Malta is a country known for its relative acceptance of online gambling; however, a lot more is happening behind the scenes than you might initially see. So, without further ado, it’s time to dive into this tantalising topic. 

Gambling Is Legal but Not a Free-for-All

Malta has a permissive but highly structured approach to gambling. You see, according to OnlineCasinos.mt, a reputable and trustworthy operating platform, the key regulatory body is the Malta Gaming Authority (MGA), which oversees both land-based and remote (online) gambling. In Malta, you’re allowed to operate gambling activities if you have the appropriate license and the range of licensed services is broad:

• Casino games
• Sports betting
• Lotteries (including the National Lottery)
• Bingo (also called tombola)
• Fantasy sports
• Skill-based games (if regulated)
• Non-profit or de minimis games
• Gaming devices and amusement machines

The catch? You must be licensed; that’s it. 

Games of Chance vs. Skill Games

One of the tricky parts is how gambling is defined. Maltese law uses the term gaming to cover all gambling activities. But within that umbrella, you’ll find several categories that are treated differently under the law.

Malta distinguishes between games based on how outcomes are determined:

• Games of chance: Results are driven by randomness or events you can’t influence (like roulette or slot machines).
• Skill games: Your ability or knowledge matters more than luck. These include trivia contests or some types of eSports.
• Controlled skill games: These sit in the middle ground and fantasy sports fall into this category and do require a license.

If you’re offering a skill game, the burden is on you to prove it isn’t mostly luck-based. The MGA can issue a specific ruling if you’re unsure how your game will be classified.

Other Emerging Gambling Formats

There are also more niche areas to consider:

• Fantasy sports: These are controlled skill games and you need a license to operate them.
• Spread betting and pool betting: These fall under betting and are regulated.
• Free prize draws: If there’s no payment required to participate and no monetary prize, they’re generally exempt.
• De minimis games: These are small-scale raffles or tombolas, with a max stake of €1 and a prize cap of €100. You can only run a limited number each year.

Remote vs. Land-Based Gambling

Malta makes a clear legal distinction between remote (online) and land-based gambling. Both are legal but they have different licensing requirements.

If you’re setting up an online gambling operation, you’ll need a remote gaming license. This could fall under one or more of these categories:

• Type 1: Games of chance against the house (e.g., online slots or blackjack)
• Type 2: Betting on external events (e.g., sports betting)
• Type 3: Games not against the house, like poker or bingo
• Type 4: Controlled skill games, like fantasy sports

The Role of the Malta Gaming Authority

The MGA is the gatekeeper when it comes to licensing, compliance and enforcement. If you’re applying for a license, expect a thorough review of your business plan, financial background and operational setup.

People in key roles within your operation, like compliance officers or risk managers, must apply for what’s known as a key function certificate. This ensures the MGA knows who’s in charge and can hold individuals accountable if things go wrong.

Taxes and Fees

If you’re a business, you’ll be taxed 5% on the gross gaming revenue generated from Maltese players. Other costs include licensing fees, a compliance contribution and levies on gaming devices. Players themselves don’t pay income tax on their winnings, which makes Malta attractive from a user perspective as well.

Payments and Crypto

When it comes to how players fund their accounts or cash out, operators can only use licensed payment service providers. That said, Malta has made room for innovation by allowing the use of virtual financial assets (VFAs) and blockchain systems, provided you follow strict rules, including submitting a legal opinion and working with approved custodial wallet providers.

Staying on the Right Side of the Law

Malta takes compliance seriously. Breaching gambling laws, whether through unlicensed operations, failing to meet money laundering obligations or improper advertising, can land you in hot water. Penalties range from administrative fines to imprisonment in the most serious cases.

In addition to the MGA, the Financial Intelligence Analysis Unit (FIAU) plays a big role in monitoring anti-money laundering efforts. Operators must conduct due diligence, assess player risk and report suspicious transactions. All of these contribute toward a safer gambling environment. 

Player Safety Comes First

The whole point behind all of these regulations is to make sure that players are safe and secure when they engage in games; that’s it. Player safety is the most important thing and that’s why Malta is working as hard as it is to ensure this. However, the buck also falls on the players who need to ensure that they play with responsibility in mind, never invest more than what they have readily available and don’t spend too much time on sites. 

Disclaimer: Players must be 18 years + to partake in any gambling, betting or casino activity. Players are urged to seek help if they require it. Players play at their own risk.