Remote Gaming in Malta Our Service Offering March 2015 www.pwc.com/mt

www.pwc.com/mt
Remote Gaming in Malta
Our Service Offering
March 2015
Remote Gaming in Malta 1
Foreword
In the last few years, a large number of remote gaming operators have established themselves in Malta and the Malta
Gaming Authority has to date issued over 400 licences. The industry is in a rapidly evolving state with several countries
changing policies seeking to find a stance that addresses the balance between citizen freedom and protecting the same
citizen from fraud, crime and addiction.
PwC recognises the importance of the industry to the economy of Malta and supports the concept that good governance and
regulation is the solution to protecting players and particularly vulnerable groups. History has shown that protectionism
generally serves the unscrupulous more than the righteous.
As the leading and largest professional services organisation on the island, with nineteen partners and over 500 staff, we
provide a range of assurance, tax and advisory services to a large and varied client base, including reputable remote gaming
companies that choose Malta as a base.
We are at the forefront of this industry, with a view to providing sterling advice and support to our client base. More
recently we have analysed the impact of the introduction of the most recent legislative amendments which emanate from
the VAT Package (EU Commission 2010). We continue to consult on this topical matter with our clients as the regime
evolves in practice. We have successfully brought together, on varied occasions, CEOs of the largest established iGaming
companies to discuss industry issues in a structured forum. We have also led an assignment for the European Commission in
the regulatory sphere, and continue to work closely with and for the Malta Gaming Authority.
This document presents an overview of how we perceive a dynamic and rapidly evolving industry and the services we are
geared up to provide.
We look forward to being of service to you.
Kevin Valenzia
Territory Senior Partner
2 PwC
Contents
About Malta
About PwC
Our Experience in more detail
Our Services
Our Team
Remote Gaming in Malta 3
About Malta
The remote gaming industry
Malta has rapidly evolved into a global gaming hub.
There has been a steady increase in the number of
gaming providers that moved their operations to Malta
since the inception of the Lotteries and Other Games
Act in 2001, but more pronouncedly since the Remote
Gaming Regulations were introduced when Malta joined
the European Union in 2004.
In fact, Malta was the first EU Member State to introduce
comprehensive legislation on remote gaming back in
2004. Malta is now widely regarded by the industry as
the most prestigious European Tier-1 jurisdiction for
gaming operations.
The Malta Gaming Authority (MGA) has received
hundreds of applications for gaming licences over the
years. Currently there are 270 operators based in Malta,
holding over 460 licences for online offerings, such as
casino style games, sports betting and lotteries.
The MGA is the single regulatory body responsible for
the governance of all local gaming activities in Malta,
including remote gaming. The MGA has a licencing
framework based on four different classes, as well as
sophisticated evaluation and monitoring activities,
systems and processes.
The Authority has initiated an overhaul of the iGaming
regulations through consultations with industry
stakeholders.
4 PwC
In 2015, the MGA is launching a new promotional body
‘Gaming Malta’, as well as a Gaming Academy to train
the local workforce in the sector.
Apart from a stable and comprehensive regulatory
framework protecting both operators and players, there
are various factors which have contributed to Malta’s
success in attracting remote gaming operations. Some of
the principal advantages include:
Attractive gaming licencing fees, gaming taxes and
beneficial effective corporate tax rates on gaming
operations
Rapid, efficient and relatively low cost licencing
application procedures
Availability of an English-speaking skilled
workforce and highly competitive salaries
High quality industry-specific services and
infrastructure which delivers round-the-clock
connectivity
Availability of industry support services including
data centres, online payment processors and
platform providers.
Source: Gaming Malta, 2015 Edition; Malta Gaming Authority
About PwC
How We Can Serve You
Gaming operators in Malta can benefit from industry
knowledge, global resources and PwC’s reputation for
quality.
Since Malta’s establishment as a leading jurisdiction in
the remote gaming sector, PwC Malta has developed a
team of experts to service some of the larger and more
renowned gaming operators that are licenced in Malta.
