GAMINGmalta
2O17 EDITION
the licence class has to be paid monthly by the 20th of the following month.
GAMING TAX
Diligence is the mother of good luck. Benjamin Franklin
Besides paying tax on their profits, gaming companies licensed in Malta must also pay gaming tax. However, when compared to other European Union member states, the gaming tax is relatively low and capped at a maximum of €466,000 per year. The gaming tax depends on the class of the licence: • Class 1 - Fixed rate at €4,660 per month for the first six months and €7,000 per month thereafter • Class 1 on Class 4 - €1,200 per month • Class 2 and Class 2 on Class 4 - 0.5% of the gross amount of bets accepted in remote betting operations • Class 3 and Class 3 on Class 4 - 5% of real income • Class 4 - No tax for the first six months of operation, €2,330 for the subsequent six months, and €4,660 per month thereafter for the entire duration of the licence • Class 4 licensee hosting and managing an operator that is not in possession of the relevant Class 1, 2 or 3 licence in terms of regulations, however hosting an EEA licensed Business to Consumer operator - €1,165 per month per operator, paid by the Class 4 licensee With the new regulatory overhaul anticipated to be implemented in 2017, taxes will change according to the new licence classes and will be based on variables rather than fixed elements. In general, both licence fees and gaming tax will be based on gross gaming revenue (GGR).
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ANTI-MONEY LAUNDERING
The Fourth AML Directive came into force in June 2015 and must be transposed into national law by June 2017. The new directive presents a legal obligation for iGaming companies which requires more robust due diligence and more onerous obligations to prevent money laundering, while bringing about an obligation for all gambling operators to conduct customer due diligence (CDD) for transactions of €2,000. Thus far, iGaming operators are not subject persons under the EU’s Third Anti-Money Laundering Directive, but this is about to change when the Fourth Directive will be transposed into national law. The Fourth Directive will also crystallise the obligation of remote gaming operators, as subject persons, to appoint a Money Laundering Reporting Officer and to notify the Financial Intelligence Analysis Unit – a unit of the Malta Financial Services Authority (MFSA) – and the MGA of the appointment. The importance of this aspect of the regulations is underlined in the provisions laid down, which require operators to have systems and training in place to prevent money laundering and the financing of terrorism. These systems include customer due diligence procedures, record keeping and internal reporting procedures. Gaming operators should take particular notice of the following sections of the PMLR regarding the obligation to be aware of compliance requirements on: identification of criminals, appropriate record keeping, dealing with internal reporting procedures and establishing the duty to report money laundering activities. n
MGA licensees are obliged to display the following information on the homepage of their websites: u the registered name of the licensee’s company
u the address of the company’s registered office
u the official number and date of issue of the licence
u a statement that the licensee’s operations are regulated by the MGA
u hyperlinks to the websites of MGA approved organisations specialising in helping problem gamblers
u hyperlinks to the rules of the games or betting offered and the procedures adopted by the licensee for the registration of players
u the kitemark of MGA, which shall double up as a link to the MGA website
u any other information that the Authority may deem necessary