Malta – Europe’s surprise gambling hub
Most of us familiar with the world of online casinos are at least dimly aware that Malta plays a significant role. However, to many, it’s not completely clear what this role is, or why gambling is such a big deal for Malta. Why Malta?
At Slot Gods, we like to keep an eye on the global gambling industry, so here we’ll examine some of the surprising ways in which gambling has influenced Malta, and how Malta, in turn, impacts the global gambling industry.
Malta at a glance
The Republic of Malta is a relatively small island country situated south of Sicily, in the central Mediterranean Sea. It has a population of a little over half a million, and is culturally very rich, with many different influences, including Arabic, French, Italian, and English.
Malta’s relationship with Britain is an especially strong one. It was a Crown Colony for more than 150 years, until 1964, and is still a part of the British Commonwealth. The British influences are many: English is an official language, and the Maltese even drive on the left.
It is predominantly Roman Catholic, and the influence of the Catholic Church is present in its architecture, festivals and culture. In terms of economy, Malta has a thriving tourism industry, but it also has a solid digital sector, and a large, dynamic gambling industry.
Gambling in Malta
In terms of Malta’s gambling background, there weren’t any real signs that it would become the gambling powerhouse it is today until the 21st century. Like most cultures, the Maltese had traditional games that were played at social gatherings, and these endured for centuries.
Under British rule, new influences arrived, including popular, modern forms of gambling. Proper regulation began in the 1920s, and the government was quick to see the value of a healthy gambling industry.
The digital breakthrough
At the turn of the century, as online gambling was taking off, the Maltese government made a brilliant and fateful move: it left EU law in the dust by creating a new regulator, the Malta Gaming Authority (MGA).
The MGA was to implement new legislation specifically geared towards remote gambling, which was established by 2004. This was the beginning of Malta growing into the gambling powerhouse we know today.
Malta Gambling Authority
The Malta Gambling Authority (MGA) is a gambling regulator, similar to others such as the UK Gambling Commission and the Gibraltar Gambling Commissioner, but with its own sets of rules, regulations and requirements. It was founded in 2001, to coincide with the burgeoning digital industry, and remains one of the most prominent regulators in the world.
Like other regulators, the MGA promotes fairness, protects players, maintains the legality of the industry, and issues licences. One of the reasons that so many international gambling operators hold an MGA license is that they’re generally easier to obtain than a UKGC licence, but they’re still widely accepted around the world.
The total number of operators holding an MGA licence fluctuates year by year, but it’s generally in the region of 300. It received 28 applications for new licences in 2024, but granted only 17. This illustrates that the MGA is not lenient or lax by any means, despite generally being thought of as less strict than some other regulators.
Impact on wider economy
It’s not just the regulatory framework that brings casino operators to Maltese shores. There are also some very attractive tax incentives. Many businesses can operate much more profitably due to the lower rates of corporation tax, and certain VAT exemptions for iGaming businesses. Essentially, the Maltese government has supported the sector from the get-go.
For these reasons, Malta has become a popular location for basing remote gambling businesses, but it’s also attractive for related industries such as software development. This network of businesses generates a huge number of jobs. In fact, one MGA report estimated that around 5.5% of the total Maltese workforce are employed in the gambling sector, a figure which is rapidly rising.
These days, gambling accounts for an incredible 12% of Malta’s GDP, with some estimates being even higher. This is astronomical, considering that, for most countries, this figure is below 1%.
Malta’s future
Malta’s gambling industry – and thus its wider economy – appear to have a bright future. Projections indicate that, in line with the global gambling market, Malta’s gambling industry will continue growing.
There have been recent instances of some operators backing out of the UK market, which could lead to more casinos seeking out MGA licenses.
Generally speaking, the situation in Malta shows little sign of changing. The MGA revealed in its annual report for 2024 that it has recently boosted its own internal workforce by providing additional training and making new hires.
Nevertheless, the MGA can’t afford to take its eye off the ball. It will need to keep evolving with the times, and avoid the pitfalls that some other regulators have stumbled into.
Key industry players in Malta
As touched on above, Malta’s infrastructure encourages remote gambling brand operators, as well as many related businesses, to set up shop there. This network is diverse and far-reaching, involving a surprising variety of business types.
Remote casino operators
Operators often run a number of casinos and iGaming platforms. These companies benefit greatly from being based in Malta, for the reasons we’ve discussed above. From Malta, casino operators can serve customers in any jurisdiction that accepts an MGA licence, which includes much of Europe. Examples include L&L Europe and the GRODT Group.
Software developers
Manufacturers of slot games and casino attractions need to have a license too. With a skilled workforce, tax incentives, and their operator partners nearby, it’s no surprise that many game designers have put down roots in Malta too. Some of the very best developers in the world work from Malta, including Pragmatic Play, Yggdrasil and Hacksaw Gaming.
Land-based casinos & others
There’s also a healthy land-based market in Malta, with four large, MGA-licensed physical locations. These are the Dragonara Casino, Portomaso Casino, Casino Malta, and Oracle Casino. Given that Malta’s largest industry is tourism, it makes sense that this intersection should do as well as it does.
Other adjacent companies that work with or for the gambling operators include law and consultancy firms, auditors, data centres and tech support. All of these lend their services to the gambling industry.
Summary
Malta has become a key gambling hub for Europe, an essential base from which many gambling and gambling-related companies operate. This is a symbiotic relationship, with the European and global gambling industry contributing massively to Malta’s economy. Gambling aside, Malta is a hugely popular place to visit. It has plenty of tourism appeal, and provides a great work environment – especially for those in the iGaming business.