Our team has gained considerable expertise in a vast
array of issues that gaming operators face, across all
types of gaming sectors.
Our firm benefits from an excellent relationship with
the MGA, and we have advised the MGA in the areas
of taxation, regulation, risk management and process
improvement.
Through our Advisory line of service, we have developed
a specialist team that provides assistance to the MGA,
in conducting system reviews as part of an applicant’s
licencing process. We have also performed a number of
buy-side due diligence reviews of iGaming companies,
including IT, regulatory and market analysis. We have
also provided post-acquisition assistance to iGaming
companies, involving the review of earn-out financial
information, calculation of earn-out amounts due and
provision of advice on earn-out disputes.
Industry experience, ranging from financial audits,
licencing and technical support, tax compliance and
advice on mergers and acquisitions, includes some of
the largest and most successful corporations in gaming
today.
Several of the gaming clients that we service operate
across various jurisdictions. We are accustomed to
operating as a global network working closely with our
counterparts abroad, to offer a seamless service to our
customers.
We are committed to promoting the highest quality of
professional standards and practices across all of our
engagements.
We provide assistance in evaluating operational,
technology and financial performance of organisations
bringing industry best practices and expertise from
other industries for similar business issues.
The financial, operational and tactical skills of our
gaming specialists, combined with the full service
resources of a global network, give us the unique ability
to be at the forefront of topical issues, analyse relevant
information, solve complex problems and ultimately
assist our clients in making sound business decisions.
Our expertise in brief:
Financial
audit
Tax compliance
and advice
Company incorporation
and licencing support
M&A advisory services
PwC Tech services including
vulnerability testing
Compliance services
VAT considerations
and optimisation
Regulatory
analysis
Internal audit
Remote Gaming in Malta 5
Our Experience in more detail
In the area of information security, we have carried
out independent annual security audits in line with
the UK Gambling Commission Remote Gambling and
software technical standards - security requirements
and have assisted operators to prepare for obtaining
certification under ISO 27001 - Information
Security Management. We perform internet
penetration testing and web application vulnerability
assessments in several sectors including iGaming.
External financial audits of a number of the larger
and more mature remote gaming operators in
Malta. The work covered during the external
financial audit includes an in-depth review of the
risks and underlying processes of the operators.
External financial audit clients include Betsson,
Cherryforetagen, Evolution, Portomaso Casino,
Stanleybet, Tipico and Unibet, amongst others.
We have performed well over 100 system and
compliance audits on behalf of the Malta Gaming
Authority, in which we review the gaming and
control systems of prospective licencees to ensure
compliance with relevant regulations and the MGA’s
policies.
In 2014 the European Commission appointed PwC Malta to carry out a study
on the role of regulators for online gambling: authorisation, supervision and
enforcement. The task involved gathering data through subject matter experts in
30 PwC offices. Regulatory authorities; operators; service providers and industry
associations were interviewed to consider potential areas of cooperation between
online gambling authorities in the EU/EEA. The data gathered was analysed and
presented in a report along with a set of country fiches containing the status of the
current regulations in online gambling in all
the states of the EU/EEA. The outcome was
also presented and approved in a meeting of
the Online Gambling Experts Group hosted by
the European Commission as a basis for future
cooperation between Regulatory Authorities
across Europe.
We have performed an analysis of player behaviour patterns in utilising credit/
debit card funds over time on behalf of a leading global bank serving major
gaming operators. The task involved millions of transactions with a total value
of several hundred million Euros.
We have actively led and participated in various
workshops with the MGA in relation to identifying
changes that are necessary to improve the
compliance reviews performed by the Authority.
We performed a Business Process Review and a Tax Review of the Lotteries
and Gaming Authority (the predecessor of the MGA).
We have reviewed the business plan and prepared the Terms & Conditions for
remote gaming operators in the process of setting up in Malta.
We have been working closely with the MGA and the
industry to address VAT related regulatory aspects.
We have provided direct and indirect tax related services to various gaming
clients and their related entities.
