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Malta’s Casino Gaming Tax Rises to 15% on 1 October – A Comprehensive Guide

By jili tutorial · September 26, 2026

Malta’s Casino Gaming Tax Rises to 15% on 1 October – A Comprehensive Guide

Overview: A Major Shift in Malta’s Gambling Tax Framework

From Thursday, 1 October 2026, Malta will implement a new tiered gaming tax system that replaces the long-standing flat 5% gaming tax and the separate gaming device levy. The changes, introduced through Legal Notice 84 of 2026 (Gaming Tax (Amendment) Regulations) and Legal Notice 86 of 2026 (amending the VAT Act), were published in the Government Gazette on 1 April 2026 and jointly announced by the Malta Gaming Authority (MGA) and the Malta Tax and Customs Administration (MTCA) on 2 April 2026.

This guide breaks down the new rates, explains the game-type classifications, clarifies the scope of the tax, and examines the narrowing of the VAT exemption – providing operators, advisors, and stakeholders with the context and detail needed to prepare for the changes.

Why the Change? Industry Feedback and Long-Term Goals

The MGA and MTCA stated that the reforms respond directly to industry feedback and are part of the government’s commitment, announced in the 2026 Budget, to ensure the long-term sustainability and competitiveness of Malta’s gaming industry. The old flat 5% tax, combined with a separate device levy, was seen as outdated and insufficiently aligned with different game types and revenue models. The new regime aims to:

New Gaming Tax Rates by Game Type (Effective 1 October 2026)

The rates are set out in Legal Notice 84 of 2026 and apply to gaming services provided to players located in Malta. The old flat 5% is replaced by the following structure:

ActivityGaming Tax Rate
Type 1 gaming services15% of aggregate gaming revenue
Type 2, Type 3 and Type 4 gaming services10% of aggregate gaming revenue
Activity within controlled gaming premises5%
Junkets and junket events5%

Source: Legal Notice 84 of 2026

How the Game Types Are Defined

The MGA’s classification system, used for licensing, now directly determines the tax rate. Here is what each type covers:

Key point: The 15% rate applies only to Type 1 (house-banked RNG games). All other online gaming types are taxed at 10%. Land-based casinos, bingo halls, and similar physical premises fall under the “controlled gaming premises” category at 5%, as do junkets.

What Replaced the Old System?

Under the previous framework, according to PwC Malta, a flat 5% gaming tax applied to all qualifying activities, plus a separate gaming device levy (e.g., per machine or terminal). The MGA confirmed that the new system merges these two charges into a single tax based on game type and mode of offer. PwC Malta describes the new regime as a revenue-based tax by service type, contrasting with jurisdictions that tax stakes (e.g., Germany taxes betting stakes, not revenue).

Scope: Only Gaming Services Provided Within Malta

The tax framework applies exclusively to gaming services offered to players located in Malta. This covers both land-based and online operators.

For remote (online) gaming, taxability is determined by the player’s location:

Operators must implement geolocation and player verification systems to correctly identify Maltese players. Services provided to players outside Malta remain subject to the tax rules of the player’s jurisdiction (unless covered by a specific MGA license condition).

Studio Levy Increases to €3,000 per Year

Legal Notice 84 also introduces a fixed €3,000 studio broadcasting levy, payable annually in advance. This applies to holders of a critical gaming supply authorisation who use premises as a studio to film or broadcast a gaming service.

VAT Exemption Narrowed – Major Impact on Operators

One of the most consequential changes is the narrowing of the VAT exemption for gambling supplies, effective from 1 October 2026. Under Legal Notice 86 of 2026, Item 9 of Part Two of the Fifth Schedule to the VAT Act had previously exempted “Betting, lotteries and other forms of gambling, as may be approved by the Minister.” The MTCA’s guidelines, issued on 6 April 2026, now define only three approved categories that remain VAT-exempt:

  1. Low-risk games as defined in the Gaming Authorisations Regulations.
  2. Junket events held on an occasional basis.
  3. Gambling facilities on a sporting event that can only be accessed at the venue where the event takes place.

All other gambling supplies – including most online sports betting, live casino, slots, and peer-to-peer games – will no longer be exempt from Maltese VAT.

What This Means for Operators

According to Deloitte Malta, “the supplies of most operators, including sports betting and live casino, will in principle be taxable for Malta VAT from 1 October 2026.” This means:

Both bodies promised to issue further guidance to support implementation – operators should monitor official publications and seek professional advice.

Practical Steps for Operators

To comply with the new tax and VAT regime, operators offering services to Maltese players should consider the following:

  1. Identify game types – Review all products and classify them per MGA definitions (Type 1, 2, 3, 4, land-based, junket). Confirm whether Type 1 games attract the 15% rate.
  2. Update tax accounting – Implement systems to track aggregate gaming revenue per game type for Maltese players separately.
  3. VAT registration – If your supplies to Maltese players are no longer exempt, register for Maltese VAT (if not already) and prepare to charge output VAT.
  4. Studio levy – If you operate a broadcast studio for gaming (e.g., live dealer), anticipate the €3,000 annual levy and include it in budget planning.
  5. Geolocation and player data – Ensure you can accurately determine where a player is located (residence/address) for taxability purposes.
  6. Seek professional advice – Consult with tax advisors (e.g., PwC, Deloitte, or local Malta firms) to model the financial impact and ensure compliance by 1 October 2026.

Context: How Malta Compares to Other European Gambling Tax Regimes

The MGA’s move to a revenue-based tax by game type aligns with the majority of European jurisdictions, which also tax gaming revenue rather than stakes. However, the rates vary widely:

Malta’s new rates (15% for Type 1, 10% for others) are moderately competitive – higher than the old 5% flat rate but still lower than many Western European markets. The distinction between house-banked games and commission-based games is a notable feature.

Timeline and Key Documents

Operators should also watch for further guidance from the MGA and MTCA expected in the coming months, which will clarify implementation details, especially for complex scenarios like multi-jurisdictional player pools.

Conclusion

Malta’s gaming tax overhaul represents a significant shift from a simple flat tax to a differentiated, game-type-based system. While the headline increase from 5% to 15% for casino-style games will raise costs for operators serving Maltese players, the new structure also eliminates the device levy and provides clearer VAT recovery opportunities. The narrowing of the VAT exemption will require most online operators to register for and charge Maltese VAT – a major operational change.

Preparation is key. By classifying products, updating financial systems, and monitoring regulatory guidance, operators can navigate the transition smoothly and continue to benefit from Malta’s robust gaming ecosystem.