Malta Gaming Authority Licensing Costs Reach $25K-$50K Upfront with $600K Annual Compliance

The Malta Gaming Authority (MGA) continues to refine its licensing structure, with upfront costs ranging from $25,000–$50,000 and annual compliance contributions reaching up to $600,000 for high-revenue operators. These fees reflect Malta’s status as a premier iGaming hub, balancing rigorous regulation with market accessibility while maintaining the jurisdiction’s competitive edge in the global gaming landscape.

Key Takeaways

• Application fees start at €5,000 ($5,450) for all license types
• Initial annual license fees range from €10,000-€25,000 depending on license type
• Annual compliance contributions can reach €600,000 ($654,000) for high-revenue operators
• Companies must maintain minimum share capital of €40,000-€100,000 based on game types
• Startups benefit from a 12-month moratorium on compliance contributions

Upfront Licensing Costs

All prospective licensees must pay a non-refundable application fee of €5,000 ($5,450) regardless of the license type they’re pursuing. This fee covers the MGA’s initial due diligence and application processing costs.

The application review process typically takes between 12-16 weeks and involves thorough background checks on key personnel, financial stability assessments, and technical compliance verification. The MGA’s enhanced due diligence procedures implemented in 2024 have extended this timeline slightly but have resulted in higher-quality operators entering the market.

“The application fee represents just the entry point to a comprehensive regulatory assessment,” explains Maria Grech, a Malta-based gaming attorney with WH Partners. “Prospective licensees should prepare extensive documentation covering corporate structure, financial projections, anti-money laundering procedures, and responsible gaming policies before submitting their application.”

Initial Annual License Fees

The MGA structures its license fees based on the business model and services offered, with a carefully calibrated system that reflects the different risk profiles and regulatory oversight requirements of various gaming operations:

*Converted at EUR 1 = USD 1.09 (March 2025).

These initial fees must be paid before the license is issued and represent just the beginning of the compliance investment required to operate in Malta’s regulated environment. The differentiation between B2C (business-to-consumer) and B2B (business-to-business) reflects the MGA’s risk-based approach to regulation, with direct consumer-facing operations facing higher scrutiny and corresponding fees.

For operators seeking multiple license types to cover diverse gaming offerings, the fees are cumulative. For example, a company offering both casino games (Type 1) and sports betting (Type 2) would need to pay separate license fees for each category, significantly increasing the initial investment.

License Type Classifications

The MGA’s licensing framework categorizes gaming activities into specific types, each with distinct regulatory requirements:

• Type 1: Games of chance played against the house where outcomes are determined by random number generators. This includes slots, roulette, blackjack, and other casino games.
• Type 2: Games of chance played against the house based on matchbook outcomes. This primarily covers fixed-odds betting on sports and other events.
• Type 3: Games of chance not played against the house where operators generate revenue through commissions or hosting fees. This includes peer-to-peer games like poker, bingo, and betting exchanges.
• Type 4: Controlled skill games where outcomes are determined by player skill and knowledge rather than chance. This covers fantasy sports and certain competitive games.

“Understanding which license types apply to your business model is crucial for accurate budget planning,” notes Joseph Borg, Partner at WH Partners and former MGA legal counsel. “Many operators underestimate the complexity of Malta’s licensing framework and fail to account for all necessary license types in their initial projections.”

Additional Setup Costs

Beyond the basic application and license fees, operators must also account for several other upfront costs that form part of the comprehensive regulatory framework:

Administrative Fees

• Domain additions: €100 ($109) per additional domain registered under the license
• New premises approval: €1,000 ($1,090) for each physical location added to the license
• Key function holder approvals: €50-€100 ($55-$109) per executive or manager in regulated roles
• Corporate structure changes: €500-€1,500 ($545-$1,635) for ownership or significant management changes

These fees ensure proper oversight of all aspects of licensed operations, maintaining regulatory control as businesses evolve and expand.

Share Capital Requirements

Malta imposes minimum capital requirements to ensure operators have sufficient financial resources to meet player obligations and operational commitments:

• Games of chance and fixed-odds betting: €100,000 ($109,000) minimum share capital
• Social gaming (poker, bingo, etc.): €40,000 ($43,600) minimum share capital
• B2B providers: €40,000 ($43,600) minimum share capital

This capital must be fully paid up and maintained throughout the duration of the license. The MGA conducts periodic financial reviews to verify compliance with these requirements, with potential licensing consequences for operators who fall below the thresholds.

