Why are most online casinos based in Malta?

Malta is a small country situated on the Island county of Europe. Despite the fact, that it is a small country, many NZ online casinos choose to register there.

Over the last 10-15 years, Malta has become a go-to location for online game provider to start their business due to its policies and regulations.

But why is this the place where all online casinos start their business?

The main reasons are as follows:

Because of tax reasons

Taxation is a very important factor for businessmen and gamers to select countries to operate casino sites or play games respectively.

The gamers and casino operators both dislike the higher taxation. So, to promote the casino business in Malta, the government gives tax exemptions or concessions to the gaming businesses.

In Malta, tax policy is very clear and divided into different categories. A tax of 5% is levied on the gross gaming revenue from the aforementioned gaming services provided to players during the applicable tax period on behalf of all B2C operators.

Additionally, a gaming levy is levied on gaming equipment based on the total gaming revenue made during the tax period.

The costs of this gaming tax vary according to the kinds of gaming services provided.

The rates on gaming equipment range from 12.5% to 30%.

The operators must pay the MGA a compliance payment in addition to license costs. The gaming income earned by the licensee under its MGA license determines the compliance contribution.

Additionally, according to the Gaming Licence Fees Regulation, the income is determined by the game’s service type.

All of these taxes are lower than the tax rate implemented in any other country in the world. Thus, it attracts the casino to operate in Malta.

Because of law

In Malta, the casino enjoys a stable and finest online casino policy. Malta Gaming Authority (MGA) is responsible for the casino business in Malta.

However, it is not an easy process to get register as an online casino in Malta. MGA gives licenses to casinos after strict verification of documents and anti-money laundering policies.

Additionally, MGA conducts detailed investigations along with other domestic and international regulatory organizations and law enforcement agencies before issuance of the license.

It also increases the confidence of players and operators that attracts the businessman to start casino businesses in Malta.

MGA has emerged as the gold standard of excellence in the gaming industry.

This includes stringent laws, economical taxes, wide market penetration, and trustworthy gaming regulations that both domestic and foreign players can rely on.

Therefore, casinos give respect to all these standards and wish to start their gaming business in Malta.

MAG offers several incentives to the online casino business. Mainly, tax reductions for employees of the casinos, relief of double taxation, and other tax benefits attracted gamers in Malta.

Therefore, casinos open their business to capture this market.

There are 4 classes of casino licenses that attracts businessman to open casino of their own interest:

• Class-1: This allows operators to control their own risk while playing repeated games on third-party platforms.
• Class-2: A remote betting license that enables operators to control their own risk on events based on a matchbook operating on a third-party platform that has been appropriately governed by the MGA, such as fixed-odds betting.
• Class-3: A license through which operators can make money by encouraging players to play games on third-party platforms.
• Class-4: A gaming license to operate and host online gaming businesses.

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