Malta licenses for online casinos
The first step towards opening an online casino, online poker or tote is its registration. A registration will require obtaining a license - permission to conduct this kind of activity. Today in the world there are more than 80 countries that allow you to get a license for online gambling activities. Each country has its own registration, its advantages, and disadvantages. There are among them both classic offshores and ordinary countries offering favorable terms, but not eliminating the payment of certain taxes. Without a casino gambling license, it is impossible to open an online business on the Internet. All software companies that develop software for online games necessarily require a license from an operator issued in any of the preferred jurisdictions. In some countries, the process of obtaining a license is more like a formality, while in others it is approached with full responsibility (up to conducting a full audit of the company). The highest requirements are for companies in Europe, it is much easier to obtain the necessary documents in Asia or Latin America. Anyway, business in Europe gives bigger protection and bigger markets.Malta online casino license
In 2004, the country became the first European state that legalized gambling business. The regulator of this jurisdiction is the MGA. The game license is issued for five years, while the entire licensing period lasts about 2 months. This registration works in the EU and several other states. For example, it is in the whitelist of the UK, so the licensee of the jurisdiction can also enter this market. Licenses in this region are divided into four classes and are issued for these three groups:
- Companies using a random number generator (RNG). This includes online casinos, gaming slots, and lotteries. The price will be € 4660 per month for the first half year and later - € 7,000 per month;
- P2P operators: betting exchanges, poker rooms, and etc. The tax is 5% of revenue. This class includes all game clubs where the game is played between two independent participants. The licensee takes 5% of the proceeds in favor of the jurisdiction;
- Suppliers of gaming software. This license is obtained by software developers for online casinos or hosting companies.
To obtain a license, the operator should draw up and present a business plan and show personal data of shareholders and information on the movement of money in the accounts. In addition, all the software that the future casino plans to use must pass the official check too. Here are the requirements to the company to cooperate with the region:
- Register an enterprise and open an office within the region
- Prepare and provide a business plan
- Open an account in one of the banks in the region
- Be audited by the regulatory state
- Provide personal information about shareholders
- Have a Malta resident in the company (or become one)
- Pay state fees.
A license for an online casino in the region will cost from € 50,000. The high price includes such components includes:
- € 2330 - application
- € 25,000 - registration application
- € 8500 annual fee
- Taxes depending on license class.
Thus, licenses of different classes require different budgets. This license is recommended for operators who have a large start-up capital and far-reaching plans to conquer the European gambling market. Corporate tax is 35%, but it is possible to reduce the effective rate to 5%.Concluding
Selection of the jurisdiction is the responsible choice. It will affect the effectiveness of all licensed casino and the directions of its activities. It is an expensive region but it offers a huge variety of great options. Anyway, before you will make your final decision, you can answer yourself such questions:
- Evaluate the countries from which the maximum number of players will come to you. They should be familiar with your chosen jurisdiction;
- Evaluate what tax burden you will have after choosing one or another jurisdiction;
- Find out which licenses of the jurisdictions get the greatest reputation in the world community.