Malta Gaming Licences: Types and Game Classifications Explained

Malta remains one of Europe’s leading iGaming hubs, offering a well-established regulatory framework, EU credibility, and access to international markets, making it an attractive jurisdiction for gaming businesses.

Companies entering the market can choose between two main licence types covering both B2C operators and B2B service providers.

#Types of Licences and Games

The Malta Gaming Authority (MGA) may issue applicants with one or both of the following licences:

#Gaming Service Licence (B2C)

A license for businesses to provide or operate gambling services.

Also, a gaming service must include the following:

1. offering, supplying, or running a gaming service
2. having someone host or make a gaming system or gadget available for use on his property that is open to the public

#Critical Gaming Supply Licence (B2B)

A license for businesses to sell or operate essential gaming supplies.

Also, a gaming service must include the following:

1. provision and administration of game-related materials
2. provision and administration of software, either standalone or integrated into a system, for the purpose of creating, capturing, controlling, or processing any necessary regulatory record; or provision and administration of the control system that houses such software.

#Licence for Corporate Groups

Since 2018, corporate groups have been able to apply for a corporate MGA license from the Malta Gaming Authority, with the entire group being considered the licensee. The business identified as the group's nominal license holder is responsible for paying the appropriate fees to the authorities and fulfilling its reporting obligations.

Since no B2B license would be needed, this is advantageous for corporate groups with gaming service licenses who wish to offer essential gaming supply services only within their organization. A B2B license is necessary if the essential gaming supply services are offered to other parties. This implies that service delivery between entities within the same corporate group would be considered licensee-performed rather than outsourcing. The minimum issued paid-up share capital will depend on the kind of license and games that the applicant is requesting.

#Game Types

The final say on whether a game is licensable or not rests with the Maltese regulator. A game's classification as a skill game or a controlled skill game that needs a license will also be decided by the Malta Gaming Authority (MGA). Business must first decide what kinds of games it will be providing to players before submitting an application for a license with the MGA.

1. Games of chance played against the house, where the result is decided by a random generator. These games include virtual sports games, lotteries, secondary lotteries, and casino games like baccarat, roulette, blackjack, and poker played against the house.
2. Games of chance against the house in which the operator controls its own risk by controlling the odds provided to the player; the outcome is not decided at random but rather depends on the outcome of an event or competition unrelated to the game of chance.
3. Games of chance include player-versus-player games like poker, bingo, betting exchange, and other commission-based games. These games are not played against the house and do not expose the operator to gaming risk, but they do generate revenue by collecting a commission or other charge based on the stakes or the prize.
4. Controlled Skill Games, which include fantasy sports and need more regulatory oversight due to the added dangers they present to consumers.

The MGA will have complete discretion in classifying a game in the category that best captures its essence if it has characteristics that could be classified under more than one of the previously mentioned categories.

#Other kinds of games

Operators who already hold a Critical Gaming Supply Licence or a Gaming Service Licence and want to offer a different kind of game do not have to go through the entire application process for a gaming license. Rather, they would have to apply for the required approval from the MGA.

#Verticals in Gaming

Because of its unique features and how it differs from other product categories, the term "gaming vertical" refers to a category of goods that need special protections to guarantee that they are provided in a way that complies with the law and regulatory goals.

#Among the several verticals include:

• Casino
• Live casinos
• Scratch cards
• Lotteries
• Secondary lotteries
• Fixed odds betting, including live betting
• Pool betting, including betting exchange
• Peer-to-peer poker;
• Other peer-to-peer, commission-based games like bingo, but not poker, betting exchanges, or pool betting.

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