Malta gaming licence costs, fees and taxes

For company owners and startups in the IT and online entertainment sectors, a Maltese licence provides access to the European market, partnerships with international payment systems and banks, and players for whom the presence of an MGA licence is an important factor when choosing a platform.

Why companies choose Malta

1. Reputation and recognition. The MGA licence has a reputation as one of the most reliable and respected in the world.
2. European legal framework. Malta is a member of the European Union. This provides a significant advantage over offshore jurisdictions where legal protection is weaker.
3. Flexible tax system. The nominal corporate tax rate is 35%, but through a specific tax refund structure (imputation system), the effective rate can be reduced to around 5%.
4. Simplified regulatory structure. А single licence is sufficient for several types of activities, which lowers administrative burdens and speeds up business launch.
5. Infrastructure and talent availability. The island has developed a complete iGaming ecosystem — from legal and accounting firms to IT providers and certification centres.
6. Trust from payment systems. Most European and international payment providers readily cooperate with companies holding a Maltese licence.

Cost structure of obtaining a licence

All expenses can be divided into five main groups:

1. One-time application fee

This is the first step toward obtaining an MGA licence. The fee is charged upon application submission and is non-refundable, even if the company is not approved. The standard amount is €5,000. It covers the regulator’s administrative costs for analysing the business plan, verifying beneficiaries and assessing technical infrastructure.

1. Fixed annual licence fee

After obtaining the licence, the operator pays a fixed amount depending on the type of activity. For B2C operators working directly with players, this is on average €25,000 per year; for B2B solution providers — between €10,000 and €25,000. The payment is made annually and does not depend on revenue.

1. Variable compliance contribution

This is the main component of recurring expenses directly linked to company income. The contribution is calculated as a percentage of the Gross Gaming Revenue (GGR) on a progressive scale. For B2C operators, it ranges from 1.25% to 0.40%, depending on turnover, with minimum and maximum thresholds.

1. Gaming tax

This tax applies only to revenue generated from players located in Malta. The rate is 5% of such income. For most international companies, this tax remains minimal since the majority of players are based outside the country.

1. Administrative and related expenses

In addition to core fees, operators face further costs: system audits, certifications, legal support, licence renewals, domain registration, maintenance of corporate structures and accounting services. According to consulting firms, the total budget for these purposes can range from €40,000 to €60,000 in the first year.

Thus, the total cost of maintaining a Maltese licence consists of both fixed and variable elements. For a startup with moderate turnover, total first-year expenses may exceed €100,000, including preparation, fees and tax obligations.

One-time application fee

The first step in obtaining an MGA licence is submitting the official application. At this stage, the operator declares the intention to engage in iGaming activities and provides a package of documents confirming financial stability, technical readiness and reputational reliability.

Amount and payment procedure

The application fee is set by the regulator at €5,000. It is paid once upon application submission and is non-refundable, even if the regulator denies the licence. The fee covers MGA’s administrative processing and initial company checks. Payment must be made at the time of submission and is a mandatory requirement for the application to be reviewed. Without proof of payment, the application will not be accepted for evaluation.

What the verification includes

At this stage, the MGA assesses:

• the company’s legal structure and beneficiaries;
• sources of funding and capital transparency;
• the business model and types of games offered;
• internal AML and KYC policies;
• technical aspects — platform, random number generation system and server infrastructure.

Depending on the project’s complexity, the process may take 8 to 12 weeks. If discrepancies are found, the applicant is given a limited period to address them.

Preparation and common mistakes

The most common mistake applicants make is submitting an incomplete document package. Even with a strong business model, the absence of audit reports, descriptions of technical processes or security policies can lead to delays or rejection.

Many startups also underestimate the importance of pre-application audits: the MGA expects applicants to have a clearly defined corporate structure and agreements with payment solution providers at the time of submission.

Example:

A company applies for a B2C licence (casino and betting). In addition to standard documentation, it must confirm the presence of a dedicated technical director and a compliance officer, as well as describe the server architecture and data encryption procedures.