6 PwC
Our Services
Tax and Company Administration
PwC Malta’s tax practice has significant experience in
dealing with international structures, including but not
limited to clients in the gaming sector.
Our firm has assisted a large number of clients in
setting up Malta structures. Our expertise in this field is
enhanced by our membership of the PwC network.
Given the particular VAT related circumstances
applicable to gaming entities, we have been at the
forefront in advising on the VAT implications that
are specific to this industry and in providing relative
solutions particularly in the context of the new VAT rules
applicable as from 1 January 2015.
Tax planning and advisory services vary depending on
the complexity of the structures and the issues arising.
It is our experience that some investment is required
particularly in the initial stages in assessing the VAT
implications of operating in the gaming industry and
exploring possible solutions.
Our firm can provide advice on the type of structure and
set up to be used in operating the gaming business as
well as advice on the manner in which such structure
can be held. We also provide assistance with the
incorporation of Maltese entities.
In addition, companies are required to deal with
annual income tax compliance as well as annual return
submissions to the Registrar of Companies. Our firm is
well placed to assist with both of these legal obligations.
We also assist with any tax refund claims that may be
applicable in certain circumstances both in advising
on the setting up of an efficient tax refund process, as
well as assisting in the compliance aspect of tax refund
applications.
Particularly in the case of foreign owned gaming
businesses or those employing individuals who are not
ordinarily resident in Malta, we have the necessary
expertise to advise and assist with personal income tax
matters.
We also provide other human resource related services
such as advice on organisation design, policies,
assistance with global mobility matters, job evaluation
and compensation, and payroll administration services.
Our practice is also well placed to provide various
accounting services to gaming operators, which could
range from assistance with the production of monthly or
quarterly management accounts to involvement in dayto-day book-keeping and reconciliation processes.
Remote Gaming in Malta 7
Our Services
Assurance
PwC Malta provides audit services to some of the best-known
names in the remote gaming sector. Services are provided to
several segments including, casinos (online and land-based),
sports betting, bingo, poker and B2B providers.
PwC commits to a quality audit that adds value to your
business. Our audit approach can be summarised as
follows:
Our starting point is an understanding of your
business and risks, which drives our assessment
of materiality and the identification of audit risks,
including significant risks – audit risks that require
special audit consideration.
8 PwC
We then scale our audit approach based on the
size and complexity of the business with due
consideration to entity level and information
technology controls, including management’s
approach to its evaluation. We gather audit
evidence in a number of different ways – through
enquiry, tests of control, observation, inspection
and re-performance, reliance on the work of
internal audit (or equivalent) and substantive
(detailed) procedures.
Field work will be performed by our specialist
staff. The managerial and engagement leader’s
review will consider the results of audit
procedures with a particular focus on the more
material risk areas/balances requiring significant
levels of judgement including the implications of
topical issues (eg regulatory and tax matters).
We are experienced in managing the smooth
delivery of company audits and in co-ordinating
the review process in accordance with pre-agreed
timetables.
With PwC you get:
• A well planned and controlled audit process
• All staff sourced from our i-Gaming team
• An agreed upfront timetable with open
communication to ensure ‘no surprises’
• Value added advice in relation to industry
specific issues
• Services that address your needs at preagreed fee levels
Our Services
Assurance
SPA (System and Process Assurance) is understandably integral to the audit of a gaming company. The following diagram maps the links between the audit of the financial statements and
the systems related work.
