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Malta is located somewhere in the middle of the Mediterranean Sea. It is one of the pioneers which first introduced rules and regulations for online sportsbetting and online gambling. Because of this a lot of operators have migrated to the island of Malta, to have their headquarters here along with the majority of their operations. The regulator in Malta is called Malta Gaming Authority (MGA). All licensees have the logo of the regulator on their website. In 2004 because of the high number of applicants the MGA brought the Remote Gambling Regulations to force. With it the rules and regulations became much clearer based on principles. With this change the MGA had 4 available licenses and depending on the nature of the operations the applicants have to apply for the appropriate license.
Sportsbetting is very popular, especially in Europe. This huge demand was followed by a surge of new bookmakers who were searching for a jurisdiction where to get the much needed license in order to start offering remote gaming services. The 4 types of licenses offered by the MGA are: • Class 1 – This one is for Casinos, lotteries and other skill based games. • Class 2 – This type serves for the purpose of licensing sportsbooks, pool betting and spread betting. • Class 3 – For betting exchanges, poker and other player to player games. This includes operation of games for which the operator will ask for a certain fee or commission. • Class 4 – Class 4 is specifically designed for casino and sportsbook software providers.
Entities that hold one of these licenses can operate in the majority of the EU countries and in a huge number of countries all around the world. It’s a one stop destination for establishing an online business of this kind.
Most of the Maltese licensees are transfers from other jurisdictions. Almost all of the latest sportsbooks which have been established on EU territory are holders of a license issued by the MGA. It really became a sportsbetting haven for the successful bookmakers. What are Curacao and Antigua and Barbuda for the American continent, that’s Malta for EU. The flexible and liberal legislation is just one of the reasons why Malta is so attractive. The tax regime and tax benefits are of great importance to any business if the geographical location is irrelevant. Just by transferring their headquarters companies increase their profits by a huge margin. However, this has nothing to do with the safety and security of the player’s information and interest. That is at the zenith of the MGA’s principles.