Insights

Gambling Regulation in Malta: Essential Guidance for Operators and Investors

By Dr Gayle Kimberley, Founding Partner GKF Legal October 2025

Malta has solidified its reputation as a leading hub for gambling activities, both traditional and online, thanks to a regulatory environment that balances stringent oversight with commercial viability. As an EU member state, Malta provides licensed operators with access to a vast market while enforcing rigorous standards to protect players, prevent financial crime, and maintain industry integrity. In 2025, amid ongoing EU discussions on harmonised gambling rules and the rise of digital innovations, a thorough grasp of Malta’s framework is indispensable for those entering or operating within this sector.

At GKF Legal, our Gaming and Regulatory Practice routinely supports clients ranging from nascent online platforms to seasoned land-based establishments in achieving compliance and strategic objectives. This article presents a focused overview of gambling regulation in Malta, detailing its legislative basis, licensing options, key obligations, enforcement practices, and emerging trends. We aim to offer practical perspectives to help stakeholders identify pathways to success and avoid common pitfalls.

Legislative Basis and Evolution: A Framework for Growth

Malta’s gambling laws have developed significantly since the early 2000s, with the Gaming Act (Chapter 583 of the Laws of Malta), enacted in 2018, serving as the primary statute. This Act consolidated previous legislation, creating a cohesive system for both land-based and remote gambling. Overseen by the Malta Gaming Authority (MGA), an autonomous regulator founded in 2001, the regime aligns with EU freedoms, including the provision of services, while incorporating directives on anti-money laundering (AML) and data protection.

Subsidiary regulations, such as the Gaming Authorisations Regulations and Gaming Compliance and Enforcement Regulations, provide granular rules. Recent refinements, influenced by EU priorities, have strengthened player safeguards and integrated technologies like distributed ledger systems. Malta’s approach has propelled the sector’s economic impact, contributing around 12% to GDP, primarily through remote gaming, and positioning the island as a centre for innovation.

Defining Gambling Activities: Scope and Categories

Under the Gaming Act, “gaming” encompasses any activity where a stake is risked on an outcome influenced by chance or skill, with a prize at stake. This includes casino games, betting, lotteries, and electronic variants. The law differentiates between “gaming services” (direct to consumers) and “gaming supplies” (business-to-business support).

Principal categories are:

  • Land-Based Operations: Physical venues like casinos, arcades, and bingo halls, often tied to specific premises approvals.
  • Remote Operations: Online and mobile platforms, which form the bulk of Malta’s industry due to advanced digital capabilities.
  • Chance vs Skill: Pure skill games may evade full regulation, but mixed elements require MGA evaluation.

Commercial activities demand licensing, with exemptions for small-scale charitable or social events. For emerging formats involving virtual assets, MGA guidance ensures compatibility with broader EU rules like the Markets in Crypto-Assets Regulation (MiCAR).

Operators serving Maltese players or based in Malta must adhere, with licensed entities enjoying EU-wide passporting privileges.

Licensing Pathways: Securing Authorisation

All commercial gambling requires MGA approval, with a process emphasising due diligence and sustainability. The main licences are:

  • Gaming Service Licence (B2C): For operators providing services directly to players, divided into four types based on activity:
    • Type 1: Games of chance against the house, using random number generators (e.g., online slots, roulette, lotteries).
    • Type 2: Fixed-odds betting on external events (e.g., sports wagering, pool betting).
    • Type 3: Peer-to-peer games of chance (e.g., poker networks, bingo, betting exchanges).
    • Type 4: Controlled skill-based games (e.g., fantasy sports with prize elements).
  • Critical Gaming Supply Licence (B2B): For suppliers offering essential software, platforms, or systems to licensed operators, excluding direct player interaction.

Additional options include:

  • Recognition Notices: For holders of equivalent licences from other EU/EEA states, granting similar rights in Malta without full re-application.
  • Corporate Group Licences: Available to affiliated entities under common ownership, streamlining group-wide operations.

Applications entail submitting business strategies, financial forecasts, and evidence of compliance. Essential criteria encompass:

  • Fit and Proper Assessment: Background checks on key individuals to confirm integrity and competence.
  • Financial Viability: Minimum share capital from €40,000 (for Type 3 or 4) to €100,000 (for Type 1 or 2), ensuring operational stability.
  • Technical Integrity: Systems must feature certified fairness mechanisms, robust security, and AML tools per the Prevention of Money Laundering Act.
  • Player Safeguards: Measures to promote responsible gaming, including age verification (18 minimum, with 25 for Maltese residents in land-based casinos).

The timeline typically spans 4-6 months, with fees including a €5,000 non-refundable application charge and annual contributions scaled to revenue (up to 1% of gross gaming yield). Licences last 10 years, renewable upon review.

In our practice at GKF Legal, we stress comprehensive preparation: shortcomings in AML protocols or technical audits often delay approvals.

Obligations and Player Protection: Fostering Responsibility

Licensed operators must uphold high standards, with a strong emphasis on ethical conduct. Responsible gaming requirements include tools for self-exclusion, deposit caps, and session reminders, alongside partnerships with support bodies like the Responsible Gaming Foundation.

AML and counter-terrorism financing duties mandate customer due diligence and suspicious activity reporting, integrated with EU AML directives. Technical compliance ensures game fairness and data security under GDPR.

The MGA monitors through audits and inspections, with authority to levy fines (up to €500,000 per infraction), suspend activities, or revoke licences for breaches.

Current Trends and Considerations: Adapting to the Future

In 2025, Malta’s sector contends with EU-wide reform proposals and technological shifts. Updates to MGA policies have enhanced cybersecurity alignment with the Digital Operational Resilience Act (DORA) and addressed integrity in sports betting. Brexit continues to affect cross-border dynamics, while economic factors like inflation prompt discussions on incentives, bolstered by Malta’s attractive tax structure (effective 5% for non-domiciled owners).

Opportunities lie in AI-enhanced platforms and esports, but challenges such as cyber risks and regulatory convergence require vigilance.

Strategic Insights: Capitalising on Malta’s Advantages

Malta’s regime extends beyond mere authorisation, offering a foundation for international expansion through EU access, tax benefits, and a proficient, English-speaking talent pool. Compliant operators can leverage this for competitive edge, but success demands ongoing governance, including ESG integration.

For entities outside the EU, Malta represents a strategic foothold, though local nuances must be respected. At GKF Legal, we regard this as an opportune era: with the industry valued at over €3 billion, well-prepared participants will thrive.

Collaborating with GKF Legal in Malta’s Gaming Landscape

Whether pursuing a licence or enhancing compliance, Malta’s gambling regulations necessitate skilled guidance. GKF Legal has aided over 35 clients in this domain, delivering tailored advice on applications, disputes, and growth strategies.

Should Malta’s prospects align with your goals, we encourage engagement. Arrange a confidential discussion at info@gkflegal.com. In gambling’s intricate domain, expert partnership is paramount.

Dr Gayle Kimberley is a Founding Partner in GKF Legal’s Gaming and Regulatory Practice, specialising in EU and Maltese gaming law. The views expressed are her own and do not constitute legal advice.