The Malta Gaming Authority (MGA) serves as the sole regulatory authority responsible for overseeing all gaming activities conducted within the jurisdiction of Malta. It is widely acknowledged for its rigorous, consistent, and transparent regulatory approach, supported by a robust licensing framework. Over the years, the MGA has cultivated a strong international reputation, with various jurisdictions referencing its standards as a model when formulating or refining their own gaming legislation.
Entities established within the European Union (EU) or the European Economic Area (EEA) are eligible to apply for a licence issued by the MGA. The Authority grants two principal categories of licences: the Gaming Service Licence (B2C), which permits operators to offer gaming services directly to end users, and the Critical Gaming Supply Licence (B2B), which is intended for entities that provide or manage key technological components of gaming systems, software, or control infrastructure.
The MGA classifies licensable games into four distinct categories, based on their operational model and associated risk exposure:
- Type 1 comprises games of chance played against the house, such as online casino games, virtual sports, and lotteries.
- Type 2 includes fixed-odds betting on real-world events, primarily sporting competitions.
- Type 3 covers peer-to-peer games in which the operator does not assume gaming risk but generates revenue by charging a commission, as seen in poker, bingo, and betting exchanges.
- Type 4 pertains to controlled skill games, with fantasy sports serving as the most prominent example.
In alignment with its broader commitment to financial integrity and responsible regulation, the MGA has recently introduced a Capital Requirements Policy, applicable to both prospective applicants and existing licensees. This policy establishes minimum share capital thresholds, which must consist of fully issued and paid-up share capital. Specifically, the thresholds are set at €100,000 for Gaming Service Types 1 and 2, and €40,000 for Gaming Service Types 3 and 4, as well as for B2B licence holders. Where an operator holds multiple licence types, the capital requirement is cumulative up to a maximum of €240,000. In the context of corporate group structures, the capital obligation may be met either by a single entity or collectively by multiple licensed entities within the group.
Furthermore, licensees are obliged to maintain a Positive Equity Position at all times during the term of their licence. Should a licensee close its financial year in a negative equity position, the MGA mandates that this must be rectified within six months. Remediation may occur through the injection of additional share capital, the reclassification of reserves, or the conversion of shareholder loans into equity, provided such measures conform to accepted accounting standards.
The MGA may, at its discretion, grant derogations in limited circumstances, particularly where B2B Licensees or group entities demonstrate strong consolidated financial standing. Additionally, for licensees reporting negative equity as of 31 December 2024, transitional provisions shall apply, including the obligation to submit an Authority-approved recapitalisation plan.
At CLA Malta, we support gaming operators through every step of the licensing and compliance journey. Our team helps ensure full alignment with the Malta Gaming Authority’s (MGA) latest financial and regulatory standards. Whether you’re applying for a new licence or maintaining an existing one, our experts are here to provide practical, tailored solutions to keep your business on track.
Should you require assistance, contact our Head of Legal & Corporate, Dr John Caruana at jcaruana@clamalta.com is ready to provide the support and guidance you need!