Technical Compliance and Setup

• System certification: Independent testing laboratory certification costs €10,000-€50,000 ($10,900-$54,500) depending on platform complexity
• Technical documentation: Preparation of detailed technical submission documents typically costs €5,000-€15,000 ($5,450-$16,350) when prepared by specialized consultants
• Infrastructure setup: Malta-based hosting or cloud infrastructure with appropriate specifications adds €2,000-€10,000 ($2,180-$10,900) in monthly operating costs

These technical requirements ensure gaming systems meet Malta’s stringent standards for fairness, security, and player protection before they can go live in the regulated market.

Professional Services

Most operators engage specialized legal and consulting services to navigate the complex application process:

• Legal consultation: €15,000-€50,000 ($16,350-$54,500) for comprehensive application preparation
• Compliance consultancy: €10,000-€25,000 ($10,900-$27,250) for developing required policies and procedures
• Ongoing compliance officer: €60,000-€120,000 ($65,400-$130,800) annual salary for a mandatory in-house compliance professional

“The professional services component is often underestimated in initial budgets,” cautions Stephanie Cassar, Director at CSB Compliance. “Engaging specialists with experience in Malta’s regulatory environment significantly increases approval chances and reduces costly delays, making it a worthwhile investment despite adding to upfront costs.”

Annual Compliance Contributions

Beyond the initial licensing costs, Malta implements a progressive compliance contribution system based on annual revenue and license type, creating a regulatory funding mechanism that scales with operator size and activity.

B2C Operators

B2C operators face the most substantial ongoing compliance costs, with contribution rates varying by license type and applied to gaming revenue tiers:

The tiered structure reflects the MGA’s philosophy that larger operators should contribute proportionally to regulatory oversight while ensuring smaller companies and startups aren’t overburdened with prohibitive fees.

Type 1 licenses covering casino games and slots have lower contribution rates than Type 2 (sports betting) and Type 3 (peer-to-peer gaming) licenses, reflecting the different risk profiles and compliance monitoring requirements of various gaming verticals.

“The contribution structure incentivizes diversification,” explains Dr. Carl Brincat, CEO of the Malta Gaming Authority. “By applying different rates to different gaming verticals, we encourage operators to develop varied portfolios that can better withstand market fluctuations while ensuring appropriate regulatory funding.”

B2B Operators

B2B operators that supply gaming software and services to client-facing businesses face a different contribution structure based on their annual revenue:

This fixed-fee approach for B2B providers contrasts with the percentage-based system for B2C operators, reflecting the indirect nature of B2B services and their lower direct compliance risk. The stepped increase ensures B2B providers contribute proportionally to their commercial success without the administrative complexity of revenue-percentage calculations.

Gaming Tax Considerations

In addition to compliance contributions, operators must account for Malta’s gaming tax on revenue generated from Malta-based players:

• Standard gaming tax rate: 5% of gross gaming revenue from Malta-resident players
• Tax reporting: Monthly declarations required through the MGA’s online portal
• Enforcement: Tax compliance is a condition of license maintenance

While Malta-based player revenue typically represents a small portion of most international operators’ business, maintaining accurate player location verification and tax reporting remains a critical compliance obligation.

Important Exemptions and Special Provisions

The MGA has implemented several measures to support market dynamism and new entrants:

• Startup moratorium: Newly established operators benefit from a 12-month grace period on compliance contributions, allowing them to establish their business before incurring these substantial costs
• Contribution caps: Maximum annual compliance contributions are capped at €600,000 ($654,000) per license type, providing certainty for the largest operators
• Minimum thresholds: Contributions start at minimum thresholds of €15,000-€25,000 ($16,350-$27,250) depending on license type, ensuring baseline regulatory funding
• Multi-license discounts: Operators holding multiple license types receive a 5% discount on total compliance contributions when exceeding €100,000 ($109,000)

“The startup moratorium has been crucial for Malta’s continued attractiveness to emerging companies,” notes Anthony Axisa, Gaming Specialist at Grant Thornton Malta. “It provides a runway for new ventures to establish market traction before facing the full financial burden of compliance contributions, supporting innovation in the sector.”

