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Malta is a little island in the Mediterranean, just beneath Sicily and part of the EU. Small as it may be and with less than half a Million inhabitants, Malta is perhaps the most important online gambling jurisdiction in the world. It has granted licenses to well over 350 online gaming sites and has been doing so since the year 2000 through the Public Lotto Ordinance and later through the Lotteries and Gaming Authority (LGA). It has developed and created very specific and rigorous policies and procedures for remote gambling operations.
The “Remote Gambling Regulations” were completely restructured in 2004 and now it offers 4 different types of gambling licenses:
Class 1 gaming license: for operators providing online casino games, games of chance, and games that use a random number generator.
Class 2 gaming license: for online sports and betting operators.
Class 3 gaming license: for advertisers and promotion companies that operate from Malta.
Class 4 gaming license: for companies that host and manage remote gaming operations but are not themselves operators.
All companies wishing to license their gaming sites, must pay an initial licensing fee of approximately €2,500 along with other recurring licensing fees. Licenses have a validity of 5 years and the gaming tax is of 0.5% of the licensee’s turnover.
As is usual in many other jurisdictions, websites that have been granted a Maltese gaming license are not allowed to offer or take wagers from Maltese citizens.
It wasn’t until the year 2007 that Malta finally made it to the UK’s approved list of jurisdictions that match and/or surpass England’s high level of gaming regulations. This resulted in many companies with British gaming interests to settle in Malta.