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Purchasing of MGA Ready-made Licenses for Online Casinos and Sportsbooks
Having realized the benefits regarding their budgets, many European governments are becoming increasingly friendly towards online gambling. In recent years, we have seen a strong trend towards the legalization of iGaming platforms offering casino games, sports betting as well as poker and e-lotteries. By researching European iGaming platforms, you will find that many of them are registered in Malta.
As one of the respected and trusted gambling centers, Malta is an attractive jurisdiction due to its good geographical location and loyal local legislation. There is the Malta Gambling Authority, a body specializing in the control and monitoring of online gambling as well as issuing licenses to iGaming operators. If you are an iGaming business owner wishing to access an international player base, you should obtain a license from the Malta regulator.
Publish Date
22 August 2024
Reading Time
10 minutes
Category
Legal Guides
Jurisdiction
Malta
Things to Know About MGA
A small island nation in the Mediterranean, Malta is a premium hub for the online gambling industry. The local government has managed to create a robust regulatory framework and business-friendly environment and thus attracted many iGaming operators from different parts of the world. In 2001, the MGA was established here, the regulatory body responsible for ensuring the integrity, fairness, and transparency of the gaming sector.
The MGA is also responsible for issuing licenses for businesses wishing to operate as online casinos and sports betting platforms. With 200+ operators holding a Malta license, it is recognised in 100+ countries around the world including many European states. Known for its stringent regulatory standards, favourable tax environment and a strong emphasis on player protection, the MGA is an attractive jurisdiction for many iGaming companies.
Reasons to Choose the MGA License
If you are unfamiliar with the Malta gambling regulator, you can seek advice from the experts at Legasset law firm. Keep in mind that the application process can be complex and confusing, making it difficult to obtain a license. Legasset’s experts will guide you through the various intricacies and pitfalls regarding share capital, technical documentation, IT system requirements and much more.
Providing a broad definition of gambling, Malta’s regulatory body covers all types of gambling activities including poker, bingo, sports betting and more. The Malta Gaming Act of 2018 regulates the iGaming industry with a particular focus on respecting the public interest, ensuring fair gaming results, ensuring responsible advertising and the security of sensitive data. Here are some of the reasons why operators seek an MGA license:
- Impeccable reputation. Due to strict regulatory standards aimed at ensuring fair and transparent activity of operators, the MGA license is a kind of quality mark in the eyes of players.
- Tax advantages. Tax rates in Malta are not only competitive but also low enough for even small iGaming platform operators to make a decent profit.
- EU membership. This opens up opportunities for companies to operate in a very promising European Union market with many solvent players.
- Good regulatory support. MGA licensees receive assistance with compliance and legal issues.
- Player protection. Statistics show that users of MGA-licensed online casinos and sportsbooks send fewer complaints and negative reviews.
- International recognition. There are more than 100 countries in which operators with a license from the Maltese authority can work legally.
Do you need help to get the MGA license?
Benefits of Being Licensed by MGA
The MGA offers several types of licenses including B2C and B2B covering gambling against the house, peer-to-peer games such as poker or betting exchanges, skill-based games and fixed odds gambling. By obtaining a license from the Maltese authority, you will be able to enjoy the following benefits:
Recognised in many parts of the world.
Having an MGA license greatly enhances your reputation as an iGaming operator. You will appear trustworthy in the eyes of players and potential and existing partners alike.
Low tax burden.
The Maltese government has concluded more than 70 agreements to avoid double taxation. By minimising your tax burden, you will have sufficient funds to further grow and develop your online gambling business.
Reasonable cost.
The amount of registration and annual fees depends on the specifics of your iGaming business as well as the type of your license. Legasset experts will help you to choose the right option for your preferences and requirements. Legasset will provide detailed information on prices so that you can plan your company's budget properly.
Favourable economic and political climate.
The Maltese government is actively encouraging the development of the gaming industry. It endeavours to provide all possible assistance and support to operators operating in full compliance with the regulations and requirements of the current legislation.
Access to financial services.
