Malta Gaming License: Highest Standard in The Gambling Industry
Malta gaming license is known to be very popular and reputable. They are the highest standard of licensing jurisdiction up to date. Malta is popular for two reasons. First of all they offer easier not working so you can expand your business into a broader client base.
On top of that they offer one of the best player protection to every stakeholder. Malta uses what is known as the Malta gaming authority. It is not that easy to enter them but you will be surprised on what you can get in Malta. Malta offers its clients easier access to opening new bank accounts and payment provider.
One special thing to keep in mind is that Malta is the most expensive license to apply to. Their jurisdiction is so high quality that there is a alarm application process. You cannot get a license within a couple of weeks and said it will take a minimum of around 3 months.
The process will require all of the applicants to be patient because there will be lots of process. You’re also going to be required to provide additional information of yourself and other types of stakeholder. But in the end your company will benefit a lot because of all the benefits that Malta offer.
There are many consultants at third party provider out there. In general they do not advise new companies or startup companies to register in the Malta jurisdiction. The main reason is because Malta is still a very pricey license to have.
Most of their clients already have Malta-million dollars if not billion dollars worth of net worth. You were companies who try to apply will waste a lot of time and money in the process. Instead you can transition from another license to Malta later on.
Clients are sure to get their profit back after a couple of months. This is because Malta has a very good networking partnership. You can even get players from all around Europe.
Benefits of applying to Malta jurisdiction
Malta is very costly because eventually the cost will pay off. There are dozens of benefits that you can get from applying in Malta. When applying to Malta you will be regulated but also hold a high reputation.
One of the main benefits that anyone can get is the prestige and reputation. Malta is already popularly known as the license provider for all huge casinos. The name itself already has a ring to it. First of all you are online casino will be listed in the Malta online casino list.
On top of that your website may even be promoted all around Europe to get more clients. This can only happen if your company keep on being regulated by Malta.
Game Friendly to Everyone
The games served by this jurisdiction has to go through a very lengthy process before it can be approved. Each game will be tested by its fair play and random number generator. If there’s a game that is proven to be unfair or cheating then a company might risk losing its company. The Malta region is filled with qualified staffs to serve all of its clients.
The Malta gambling commission is built upon trust. All of the players already trusted jurisdiction enough to run freely. Up to this date the amount of gambling license is a very competitive market.
They need to gain the trust of their customer in order for the players to play in their website. Malta is always amazing at maintaining this. To maintain this, Malta will always do routine checks.
The routine checks include surveying and investigating all of the games. Malta jurisdiction is also anti-fraud. They’re going to ban all types of money laundering schemes with right regulations.
Tax Benefits of Malta
Even though Malta is expensive, there are several types of tax benefits that you can get. The motor jurisdiction will require people to pay taxes as normal. The amount of text may not be as cheap as other types of jurisdiction.
But do not need to worry because the tax is still low and it is set at 3%. You can even have negotiation deals which will lower the tax rate up to 1% or 2%.
The bigger the company means that the bigger tax breaks that you will get. This can all be negotiated and the tax rate is actually much more flexible than anyone think.
Keep in mind that Malta is already a developed region. You may get players from inside the region and there is an additional tax to this. Usually there is an additional player tax of up to 5%.
You only need to pay the revenue that you got from Maltese players. Outside of that there’s no other additional fees besides the maintenance fees.
Malta is a very stable region. They are politically stable and financially stable. Stability is very important so that the regulations that has been sent will not change easily. If you make a license in an unregulated area then the tax rate might jump up to 10%.
Malta is registered as a member of the European union on 2004. Hence making it really stable region that won’t easily change regulation at all. Malta has also adapted new regulations and technology.
They are never up to date and this is what makes Malta reputable. When other region is falling behind, Malta gives new policies.
Double tax treaties
There are many people who will play online casino games all over the world. They may come from regions such as asia, australia, Latin america, and europe. In these cases you’re going to have to pay taxes. All online casinos is required to pay certain amount of tax.
Taxes get more expensive because now you need to pay tax from two different regions. That is why the double tax treaty is very important.