When to pay again

In case of rejection, a new application requires another €5,000 payment. Therefore, it is advisable to engage a legal consultant in advance to review the document package and ensure it meets MGA requirements.

Fixed annual licence fee

After the application is approved and the licence is issued, the operator moves to the annual maintenance stage. The main element of these obligations is a fixed payment that does not depend on revenue and is paid in advance for each year of the licence’s validity.

Amount of the annual payment

The amount depends on the type of licence, which determines the operator’s business activity. The MGA divides licences into two main categories:

• B2C (Business-to-Consumer) — companies providing services directly to end users;
• B2B (Business-to-Business) — suppliers of solutions, platforms and technologies for other operators.

Current MGA rates:

• B2C (Type 1–3) — €25,000 per year;
• B2C (Type 4) — €10,000 per year (for example, skill-based games, fantasy sports);
• B2B — from €10,000 to €25,000 depending on business scale and licence category.

The fixed fee is paid in advance at the beginning of each licensing year. Unlike variable contributions, it is not recalculated based on performance and cannot be reduced in case of low revenue.

Example calculation

A company obtains a B2C Type 1 licence for operating an online casino.

• In the first year after approval, it must pay €25,000.
• If the company later decides to add additional gaming verticals (for example, sports betting or bingo), a separate licence is not required, but the fixed fee may be increased during licence review.

B2B operators providing platforms, content or management systems for other licensed companies pay €10,000 if their income does not exceed the established threshold. Once turnover increases, the rate may rise to €25,000.

Financial planning

The fixed fee is a mandatory part of the budget regardless of revenue or customer activity. For small companies and startups, it can become a significant expense, especially in the first year. It is therefore recommended to include the annual licence fee in the financial plan alongside the one-time application fee.

For medium-sized operators entering the EU market, €25,000 per year is not a critical amount — yet it allows them to operate legally under a globally recognised jurisdiction and build long-term partnerships with banks and payment systems.

Renewal and licence extension

Every five years, the licence must be renewed. The MGA charges a one-time renewal fee of €5,000. Companies must confirm ongoing compliance with the regulator’s requirements and provide audit reports as well as the results of an independent IT audit.

Variable compliance contribution

The fixed annual fee covers the basic right to operate, but the real financial load on iGaming operators is formed by variable contributions. These payments depend on company revenue and reflect the principle that the higher the turnover, the greater the contribution to the regulator’s fund.

Essence of the variable contribution

The compliance contribution is a mandatory payment calculated as a percentage of the Gross Gaming Revenue (GGR). GGR is defined as the difference between the total amount wagered and the total amount paid out to players as winnings.

The contribution rate depends on the type of licence and the level of revenue. The MGA has established a progressive rate scale: the higher the turnover, the lower the percentage, which encourages growth and reduces the burden on large operators.

For B2C Type 1 operators

(online casinos, random number generators)

• 1.25% — on the first €3,000,000 of GGR
• 1.00% — on the next €4,500,000
• 0.85% — on the next €5,000,000
• 0.70% — on the next €7,500,000
• 0.55% — on the next €10,000,000
• 0.40% — on the remaining amount

Minimum annual contribution — €15,000, maximum — €375,000.

For B2C Type 2 operators

(sports betting, fantasy sports)

• 4.00% — on the first €3,000,000
• 3.00% — on the next €4,500,000
• 2.00% — on the next €5,000,000
• 1.00% — on the next €7,500,000
• 0.80% — on the next €10,000,000
• 0.60% and beyond — on the remaining income

Minimum contribution — €25,000, maximum — €600,000.

Example calculation

Suppose a B2C Type 1 operator earns €5,000,000 in GGR during the year.

• 1.25% of the first €3,000,000 = €37,500
• 1.00% of the next €2,000,000 = €20,000

Total: €57,500 variable contribution.

