Malta has implemented a substantial tax increase on casino operations, with Type 1 gaming revenue now taxed at 15% as of 1 October, up from the previous 5% rate. The change, introduced under Legal Notice 84 of 2026, represents a threefold increase in the tax burden for operators offering casino games, lotteries, and virtual sports under an MGA licence.
The new tax structure affects different gaming categories at varying rates. Type 2, 3, and 4 games have seen their tax rates double from 5% to 10%. Revenue generated from controlled gaming premises and junkets remains taxed at the lower 5% rate.
Residency-based taxation model
The legislation introduces a residency-based approach to determining tax liability for online gaming. The law considers whether a player is established in Malta, has a permanent address in the jurisdiction, or usually resides there. This creates scenarios where physical location at the time of play does not determine tax treatment.
Under the new framework, a tourist playing from a hotel in Valletta would not trigger the Malta tax obligation. Conversely, a Maltese resident playing from London would fall under the Malta tax regime. This residency-focused model marks a shift from location-based taxation approaches used in some other jurisdictions.
Impact on MGA licence holders
For operators holding or considering an MGA licence, the tax increase has immediate financial implications. The Malta tax line for Type 1 gaming revenue will triple, requiring operators to reassess their cost structures and pricing models. Companies serving the Maltese market will need to factor the higher tax burden into their revenue projections and profitability calculations.
The change affects both existing licensees and potential applicants evaluating Malta as a licensing jurisdiction. Operators must now weigh the increased tax cost against Malta’s other regulatory advantages, including its established framework, EU membership, and reputation in the iGaming sector.
Broader regulatory context
The tax increase comes as Malta continues to balance its position as a leading iGaming hub with fiscal pressures. The jurisdiction has long been attractive to operators due to its relatively favorable tax environment and comprehensive regulatory framework. The new rates bring Malta’s casino tax closer to levels seen in other European jurisdictions, though the overall tax treatment remains competitive when considering the full regulatory package.
Operators will need to review their compliance procedures to ensure accurate classification of players under the residency criteria. The distinction between resident and non-resident players now carries significant tax implications, making player verification and geolocation data more critical for tax reporting purposes.