With this policy in mind you don’t have to pay double taxes at all. You are only required to pay one type of tax which is the one we have explained before.
Access to a broader market
Malta may not be the first jurisdiction that is active. But they’re also one of the most reputable one right now. Due to the standard they are able to Branch out to many different sponsors and partnerships.
For example a company like yours can easily get access to payment providers. As a company you’re only allowed to provide games to region that already legalizes these types of activities.
You’re still unable to provide games in for example FATF blacklisted countries. All in all, the player base will always be high under Malta jurisdiction.
What are the Basic Requirements to Apply for a Malta License?
Malta is a very demanding jurisdiction with lots of regulations and policies. This is a new thing because you cannot find this in other types of jurisdiction.
The main reason why Malta has a very high standard is because they really want to have the same standards for all of their clients. Malta is known to be prestigious and having frauds or scams will ruin that reputation.
Down below we’re going to talk more about the requirements to apply in a Malta jurisdiction. Keep in mind that these regulations may change in the future.
The Malta gaming authority is very flexible and they may ask for more information later on. Sometimes it goes to the extent of even asking for meetings.
The Malta gaming authority offers two types of licenses. These two licenses are very different to each other. The application process is applicable to these two types of licenses which are the B2B license and B2C license.
You only need to apply to one of them. The B2B license specifically used for offline casinos. And the b2c license is usually used for online casinos. You are given the freedom to apply to whichever one you want. After that you can pay an annual fee or renewal fees.
During this course of time all clients are given the choice to extend their licenses or even change them.
Currently the application process is much more easier in the year of 2021. The Malta gaming authority have done some regulation and policy changes.
Basic Requirements to Apply for Malta License
Malta license can be complicated. Each applicant has to submit their own documents, which includes owners and directors.
- Must own a fit and proper test
- Must have a clear criminal record
- Notarized proof of company ownership
- Must show proof that you are capable of operating business and provide a good business strategy
- Photocopy of Bank references and must be within 3 months
- Letter of complaint to all the software be used for audit
- All server and hosting must be done within Malta
Malta License Application Process
Applying for a license in Malta is not as complicated as anyone think. Of course it will still take a lot of time and go through a lot of bureaucracy. You may refer to a consultant so that the paperwork can be submitted any much more effective way. You
Overall the process will take around 50 weeks in total. You can even say that the application process takes over a whole year and even quicker. All this depends on the documents that you have provided and they must be validated. After the validation, representative will be asked for meetings several times.
This is also known as the pre-application process in which you will be informed for a meeting. The Malta gaming authority will do evaluation on your company.
After that they are going to do a deeper check on your company so that you can start operating using a Malta license. All of this seems complicated but it is all done to ensure the highest quality of standards.
Fit and Proper Test
Fit and proper test is a part of your application. Any applicants must prove that they are able to run the company. This will also include the fact that you have working experience in the field of the gambling industry.
The Malta gaming authority will check different factors of this test. For example if you’re able to have a good business strategy which will actually profit the company. Without this then the applicant may not qualify for a license.
One important thing to know is that is fit and proper that comes with a meeting face to face meeting. You’ll be asked regarding your career and qualifications. If you’re capable enough then you will surely pass the license test.
The capability of the director or manager will really be tested here. The Malta gaming authority works with different types of government bodies.
So you also need to expect a different types of checks and maintenance that needs to be done. As long as your company is clean then applying for a Malta license is easy.
Evaluation of Company Finance
Malta conducts a lot of investigations as well as searches. They aim to search each detail regarding the company that is going to apply. Business owners are required to provide information such as business plans and all of the information regarding how your company is doing financially.
There are many steps to gain the Malta license. First of all is that the authority needs to make sure that your company is financially capable.
There will be many evaluation and consideration that has to be done. Malta will also search into things such as the future of your company. These things include targets, target income, and so much more.
Owners is also required to provide a certain type of business plan. Business plan is basically a schematic of how your business will operate, including budget and etc.