Financial Statement Line Item
(Significant Accounts)
ISA Financial Statement Assertions
Accuracy
Completeness
Cut-off
Existence
Occurence
Classification
Understandability
Rights and Obligations
Valuation and Allocation
Transaction Class and Sub-Process
Business Process
Information Processing Objectives (CAVR)
Automated Application Controls
Manual Application Controls
Automated Accounting Procedures
Application-Generated Reports
Business Performance Reviews
Information Technology General Controls
Program Changes
Computer Operations
Access to Programs
and Data
Program
Development
Remote Gaming in Malta 9
Our Services
Assurance
SPA processes in some more detail:
Areas of focus
Examples of processes that are typically examined by SPA
Focus on controls
Assessment of the components of the control framework in order to understand the level of reliance that can be placed on
controls and the underlying IT systems including assessment of the:
Control environment
Control activities (examples provided below)
Management’s risk assessment process
Information and communication controls
Monitoring of controls
Revenue cycle
Player registration/player identification and verification controls
Controls over the game/gaming revenue
Controls over player deposits and withdrawals/payouts
Controls over suspected transactional frauds
Controls over service providers (eg platform or payment providers)
Controls over key reconciliations between the back end and third parties/accounting records
Our audit will focus on the significant risk areas in the context of the financial statements. Typical significant audit risks include:
Examples of significant risks and our approach
Examples of processes that are typically examined by SPA
Legal and regulatory environment
A key concern for several i-Gaming operators, which is understandably equally important to us. Our approach in this area is
to understand the Board’s policy in entering new or servicing existing markets, and to assess whether restricted jurisdictions
are consistent with management’s policy through testing of the back-end and a review of contractual relationships with
service providers. Citing of legal opinions in relation to relevant jurisdictions/legal circularisation are also considered.
Standard internal tools have been designed to assess and test compliance matters that are specific to the Remote Gaming
Regulations. These checklists are intended to provide an element of value added in an environment that is complex and
heavily regulated. Customer complaints are also reviewed for an understanding of implications.
10 PwC
Our Services
Assurance
Fraud risk (with emphasis on customer funds)
The nature of the industry, including significant volumes and handling of client monies, lends itself to fraud risk. We will
communicate with you on fraud and apply tailored fraud matrices to assess the extent of fraud risk through discussions
with you, and within the parameters of our responsibilities as statutory auditors. We also evaluate company controls and
procedures that address money laundering risk.
Reliance on third party service provides
It is typical for this industry to require reliance on third party service providers, such as platform support or payment service
providers. We will assess management’s due diligence processes in engaging third party providers and monitoring procedures
exercised over day to day transactions with these external parties.
Revenue recognition
Not necessarily a straightforward topic in the context of the IFRS interpretation for a ‘wager’ to be considered a financial
instrument in terms of IAS 39. An evolving approach from an industry perspective - as part of the audit process we will assess
revenue accounting against industry best practice with emphasis on ‘netting’ of related items, and the fair valuation of related
liabilities (in particular management’s assessment of the exposure to open positions at the reporting date).
Intangibles
iGaming companies invest heavily in their IT infrastructure. We will assess the basis for capitalisation, the appropriate
classification, the assets’ useful lives, the risk of impairment and the attendant disclosures.
Taxation
Our taxation team will review the taxation balances in the financial statements. As part of the audit process we will also
consider management’s assessment of VAT risk and the attendant exposure. This is done particularly in the light of the typical
restrictions applicable to gaming entities for the recovery of VAT on costs, as well as the implications and possible risks arising
from potential VAT liabilities in other countries as a result of the place of supply rules implemented as from 1 January 2015.
General disclosure and presentation
We will perform a thorough review of the financial statements for compliance with International Financial Reporting
Standards as adopted by the EU. Our team has developed in-depth experience of disclosures and presentational matters that
are typical of the i-Gaming industry.
Remote Gaming in Malta 11
Our Services
Advisory
PwC Malta provides advisory services throughout the
licencing process. These include:
Fit and Proper & Business Planning
Introduction to Maltese regulatory authorities and
requirements for remote gaming
Assist in the preparation and review the financial
components in the business plan prior to submission to
the Authorities
Operational and Statutory Requirements
Assist in the compilation of documentation required
throughout the licence application process.
