Betting
and Gambling licences form Malta
Since
the year 2000, Malta began issuing gambling and betting
licences for betting
companies operating their business from or through Malta. Our law firm can assist you with all
the necessary procedures to obtain a betting and gambling licence.
Betting companies
will establish a processing operation (back office) as a Malta
Company which would be
subject to tax at a rate of 35% on its chargeable income.
However, on distribution of dividends, shareholders
would be able to claim certain refunds on the tax paid by the company. This
means that only an effective rate of tax of 5% is applicable.
There
are three basic categories contemplated:
Companies
carrying out only a processing operation (that is where the contract for
the bet is not actually carried out in Malta and the Malta company is only
processing the data) do
not require a licence to operate. However the Lotteries and Gaming
Authority must be sent a letter with details of the proposed back office
operation and the company cannot start its business before the LGA has
approved the company for the required purpose.
Companies establishing a call centre to receive bets
together with a processing operation (back office) require a licence. The licence fee will be 0.5% of
turnover and the profits made by the company are also subject to 5% effective tax. Applicants for this kind of licence need to
submit a company
profile, a copy of
the latest audited accounts
a business plan indicating
the economic activity (e.g. job creation) that will be carried out in
Malta.
Companies
engaged in remote or online gaming can now also apply for a licence from
Malta.
Applications must include:
· Information about directors, shareholders and key officials
of the company disclosing personal information, financial information and
business reputation, information on participation in other entities and a
clean criminal record.
· Proof that the applicant has the business ability to
conduct remote gaming successfully;
· Proof that the applicant is able to obtain appropriate
resources to maintain minimum required reserves to ensure that players
winnings can be paid and deposits returned;
·
The company must have a presence in Malta;
·
The company has policies to prevent money laundering and
internal control structures to comply with the policies of the licence.
· The company must appoint at least one key official who is
to personally supervise the operations of the company and ensure that the
licence holder complies with all laws, regulations and conditions of the
licence. The key official
must be resident in Malta and must be a director of the company.
A
licence is for a five-year period and may be renewed for further five-year
periods at a time provided there has been compliance by the licensee with
the provisions of the licence.
The
applicant for a licence shall disclose details of the control system to be used during remote gaming
operations including:
·
procedures for operation of remote gaming;
·
computer software;
·
recording and paying prizes won;
·
accounting systems and procedures;
·
procedures to be followed to play a game;
·
procedures and standards for the maintenance, security,
storage and transportation of equipment to be used to conduct remote
gaming;
·
procedures for the setting up and maintenance of security
facilities including general compliance and internal controls relating to
access to critical systems;
·
a disaster recovery plan;
·
an adequate system of data backup;
Every
player must be registered with the company on an application showing:
·
that the player is over eighteen years of age;
·
the player's identity;
·
the player's place of residence;
·
the player's valid e-mail address;
·
one player can only register a single account with the
licensee.
No
credit can be given to a player.
LICENCE FEES AND TAXATION:
There are four classes of
licences:
Class 1 - online gaming
Class 2 - online betting
office or online betting exchange
Class 3 - to promote and abet
gaming from Malta
Class 4 – host and manage third party online gaming operators
The application for a licence shall be subject to a non-refundable
application fee of Euro 2,300. On
approval of the licence there is a fee of Euro 6,990 per annum.
The renewal of the licence is Euro 1,165.
Taxation
Tax is charged as follows
·
at a fixed rate of Euro
4,660 per month (nil tax for a class
4 licence) for the first six months and subsequently Euro
6,990
per month (Euro 4,660 for a class 4 licence); plus
·
0.5% on the gross amount of bets placed (or in case of
betting exchanges 0.5% on the sum of all net winnings calculated per
player per betting market; or in the case of pool betting 0.5%
Provided
that the total tax shall not exceed Euro
466,000 per year.
OUR SET UP FEES
We
charge a comprehensive and all inclusive set-up fee which
includes the following services:
·
incorporation of Maltese company
·
assistance with filing of the application for a licence
·
follow-up until approval of the licence (or until final
rejection)
·
on approval of licence, all assistance with opening of bank
accounts, rental or purchase of office and all necessary assistance for
setting up the operation in Malta.
We
would like to advise persons contacting us in this regard that we do not
offer a free information service and prior to providing detailed advice we
would require a retainer agreement to be signed.
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Copyright 2000: Griscti & Chetcuti, Advocates
Residence