Should Your eGaming Business Move to Malta?
eGaming in Malta and the benefits of setting up a company on the Maltese islands
In recent years, Malta has seen explosive growth in the eGaming industry. This growth is due largely to government regulations involving gaming that make it easier for businesses to relocate existing eGaming companies to the island of Malta, or to start entirely new businesses there.
The Maltese government has also established within the Malta tax system, a number of tax advantages for eGaming businesses to encourage further expansion in this sector.
As a result, many EU companies are making the move, and Malta is becoming known as the new online gaming capital of Europe. But while this is encouraging news for anyone in the industry, prudent business owners or soon-to-be startups will still have many questions before making the decision to relocate to Malta. The following are some of the most commonly asked questions from businesses considering whether or not to open up a company in Malta.
What types of online gaming do Malta’s modern regulations attract?
The eGaming legislation put forth by the Maltese government applies primarily to wager-based gaming, such as online casinos, eSports gaming, and sites/companies that focus on one or more particular type of internet-based gambling.
What are the online gaming licences in Malta?
A Class 1 online gaming license need to be held in Malta to be able to operate online casino style games, online casino companies, lotteries and games related to slots.
A Class 2 online gaming license is needed for fixed odds and pool betting gaming companies, where operators manage their own risk on a matchbook.
A Class 3 online gaming license is needed in order to be able to promote and/or abet remote gaming in or from Malta. This includes online poker gaming companies and online poker networks, peer to peer (P2P) gaming and game portals such as bingo gaming companies.
A Class 4 online gaming license is needed in order to be able to host and manage remote gaming operators, excluding the licensee itself, whereby software vendors provide management and hosting facilities on their platform. This is also known as a business to business (B2B) gaming license.
Is internet-based gaming really a good business to get into?
The iGaming business is a lucrative online industry throughout the world. As more and more industry becoming internet-based, it’s becoming apparent that many people prefer spending their free time in the comfort of their homes. For example, The U.S. Army is no stranger to using games for training purposes, but now it’s using gamification to attract new recruits and generally promote awareness of the U.S. armed forces. This effort was initiated back in 1999, and the first version was released in 2002. By 2008, four transportable “Virtual Army Experience” units were hitting shopping malls and public events. People love gaming, and now that they can play from their personal computer, the gaming industry is not just shifting, but expanding to include this new eGaming area.
What are some other advantages of starting an eGaming company in Malta?
The country offers non-native companies a large, skilled English-speaking workforce. Most Maltese citizens speak English (among other languages), and with the steady increase in new eGaming online companies in the country, more residents are turning toward that area of employment. Language skills are increasingly important in the eGaming industry whom often have clients in many different countries.
Malta also boasts a strong and stable economy, making it more attractive than other EU countries who have experienced (or are expected to experience) financial turmoil. Aside from economic stability, Malta is simply an idyllic place to live in the eyes of many people who love the Mediterranean climate and culture.
How does one form a new eGaming company in Malta?
The regulatory framework for iGaming business in Malta has established a number of incentives and advantages for iGaming operations. Those wishing to set up a company in Malta or looking to relocate their iGaming business can benefit from reduced rates of income taxes on personal income, double taxation relief and refunds on dividends to name a few. The aforementioned tax benefits mean that there is less financial risk for new companies starting out. And, as part of its drive to welcome newcomers, Malta has simplified the process of becoming a resident via many Malta residency programs.
According to the latest statistics and eGaming news, starting an online gaming business in Malta has been very attractive to international gaming corporations. A robust, EU-compliant regulatory framework, diverse ecosystem and deep talent pool is helping iGaming companies from around the world to find opportunities in Malta. Doing business in Malta has become a home to major international betting companies as well as many other gaming entities. A fiscally efficient tax structure, which is complemented by a wide network of double-taxation treaties with over 70 countries helps to continually attract eGaming companies to Malta. If you have or are planning to start an online gaming company, moving to Malta may be the best decision you ever make.
As Malta company formation specialists, we can not only assist you with setting up your business in Malta but also advice you on a number of tailor made solutions complimenting your choice to set up a base on the Maltese islands.