Malta Adopts Tiered Gaming Tax Rates for Operators Serving Local Players
Viktor Perry · Sep 26, 2026
Malta Adopts Tiered Gaming Tax Rates for Operators Serving Local Players
Malta has introduced tiered gaming tax rates that apply to operators supplying services to players located in Malta, and these changes replace the earlier flat 5 percent structure along with the device levy that previously applied across categories. The Gaming Tax (Amendment) Regulations 2026, issued through Legal Notices 84 and 86 of 2026, establish different rates based on game type while keeping controlled premises and junket operations at the existing 5 percent level. Implementation takes effect in October, and operators have been reviewing the new definitions for Type 1 through Type 4 games to determine their compliance obligations.
Breakdown of the New Tax Categories
Type 1 games, which include online casino-style offerings, RNG-based titles, and lotteries, now carry a 15 percent tax calculated on aggregate gaming revenue generated from players in Malta. Type 2, Type 3, and Type 4 games, covering sports betting, player-versus-player formats, and skill-based games, move to a 10 percent rate on the same revenue measure. The distinction between these categories follows the definitions already used in Maltese gaming legislation, and operators must classify their offerings accordingly when reporting revenue from Maltese players.
Controlled premises and junket arrangements remain subject to the 5 percent rate that applied before the amendment. Aggregate gaming revenue serves as the base for calculation, and this figure captures stakes placed minus winnings paid out to players in Malta. The regulations specify how operators should attribute revenue when services reach Maltese residents, regardless of where the operator maintains its primary license or servers.
Changes to VAT Treatment
The VAT exemption previously available for gambling services has been narrowed under the same regulatory package. Operators must now assess which specific activities qualify for the reduced exemption scope, and this adjustment aligns with the broader effort to update the fiscal framework applied to gaming supplied within Malta. Revenue authorities expect operators to update their accounting systems ahead of the October start date so that both gaming tax and any applicable VAT calculations reflect the revised rules.
Previous Framework and Transition Timeline
Under the structure that ends in October, operators faced a uniform 5 percent tax on gaming revenue from Maltese players plus a separate device levy that varied by equipment type. The shift to tiered rates removes the device levy entirely and substitutes the percentage-based system described above. Regulators circulated the final text of the amendments during the summer period, giving operators time to map their game portfolios to the new Type 1 through Type 4 classifications and to prepare revised reporting templates.
Those who have studied the transition note that operators already licensed by the Malta Gaming Authority must submit updated compliance documentation that demonstrates correct categorization of each product offered to Maltese players. The authority has indicated that guidance notes on revenue attribution and filing procedures will accompany the regulations, although the core rate structure itself is fixed in the legal notices.
Scope of Application
The new rates apply only to services supplied to players situated in Malta. Operators licensed elsewhere that accept Maltese players must still account for the tax when their platforms generate revenue from those users. Games supplied exclusively to players outside Malta fall outside the scope of these particular amendments, which focus on the local market. This territorial approach mirrors the earlier flat-rate system but introduces the differentiated percentages based on game characteristics.
Data from regulatory filings show that the previous flat structure covered a wide range of products under one rate, and the move to tiers separates higher-volatility casino-style and lottery products from betting and skill-based offerings. Operators supplying both Type 1 and Type 2/3/4 games will therefore apply different rates to each revenue stream when reporting to Maltese authorities.
Conclusion
The Gaming Tax (Amendment) Regulations 2026 establish a clearer separation between game categories while maintaining the 5 percent rate for controlled premises and junkets. With the October effective date approaching, operators continue to align their internal systems with the new classification requirements and the narrowed VAT exemption. The regulations remain available through official Maltese government channels, and further administrative guidance is expected to address practical questions around revenue calculation and filing deadlines.