Earlier on this year, the Government of Malta has issued Legal Notice 31 of 2017 entitled Skill Games Regulations, 2017. These new regulations are applicable to skill games that provide that all skill games organised in Malta from the territory of Malta or promoted or offered to persons in Malta shall be regulated with the burden of proving that an activity is a skill game resting on the party operating or promoting such activity. The new regulations provide for the requirement of a license from the Malta Gaming Authority (MGA) for prospective operators of controlled skill games, so that these may service end users and/or supply business to business.
This license, which shall be valid for five years, is subject to the applicant meeting the stipulated regulatory requirements, including but not limited to the screening of persons behind the operation and measures to prevent fraud and money-laundering. The MGA retains the right to decide whether the applicant has in fact satisfied the criteria for issuing this license.
The fees linked to this new license include an application fee of €2,300, and once issued, an annual fee of €8,500 will be paid in advance. Gaming operators will also be subject to reporting and operational requirements, including tax reports, information on corporate structure, protection of players’ funds, and fair and transparent game rules, among others.
Moreover, applicants shall be liable to pay a 5% tax on real income, which shall be determined as total wagers less total money paid out to players. The maximum annual tax paid by a single controlled skill game operator shall not exceed €466,000.
Our professionals at ACT can help you understand the changes and identify how these will impact your business. We can also guide you through the required steps that need to be taken to comply with such regulations.