Assist in the compilation of the organisation’s policies
and procedures including:
- Risk management
- Information security
- Know your client
- Acceptable usage
- User/player terms & conditions
- Data protection
- Incident management
- Back up management
Design or review a Business Continuity Plan
Systems Audit
Readiness assessment in preparation for the Systems
Audit performed by the Authority
Threat and vulnerability assessment and testing
12 PwC
Information Security
Internet penetration testing and web application vulnerability assessments
ISO27001 readiness assessment including a review of your Information Security Management System to identify any
gaps or weaknesses before submitting to a certification audit
Readiness assessment in preparation for the Systems or Compliance Audits performed by the Malta Gaming Authority
Threat and vulnerability assessment and testing.
PwC Malta provides other advisory services in the Transactions and Performance Improvement domains:
Merger and acquisition
We identify merger and acquisition candidates, perform
acquisition advisory procedures and disposition assistance of
gaming operations. We assist our clients through every stage
of a transaction, including deal structuring and fund raising,
and help clients adapt quickly to the resultant changes.
Financial analysis
Our finance specialists prepare prospective financial
analyses for proposed and existing operations. We evaluate
actual results, and analyse the effectiveness of an entity’s
accounting and internal control systems for regulatory
compliance and other purposes. Financial analysis services
also include assisting entities in structuring joint venture
agreements, negotiating management contracts and
providing direction in the development of financial terms
and the overall capital structure with lending institutions and
investment banks.
Performance Improvement
Our gaming industry specialists work within an organisation
to assess areas for operational improvement and enhanced
financial performance. This includes in-depth analysis
by department of current practices, funds flow, staffing,
departmental objectives, marketing initiatives and internal
communication tools to enhance customer satisfaction and
property earnings. As part of our Performance Improvement
expertise, we can also assist operators improve on the
ongoing compliance with laws and regulations efficiently
and effectively. We use our experiences with standard
industry practices and benchmarks to develop operational
refinements and process improvement recommendations.
Our Team
George Sammut, Advisory Partner
[email protected]
Since joining PwC in 1987, George has led a number of projects in Malta and abroad including Business Analysis, Systems Selection, Information Security
Reviews, Disaster Recovery Planning, Systems Certification, e-Business strategy and implementations. George is also in charge of a team of Systems and Process
Assurance staff dedicated to supporting audit teams by assessing and reporting on security in the IT infrastructure, applications and management of more than 100
companies each year. George and his team also provide advisory services relating to IT systems and security effectiveness and performance improvement enabled
by technology solutions. In recent years, the team has performed information systems reviews on more than 80 remote gaming operations on behalf of the Lotteries
and Gaming Authority to verify technology, security and regulatory compliance as part of the licencing process.
Romina Soler, Assurance Partner
[email protected]
Romina joined the firm in 1990 as an ACCA student trainee and was admitted to the partnership in July 2006. She is actively involved in the firm’s assurance
division, with a leading role in the i-Gaming sector. She has developed considerable experience in audit and special assignments over the years, including a oneyear secondment to the audit practice in PwC London. She has led a number of gaming audit assignments and her current portfolio includes some of the more
renowned gaming operators in the industry. Romina has also been involved in due diligence assignments in relation to mergers and acquisitions happening in
this sector. Romina is a Certified Public Accountant (CPA), a member of the Association of Chartered Certified Accountants (FCCA), and the Malta Institute of
Accountants (MIA).
Neville Gatt, Tax Partner
[email protected]
Neville graduated in law from the University of Malta in 1993 and joined the firm in 1994 after specialising in International and EC taxation at the University of
London. Throughout his professional life, he has acquired material experience of international tax, EC tax and related issues. His portfolio of clients has included
a number of gaming clients, in respect of which he has co-ordinated both local and international tax assignments. He also forms part of a team of PwC Malta
personnel which is actively involved in making submissions to the Maltese authorities in respect of innovations that could be introduced within the Maltese tax
treatment of international gaming activities. Neville also lectures and examines in International and EC Tax legislation at the University of Malta and in Tax law at
the Malta Institute of Taxation. He has addressed various seminars and conferences on these subjects both locally and overseas.
