Malta Shifts to Tiered Gaming Tax System for Operators Serving Local Players
Written by Olivia Albrecht · Sep 26, 2026
Malta Shifts to Tiered Gaming Tax System for Operators Serving Local Players
Malta has moved away from its longstanding flat 5 percent gaming tax plus device levy model and now applies graduated rates based on game categories for operators that supply services to players located in Malta, with the Gaming Tax (Amendment) Regulations 2026 and Legal Notices 84 and 86 of 2026 setting out the revised framework that takes effect in October 2026.
Type 1 games, defined as online casino-style offerings that rely on random number generators along with lotteries, now carry a 15 percent tax calculated on aggregate gaming revenue, whereas Type 2, 3, and 4 games that encompass sports betting, player-versus-player formats, and skill-based products shift to a 10 percent rate, while controlled premises and junket operations remain subject to the original 5 percent levy.
Previous Tax Framework and Reasons for Update
The earlier structure imposed a uniform 5 percent tax on gaming revenue together with a separate device levy that applied across most license categories, creating a single-rate environment that regulators have now replaced with category-specific percentages to align tax obligations more closely with the operational profiles of different game types. Observers note that the change addresses distinctions between chance-dominated products and those that incorporate skill or betting elements, while the narrowing of the VAT exemption removes certain gambling services from zero-rating that previously applied more broadly.
Breakdown of Game Classifications Under New Rates
Type 1 classification covers RNG-driven casino games such as slots, roulette, and blackjack along with lottery products, all of which now attract the higher 15 percent rate on aggregate gaming revenue generated from Maltese players. Type 2, 3, and 4 categories include sports betting markets, peer-to-peer poker and similar player-versus-player contests, plus skill games where outcomes depend on player ability, each moving to the 10 percent rate. Controlled premises and junket arrangements continue at 5 percent, preserving the prior treatment for those specific segments. The regulations specify that aggregate gaming revenue forms the tax base for the new percentages, replacing the combined flat tax and device levy calculation used before.
Implementation occurs in October 2026 after the Legal Notices were finalized earlier in the year, giving operators time to adjust reporting systems and internal accounting processes ahead of the first affected period. Those who have studied the transition timeline indicate that September 2026 will see final compliance preparations, including updated filings and system testing, before the October start date.
VAT Exemption Adjustments and Scope
Alongside the tiered tax rates, the VAT exemption applicable to gambling undergoes a narrowing that limits the range of services qualifying for zero-rating. The adjustment aligns the exemption boundaries with the new game classifications and ensures that certain remote gaming activities fall outside the previous blanket treatment. Data from regulatory notices shows the change affects operators supplying services to Maltese players by requiring review of which products retain the exemption and which now fall under standard VAT rules.
Operator Compliance and Reporting Requirements
Operators must segment revenue streams according to the defined game types when calculating tax liabilities, with separate tracking for Type 1 products at 15 percent, Type 2/3/4 products at 10 percent, and controlled premises or junkets at 5 percent. The Gaming Tax (Amendment) Regulations 2026 detail the precise definitions and aggregation methods, requiring companies to maintain records that distinguish Maltese player activity from other jurisdictions. Compliance teams have begun mapping existing game portfolios against the new categories to ensure accurate monthly or quarterly submissions once the rules activate.
Figures released with the Legal Notices indicate that the tiered approach replaces both the flat 5 percent component and the device levy in a single consolidated structure, eliminating the need for separate device-based calculations. Companies supplying services to Maltese players now apply the relevant percentage directly to aggregate gaming revenue derived from those players, streamlining some aspects of the prior dual-levy system while introducing category-specific rates.
Conclusion
The regulatory update establishes a clear three-tier tax environment that differentiates between casino-style RNG and lottery products at 15 percent, sports betting along with player-versus-player and skill games at 10 percent, and controlled premises or junkets at 5 percent, while tightening the VAT exemption scope. Operators have the period through September 2026 to finalize system changes before the October 2026 effective date, after which the new rates govern all qualifying revenue from Maltese players under the amended framework.