Malta remains the first choice for many advisers who set up B2B gaming operations in Europe. It has held that position for over two decades. In 2004, Malta became the first EU member state to adopt a full framework for remote gaming. Even so, the rules have become much tougher since then. So what keeps the island ahead in 2026?
Two licence types under the Gaming Act
The Malta Gaming Authority (MGA) regulates all gaming in or from Malta. It works under the Gaming Act (Chapter 583), in force since August 2018. The Act replaced the 2004 Remote Gaming Regulations. It built the system around two main licences:
- the B2C Gaming Service Licence for operators who serve consumers directly;
- the B2B Critical Gaming Supply Licence for suppliers of software, platforms, content and related services to licensed operators.
A B2B licence carries EU passporting rights. A holder can supply operators across the EU and EEA through notification procedures. No separate national licence is needed in each market. Brexit raised the value of this right. UK-licensed B2B suppliers lost their passport and must now seek authorisation in each EU state. As a result, many EU-focused suppliers turned to Malta.
The MGA also holds detailed talks with applicants before they file. In the first half of 2025, 87.5% of the licences it issued were B2B licences.
Tax: the effective rate is far below 35%
The headline corporate rate in Malta is 35% on worldwide income. In practice, a properly structured international trading company pays much less. The reason is the full imputation system. Tax paid by the company is imputed to the shareholder when dividends are distributed. For most trading income allocated to the Foreign Income Account, qualifying non-resident shareholders can claim a refund of 6/7 of the Malta tax paid. The effective rate can then fall to as low as 5%.
B2B licensees also avoid Compliance Contributions, the per-revenue charges that apply to B2C licensees. Therefore, their licence fees and supervision costs are lower. In addition, Malta has more than 70 double tax treaties.
However, EU developments need monitoring. The imputation refund system has so far been treated as compliant with state aid rules. Pillar Two still puts pressure on competitive regimes. Meanwhile, the EU is moving towards greater harmonisation of corporate tax.
The ecosystem is hard to copy
Tax and licensing do not explain Malta’s lead on their own. Two decades of industry growth built a dense network of law firms, compliance consultancies, certification bodies and service providers. For a B2B operator handling renewals and licence variations, that expertise saves time. The island also has a large pool of experienced gaming professionals relative to its size. Moreover, events such as SiGMA bring clients, partners, regulators and investors together regularly.
Substance is the main test
Since OECD BEPS Action 5 and the EU Anti-Tax Avoidance Directives, genuine substance is the price of treaty benefits and favourable tax treatment. In Malta, substance means real activity on the island. For a B2B gaming company, that includes:
- board meetings held in Malta, with minutes that reflect real discussion of strategy;
- key managers based in Malta who can direct and control the company from there;
- employees with relevant expertise whose presence is genuine;
- physical premises that match the scale of the business.
Banks add to the pressure. Maltese banks run their own AML and substance checks, independent of the MGA. A company without a credible presence on the island is likely to meet serious banking difficulties. This matters a lot in gaming, since payments and cash management depend on bank accounts.
Where Malta falls short
The analysis points to four limits:
- Banking. Opening a corporate account can take several months. Applicants without strong substance and clear revenue sources may be refused.
- Labour market. The population is about 550,000, so the pool of experienced staff is finite. Salaries in key roles have risen.
- Living costs. Housing has become more expensive, which affects relocation budgets.
- EU market access. The passport opens the door but does not cover every local obligation. A growing number of states run ring-fenced national frameworks with local requirements for B2B suppliers.
Conclusion
We conclude that Malta remains the most complete answer to where to base a serious European gaming supply business. However, this holds only if the setup is done properly. That means real substance, quality professional support and a clear view of what the jurisdiction offers and what it requires.