How Malta’s New Gaming Rules Affect Operator Compliance

Malta’s updated gaming tax and value-added tax framework took effect on October 1, 2026. The changes introduce category-based gaming tax rates, consolidate the treatment of certain charges, clarify VAT obligations, and establish a phased reporting transition for licensed operators.

The reforms were implemented through Legal Notices 84 and 86 of 2026, following measures announced in Malta’s 2026 Budget. They were developed after consultation with the gaming industry and are intended to make the tax treatment of different gaming products more predictable.

Tax Rates Now Depend on the Gaming Product

The revised framework applies tax to aggregate gaming revenue and separates qualifying activities into four categories. Each category reflects the way the product operates and how the player participates.

• Type 1: Casino games and lotteries played against the operator through a random number generator are subject to a 15% rate.
• Type 2: Betting against the house on events or competitions at odds set by the operator is taxed at 10%.
• Type 3: Commission-based products, including player-versus-player poker, bingo, and betting exchanges, carry a 10% rate.
• Type 4: Controlled skill-based games are also taxed at 10%.

Activities conducted in controlled gaming premises continue to attract a 5% rate. The same rate remains applicable to junkets and junket events.

This creates a tiered structure rather than one broad rate. Type 1 products sit at the highest level, while Types 2, 3, and 4 are grouped under the lower 10% band.

A Single Gaming Tax Approach Replaces Parallel Charges

The new system simplifies the treatment of gaming activities supplied to players located in Malta. Instead of handling gaming tax and the gaming device levy as separate charges, operators now apply one consolidated framework based on the relevant game type and delivery model.

That change should reduce duplication in tax calculations. Operators must first identify the applicable classification, then apply the corresponding rate to the qualifying revenue. The product’s structure and method of offering it to customers are therefore central to the compliance analysis.

VAT Changes Expand and Clarify the Compliance Picture

Legal Notice 86 also revises Malta’s VAT treatment of gambling services. The amendments clarify how selected activities, including sports betting and certain casino products, are treated for VAT purposes.

The updated framework addresses several practical questions for licensees:

• Where a gaming service is considered supplied under the applicable place-of-supply rules.
• Which gambling services qualify for an exemption and which may fall within the VAT net.
• When eligible input VAT costs may be recovered.

The revised VAT rules operate alongside the new gaming tax regime. Operators must therefore review both the nature of each product and the location of the relevant supply before determining their reporting and recovery position.

Reporting Deadlines Are Split Between Two Regimes

The transition does not require every return to be prepared under the new rules immediately. Malta has established a staged timetable so that September reporting remains governed by the previous framework.

1. September 2026 returns: These must be prepared using the former requirements and filed by October 20, 2026.
2. Existing Portal access: The regulatory reporting Portal will continue accepting September submissions under the rules that applied during that reporting period.
3. Portal update: Functionality supporting the revised gaming tax and VAT frameworks is scheduled to be available by November 1, 2026.
4. October 2026 returns: These will be the first submissions prepared under the new framework and are due by November 20, 2026.

Operators should avoid treating the October 1 commencement date as a requirement to restate September activity under the new system. September remains subject to the previous regime, while October marks the first reporting period covered by the revised rules.

What Licensees Should Review Before Filing

Operators should update their internal product classifications, revenue calculations, VAT assessments, and reporting procedures before preparing the October return. Particular attention may be needed for businesses offering several gaming verticals, because one licence may include activities that fall into different tax categories.

The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue providing guidance during the changeover. That guidance will be especially relevant while the updated Portal is being introduced and operators move from the September requirements to the October reporting format.

Overall, the reforms create a more differentiated tax model for Malta’s gaming sector. The main operational priorities are to apply the correct category rate, assess the updated VAT treatment, file the September return under the former rules by October 20, and prepare the first revised return for submission by November 20.