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Date added: 24.04.2015Licensing of gambling business is the goal not only of financial giants, but also of entrepreneurs with an average level of prosperity from around the world. After all, the trends in the development of this type of activity are obvious.
Gambling, or rather gaming business (legal and transparent) brings its owner a stable income. It is, of course, about online casinos, poker-rooms, which provide their services remotely.
Which country to select for registering online casino? Where will your gambling business be securely protected and get the most favorable tax treatment?
Such country is a member of the European Union, namely - Malta. Maltese companies are used by entrepreneurs of the world to conduct profitable and protected business.
Types of companies in Malta:
The required number of shareholders is at least two. They can be natural/legal persons.
The company must have a legal address in Malta.
In the sphere of responsibility of the company's financial director is the Company's Register. Also data on distribution of shares, register of shares of the guarantor(s), register of directors and other documents that may be needed when providing information on annual income are in his charge.
Depending on the type of company selected, the terms of its registration may vary. The key to the prompt completion of all registration procedures is timely provision of relevant properly issued documents.
The fixed income tax rate is 35%. But at the same time, one should not forget about the system of tax refund, which can be used by shareholders of the holding and trading companies, reducing the tax burden to 0% and 5% respectively. Owners of shipping companies are exempted from taxation in Malta.
List of acts regulating the activities of the Maltese company.
Why is it advantageous to register gambling business in Malta?
Important nuance:
Maltese company engaged in online gambling can not accept payments transferred by the US citizens, and it also does not operate with the cards of American banks. Therefore, the client base of the company should be expanded among the residents of the CIS countries and the EU.
The system of conducting the gambling business in Malta today is perfectly regulated. That's why about 1/10 of all companies involved in the online gaming service are in Malta. Important role in the foregoing is played by the policy of the Maltese government, aimed at creating favourable conditions for business related to conducting of lotteries and organization of gambling. LGA or Lotteries&Gaming Authority is the official state body of Malta, which issues licenses to the subjects of gaming industry.
In contrast with the other jurisdictions offering licensing of remote gambling services (Gibraltar, Isle of Man, Alderney), Malta is the member of the EU, and the above fact opens the way for free movement of goods and services in the EU market.
Maltese laws regulating the licensing of remote gaming services was legalized in 2004. Further we introduce you to the main principles of the adopted rules:
Before announcing the intention to obtain a license to organize gambling in Malta, it is necessary to register or buy a company in Malta. The registration process includes the following steps:
When applying for gambling license, registration fee is paid, which is not refundable.
After considering the application, the owner of the company receives a period of six months to fully establish the business. Then the LGA issues the appropriate license within about two weeks.
The rules for provision of remote services in the sphere of gambling business are as follows: any type of activity for which electronic communications facilities are used and one or more participants contribute funds for the further possible receipt of a prize must be licensed.
Licenses are divided into 4 classes:
Class 1 Remote Gaming License. It is obtained by operators of gambling business, associated with games based on frequent events. The operator/casino controls the gambling risk. This license includes such types of gambling as lotteries, casinos, slots, board games. The software of the licensee must include the RNG (random number generator), approved by the LGA.
Class 1 on 4 Remote Gaming License. This is a so-called sublicense that allows the organization of games "for luck" and "for experience," which are conducted under the license of Class 4. In this case, the operator of Class 4 may be the company owned by the Class 1 operator, or it may be an independent operator.
Class 2 Remote Gaming License. It is issued to operators who organize game activity based on a single event and associated with the risk and use of markets. These are the games in which online bets are made. The winnings are usually fixed (for example, bets on results in sporting events).
Class 3 Remote Gaming License.
This is a license granted to operators organizing games between participants, but the peculiarity is that operators receive only a commission without taking part in games, and therefore they do not share risks. Such license is issued for the organization engaged in exchange of bets, sweepstakes, poker-rooms, bingo.
Class 3 on 4 Remote Gaming License. It is issued for conducting a gambling business from the territory of Malta. The license can be obtained by operators, leading or supporting a gambling business from Malta under the license of Class 4.
Class 4 Remote Gaming License. It is obtained by software vendors that provide hosting and manage operators of remote games (under any license). They do not share risks, but only receive a commission.
Basic form of remote gambling business is online casino.
Initially, the operator is provided with a temporary license. The operator obtains an official license within the period of 6 months from the beginning of carrying out the activity
Three stages of applying for a license.
1. Examination and verification of the information provided regarding the candidate begins by the LGA. All nuances are considered, including those individuals interested in managing and financing business. Financial analysis of the business plan is carried out, and conformity of the technical part is assessed. Guarantees for payment of the winnings must be backed up by securities or other reserves.
The business plan should contain the following:
Shareholders and key managers provide:
It is necessary to notarize all copies.
The first stage usually lasts 3-4 weeks.
The candidate receives a notification from the LGA about the successful completion of the first stage. Next, you must provide the following documents:
These documents are usually reviewed within 3-4 weeks.
Temporary license is issued. A key person is appointed in the company; necessary testing of the service is performed; contracts for renting the office are checked, etc. As a result of the successful completion of all procedures, the candidate is provided with official gaming license that is valid for 5 years.
The game service management system should be located in Malta. The license is issued immediately after the candidate receives the Management System Certificate.
After five years, it is possible to renew the gambling license. To do this, you must declare about this desire no later than 60 days before the expiration of the previous license. In the event that there were no violations in the activities of the licensee, his request for renewal will be satisfied. The list of documents required for the renewal of the permission is generally the same as at the main stages of obtaining the initial license. But the LGA may require additional data on an individual basis.
According to the classes of licenses obtained, the operator pays the following taxes:
Type Of Payment |
Currency, EUR / % |
Class 1 |
|
Per month during the first 6 (six) months |
4,660 7,000 |
Classes 1 - 4 |
|
Per month |
1,200 |
Class 2 (fixed bets) |
|
The amount equivalent to half the percentage (0.5%) |
0,5% from the amount of bet |
Classes 3 - 4 |
|
5 % from actual income |
5% from actual income |
Class 4 |
|
Tax on the game that is paid for hosting platform is zero for the first 6 (six) months Per month - from 7 to 12 inclusive Starting from 13 months and each subsequent month before the end of the license period |
0 2,330 4,660 |
In addition, within a period of 15 days from the date of granting the license, annual license fee is paid (later on it is paid annually).
Also, official person should obtain access to the server system.
In conclusion, it should be noted that the success of the company's activities, as well as the positive response of the licensing authority to a request for permission for gambling online business in Malta, largely depends on the correctness and completeness of the documents to be filled in, and the professional approach to the process of registration of the company. To exclude unpleasant "surprises" and start a successful gambling business in Malta, apply for assistance of the lawyers from Law&Trust International. You can clarify more information about obtaining a license to conduct a gambling business in Malta with our lawyer during personal conversation in the office, by phone or in chat.