31 March Comprehensive business review Audited Accounts Yearly 6 months after fiscal year Audited annual financial statement Material Changes As required Advance approval Shareholders, management, business Player Protection: The Core of MGA Philosophy The MGA takes player protection seriously—and you should, too. It’s not just ethical, it’s also smart business. Problematic players cost more in the long run than they bring in. Mandatory player protection tools: Deposit limits (daily, weekly, monthly) Loss limits with cooling-off periods Self-exclusion (temporary and permanent) Reality checks and session time limits Automated risk detection tools Anti-Money Laundering (AML): Preventing Money Laundering AML is complex but essential. The MGA works closely with Malta’s Financial Intelligence Analysis Unit (FIAU). Violations can lead to immediate license suspension. Core elements of your AML program: Customer Due Diligence (CDD): Screen 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 the FIAU within 48 hours Record keeping: Retain all AML-relevant 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) tested regularly Game modifications only with MGA approval You can only launch new games after MGA approval. Allow 4-6 weeks—even for titles from established providers. The Most Common Mistakes and How to Avoid Them I’ve seen many licensing processes—successful and failed. Here are the most frequent pitfalls and how you can avoid them. Mistake #1: Incomplete Documentation The classic: you submit your application and get a long list of missing documents. This not only delays the process—it doesn’t make a professional impression, either. Here’s how to avoid it: Use MGA checklists thoroughly Have all documents reviewed by a Malta lawyer Plan an extra 2-3 weeks for collecting documents For international documents: don’t forget the apostille Mistake #2: Unrealistic Financial Planning Many applicants massively underestimate costs. If the MGA feels your financing is tight, they’ll get skeptical. Realistic budget planning: Allow at least a 50% buffer on all cost estimates Plan 18-24 months of expenses before profitability Show the MGA multiple funding sources Explain how you’d react to losses Mistake #3: Unclear Business Models The MGA wants to understand how you intend to make money. “We run an online casino” isn’t enough. They want details: which games, which markets, customer acquisition, unique selling points? Pro tip: Develop a 30-40 page business plan tailored for the MGA. It should not only cover numbers, but also your strategy, competition, and risk management. Mistake #4: Ignoring Maltese Presence Requirements Some applicants try to minimize their Malta presence. Mistake. The MGA makes regular unannounced office inspections. The MGA wants to see: Real office space with workstations (not just a mailbox) Maltese staff working there every day Local telephone lines and IT infrastructure Management regularly present in Malta Mistake #5: Underestimating Marketing Compliance iGaming marketing is heavily regulated. Many operators get in trouble for not taking marketing restrictions seriously. Critical marketing compliance points: All ads must be “fair and not misleading” Responsible gaming messages are mandatory Targeting minors is strictly prohibited Social media posts must follow the same standards as TV advertising Influencer marketing must be clearly marked as advertising Mistake #6: Neglecting IT Security Cyber attacks on iGaming operators are commonplace. The MGA expects professional IT security—not just at launch, but ongoing. Minimum IT security standards: Annual penetration tests by external firms 24/7 security monitoring and incident response Encrypted data storage and secure backup strategies Regular security awareness training for all staff DDoS protection and redundant server infrastructure Don’t underestimate these issues. A single data breach can cost you your license—and ruin your reputation for years. Malta iGaming Taxes: What Makes the Island so Attractive Let’s address the elephant in the room: taxes. Malta is not just loved for its liberal regulation, but also for its attractive tax environment. But caution: Malta hasn’t been a “tax haven” for a long time. The Maltese Tax System for iGaming Malta has a full tax system with a refund mechanism. Sounds complicated, but it’s actually elegant: companies pay 35% corporate tax initially, but shareholders can claim most of it back. Here’s how it works: Your Maltese company pays 35% corporate tax On dividend distributions, shareholders get 6/7 of the tax refunded Effective tax burden: only 5% on distributed profits Undistributed profits remain taxed at 35% Special iGaming Tax Advantages Licensed iGaming operators enjoy additional benefits: Type of Tax Normal Rate iGaming Incentive Requirements Gaming tax Variable 0.5% on gross gaming revenue Alternative to normal corporate tax Withholding tax Up to 35% Often reduced/exempt Depends on double taxation treaties Stamp duty 5% Exempt on gaming transactions Only for licensed activities The Gaming Tax Option: 0.5% Instead of 35% This is the big advantage for iGaming operators: you can choose between normal corporate tax (35%) and the special gaming tax (0.5% of gross gaming revenue). When is gaming tax advantageous? Simple: High turnover, low margin: Gaming tax is almost always better Low turnover, high margin: Corporate tax can be cheaper Break-even point: At about a 14% profit margin, both options are the same Example: Your casino generates €10 million gross gaming revenue at an 8% net margin (€800,000 profit). Gaming tax: €50,000. Corporate tax: €280,000. Savings: €230,000 per year. EU Compliance and International Developments Malta is an EU member and must comply with EU tax regulations. For you, this means: Substance requirements: You need real business activity in Malta BEPS compliance: International tax planning is under stricter scrutiny DAC reporting duties: Automatic exchange of information with other EU countries Country-by-country reporting: Transparency obligations for larger companies Tax Planning: Do’s and Don’ts What works (and is legal): Build genuine business activity in Malta Strategically distribute profits vs. retaining them Utilize double tax treaties Transfer IP rights to Malta What no longer works (or is risky): Mailbox companies with no substance Aggressive tax planning with no business purpose Ignoring CRS/DAC reporting obligations Non-transparent shareholder structures My advice: get professional tax advice from the start. A Big4 tax advisor in Malta costs €300-500/hour but often saves you tens or hundreds of thousands a year. Conclusion and Your Next Steps Now you have the full picture: an MGA license is achievable, but it’s no quick fix. It costs time, money, and nerves—but it’s also a valuable asset that opens the whole European iGaming market in the long term. Is an MGA License Right for You? Honest self-assessment is key. An MGA license makes sense if you: Think long term: ROI comes after 2-3 years Have substantial funds: At least €500,000 available capital Take compliance seriously: Ongoing obligations aren’t a side issue—they’re core business Want to access the EU market: Local licenses may be better for smaller markets Operate professionally: Basement businesses don’t get MGA licenses Your Action Plan for the Next 6 Months If you’ve made the decision, here’s your roadmap: Month 1–2: Strategy and Team Develop and validate business plan Identify a specialized law firm in Malta Define key persons and begin Fit & Proper prep Month 3–4: Structure and Financing Establish Maltese company Secure funding (bank guarantees, proof of capital) Rent and set up office space in Malta Month 5–6: Technology and Application Select software partners and start certifications Develop compliance framework Submit MGA application Alternatives to Your Own License Getting your own MGA license isn’t the only way. Here are alternatives to consider: White label solution: Partner with a licensed operator, revenue share model License lease: Use a sublicense for a fixed fee Joint venture: Cooperate with an established operator Other EU licenses: Germany, Netherlands, or Spain depending on your target market My Final Advice Obtaining an MGA license is a marathon, not a sprint. But if you approach it right—with realistic planning, sufficient capital, and professional support—it unlocks one of Europe’s most lucrative industries. The iGaming business is tough but incredibly exciting. Every day, new technologies, concepts, and markets emerge. With a solid regulatory foundation, you can join the action—not just watch from the sidelines. My final tip: invest in compliance and long-term partnerships from day one. The cheapest solution is rarely the best. The market is too valuable—and the risks too high. Malta is waiting for you. The real question is: Are you ready for Malta? Frequently Asked Questions (FAQ) How long does it take to get an MGA license? The whole process typically takes 12–18 months. That includes 8–12 weeks of preparation, 4–6 months of MGA review, and another 4–8 weeks for final steps. Incomplete applications delay the process considerably. What does an MGA license really cost? Budget for €200,000–300,000 for the first year (including licensing and operating costs) and €120,000–180,000 in annual recurring costs. MGA fees alone are at least €35,000/year plus 0.5% of Gross Gaming Revenue. Do I really have to move to Malta? You don’t have to move yourself, but at least one senior manager must reside in Malta. In addition, you need real office space and substantial business activity in Malta—a mailbox address is not enough. Can I operate in Germany with an MGA license? Partly. EU passporting allows cross-border services, but Germany added extra licensing rules in 2021. For the German market you’ll need a license from the Joint Gambling Authority of the Federal States. Which license do I need for online casinos? For online casinos, you need an MGA Type 1B license. This covers casino games, slots, and related gambling. The minimum capital requirement is €40,000 plus a €100,000 liquidity proof. What’s the tax burden in Malta? iGaming companies can choose between standard corporate tax (35% with refund option) and gaming tax (0.5% of Gross Gaming Revenue). For most businesses, gaming tax is much cheaper. What happens if I breach compliance? The MGA can issue warnings, impose fines (up to €466,000), suspend licenses, or even revoke them in extreme cases. Serious AML or player protection breaches can cause instant suspension. Can I expand my license later? Yes, you can apply for additional game categories or license types. This is cheaper than full relicensing, but it still takes 4–6 months and incurs extra fees. Which software providers does the MGA accept? All games must be certified by MGA-approved testing labs (like iTech Labs, eCOGRA, GLI). Most leading providers like Microgaming, NetEnt, or Evolution Gaming already have MGA approval for their portfolios. Is an MGA license worth the investment? For substantial revenues (>€5 million per year) definitely yes. The license opens up the entire EU market and is internationally respected. For smaller operations, white label solutions may be more economical.