David Ferry, Tax Partner
[email protected]
Since joining the firm in 1994, David obtained extensive experience in corporate taxation servicing a varied portfolio of clients, as well as VAT and other indirect
taxation matters. He has specialised in VAT matters since 1997 and has assisted various clients in VAT tribunal cases. He has also supported a number of University
students compiling studies on indirect taxation matters. David is chairman of the Tax committee of the Malta Institute of Accountants and is a member of the
Malta Institute of Taxation. David is primarily responsible for VAT related matters in the Malta practice of PwC and this has led him to be involved in various VAT
related assignments with a number of gaming clients. He has also represented the local Institute of Financial Service Practitioners in discussions with the Maltese
authorities on various matters related to the gaming industry.
Remote Gaming in Malta 13
Angelita Briffa, Assurance
[email protected]
Angelita joined the firm in 2002 after reading for a Bachelor of Accountancy (Hons.) degree at the University of Malta. She managed varied assurance assignments
over the years, but her industry specialism is i-gaming. She acts as engagement manager on most of the firm’s clients in this sector, and has led the i-gaming
dedicated unit for PwC Malta for the past 8 years. Her portfolio boasts some of the more renowned operators in the industry. As a result of the international
perspective to this sector, Angelita is accustomed to working on cross border assignments for both listed and non-listed groups. Angelita was seconded to the PwC
London ABAS department for a 6 month period where she worked on CIPs clients, and to the PwC Rome office for 2 consecutive 6 month periods, where she was in
charge of the audit of a United Nations Organisation. Angelita is a Certified Public Accountant (CPA) and a member of the Malta Institute of Accountants (MIA).
Ivan Grech, Advisory
[email protected]
Ivan joined the firm in 2003 after having successfully completed his Accountancy degree at the University of Malta. He is also a Certified Information Systems
Auditor (CISA), Certified Internal Auditor (CIA) as well as a member of the Association of Chartered Certified Accountants (ACCA). Ivan was seconded to
London twice, for a total period of 12 months. During his secondments, Ivan was involved on the information systems audit of several Insurance and Investment
management clients. In London Ivan was involved on a SAS 70 audit on the controls of a world leading financial services company. Ivan has been involved in several
reviews of system based and manual controls as well as cycle and system flow mapping. He has considerable experience in the performance of many i-Gaming
systems and process controls reviews, including documenting and assessing controls over operations and their management, application change control, computer
operations, security administration, physical and logical security, and disaster recovery planning.
Cristina Abela Misaros, Assurance
[email protected]
Cristina joined the assurance practice of the firm in 2010 whilst sitting for her final ACCA exams. She has worked for a number of years in the private practice.
Her audit-client portfolio includes a number of regulated and high profile companies within the i-gaming industry. During 2013 Cristina was seconded to the PwC
Minneapolis office where she worked on a number of CIP clients. She is a Certified Public Accountant (CPA), a member of the Association of Chartered Certified
Accountants (ACCA), and the Malta Institute of Accountants (MIA).
Mark Abela, Tax
[email protected]
Mark read law and an M.A. in Financial Services at the University of Malta and joined the firm in 2012. He is on the PwC Tax & Legal team and is involved in various
tax advisory services relating primarily to income tax, VAT and other indirect taxation matters, with emphasis on the gaming industry. Mark also has substantial
experience with the EU gambling regulatory environment, and forms part of high profile client service teams in the area, advising key industry players including
European Union institutions.
14 PwC
Appendices
Regulatory Framework in Malta
Licencing Costs
Gaming Tax
Doing Business and Investing in Malta
Remote Gaming in Malta 15
Appendix A
Regulatory Framework in Malta
(www.mga.org.mt)
Application Area
Process
Fit and Proper & Business Planning
The applicant must complete an application for a remote gaming licence, together with a Personal declaration form for each
person with more than five per cent (5%) interest. In the case that one or more of the controlling parties is another business
entity, ownership and incorporation details need to be submitted. A business plan should also be submitted.
