Online Betting in Malta
Overview of the regulatory framework for online betting in Malta.
In 2000, the Maltese government issued regulations governing the operations of Internet Based Betting Offices.
Under these regulations, the Director of Public Lotto will grant licences to operate such betting offices to such persons having "the appropriate business ability to conduct the betting office successfully." Licences are issued for a minimum period of five years and may be extended for further periods of five years.
Favourable Tax Regime for Online Betting in Malta
The attractiveness of Malta as a venue for betting operations is also due to the tax-friendly environment in which they are allowed to operate:
Betting transactions are taxable at 0.5% on turnover.
No licence fees
No application fee
Effective corporate tax rate of 5%
Companies conducting onling betting in Malta are subject to a corporate tax rate of 35%, subject to shareholder refunds of 6.7ths, reducing the overall effective tax rate to 5% in the hands of shareholders.
Destination: Online Betting in Malta
The above scenario has resulted in a considerable number of international betting companies, many based in Britain, recently setting up offshore operations here, enabling their clients to bet online through the numerous Internet facilities available today.