Article prepared by CSB which featured in the eGaming Review Jurisdiction - June 2006

The Gaming Industry keeps evolving and in this competitive market, as in most industries, each operator is always on the lookout for competitive, convenient, well regulated and reputable jurisdictions. What may be good for one operator may not necessarily be interesting to another, and current licensing arrangements may not be optimal given the prevailing business climate. Not only is it important for operators to be able to have the required licensing arrangements in place to enable them to conduct their activities, it is also of utmost importance that market developments are closely monitored to identify potential opportunities for the development of business and keep abreast of competition. Failing to keep up-to-date with the current market conditions could put you at risk, which could prove to be a costly mistake.

Why Malta?

Due to Malta's reputation as a well-regulated jurisdiction (i.e. not appearing on the OECD “black list”), the island's convenient location, competitive tax regime, a network of double taxation agreements, combined with technical experience, a multilingual population using English as the business language, advanced telecommunication systems, competitive costs for management, administration, salaries and rent, places Malta on the forefront and gives us that added advantage over other jurisdictions.  With Malta's entry in the European Union in May 2004, Malta now stands out to be amongst the leading jurisdictions for iGaming in Europe.

Where is Malta?

Malta is located in the heart of the Mediterranean (approximately 100 km south of Italy) attracting many visitors and it enjoys scenic beauty and a wealth of culture that dates back as far as 3000 B.C. Besides being a museum in its own right and a perfect holiday haven for those seeking relaxation, sun and sea, Malta offers excellent business opportunities.

Malta also offers various advantages as an eCommerce business partner and it is an ideal location for eBusinesses wishing to operate in a cost effective environment. Needless to say, the island compliments all the related products or services that are required for an iGaming operation; i.e. banking, epayment and merchant accounts, legal, accounting and audit services, fiduciary (nominee) services, Data Centres (ISPs), recruitment services and secretarial services amongst others, which compare well with international standards.

Remote Gaming Regulations by the Malta Lotteries & Gaming Authority (LGA).

Over the past years Malta has successfully established itself as a serious and well-regulated European jurisdiction attracting on-line gaming companies. The Remote Gaming Regulations regulate all types of games carried out remotely. The regulations categorise games in 4 Classes as follows:  Class 1: Casino Style Games, Lotteries, Slots - Class 2: Sports Betting - Class 3 P2P, Betting Exchanges, Skins, Tournaments, Bingo - Class 4: Software vendors who take a commission on wagers.

Once an application for a license is submitted and obligations are fulfilled, a Malta company is incorporated and a license is issued in the name of the Malta Company. An application may be processed and approved within 5 to 8 weeks. One has to keep in mind that the local Authority is after reputable promoters of good standing. The Maltese Government has the objective of providing regulations that are competitive, safe for players, serious and more importantly not unnecessarily bureaucratic, ensuring vigorous protection for users of remote gaming and that would fit in with Malta's long-established and reputable financial services sector.

International Trading Company (ITC).

The unique feature of the Malta Company better known as the (ITC) is its "onshore" status, and once the shareholders are non-resident, very interesting tax benefits apply, effectively reducing the applicable tax rate to 4.17%. Although the mechanics of the ITC regime are expected to undergo some changes which should come into effect at the beginning of 2007, the fiscal incentives are expected to be retained to attract further international business and investment.

CSB offers a “one-stop-shop” service and we pride ourselves for providing clients a professional, efficient and personalised service. We realise that clients have individual requirements and it has always been our policy to provide a service that is tailor made to each individual, both initially and on an ongoing basis. We will basically hold our clients hands and walk them through the application process from A to Z. If required we can also organise the necessary meetings with the Malta Lotteries & Gaming Authority (LGA), Banks, ISPs and any other service providers that may be required.

In this competitive world a high quality brand image is essential for a successful business as players will increasingly be looking for secure sites operated in a respectable and well regulated jurisdiction. Malta has proven to be a leading European gaming hub in the past years and future prospects look bright. Today over 140 companies hold licenses issued by the LGA which include the top players in the industry. What’s holding you back from making Malta your business gateway? We have a common saying …… “Do not gamble on your business or gaming license but let the players do the gambling!!”

Commercial Services Bureau (CSB) Ltd
Vincenti Buildings, 14/19 Strait Street, Valletta VLT 08, Malta
Tel: (+356) 2122 5800, 2124 6543 - Fax: (+356) 2123 0520 - A.O.H. (+356) 9949 5552
Email: igaming@csb.com.mt - Website: www.csb.com.mt/iGaming
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