For a startup with a turnover of €2,000,000, the amount would be €25,000 (1.25% of €2,000,000), which is slightly above the minimum threshold.

Payment specifics

• The contribution is calculated and paid monthly or quarterly, depending on the reporting period.
• The company must maintain GGR records and submit regular reports to the MGA.
• Late payments or reporting inaccuracies may result in fines or licence suspension.

For B2B operators

A B2B licence involves contributions within a fixed range from €2,500 to €35,000 per year, depending on income level. Unlike B2C operators, this payment is not calculated as a percentage of revenue but depends on the size of contracts and business scale.

Significance for financial planning

The variable contribution is a key factor affecting profitability. It should be accounted for from the earliest stages of the business plan. For small companies, it can represent 5–10% of total operating expenses, while for large operators it may be less than 2%.

Gaming tax and corporate taxation

After paying fixed and variable fees, companies operating under an MGA licence are also subject to two additional obligations — the gaming tax and the corporate tax. These are calculated using different principles and apply to different income bases, but both directly affect the overall profitability of the business.

Gaming tax

This tax is levied on revenue generated from players who are located or registered in Malta. The rate is set at 5% of revenue from such users.

Important points:

• The tax does not apply to income from foreign players.
• It is independent of the licence type (B2C Type 1–4).
• The amount is paid monthly, based on the operator’s reports.

For most international companies operating in markets such as Europe, Latin America or Asia, the share of Maltese players is minimal, so the actual burden from this tax remains low.

Example:

If revenue from players based in Malta amounts to €500,000, the operator will pay €25,000 (5%) as gaming tax. Income from players in other countries is excluded from the calculation.

Corporate tax

Malta maintains one of the most flexible corporate tax systems in the EU. The nominal corporate income tax rate is 35%, but thanks to a special refund mechanism known as the imputation system, the effective rate can be significantly lower.

Under this system, a company pays 35% corporate tax on its profits, but when dividends are distributed, shareholders are entitled to a refund of a portion of the tax. Depending on the business structure and the nature of operations, the refund may reach 6/7 of the tax paid, effectively reducing the overall burden to around 5%.

Example:

A company earns €1,000,000 in net profit.

• It pays 35% corporate tax = €350,000.
• Upon dividend distribution, shareholders receive a refund of 6/7 = €300,000.
• The effective tax burden is €50,000, or about 5%.

Tax residency and structure

To benefit from the tax refund system, a company must be a Maltese tax resident, meaning it is registered and managed from Malta. In some cases, a holding structure is used — with an operational company holding the MGA licence and a parent entity managing dividend distributions.

This model requires legal support but allows companies to legally reduce their total tax burden while maintaining transparency with the regulator and financial institutions.

Associated and administrative expenses

Obtaining a licence is only the beginning. To maintain the status of an MGA-licensed operator, continuous compliance procedures and regular administrative actions are required. These expenses are often underestimated, yet they make up a significant part of the budget during the first year of operation.

In practice, launching under an MGA licence in the first year will require:

• one-time and annual fees — around €80,000–€100,000;
• preparatory and administrative expenses — €40,000–€60,000;
• technical and legal services — €20,000–€30,000.

Thus, the total initial budget for an MGA-licensed project can reach €120,000–€150,000, depending on the scale and chosen operating model.

What to know before obtaining an MGA licence

The Malta Gaming Authority (MGA) licence is one of the most reliable and recognised instruments for legalising iGaming activities in Europe. It ensures transparency, access to payment systems, trust from players and investors, and flexible tax opportunities.

However, obtaining and maintaining such a licence requires significant resources. Companies must be prepared not only to pay the one-time €5,000 application fee and fixed annual licence fee but also to cover ongoing costs related to audits, certifications, legal support and compliance with MGA regulations.

Malta remains one of the few jurisdictions where the combination of strict regulation and flexible financial conditions creates a stable environment for iGaming business growth. For companies ready for transparency and long-term investment, an MGA licence becomes not an expense but a strategic asset.