By obtaining an MGA license, you will be able to open bank accounts in Malta, as well as use a variety of payment systems, thus providing a wide range of payment tools for your players.
Covers all common types of gambling.
With an MGA licence, you can operate legally as an online casino, sports betting site, online poker or lottery platform.
How to Obtain a Malta Gambling Regulator License
To obtain an MGA license, you must first register your company in Malta. In addition, you need to have a clean legal history to meet the requirements of the regulator. Below we have listed the criteria you must meet to acquire a Malta gambling license as well as the specifics of the application.
Documents for Application
The application package depends on the nature of your business and the type of gambling license you have chosen. Unfortunately, it is not easy to find the list of documents required to apply for a license on the regulator’s website. According to the practice of Legasset law firm, the following documents should be prepared:
- A license application form containing details of your company and the type of license you wish to apply for.
- A detailed business plan describing your company's business model, target markets, cost and revenue projections and marketing strategy.
- Incorporation documents such as articles of association, memorandum of association, certificate of incorporation and others.
- Documents on key employees of your company such as copies of identity cards, criminal records, proof of qualifications and others.
- Audited financial statements of the company's balance sheet, income and expenses, and cash flow.
- Internal documents and policies regarding anti-money laundering, user data protection and responsible gambling regulations.
- Documents confirming the compliance of software and gaming products with the requirements of the Malta regulator.
Steps You Need to Take to Get an MGA License
The journey of obtaining a license on your own can be daunting and thorny, especially if you don’t have business licensing experts on staff. To make the process of obtaining an MGA license much quicker and easier, you can contact Legasset. However, if you decide to do it all yourself, you will have to follow these steps:
We recommend a Private Limited Company (Ltd) as the best option for running an online gemming business. Keep in mind that the incorporation procedure has many legal intricacies and takes up to three months.
Keep in mind that this name must be valid for at least three months.
You will need to rent physical premises to use as your registered office for official correspondence.
Your company should have directors, a secretary, an anti-money laundering officer and some other officials as required by the regulator.
Select a bank in Malta, open an account for your company and deposit in it an amount corresponding to the minimum equity capital required by the regulator. You will use this account to carry out the financial operations of your business in the future.
Pay the registration fee and submit the documentation package to the Malta Business Register (MBR).
Key Benefits of Acquiring a Ready-Made License from Legasset
By deciding to buy one of the most prestigious gambling licenses with Legasset, you can enjoy the following benefits:
- Reduced time and effort. All things considered, the process of obtaining a license from the Malta regulator is complex and time-consuming. By choosing the off-the-shelf license option, you will reduce the time spent on preparation and processing of documents thus minimising the resources spent on the licensing process of your iGaming business.
- Guarantee of compliance with MGA requirements. Legasset will help you collect all the necessary documents and bring them in compliance with all the requirements of Maltese laws. The experts at Legasset will thoroughly review all internal documents and policies to minimise the risk of slowing down the process or denying your license application.
- Minimum legal risks. Legasset will offer optimal solutions to avoid potential legal problems. In addition, the law firm's experts will assist with optimising tax liabilities and managing financial flows.
Difficulties of Obtaining an MGA License
Known for its complex and lengthy verification and approval procedures, Malta is characterized by high standards and strict regulatory controls. This is why the average time from application to license issuance is between 4 and 6 months, which is significantly longer than for example Comoros regulators. If you decide to apply for a license on your own, be ready to face the following possible difficulties:
Registering a company in Malta requires a certain financial and time investment. You must have a physical office in Malta to qualify for a gambling license from the local regulator.
Your software solutions and gaming products must meet the MGA’s strict standards regarding gaming integrity and security of sensitive data. You may need to make changes to your iGaming platform or some of its services to bring everything into full compliance.
You will have to invest a substantial amount of money, as the MGA imposes significant requirements regarding start-up capital as well as financial reserves necessary for timely and full payouts of winnings.
You must be prepared for ongoing audits as the regulator requires you to remain compliant with all legal requirements throughout your license holding period.