Technical and Operational Requirements

Malta’s regulatory framework includes specific requirements for gaming system infrastructure:

• Core gaming equipment: Critical components must be physically located in Malta or in approved EU/EEA jurisdictions with equivalent standards
• Disaster recovery: Mandatory backup systems with demonstrated failover capabilities
• Data retention: Player and transaction data must be stored for minimum periods on Malta-based servers
• Regular testing: Ongoing system testing and vulnerability assessments required at 6-12 month intervals

These technical requirements add to both upfront and ongoing operational costs, as operators must maintain compliant infrastructure throughout their license term.

Technical Audits and Certifications

The MGA requires regular independent verification of gaming systems:

• Initial certification: Comprehensive testing before license issuance, costing €10,000-€50,000 ($10,900-$54,500)
• Annual compliance audit: Yearly verification of ongoing technical standards adherence, approximately €8,000-€25,000 ($8,720-$27,250)
• Change management: Additional testing required for significant platform updates or new game integrations

These testing procedures must be conducted by MGA-approved independent testing laboratories, creating another layer of ongoing compliance expense.

Staffing Requirements

MGA licenses come with specific personnel requirements:

• Key function holders: Mandatory designated individuals responsible for critical areas including compliance, AML, finance, and technical operations
• Local presence: At least three key employees must be Malta-based
• Fit and proper criteria: Background checks and qualification assessments for all key personnel
• Compliance training: Mandatory ongoing education for staff in regulated roles

These staffing requirements contribute significantly to operational costs, particularly the need for Malta-based personnel in key positions.

Case Study: High-Revenue B2C Operator

To illustrate the full financial commitment, consider a Malta-licensed online casino generating €50M in annual revenue with both Type 1 (casino games) and Type 2 (sports betting) licenses:

First Year Costs

• Application fee: €5,000 ($5,450)
• License fees: €25,000 x 2 license types = €50,000 ($54,500)
• System certification: €35,000 ($38,150)
• Legal and consulting: €40,000 ($43,600)
• Technical setup: €25,000 ($27,250)
• Minimum share capital: €100,000 ($109,000)

Total upfront investment: €255,000 ($277,950)

Annual Recurring Costs (Year 2 onwards)

• License maintenance: €25,000 x 2 license types = €50,000 ($54,500)
• Compliance contributions:
  • Type 1 (casino): Approximately €445,000 ($485,050)
  • Type 2 (sports betting): Approximately €600,000 ($654,000)
• Technical audits: €20,000 ($21,800)
• Compliance staffing: €150,000 ($163,500)
• Infrastructure: €75,000 ($81,750)

Total annual costs: €1,340,000 ($1,460,600)

This substantial ongoing investment underscores the importance of careful financial planning for operators considering Malta as their regulatory home, particularly for multi-vertical businesses offering diverse gaming products.

Additional Regulatory Considerations

There are some extra things a company must consider when getting a Malta license

Corporate Taxation

Malta’s corporate tax structure provides potential advantages for iGaming operators through its imputation system:

• Standard corporate tax: 35% nominal rate
• Shareholder refunds: Up to 6/7ths of tax paid can be refunded to shareholders upon dividend distribution
• Effective tax rate: Can be reduced to approximately 5% through proper corporate structuring
• Double taxation treaties: Malta maintains agreements with 70+ countries to prevent double taxation

While these tax benefits have historically been a key attraction for gaming companies, operators must now demonstrate genuine economic substance in Malta to benefit from these arrangements, following increased EU scrutiny of tax optimization structures.

“The tax refund system remains advantageous, but companies must now maintain meaningful operations in Malta,” explains Simon Schembri, Partner at Ganado Advocates. “Gone are the days of pure brass plate operations – we now see substantial office spaces, significant local hiring, and genuine decision-making authority located in Malta.”

Compliance and Penalties

The MGA maintains strict enforcement of its regulatory requirements, with substantial penalties for non-compliance:

• Administrative penalties: Range from €5,000 to €50,000 ($5,450 to $54,500) for standard violations like reporting delays or minor technical infractions
• Regulatory fines: Up to €1 million ($1.09 million) for serious compliance failures such as anti-money laundering breaches or responsible gambling violations
• License suspension: Temporary measures lasting 1-6 months for significant operational issues requiring remediation
• License revocation: Ultimate sanction for repeated or egregious violations, effectively ending the operator’s ability to conduct business

These enforcement mechanisms ensure license holders maintain high standards of operation, protecting consumers and the jurisdiction’s reputation. The MGA’s enforcement actions have increased in both frequency and severity since 2023, reflecting the authority’s commitment to maintaining Malta’s standing as a premier regulated jurisdiction.

