Malta Sets Casino Tax Rate at 15% Starting 1 October.
From 1 October, Malta will overhaul how it taxes gambling for the first time since 2018. Two legal notices published on 1 April one revising the Gaming Tax Regulations and the other amending the VAT Act, replace the existing flat tax and separate device levy with a single, tiered charge. The new rates depend on the type of gaming service and whether the player is in Malta.
A single tax, with rates based on game type
Since 2018, operators have paid 5% tax on gaming revenue generated by players physically in Malta. Operators with machines in gaming premises also paid a separate device levy: 30% for Type 1 and Type 2 services, 12.5% for Types 3 and 4, with lower rates for controlled gaming premises and junkets.
Under the new system, the separate levy is removed and replaced by one charge:
- 15% for Type 1 services, including casino games and slots played against the house
- 10% for Types 2, 3 and 4, covering fixed-odds betting, peer-to-peer games such as poker, exchange betting and controlled skill games
- 5% for revenue generated within controlled gaming premises or legally classified as a junket
The tax applies to Malta-based players
The revised rules apply only to gaming services provided to players in Malta. The updated definition covers any licensable gaming service provided from Malta or to a person in Malta. That means the headline rates do not apply to most of the international business licensed in Malta. Although the Malta Gaming Authority oversees a large industry, much of that activity serves players in other countries and falls outside the new charges.
The domestic market is comparatively small. A current list of online casinos accepting players based in Malta includes ten operators, all holding active MGA licences. For a Type 1 operator in that group, tax on revenue from a player in Sliema will triple on 1 October. By contrast, land-based operators with machines may benefit from replacing a 30% device levy with a consolidated rate of 15% or 5%.
VAT changes may matter just as much
The second legal notice amends the Fifth Schedule of the VAT Act. It narrows the gambling-supply exemption, particularly for sports betting and some casino services, and clarifies how place-of-supply rules apply. The Tax and Customs Administration has said it will publish guidance.
Read Also: BETBY celebrates five wins at Malta’s iGaming Excellence Awards 2026
For operators, the change could allow them to recover eligible input VAT on activities no longer covered by the exemption. Businesses with substantial costs in Malta may find this more significant than the revised gaming tax rates. The stated objective is tax neutrality, rather than raising revenue.
A test of confidence in the sector
The changes come after a year of renewed discussion about the industry’s stability. Around 120 people lost their jobs when one operator closed its Malta operation in June. At the same time, the sector cited roughly 1,200 vacancies across licensed companies as evidence that affected workers could find new roles. Both developments form part of the backdrop to a reform the government has presented as a way to provide certainty, not increase revenue. Whether operators see it that way remains to be seen, particularly alongside the broader growth targets the government outlined at MCESD this summer.
Operators have had six months’ notice longer than is usual in the sector. The full legal notices and related guidance are available through the Malta Gaming Authority. Gambling in Malta is restricted to adults aged 18 and over. Anyone concerned about their gambling can call the national helpline on 1777.
