What Malta’s New Gambling Rules Mean for Licensees

Malta’s updated gaming tax and VAT framework took effect on October 1, 2026. The changes establish different tax rates according to the type of gaming service, combine two existing gaming charges, and introduce revised reporting requirements for licensed operators.

The reforms were introduced through Legal Notices 84 and 86 of 2026, following measures announced in Malta’s 2026 Budget. Their stated purpose is to make the tax treatment of gaming activities more consistent and easier to apply across the sector.

How the New Gaming Tax Categories Work

The revised system calculates tax on aggregate gaming revenue. The applicable percentage depends on the classification of the activity and the manner in which it is offered to players.

1. Type 1 services cover casino-style games and lotteries played against the house where outcomes are determined by a random generator. These activities are subject to a 15% rate.
2. Type 2 services include betting against the house on events or competitions at odds set by the operator. The rate is 10%.
3. Type 3 services include commission-driven products such as player-versus-player poker, bingo and betting exchanges. These services also attract a 10% rate.
4. Type 4 services consist of controlled skill games and are taxed at 10%.

Qualifying gaming activity conducted in controlled premises remains subject to a 5% rate. The same rate continues to apply to qualifying junkets and junket events.

As a result, Type 1 is now the highest-taxed category, while Types 2, 3 and 4 share a lower rate. Operators must therefore classify each relevant product correctly before calculating their liability.

A Single Charge Replaces the Former Dual Approach

One of the central changes is the removal of the separate gaming device levy. The levy and the previous gaming tax treatment have been brought together within a consolidated structure based on the game category and the way the service reaches the player.

This means operators no longer need to manage two parallel charges for the same qualifying activity. Instead, one framework determines the amount payable, with the applicable rate tied to the relevant type of gaming service.

The simplified approach applies to qualifying activities offered to players who are located in Malta. Both online and land-based operators may therefore need to review how their products are described, classified and reported.

VAT Treatment Becomes More Defined

Legal Notice 86 of 2026 also changes Malta’s VAT framework for gambling and betting. The updated rules clarify the place of supply for certain services and explain how eligible input VAT may be recovered.

The revised treatment is particularly relevant to sports betting, certain casino services and related business-to-business arrangements. The VAT exemption has been narrowed, meaning that many gambling and betting supplies that were previously treated as exempt may instead become taxable under Maltese VAT rules.

For qualifying businesses, taxable treatment may improve the ability to recover eligible input VAT costs. Operators should therefore reassess their VAT registrations, invoicing processes, supply analysis and input-tax recovery procedures.

Reporting Deadlines Are Split Between Two Regimes

The transition is staged rather than immediate for every filing period. Operators should follow this sequence:

1. September 2026 returns remain subject to the former rules and must be submitted by October 20, 2026.
2. The regulatory Portal continues to accept September submissions using the requirements that applied during that reporting period.
3. The Portal is scheduled to receive the functionality needed for the revised VAT and gaming tax framework by November 1, 2026.
4. October 2026 returns are the first filings prepared under the new framework and are due by November 20, 2026.

In practical terms, September filings should be completed using the former reporting method. The October return is the point at which operators must apply the new classifications, rates and reporting procedures.

Operational Priorities During the Transition

The Malta Gaming Authority has presented the coordinated reforms as an effort to create a more balanced, predictable and competitive framework for the gaming sector. The Malta Tax and Customs Administration and the MGA are expected to continue issuing guidance as operators adjust to the new system.

Licensees should first map each product to the correct gaming category, then update tax calculations and internal reporting controls. They should also review VAT treatment, confirm whether input VAT recovery is available and ensure that finance teams understand which rules apply to each reporting month.

The immediate dates are clear: October 20 for September returns under the former regime, November 1 for the planned Portal update, and November 20 for the first return prepared under the revised framework.