Malta Gambling License: How to Get It in 2022 | BGaming

Malta Gambling License: How to Get a Gambling License in Malta in 2022

Articles
19.05.2022

Why Do I Need a Gaming License?

To organize a legal online casino, you need to obtain a gambling license. This is a special document that ensures the legal operation of an online casino or sportsbook. To avoid problems with the law, a gambling license is a prerequisite for opening an online casino. Moreover, a license is proof you act transparently, in accordance with the law, which increases the loyalty of customers and your partners.

In addition to the above reasons, a license is needed to cooperate with game providers, open a merchant account, process payments, and others. But what matters most, if you do not want to risk your reputation, then a gambling license is obligatory for opening  iGaming business.

It can be difficult to get a gambling license since the process takes up to several months and also requires a significant investment. Depending on the chosen jurisdiction, the conditions will differ. But anyway, the process of obtaining a license includes collecting the necessary documents, filing an application, and checking for compliance with the requirements. 

Among the big list of various jurisdictions where you can get a license, there are some of the most recognized ones. Malta Gaming License is especially valued because it serves as a kind of safety guarantee. Let’s see all the steps of obtaining a Maltese License in more detail.

Maltese License Features 

The Malta Gaming Authority, or MGA, is one of the most respectable gambling authorities that grant gambling licenses. For over 20 years, the MGA has been regulating gambling businesses, including online casinos and sportsbooks.

You can claim B2B and B2C gaming licenses. The first one is given to game and software developers. The B2C licenses are issued to the iGaming operators and can be of 4 types:

Type 1. For organizing a gambling business where a random number generator is involved, such as online casinos, online slots, etc.

Type 2. This type is suitable for organizing a sportsbook.

Type 3. If you are going to organize games with the commission from betting or a prize pool, then this is the type you need. 

Type 4. The license allows operators to implement games such as fantasy sports.

You can claim different gambling licenses simultaneously. It should be mentioned that the conditions will vary depending on the type of the chosen license. By the way, if you already have a Maltese license and want another one, then you don’t go through the process of obtaining a license again. It will be enough to pay the appropriate fees. All licenses are valid for 10 years.

The Malta Gaming Authority treats both experienced operators, and those who have just entered the market very favorably. If your company has only been in business for a couple of years and gains less than €10 million in revenues, then you may be exempt from the Compliance Contribution fee for the first year.

3 Steps To Get a Maltese License in 2022

Decide on the type of gaming license and submit an application. After that, the MGA checks whether your business meets the requirements. However, before we discuss the points, there is a very important condition without which you will not be issued a license. The operator needs to have a real-life office in Malta. Moreover, the head of the company must work in the Maltese office and meet the requirements of the commission.

Once you submit the application, the commission checks the functioning of your casino. This applies in particular to the financial audit of the business. Moreover, they collect and verify the data on the key persons involved in it.

Also, along with the application, you provide a business plan. Therefore, before applying, prepare a detailed business plan. The commission will evaluate various aspects, including financial projections and even recruitment.

The next step is to check the operational activity. The Malta Gaming Authority must make sure that your business is transparent. At this stage, the registration of a legal entity, business structure, policies, and other documents are checked. In addition, the MGA verifies a paid-up share. Type 1 and 2 require €100,000 each, while Type 3 and 4 need €40,000 per license.

Final Reviews

As soon as you complete the first three steps, the MGA announces its decision. When the application is approved, the system audit of the platform follows. At the step, they need to make sure you follow the business plan and act according to the application. If your business meets the requirements, you receive a license. Otherwise, you must re-apply for the license.

90 days after you receive the license, the MGA will allocate its specialist to manage the final checks. They verify whether you comply with the MGA requirements, your business plan, and other regulations. The Malta Gaming Authority is very precise in issuing licenses, so obtaining a license can take about 4-6 months. However, players find this approach very trustworthy and reliable.

How Much Does It Cost?

When submitting for a license, you pay fees. Some fees have a fixed price, and the others will vary depending on the type of license you want to obtain. 

You are responsible to pay €5,000 upon the application. The price is fixed for all types of licenses. By the way, the application fee for license renewal is €5,000 too. Also, operators pay €1,000 for a Material Supply Certificate. 

As for annual payments, if you want to maintain the Material Supply Certificate, you pay €500 every year. The annual license fee will cost €25,000 for Type 1, 2, 3, and €10,000 for Type 4 licenses. The annual compliance contribution fee is calculated by special formula and varies with the business revenue. By the way, if you have entered the market less than 5 years ago and your income doesn’t surpass €10 million, you can be exempted from Compliance Contribution for the first year.

Risks Of Skipping Gambling License

At the beginning of the article, we already talked a little about why a license is a prerequisite for a legal online business. However, a casino without a license can have many more negative outcomes, including fines and business closure.

First, unlicensed casinos limit their business opportunities. People do not trust such websites, which means it will be more difficult to cooperate with game providers. You can forget about the generous library of online games and entertainment that attract users. Moreover, online players are focused on legal and safe gambling. Therefore, casinos without licenses are usually avoided.

The skipping of a license can lead to serious punishments. Depending on the jurisdiction, penalties can range from €10,000 up to imprisonment. For example, if a person opens an unlicensed casino in Malta, he risks getting up to 5 years in prison.

Conclusion

A gambling license is a necessity for organizing a legal and reliable online business. The Malta Gambling License is a great opportunity to secure your casino and, most importantly, gain the customers’ loyalty.

Obtaining a license in Malta stands out with high fees and taxes, however, it can pay off in a few months. Illegal activity isn’t worth risking reputation, money, or anything else. What is more, you will receive a license that is widely valued around the world. 

To organize a legal online casino, you need to obtain a gambling license. This is a special document that ensures the legal operation of an online casino or sportsbook. To avoid problems with the law, a gambling license is a prerequisite for opening an online casino. Moreover, a license is proof you act transparently, in accordance with the law, which increases the loyalty of customers and your partners.

In addition to the above reasons, a license is needed to cooperate with game providers, open a merchant account, process payments, and others. But what matters most, if you do not want to risk your reputation, then a gambling license is obligatory for opening iGaming business.

It can be difficult to get a gambling license since the process takes up to several months and also requires a significant investment. Depending on the chosen jurisdiction, the conditions will differ. But anyway, the process of obtaining a license includes collecting the necessary documents, filing an application, and checking for compliance with the requirements. 

Among the big list of various jurisdictions where you can get a license, there are some of the most recognized ones. Malta Gaming License is especially valued because it serves as a kind of safety guarantee. Let’s see all the steps of obtaining a Maltese License in more detail.

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