Online Gambling License in Malta

Malta has one of the more popular licensing authorities for
online gambling in Europe. The island is located in the
Mediterranean and is a full member of the EU. The country first
started regulating online gaming in 2000 via the Public Lotto
Ordinance. Malta then joined the EU in 2004 and thereby became
the first EU member state to regulate online gambling.

Today, all forms of gaming in Malta are regulated by the
Lottery and Gaming Authorities (LGA) under the Remote Gaming
Regulations, 2004. Malta appears to be one of the safer
licensing authorities in the world due to its strict standards
for gambling sites and status as a full member of the EU.
However, that hasn’t always proven to be the case in reality.

Is This a Legitimate Licensing Authority?

A license from Malta doesn’t mean much from the player’s
point of view. The LGA does appear to have strict licensing
standards, but only in theory. In practice, the LGA awards
licenses to operators fairly easily, and it doesn’t follow up on
many of the published safety standards required by the LGA.

Experienced gamblers look at a license from Malta as no big
deal. There have been numerous cases in which companies licensed
by Malta have confiscated player funds and refused to work with
players to have those funds returned.

Malta doesn’t involve itself in casino-player disputes. It
maintains the right to revoke licenses, but it does not seem to
follow through with much action when things go poorly.

On the other hand, a license from Malta isn’t a stamp of
death. PokerStars is the safest and most respected poker site on
the planet and it does have a license from Malta. The catch is that
PokerStars lives up to high standards of its own accord, and not
because of anything Malta does.

If you’re considering playing at a site licensed in Malta,
your best bet would be to continue to do your research. There
are both good and bad gambling sites registered under this
authority. You’ll have to let each site’s reputation speak for
itself. A license from Malta isn’t in itself a guarantee of
quality or lack thereof.

Licensing Process and Fees

There are four different types of licenses a gambling company
can apply for in Malta. The initial application fees aren’t
terribly expensive, but Malta does charge ongoing fees that add
up. With upwards of 500 sites licensed by Malta, these fees add
up to a significant source of income for Malta. The most recent
reports we could dig up indicate Malta earns roughly €50 million
per year from its licensing activities.

Below are the four types of licenses and their associated
fees. Note that all licenses incur an initial application fee of
€2,330, a system audit fee of €1,770 and an annual license fee
of €8,500 in addition to the following fees for each type of
license.

There’s also a cap of €466,000 per year in total taxes and
fees for any one license.

Class 1 License

A Class 1 license is issued to sites that have casino-style
games such as blackjack, roulette, and slots.

• €4,660 for the first six months
• €7,000 per month after that

Class 2 License

A Class 2 license is given to operators who manage sports
betting types of wagers that include a vigorish/juice.

1. 0.5% tax on total gross amount of bets placed

Class 3 License

A Class 3 license is issued to operators who take a
commission on peer-to-peer bets such as poker, bingo, betting
exchanges, and lotteries.

• 5% of total real income

Class 4 License

A Class 4 license is issued to those who manage and host
gaming operations. For example, software providers who manage
the games/bets but aren’t actually involved in taking bets for
their own profit.

1. No fee for the first six months
2. €2,330 for the next six months
3. €4,660 per month thereafter

If you have more questions or concerns about the different
types of licenses or fees you can always visit thie website or
contact them by phone or email. Below is all the contact
information for the Lottery and Gaming Authorities in Malta:

• Website: http://www.lga.org.mt/
• E-Mail: [email protected]
• Phone: +356 2546 9000