REGULATION
the earlier Remote Gaming Regulations of 2004 1 . The 2018 Act consolidated what had been a fragmented set of licence categories into a cleaner, more proportionate structure built around two principal licence types: the B2C Gaming Service Licence for direct-to-consumer operators, and the B2B Critical Gaming Supply Licence for entities supplying software, platforms, content, and related services to licensed operators. The B2B Critical Gaming Supply Licence is the instrument of primary interest for this analysis. It authorizes the holder to supply gaming-critical software and services to licensed operators across the EU and EEA on the basis of full EU passporting rights 2 . In practical terms, this means an MGA B2B licensee can supply services to operators in any of the thirty EU member states and three EEA states without obtaining separate national authorization in each target market, operating instead through the notification procedures applicable to cross-border service provision under EU law. The commercial significance of this passporting right became considerably more significant following the United Kingdom's departure from the European Union 3 . UK-licensed B2B operators lost their EU passporting rights upon Brexit and must now seek authorization in each EU jurisdiction where they wish to supply services. For B2B operators whose client base is primarily EU-facing, this shift has been decisive in directing licensing decisions toward EU member states, and Malta has been a primary beneficiary of that reorientation. The MGA has developed a reputation for accessibility at the pre-application stage, engaging substantively with applicants on technical and regulatory questions before formal
s ubmission 4 . This contrasts favorably with jurisdictions where pre-application dialogue is limited or where technical requirements are applied with less commercial flexibility. In quantitative terms, in the first half of 2025, 87.5% of licences actually issued by the MGA were B2B Critical Gaming Supply licences, reflecting Malta's consolidation as the primary EU base for the gaming supply chain 5 . Fiscal Architecture: Beyond the Headline Rate Malta's corporate tax framework is, in the view of this author, among the most misunderstood aspects of the jurisdiction. The headline corporate income tax rate of 35% is applied to worldwide income under the Income Tax Act, Chapter 123 of the Laws of Malta 6 . The rate that applies in practice to a correctly structured international trading operation is considerably lower, and understanding why requires an explanation of Malta's full imputation system. Under the full imputation system, corporate income tax paid by a Maltese company is imputed to the shareholder upon distribution of dividends. The shareholder is then entitled to claim a refund of the tax imputed, with the refund amount depending on the tax account from which the dividend is distributed. For income allocated to the Foreign Income Account in the case of most trading income, qualifying non- resident shareholders are entitled to a refund of 6/7ths of the Malta tax paid, reducing the effective corporate tax rate to as low as 5%. 7 For B2B gaming operators specifically, the fiscal position is further enhanced by the structure of the MGA's Compliance Contribution regime. B2B Critical Gaming Supply licensees
1 Gaming Act, Chapter 583 of the Laws of Malta (2018). The Act replaced the Remote Gaming Regulations, L.N. 176 of 2004 2 MGA, 'B2B Critical Gaming Supply Licence', mga.org.mt. Passporting rights derive from the Treaty on the Functioning of the European Union, Arts. 56-62 3 European Commission, 'Withdrawal Agreement between the EU and the United Kingdom' (2020). Passporting rights for UK-authorised entities ceased on 31 December 2020 4 MGA, 'Pre-Licensing Guidance', mga.org.mt. The MGA offers a preliminary compliance review process available to prospective applicants prior to formal submission 5 MGA, 'Gaming Licence Statistics H1 2025', mga.org.mt (2025) 6 Income Tax Act, Chapter 123 of the Laws of Malta 7 Income Tax Management Act, Chapter 372, and S.L. 123.55 (Tax Refund Rules
IMGL MAGAZINE | SEPTEMBER 2026
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