You must also provide additional information such as all of the software being used. Your website’s hosting and domain should also be located in Malta. This is one of the requirements to register in the Malta jurisdiction.
To apply, applicants have to pay a certain amount of fee. The fee ranges from around 40 thousand euros up to 240 thousand euros. This depends on how scaled your business is. Do not see this as a very ex[pensive purchase, instead it is a long term investment.
All applicants will be asked to submit their documents and identity. All of the documents provided must be legalized and notarized so that it can be confirmed. The faster you submit this then the faster that the liecnse will be produced.
Provide Company Representatives
As you might have known already, Malta have very complicated regulations which include a representative. A company who want to operate within Malta must integrate their company inside the Malta region.
After that, your company must also provide a representative for interviews and meeting. The position of these representative must be a director and secretary. Once this is done, then the application process can continue.
There are many requirements to apply since the policy update in October 2021. Hence not all applicants are eligible to actually apply. Even the chosen director and secretary must also face another round of background checks.
System maintenance and audit
System review is a part before your online casino can go public. The Malta Gaming Authority (MGA) has set a certain standard that must be fulfilled in order for a business to qualify. First of all, this is called as the system review and audit.
This process is much more technical hence there will be technicians that will take a look at the server and etc. On top of that, this will go on for around 60 days before it can be completed. Once complete then your website can go live.
On top of that, the 60 days of progress will also be followed up with an external system review. This system review will be conducted and compared with your business plan. Everything in your business plan must be appropriate with the system and server that you provide. So your initial proposal cannot just suddenly change as this will cause uncertainty for the business.
Next up, there is also a compliance audit. The compliance audit is important but this will be done during all of the review. All yo uneed to do is to comply to the request made by the Malta Gaming Authority. Anything suspicious will hinder your ability to get a license.
Issuing a License
This is the great news that everyone has been waiting for. The Malta Gaming Authority will only issue and release a license if all of the above is checked.
On top of that, do not forget that there are fees that has to be paid. You do not have to pay for renewal fees because this can be done at a later time. Thus concluding the whole application process.
Cost of the Malta Gambling License
People are confused and wondering why Malta can be so expensive. The truth is that Malta is the most expensive license provider out there. The reality is that the higher the quality then the higher the price will be.
Malta is suited specifically to cater the needs of huge companies. This is because Malta has so much more networking to tap into markets such as the EU, Asia, and Australia.
Hence you can actually get a lot of benefit when applying in Malta. There are many providers that is ready to provide assistance. This assistance will help you in understanding the whole process in more detail.
The budget that is prepared must be more than the one we have provided in this article. Budget and fees may rise or even go lower in the near future. It is only best that you can provide all of the fees to cover your application.
If the fee is only provided half way, then you cannot expect a license to be issued to that company. Companies such as Fast Offshore can provide you with a very detailed audit to know your total cost.
Different companies have different needs and budget. For example a huge gambling casino is different with a sports book company due to the games they provide. That is why you also need to know what your company is looking for. A license as expensive as Malta must generate enough revenue to cover the costs. If not then there is no point in applying for Malta.
Fast offshore is a recommended third party provider that ensure a smooth application process. They even give services to incorporate company inside the Malta region. After that you can open a corporate account linked to the company and the bank situated in Malta.
The Malta Gambling License Turnkey Package
Malta is already too expensive for some companies to begin with. That is why the turnkey package is provided to ease the application process. The Turnkey package is usually provided by a third party company who will be the middleman. Feel free to hire one of these companies to get an easier access to the application process.
Most of them already has over 20 years of experience in the gambling industry. Hence applying to a specific license will surely be easy. This package is created to cover the complicated part of your application such as administration. On top of that the application complication as well as corporate matters will also be handled.
The application process is of course very complex. Just one process of the application can take up to 6 weeks in order to complete. After that it can take up to months before your first license can be issued to you.
Be prepared for meetings such as in real life meetings. The online casinos and businesses must send a representative to attend the meetings.
If you feel like this application is hard, then you can find a consultant. Consultant will also help by answering all of the questions that you may potentially have.
What does the Malta Gambling License Provide?