Operational and Statutory Requirements
The following documentation has to be submitted as part of the application process:
A Maltese Company Registration Certificate;
Memorandum and Articles of Association;
Business entity information form;
3-Year business plan;
A detailed operational manual outlining the application architecture, the system architecture, software development,
security and control procedures, back-up and disaster recovery procedures;
The payment methods, the payment system/s and the provider/s;
Agreements with business partners, affiliates, agents;
A service provider authorisation form if applicable, including the agreement with the equipment hosting provider in
Malta outlining clearly the functions and responsibilities to be carried out by such provider. A site plan of the data floor
indicating the location of the equipment must be attached to the agreement.
Systems Audit
Prior to a licence being granted, an operator is required to undergo a risk based Systems Audit of the gaming and control
system covering aspects such as management, security, operational , financial control, reporting functions. The objective of
the audit is for the Authority to obtain comfort that the operator is able to fulfil the requirements of the regulations.
Licence Renewal
On expiration of a five year licence, subject to a review of systems and procedures, the MGA may renew such licence for a
further five year term. Renewal applications shall be submitted to the Authority at least 60 days before the expiration of the
current licence.
16 PwC
Appendix B
Licencing Costs
Application Costs (for any one licence)
Fees
Application Fee
€2,330
Systems Audit Fee
€1,770
Compliance Audit Fee
€2,750
Licencing Costs (for any one licence)
Fees
Annual Licence Fee
€8,500
Renewal of Licence Fee (after the 5 year term)
€1,500
Transfer or Assignment of Licence Approval Fee
€1,500
Share Transfer Approval Fee
€1,500
Simple Contractual Commercial Agreements Approval Fee
(per annum per contract - Aggregate amount for approved contracts shall not exceed €30,000 per annum)
€70
Complex Joint Venture Agreements Approval Fee
Administrative Hourly Fee
Remote Gaming in Malta 17
Appendix B
Gaming Tax
Licence
Gaming Tax Fees
Class 1
€4,660 per month (for the first 6 months)
€7,000 per month (for the remaining duration of the licence)
Class 1 on 4
€1,200 per month
Class 2
0.5% on gross amount of stakes accepted
Class 2 on 4
0.5% on gross amount of stakes accepted
Class 3
5% gaming tax on real income
Class 3 on 4
5% gaming tax on real income
Class 4
Exempt from gaming tax (for the first 6 months)
€2,330 per month (for the next 6 months)
€4,660 per month (for the remaining duration of the licence)
Class 4 - Licencee hosting and managing an operator which is not in possession of the
relevant Class 1,2, or 3 licence in terms of the regulations, however hosting an EFA
licenced B2C operator
€1,165 per month per operator (paid by the Class 4 Licencee)
Maximum tax capping per annum per licencee for any one licence is €466,000.
18 PwC
Appendix C
Doing Business and Investing in Malta
This Guide has been prepared for the assistance of those interested in doing business in Malta. It is not intended to cover exhaustively the subjects it addresses but rather to answer some of
the important, broad questions that may arise for a potential investor. When specific problems occur in practice, it will often be necessary to refer to the laws, regulations and decisions of the
country and to obtain appropriate accounting and legal advice.
The material contained in this guide was assembled up to October 2012 and,
unless otherwise indicated, is based on information available at that time.
Remote Gaming in Malta 19
PwC Malta helps organisations and individuals create the
value they’re looking for. We’re a member of the PwC network
of firms in 157 countries with more than 195,000 people. We’re
committed to delivering quality in assurance, tax and advisory
services. Tell us what matters to you and find out more by
visiting us at www.pwc.com/mt
In recognition of the continued and sustained growth of
the i-Gaming sector in Malta and its requirements for high
quality audit, tax and business advisory services, PwC Malta is
dedicating resources and professionals to serve this industry.
We have a dedicated team that specialises in this particular
sector. The scale of this experienced resource pool cannot be
matched by any other service provider in Malta.
www.pwc.com/mt
Copyright © 2015 PricewaterhouseCoopers. All rights reserved. PwC refers to the Malta member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see
www.pwc.com/structure for further details.
20 PwC