Why is the Malta Gaming Authority So Trusted?
Malta wisely opened its doors to the iGaming industry.
Regardless of region, iGaming is booming worldwide, and one country has emerged as a powerhouse within the industry — Malta.
This small Mediterranean country isn’t all about sunny weather and breathtaking beaches; it’s also known for its robust regulatory framework and iGaming credibility.
But how did Malta become one of the most trusted gambling jurisdictions in the world?
While the country first legalized gambling in 1921 by introducing Lotto regulations, it was in 2004 that Malta made a significant leap forward. That year, it became one of the first countries to implement regulations for online gambling. At the time, the Internet was still vastly underutilized by the industry, putting Malta in a perfect position to attract operators.
Fast forward to 2024, and gamblers worldwide play in Malta-based online casinos. They’ve emerged as a popular option for U.S.-based players, especially in states where casino games like poker are still restricted. Looking at this list of U.S.-friendly poker sites according to Business2community, you’ll see that some of the best online casinos for American players are based in Malta. Writer Cameron Dhaliwal has found that Malta, Gibraltar, and Curacao are the places with the most trustworthy – and flexible – gambling laws.
Malta is ideal for iGaming operators due to its robust regulatory framework, government support, and tax incentives.
The regulations in the country protect both online casinos and players, building more trust between the two parties. This ensures repeat business, which is one of the reasons the iGaming industry in Malta has flourished to this level.
Regarding taxes, the government has developed a system that can be pretty advantageous for iGaming operators. More precisely, the corporate tax rate can go as low as 5% for foreign companies, such as online casinos.
With these taxes being significantly higher in some other countries, Malta is the perfect location for iGaming businesses to maximize their profits and growth. With lower tax fees, they can also offer players better deals and more perks, which works in favor of both the player and the online casino.
And let’s not forget that Malta is a member of the European Union (EU), which offers online casinos the opportunity to reach players across the entire continent.
Additionally, Malta has implemented sturdy anti-money laundering processes and follows all directives from the EU in this area. This has also led to Maltese licenses being trusted everywhere in the world.
The country has also developed four different types of licenses and rules and regulations that cover each.
Type one covers games of chance that use random number generators (RNGs) to determine the outcomes of every bet. This category is what most traditional casino games like slots, blackjack, and roulette fall under.
Type two covers games of chance in which the result is decided by the result of an event or competition. This includes sports betting, where online casinos offer fixed odds and pool and spread betting.
Type three covers games in which players face each other. These are games such as poker in which casinos profit from commissions or entry stakes.
Type four covers controlled skill games such as fantasy sports, which have recently emerged as a popular form of gambling. It includes games related to real-life events and competitions, but in which players bet on their skills and knowledge.
When discussing why Malta has become such an attractive location for iGaming operators, it’s important to mention its infrastructure. The country offers high-quality telecommunications systems and data centers, which is precisely what online casinos need to provide uninterrupted service to players.
Malta is also home to several software developers, fintech experts, and professional marketers, all of which contribute to the rise of the country’s online gambling industry.
Another thing to consider is Malta’s strategic location. This country is a fantastic holiday destination and offers excellent connectivity to Europe, North Africa, and the Middle East.
With so many benefits for iGaming companies, they increasingly chose Malta as the perfect location for their business. Over 500 of them are currently operating in the country, employing over 10,000 people.
We can also look at key numbers to see how far the online casinos have gone in Malta. The iGaming industry in Malta is projected to reach a market revenue of $132.90 million this year alone.
It’s also estimated that the sector will grow at a 3.6% rate over the next five years, reaching $159 million by 2029.
With everything we’ve mentioned in this article, it’s no wonder Malta is viewed as the “land of online casinos.” As the entire industry continues to evolve, there’s no doubt the country will maintain its reputation as one of the biggest online casino hubs in the world for years to come.