Malta to Introduce Tiered Gaming Tax Rates from October

New Tax Rates for Different Gaming Services

Malta will introduce a new tiered gaming tax framework on October 1, changing the way gambling revenue generated from players physically located in the country is taxed for the first time since 2018.

Two legal notices published on April 1 amend Malta’s Gaming Tax Regulations and VAT Act, replacing the existing flat gaming tax and separate gaming device levy with a single tiered tax structure.

Under the new framework, Type 1 services, which include casino games and slots played against the house, will be subject to a 15% tax rate.

Types 2, 3 and 4 services will be taxed at 10%. These categories cover fixed-odds betting, peer-to-peer products such as poker and betting exchanges, as well as controlled skill games.

A 5% rate will apply where revenue is generated within controlled gaming premises or is legally classified as a junket.

Changes to the Existing Gaming Tax Structure

Since 2018, Malta has applied a 5% gaming tax to revenue generated from players physically present in Malta. A separate gaming device levy has also applied to machines operating in gaming premises.

The previous levy stood at 30% for Type 1 and Type 2 services and 12.5% for Types 3 and 4, with lower rates applying to controlled gaming premises and junkets.

From October 1, these separate charges will be replaced by a consolidated tax.

Scope Limited to Revenue from Players in Malta

The new tax structure applies specifically to gaming services provided to players located in Malta.

The amended definition covers licensable gaming services provided from Malta or to individuals in Malta. As a result, revenue generated from players in other jurisdictions will not be subject to these rates.

The change therefore primarily affects the domestic segment of Malta’s gaming market rather than the broader international business conducted by Malta-licensed operators.

For Type 1 operators serving players in Malta, the new 15% rate represents an increase from the previous 5% gaming tax. Meanwhile, land-based operators may see a different impact as the separate device levy is incorporated into the new consolidated structure.

VAT Rules Also Set for Changes

The tax reform also includes amendments to Malta’s VAT framework.

The second legal notice modifies the Fifth Schedule of the VAT Act, clarifying the exemption applicable to gambling supplies, particularly in relation to sports betting and certain casino services. It also provides additional clarification regarding place-of-supply rules.

Further guidelines are expected from Malta’s Tax and Customs Administration.

One practical consequence could be the ability to recover eligible input VAT on activities that fall outside the revised exemption. This may be relevant for operators with significant costs and business activities in Malta.

Reform Comes Amid Sector-Wide Developments

The new framework follows a period of discussion about the stability and future development of Malta’s gaming sector.

Around 120 jobs were reportedly affected when one operator closed its Malta operation in June, while the industry has also highlighted approximately 1,200 vacancies among licensed operators.

The government has presented the tax changes as a measure aimed at providing greater certainty for the sector rather than simply increasing tax revenues.

Operators have had six months to prepare for the new framework, which will take effect on October 1, 2026.

The full legal notices and accompanying guidance are available through the Malta Gaming Authority.