The number of gambling licenses in Malta is declining, but the sector is expanding more subtly. The balance of activity under the Malta Gaming Authority (MGA) is firmly moving towards business-to-business providers, which is changing the actual appearance of the island's gaming hub despite the consistent economic contribution and declining number of licenses.
B2B operators now make up 55.5% of the entire license base, following the MGA's interim report for the first half of 2025. 64.3% of new license applications and 87.5% of licenses that were actually granted between January and June 2025 were B2B.
The MGA has taken care to avoid making the increase of B2B licenses a clear policy goal. A representative stated that operator restructuring and global regulatory developments have impacted where businesses decide to license various aspects of their operations, adding that "the composition of the license base reflects market behavior.The Move from Consumer Brands to Core Infrastructure
The regulator also points to its reforms as a factor in strengthening Malta’s appeal to B2B providers. “The 2018 overhaul of the Gaming Act and the introduction of a clearer, more streamlined authorisation framework laid the structural foundations for Malta to become a natural hub for high-value B2B suppliers,” the spokesperson explained.
According to the MGA, proportionality was the goal. “The reforms created the clarity and proportionality that B2B operators needed to scale sustainably.”
The authority claims that the framework is "paying dividends" after six years. Most of the biggest online gambling companies in the world are already based in Malta, which has created what the MGA refers to as "an immediate, integrated market" for suppliers providing platforms, games, technical services, or payment infrastructure. Increased demand for "technical and platform-related services" supports the B2B slant.
The change is framed in terms of risk in the interim report. The spokesman claimed that the language, which refers to the nature of business-to-business (B2B) operations that "do not involve direct interaction with players," depicts the license base as "progressively evolving towards activities with a lower risk profile."
However, the authorities are eager to emphasize that less danger does not equate to less oversight. The representative went on to say, "Regulatory expectations remain unchanged." Governance, AML and CFT responsibilities, outsourcing and dependency risks, and operational resilience remain the main areas of focus for oversight.
Overall, between H1 2022 and H1 2025, the number of licences fell by 51 (from 363 to 312), while the number of companies declined by 53 (from 357 to 304). This represents a reduction of approximately 14% in licences and nearly 15% in companies over the period, underscoring a sustained consolidation trend in MGA-regulated activity.
#Licence Numbers Fall, Economic Footprint Holds Steady
Compared to previous years, 304 businesses held 312 gaming licenses as of the end of June. However, the economic impact of the sector has not changed. According to the MGA, gaming brought in €714.4 million in gross value added in the first half of 2025, which is around the same as in 2022 and accounts for 6.5% of Malta's total GVA.
Employment has remained stable as well. According to the authority, 14,797 people—or almost 5% of the workforce—work in Malta for MGA-licensed companies, a 3.1% rise from the end of 2024. Once more, the image shows fewer corporate organizations hiring more specialized personnel.
The regulator describes this market as mature in its interim analysis. It added that businesses are "increasingly prioritizing long-term sustainability and quality, within a more complex international regulatory environment," and that the drop in the overall number of companies and licenses "reflects the continued consolidation of a maturing and evolving industry”.
#Regulatory Expectations for a ‘Ready’ B2B Application
The MGA's expectations during the authorization stage have increased due to the large number of B2B applications. The representative cited the fundamentals when asked what makes an application that navigates the system rapidly stand out.
“Applications that progress efficiently are those that demonstrate a clear operational model, defined governance arrangements, and risk management frameworks aligned with the proposed activity,” they said. The most common avoidable issues still exist “incomplete or inconsistent documentation, unclear business plans or governance structures that do not match the complexity of the proposed activity”.
According to the numbers, inspection is severe. Only 8 of the 28 new gaming license applications that were received in the first half of the year were granted; the remaining applications were either denied, withdrawn, or were still pending. Due to concerns over inaccurate or insufficient information, a number of applications were forwarded to the Supervisory Council or the Fit and Proper Committee.
#Why Enforcement Now Reaches the Hidden Supply Chain
The interim report emphasizes that enforcement is still a key component of the MGA's activity, even though B2B companies are frequently less noticeable to players. The authorities issued 23 cease and desist letters, 15 warnings, 23 administrative penalties totaling €139,360, and revoked one license between January and June.
A parallel fight against the misuse of the MGA brand is also highlighted in the report. 34 of the 75 URLs that were examined for uncontrolled activity had "fraudulent references to the Authority or its licensees." In the majority of cases, websites made false claims to have an MGA license. In response, the authority publishes a list of unapproved URLs to alert customers, works with other regulators, and sends cease and desist letters.
Malta's value proposition includes policing the reputation of the license for B2B suppliers whose clients depend on regulatory legitimacy. The MGA states that "regulatory credibility, a mature ecosystem, a supportive political and institutional environment, and clear, risk-based oversight" are the foundations of the jurisdiction.
The authority states that it hopes that concept will develop through "greater regulatory agility" in the future, remaining adaptable to changes in the business without lowering standards. That balance is increasingly being put to the test not just on gambling and betting websites but also deep into the infrastructure that supports them, if the first half of 2025 is any indication.
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