Malta Introduces New Gaming Tax Rates of Up to 15%

Malta's revised gaming tax framework entered into force on October 1, 2026, introducing different tax rates depending on game type and replacing the previous structure for qualifying gaming revenue generated from players in Malta.

Under the new system, Type 1 gaming services are taxed at 15% of gaming revenue, while Type 2, Type 3 and Type 4 services are taxed at 10%.

Gaming activity generated within controlled gaming premises, including land-based casinos, remains subject to a 5% gaming tax.

The changes were introduced through Legal Notice 84 of 2026 alongside separate VAT amendments under Legal Notice 86.

Online Casino Revenue Moves to 15%

Type 1 covers games where players compete against the house and the outcome is determined by a random number generator. In practice, this category includes much of the online casino sector.

Qualifying Type 1 revenue is now taxed at 15%.

Types 2, 3 and 4 are subject to a 10% rate. These categories cover products including fixed-odds sports betting, peer-to-peer games such as poker and bingo, and controlled skill games.

The new rates apply to qualifying gaming services supplied to players in Malta.

For remote gambling, the legislation determines taxability based on whether the player is established in Malta, has a permanent address there or usually resides in the country. The higher rates therefore do not apply automatically to all worldwide GGR generated by an MGA-licensed operator.

Malta Replaces Previous Gaming Tax Structure

Before October 1, the gaming tax applicable to remote gaming revenue generated from Malta-based players was generally 5%.

The previous framework also included separate gaming device levies for certain land-based activities.

The new rules consolidate gaming tax and the gaming device levy into a single structure classified according to the type of game and how it is offered.

The Malta Gaming Authority said the reform was developed alongside changes to the country's VAT treatment of gambling services following consultation with the industry.

The VAT amendments clarify the treatment of areas including sports betting and certain casino products, as well as rules determining where services are supplied for tax purposes.

According to the MGA, the combined changes are intended to provide greater predictability for operators while maintaining Malta's competitiveness as an international gaming jurisdiction.

New Reporting Portal Goes Live November 1

Operators will also move to an updated regulatory reporting system to accommodate the revised tax framework.

Reports covering September 2026 remain subject to the previous rules and must be submitted by October 20.

The updated portal functionality will become available by November 1.

October will therefore be the first reporting period covered by the new gaming tax structure. Licensees must submit those reports by November 20 using the updated portal and revised requirements.

The October 1 changes represent a significant adjustment for operators generating gaming revenue from customers in Malta, particularly Type 1 businesses that move from the previous 5% gaming tax rate to 15%.

For internationally focused MGA licensees, however, the practical impact will depend on the amount and type of gaming revenue attributable to players who fall within the Maltese tax rules.