“The MGA has taken a more assertive enforcement approach in recent years,” observes David Bartolo, Partner at KPMG Malta. “We’re seeing more unannounced compliance inspections, detailed player fund audits, and technical testing across the industry. The message is clear: maintaining a Malta license requires continuous compliance investment, not just payment of fees.”

Player Protection Requirements

Malta-licensed operators must implement comprehensive player protection measures that add both technical complexity and operational costs:

• Self-exclusion system: Integration with both operator-level and national self-exclusion databases
• Reality checks: Mandatory time and money spent notifications during gameplay
• Deposit limits: Required functionality for players to set binding financial boundaries
• Responsible gambling tools: Age verification, addiction self-assessment, and automated intervention systems

These player protection requirements have expanded significantly under the MGA’s 2024 Responsible Gaming Framework update, requiring many operators to invest in system enhancements and additional staff training.

Anti-Money Laundering (AML) Obligations

Financial crime prevention represents another significant compliance area with associated costs:

• Customer due diligence: Multi-level verification procedures for player identity and source of funds
• Transaction monitoring: Automated systems to detect suspicious patterns and unusual activity
• Reporting obligations: Mandatory suspicious transaction reporting to Malta’s Financial Intelligence Analysis Unit
• Risk assessment: Regular evaluation of money laundering and terrorism financing risks

Malta’s AML requirements were substantially strengthened following the jurisdiction’s brief appearance on the Financial Action Task Force’s grey list in 2021, resulting in some of Europe’s most robust financial crime prevention standards for gaming operators.

Why Operators Choose Malta Despite Costs

Despite the substantial financial commitment, Malta remains a premier choice for iGaming operators due to several key advantages that often justify the investment:

EU Market Access and Regulatory Portability

• European Economic Area recognition: MGA licenses facilitate operations across numerous European markets, though additional local licenses may be required in certain jurisdictions
• Regulatory influence: Malta’s framework has informed gaming regulations in emerging markets, creating familiar compliance environments
• Whitelist status: Many international jurisdictions recognize Malta’s regulatory standards, simplifying entry into third-country markets

This market access value proposition remains compelling despite increasing regulatory fragmentation in Europe, as Malta’s license still provides a recognized baseline of compliance credibility.

Regulatory Stability and Expertise

• Established framework: Malta pioneered online gaming regulation in 2004 and maintains one of the world’s most mature regulatory systems
• Policy consistency: Transparent policy development with industry consultation and reasonable implementation timelines
• Regulatory expertise: MGA staff have deep domain knowledge and practical understanding of gaming operations

“The predictability of Malta’s regulatory approach is perhaps its greatest strength,” notes Dr. Joseph Borg, gaming law specialist at WH Partners. “While the costs are significant, operators can plan with confidence knowing that regulatory changes will be telegraphed well in advance and implemented pragmatically.”

License Longevity and Administration

• 10-year validity: Once issued, MGA licenses remain valid for a decade, providing operational stability
• Streamlined renewal: License renewals require updated compliance checks but not full reapplication
• Efficient administration: Online portal for license management, reporting, and fee payments
• Responsive staff: MGA maintains dedicated account managers for licensees, facilitating efficient issue resolution

This administrative efficiency reduces the operational burden associated with maintaining regulatory compliance, partially offsetting the financial costs.

Technical and Operational Flexibility

• Game certification: MGA recognizes testing from multiple approved laboratories, avoiding duplication of certification costs
• Content sourcing: While core servers must be Malta-based, game content can be sourced globally, allowing diverse product offerings
• Third-party integration: Clear frameworks for incorporating externally provided games, payment systems, and service providers
• Cloud compatibility: Updated rules accommodate modern cloud infrastructure within compliance parameters

This flexibility allows operators to build competitive gaming offerings while maintaining regulatory compliance, enhancing business viability.

Industry Ecosystem and Infrastructure

• Specialized service providers: Access to legal, accounting, banking, and technical service providers with deep iGaming expertise
• Talent pool: Concentration of gaming professionals with relevant experience
• Network connectivity: Robust telecommunications infrastructure with multiple redundant connections to major European hubs
• Banking relationships: Financial institutions familiar with gaming business models and compliance requirements

“The ecosystem advantage cannot be overstated,” emphasizes Kenneth Brincat, former MGA Chief Officer of Operations. “When issues arise, having immediate access to experienced specialists who understand both the regulatory requirements and business realities significantly reduces resolution time and costs.”

