Gaming Tax Updates

Changes to Malta’s Gaming Tax and VAT Frameworks

• On 1 April 2026 Legal Notices 84 and 86 of 2026 were published, with updates to Malta’s Gaming Tax and VAT Frameworks relevant for operators in the gaming sector.
• The changes contemplated in the legal notices aim to deliver a clearer tax framework and to this end are being issued in advance of their entry into force on 1 October 2026.

Specific changes to the Gaming Tax Framework

• The term “qualifying activity” applicable to the Gaming Tax Regulations (S.L. 583.10) has been extended to cover Ministerial concessions to operation casinos in gaming premises and to operate the National Lottery games, as contemplated in article 11(3) of the Gaming Act, (Cap. 583).
• The levy on gaming devices has been eliminated and such levies in addition to the gaming tax of 5% on the gaming revenue have been replaced by the following gaming taxes:
  1. 15% of the aggregate gaming revenue generated from the provision or conduct of Type 1 gaming services
  2. 10% of the aggregate gaming revenue generated from the provision or conduct of Type 2, Type 3 and/or Type 4 gaming services
  3. 5% of the aggregate gaming revenue if the qualifying activity is generated within a (i) controlled gaming premises; or (ii) classified as a junket or a junket event.

• The fixed fee payable in advance covering 12 months applicable for authorised persons who use their premises as a studio to film and/or broadcast a gaming service or a critical gaming supply has been increased from EUR500 to EUR3,000.
• The granting of any reduction, credit, set-off or other relief in respect of amounts payable under the Gaming Tax Regulations, no longer requires the consent of the Minister responsible for the gaming sector, but would be undertaken through a binding instrument issued by the Board of Governors of the Authority.
• Transitory provisions which were applicable up to 4 July 2022, have been removed from the legislation.

Specific changes to the VAT Framework

• In line with Legal Notice 86 of 2026 and the guidelines issued by MTCA on 6 April 2026, with effect from 1 October 2026, the supplies of betting, lotteries and other forms of gambling which are approved by the Minister for the purpose of the application of the exemption without credit contained in item 9 of Part Two of the Fifth Schedule to the VAT Act, shall be the following:
  1. Low risk games as defined in the Fifth Schedule to the Gaming Authorisations Regulations (Subsidiary Legislation 583.05 or ‘SL583.05’);
  2. Junket events required to be approved in accordance with the Gaming Authorisations Regulations (SL583.05) held on an occasional basis. Junket events shall be considered as being held on an occasional basis where they are not organised on a routine basis and which, due to their scale and nature, require specific planning and organisational arrangements; and
  3. The provision of any facilities for gambling on the outcome of a real-life event, which facilities can only be physically accessed at the place where the event physically takes place, including the services of book makers, betting exchanges and any equivalent facilities. The term ‘event’ shall mean a sporting event or competition.

Next Steps

Our team of tax professionals is available to assist understanding and navigating the impact of these upcoming changes on your business operations.

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