1. Malta’s Historical Background in iGaming
Malta began focusing on developing its online gaming (iGaming) industry after joining the European Union in 2004. A year earlier, in 2003, the Malta Gaming Authority (MGA), originally known as the Lotteries and Gaming Authority (LGA), was established as the world’s first regulatory body for online gambling, garnering international attention.
During the early days of the iGaming industry, Malta simultaneously advanced legal frameworks and infrastructure investments to attract gaming operators from around the globe. The use of English as an official language, along with a legal and accounting system based on British law, further facilitated foreign companies’ entry into the market. Today, Malta is recognized as one of the world’s largest holders of iGaming licenses and is often referred to as the “Mecca of online casinos” in Europe.
2. The Strength and Credibility of the MGA License
The Malta Gaming Authority (MGA) is considered one of the most reputable iGaming licensing bodies in the world. Its credibility lies in its transparency and rigorous auditing processes. To obtain an MGA license, companies must undergo thorough scrutiny of their financial foundations, operational structures, game fairness, and anti-money laundering measures.
Even after receiving the license, annual audits are mandatory, and any regulatory violations may result in suspension or revocation of the license. This strict regulatory stance enhances trust among users and earns credibility from financial institutions and business partners worldwide.
3. Benefits for Operators
The greatest advantage of operating an iGaming business in Malta lies in its well-developed business environment. Although the corporate tax rate is officially 35%, foreign shareholders are eligible for tax refunds of up to 85%, effectively reducing the rate to around 5%. This favorable tax scheme has attracted both startups and major enterprises to establish their headquarters in Malta.
As a member of the EU, Malta offers legal stability and trusted licensing, making it easier for companies to expand into other markets. In addition, the country’s use of English, availability of skilled labor, and robust infrastructure (such as telecommunications and office space) contribute to an ideal environment for business establishment and global market access.
4. Comparisons with Competitor Jurisdictions and Challenges
Several countries issue iGaming licenses, including Curaçao, Cyprus, and Gibraltar, often compared to Malta. Curaçao, for instance, offers inexpensive licenses with lenient screening, leading to concerns about its credibility. Gibraltar, known for its compatibility with the financial sector and popularity among UK firms, has lost some appeal following Brexit.
Malta itself faced scrutiny in recent years, especially when it was placed on the FATF (Financial Action Task Force) grey list. However, through strengthened regulations and improved transparency, it was removed from the list in 2022. Going forward, Malta must continue adapting to global regulatory standards and technological innovations, with expectations for its authorities to maintain both flexibility and credibility.
5. Future Outlook and Malta’s Global Position
Malta is committed to maintaining its leadership in the iGaming sector by embracing emerging technologies. The country has been proactive in establishing legal frameworks for blockchain and cryptocurrencies, which has positioned it well for integration with crypto casinos.
Moreover, Malta is preparing to comply with upcoming EU regulations, such as DORA (Digital Operational Resilience Act) and MiCA (Markets in Crypto-Assets), which are set to take effect in 2025. With its focus on sustainable industry growth and international trust, Malta will likely remain an attractive hub for iGaming businesses around the world.