Malta Gaming Reform: What Operators Must Change

Malta’s updated gaming tax and value-added tax framework took effect on October 1, 2026, giving licensed operators a new structure for classifying gaming revenue, applying tax, and completing regulatory returns. The changes were introduced through Legal Notices 84 and 86 of 2026 and follow measures announced in the government’s 2026 Budget.

The package is intended to make the treatment of gaming activities more consistent and predictable. It also replaces the former parallel approach to gaming tax and the gaming device levy with one classification-based system.

How the New Gaming Tax Categories Work

The revised regime applies to qualifying gaming activities offered to players who are present in Malta. The applicable rate depends on the type of service and the way it is provided, with tax calculated on aggregate gaming revenue.

Type 1 covers casino-style games, lotteries and other activities played against the house using a random number generator. These services now carry a 15% rate, making them the highest-taxed category under the revised framework.

Type 2 includes betting against the house on events or competitions where the operator sets the odds. Type 3 includes commission-based services such as player-versus-player poker, bingo and betting exchanges. Type 4 covers controlled skill games. Types 2, 3 and 4 are each taxed at 10%.

Gaming conducted in controlled premises remains subject to a 5% rate. The same rate continues to apply to junkets and junket events, preserving a separate treatment for those activities.

One Charge Replaces the Former Dual System

Before the reform, operators had to consider both gaming tax and a separate levy connected with gaming devices. The amended structure consolidates those charges into a single gaming tax framework, reducing the need to manage two parallel obligations for the same activity.

Instead of applying a general charge and then adding a device-based levy, operators must identify the relevant game category and determine how the service is offered. That classification drives the rate and creates a more direct connection between the product and the tax payable.

For operators with several gaming verticals, this means revenue reporting and internal accounting systems must distinguish Type 1 activity from the lower-rated Type 2, Type 3 and Type 4 services. The change is particularly significant for businesses offering casino games alongside betting, poker or other products.

VAT Treatment Expands for Selected Gambling Services

The VAT amendments also change how gambling and betting supplies are treated in Malta. Legal Notice 86 narrows the scope of the gambling exemption, meaning a wider range of services may fall within the Maltese VAT system from October 1, 2026.

The revised rules clarify the position for services such as sports betting and certain casino offerings. They also address the place-of-supply rules used to establish where a service is treated as supplied.

For eligible taxable activities, operators may be able to recover related input VAT. Industry guidance indicates that the changes can affect sports betting, live casino services and business-to-business providers, making VAT registration, invoicing and recovery procedures important areas for review.

The VAT framework therefore operates alongside the gaming tax changes rather than replacing them. Operators must assess both regimes when reviewing a particular service, customer location and reporting obligation.

Reporting Changes Arrive in Two Stages

The transition does not move every filing to the new framework at the same time. Operators should follow this sequence:

1. File September returns under the former rules. Returns for September 2026 remain subject to the previous requirements and are due by October 20, 2026.
2. Use the existing reporting process for September submissions. The Portal continues to accept these returns according to the rules applicable during that reporting period.
3. Prepare for the Portal update. The revised Portal functionality for VAT and gaming tax reporting is scheduled to be available by November 1, 2026.
4. Submit the first return under the new framework. Returns covering October 2026 must follow the revised requirements and are due by November 20, 2026.

This timetable creates a short operational handover between two regimes. A September return filed in October should not be prepared using the October rules, while the October return must reflect the new classifications and reporting functions.

Practical Priorities for Licensed Businesses

Operators should review their product mapping, revenue calculations and VAT treatment before preparing the first return under the amended system. Particular attention is warranted where one platform offers casino games, fixed-odds betting, commission-based products and skill-based games under the same licence.

Businesses should also check whether their accounting systems can separate aggregate gaming revenue by category and whether their VAT processes support eligible input tax recovery. Updated compliance procedures may be needed for invoices, customer-location assessments and supporting records.

The Malta Gaming Authority and the Malta Tax and Customs Administration are expected to provide further guidance during the transition. The regulator has described the coordinated reforms as an effort to establish a balanced framework while maintaining Malta’s position as a stable and competitive international gaming jurisdiction.

For immediate planning, the key dates are October 20 for September returns under the former rules, November 1 for the planned Portal update and November 20 for the first filing under the revised framework. The most consequential tax change is the 15% rate for Type 1 services, while Types 2, 3 and 4 remain at 10% and controlled-premises gaming and junkets retain the 5% rate.