The Malta gambling license is packed with dense benefits. Those benefits are such as shown down below:
- A Malta based company
- Infrastructure and an office based in Malta
- Provided with a director and secretary
- Easy application to B2C and B2B licenses
- Easy assistance to any complication
- Personalized consulting in case there are any additional questions.
Ongoing Maintenance for Malta License
Any company will have to go through a lengthy maintenanec process. There is always an ongoing maintenance to monitor all of the company’s progress. On top of that, you may need to follow and be compliant to all of the request.
This is so that your license will not go through with any further complication. This is a responsibility and must be fulfilled by the online business that wish to get a Malta license.
Taxes in Malta
Any company in Malta will be issued a tax rate of around 35%. This tax rate may seem so high and scary at first. But do not worry at all. That is only the corporate tax because there are other regulations within the jurisdiction. The jurisdiction allows what is known as an effecrive tax rate.
In the end, the effective tax rate will be around 5% or even lower. Initially all companies have to face a daring 35% corporate tax. But due to new regulations, you only need to pay around 6/8 of that original tax rate.
There is a now policy known as a tax credit in which you will get tax cuts. Hence making the tax rate of round 4% to 5%. This tax rate is already very low if you compare it to other European jurisdictions.
Another policy that you need to know is the gaming tax on B2C licenses. There is an additional tax rate that has to be fulfilled which is set at around 5%.
However, this regulation is only applied to all the revenues made inside of the region. This includes all of the Maltese players who play in your casino and generate a part of the revenue.
The Malta Gaming Authority
Malta is a regulated jurisdiction that is fully capable of operating a large scale license. They are responsible for protecting the players as well as giving the best service to all of their clients.
Malta started issuing out the B2B and B2C license since 2001. Since that date, Malta has been operating freely and partners with plenty of businesses all over the world.
There has been many changes in the regulation provided by Malta. Malta is a jurisdiction that is very flexible. They are always evolving and even adding new policies that legalizes cryptocurrency casino.
Easy innovation and structural changes can happen in Malta. You can expect a high quality service when applying to Malta and holding the license.
Malta became a jurisdiction that is in control of many huge companies. On top of that they also support new technology such as the blockchain. Right now, new companies may take a risk to apply to the MGA for a license. But note that this can be a bit pricy.
Malta is also focused on consumer protection. As a company, you need to be able to comply with the rules to provide proper regulation. These policies are created to prevent any underage gambling and minors from accessing online casinos.
Businesses that holds a Malta jurisdiction may also have to expect to provide a Know Your Customer platform.
Malta gaming authority is popular because they have so far not broken any laws relating to fraud. Malta actually works hand in hand with authorities to ensure safe gameplay.
All companies who want to make a lot of money must pass tests, maintenance, and system review.Hence you cannot do this freely without regulation at all.
Overall, Malta is very well coordinated and has a high standard to all business. Whether you are big or small, make sure that nothing goes wrong. Suspension may be applicable to businesses who do not comply with the rules and regulations.
Why is Malta the Best Choice for Big Companies?
Malta is an amazing choice for companies that have faced huge growth. The license provider market itself is expensive and getting a gambling license may not be so easy. There are things that will cost money such as merchant provider, access to more markets, and etc.
Malta can provide the complicated part which is more access and partnerships with sponsors. That is why a majority of the Malta jurisdiction comes from big names and software providers.
maller names will have a tougher time trying to get access to their services. The Malta gambling license can boost your company’s popularity by a lot. Malta have access to the European markets and you can expect countries such as Finland, Sweden, UK, Germany, and etc.
On top of that, the license owners are given the freedom to tap into many markets. You can easily access markets such as poker, online casino, and even e-sports betting.
All of this is only possible with the proper consideration that you can provide fair play. If it is proven to be successful, then applicants can expect a license to be issued as soon as possible.
We highly suggest that you switch jurisdictions. Try to a find a much cheaper jurisdiction to test the waters beforehand. After that, you can get a lot of additional growth to your company. For example your company company can provide a much higher quality service.