Recent Regulatory Developments and Future Trends

Malta’s regulatory framework continues to evolve, with several recent developments affecting licensing costs and compliance requirements:

Enhanced AML Framework (2024 Update)

• Transaction monitoring: New requirements for automated monitoring systems capable of identifying complex suspicious patterns
• Ultimate beneficial owner verification: Enhanced due diligence on corporate structures and ownership chains
• Risk assessment frequency: Increased from biennial to annual comprehensive risk evaluations

These enhancements have increased compliance costs by an estimated 15-20% for most operators, primarily through additional staffing and system requirements.

Environmental, Social, and Governance (ESG) Reporting

In line with broader EU trends, Malta introduced ESG reporting requirements for licensed operators in late 2024:

• Annual sustainability report: Documenting environmental impact, social responsibility initiatives, and governance practices
• Carbon footprint: Calculation and reporting of direct and indirect emissions from gaming operations
• Diversity metrics: Reporting on workforce composition and inclusion initiatives

While currently focused on reporting rather than specific targets, these requirements signal Malta’s alignment with broader EU sustainability goals and potential future compliance obligations.

Sandbox Framework for Emerging Technologies

The MGA has established a regulatory sandbox for innovative technologies including blockchain, AI, and VR/AR implementations:

• Reduced initial fees: 50% discount on application and first-year license fees for approved innovative projects
• Tailored requirements: Customized compliance approaches for technologies not fully addressed in standard regulations
• Transition path: Clear framework for moving from sandbox to full licensing once innovation proves viable

This initiative demonstrates Malta’s commitment to remaining at the forefront of gaming innovation while maintaining appropriate regulatory oversight.

Strategic Planning for Prospective Licensees

Organizations considering Malta licensing should adopt a structured approach to financial planning:

Pre-Application Phase (3-6 months)

• Jurisdiction comparison: Thorough analysis of Malta versus alternative licensing options
• Corporate structuring: Establishment of appropriate legal entities and capitalization
• Business planning: Revenue projections and compliance cost modeling
• Legal consultation: Preliminary assessment of licensing viability and requirements

Application Phase (4-6 months)

• Documentation preparation: Comprehensive business plans, policies, and technical specifications
• Key personnel identification: Selection and vetting of individuals for regulated roles
• Technology certification: Independent testing of gaming systems and random number generators
• Financial reserves: Securing funds for application fees, share capital, and initial operating costs

Post-Licensing Phase (Ongoing)

• Compliance calendar: Scheduled monitoring of reporting deadlines and audit requirements
• Financial provisions: Reserves for quarterly compliance contributions and annual fees
• Regulatory relationship: Regular engagement with MGA account managers
• Compliance update tracking: Monitoring of regulatory developments and implementation planning

“Success in Malta requires viewing compliance as a core business function, not an administrative afterthought,” advises Enrico Bradamante, former Chairman of iGaming European Network. “Operators who build regulatory costs into their fundamental business model from day one invariably navigate the jurisdiction more successfully than those who treat compliance as an unwelcome expense.”

Wrapping Up: Ready for the Malta License?

Malta’s gaming licensing framework represents a significant but calculable investment for operators seeking a reputable European base of operations. While upfront costs ranging from $25,000 to $50,000 and potential annual compliance contributions reaching $600,000 may seem substantial, these figures reflect the jurisdiction’s mature regulatory approach and the substantial benefits of operating within a recognized framework.

The combination of regulatory predictability, EU market access, operational flexibility, and industry ecosystem advantages continues to justify these costs for many operators, particularly those targeting regulated European markets. Malta’s ongoing adaptations to emerging technologies and trends demonstrate its commitment to maintaining relevance in the evolving global iGaming landscape.

Prospective licensees should conduct thorough financial due diligence that accounts for both immediate and long-term regulatory expenses, ensuring they have sufficient capital to maintain continuous compliance throughout their operations. With proper planning and compliance investment, a Malta Gaming Authority license remains one of the most valuable regulatory assets in the global iGaming industry.

Sources

1. MGA Licensing Fees Regulations (2025)
2. CSB Group: Malta iGaming Tax Overview
3. Gonzi & Associates: Gaming Fees
4. MGA FAQ: License Fee Information
5. KPMG Malta: Streamlined Tax and Fee Structure