There are a lot of areas that issue permits to gambling firms, but many prefer small countries in Europe. Malta is a global gambling hub and is subject to strict regulations for legal business in this area. Today, we want to talk about Malta gaming license cost and the economic advantages it provides.
General information
This area is a very prestigious jurisdiction for permitting. The MGA permits gaming businesses of various types. To be approved, a firm must meet strict demands:
- reliable financial transfers;
- ensuring customer safety (data protection);
- confirmation of the fairness of the games provided.
The Regulator will require strict compliance with the regulatory system to prevent various risks associated with the business. Licensed gaming platforms can enter the European gaming industry and expand their business. The permit inspires great respect and trust among gamblers who value the safety and fairness of the gaming process.
The firm is allowed to obtain one or more permits depending on its planned activities in the gaming market:
- a B2B is provided for software creators who provide the product to gaming platform operators;
- a B2C is intended for clubs, slots, and other operators.
The permits will be valid for 10 years.
Permitting classes and financial costs
The regulator provides 4 classes of licenses, which include a wide range in the business. The firm can choose the most suitable licensing class. Let’s look at these classes.
First grade
Class 1 will be required by a company that will provide various gambling games in which the result will be determined using a random number generator. Operators can offer their gaming platform in other states where the Maltese gaming permit is recognized. The minimum authorized capital is 100 thousand euros, and the annual contribution is 15 thousand euros.
Second class
Class 2 will be needed by a company that will provide a limited number of gambling games, and the result will depend on the development of the competition. The permit applies where such a license is recognized—authorized capital from 100,000 euros, with an annual contribution of 25 thousand euros.
3 class
Class 3 refers to companies that provide games where gamblers compete with each other. The company will receive a commission from bets. The authorized capital must be at least 40 thousand euros, and the annual fee will be 25 thousand euros.
Fourth class
Class 4 will be needed by operators who provide gambling management and a place to host the gaming platform. Such permitting falls under the B2B category and will be required by operators managing games from other operators. The requirement for authorized capital is from 40 thousand euros, and the annual contribution is from 5 thousand euros.
Maltese taxation
Maltese organizations must pay a corporation tax of 35%. But, the authorities can offer a preferential program that reduces the tax rate to 5%. This system allows organizations to receive a tax credit in the amount of paid corporate tax, from which they receive dividends. The most common tax rate is 6/7 (the effective rate is approximately 5%, and the percentage depends on the particular firm).
There is also taxation of gambling on the income of those gamblers who live here. The tax is 5% and is paid only by B2B license holders. If payment is received outside this area, it is not subject to tax.
Benefits of licensing
Permitting has several advantages, allowing you to have a considerable user audience and expand your business.
First, the license is considered prestigious, and players will treat it with respect because they will trust such a gaming platform. For gamblers, the reliability, safety, and fairness of the games provided are of great importance. From the point of view of economic benefits, this is the state tax policy for firms providing gambling. In addition, a special agreement is concluded to avoid paying double tax. A stable economy and politics will allow you to effectively do business and enter the international gambling market, increasing your capital. The presence of a developed infrastructure perfectly supports the gambling business with innovative networks and powerful servers for processing data.
How can I simplify the process of obtaining a permit?
If you want to obtain a work permit as quickly as possible, you should seek help from specialized tourists. Despite the fact that their services are quite expensive, nevertheless, it is more economically profitable – you can start a business faster and make a profit earlier.