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Malta will introduce higher gaming tax rates and narrower VAT exemptions from October 1, 2026, changing how online betting, casino games and other gambling products are taxed when supplied to players in Malta.
Online casino style Type 1 games will face a 15% gaming tax on aggregate gaming revenue, while sports betting, player versus player games and controlled skill games will move to 10%. The reforms replace the previous flat 5% structure and gaming device levy.
Good to Know
- Type 1 gaming will carry a 15% tax on aggregate gaming revenue.
- Type 2, Type 3 and Type 4 gaming will carry a 10% rate.
- The new system applies only to gaming services supplied within Malta.
Sports Betting And Online Casino Face Different Rates
Malta will now tax operators according to the type of gambling offered rather than applying one standard rate.
Type 1 covers house backed games where a random number generator determines the result. Online casino games, virtual sports, house backed poker and lotteries generally fall into that group and will carry the highest rate at 15%.
Type 2 includes fixed odds betting against the operator, bringing online sports betting under the 10% rate. Type 3 covers commission based products including peer to peer poker, bingo and betting exchanges, while Type 4 covers controlled skill games. Both also move to 10%.
Gaming inside controlled premises and junket activity will remain at 5%.
The Malta Gaming Authority and Malta Tax and Customs Administration said the structure combines the existing gaming tax and device levy into one system based on game type and mode of offer.
Importantly, the tax does not apply automatically to every activity carried out by a Malta licensed company worldwide. The revised framework focuses on gambling supplied within Malta, including remote gambling offered to players who are established, permanently resident or normally resident there.
VAT Rules Also Change On October 1
A separate VAT reform takes effect on the same date and could have a wider operational impact for some Malta gambling companies.
Malta previously applied a broad gambling VAT exemption. Under the new framework, the exemption will focus on a smaller group of activities, including low risk games, qualifying occasional junket events and gambling facilities tied to sporting events that can only be accessed at the event venue.
Other gambling supplies may therefore fall within normal Malta VAT treatment. The authorities said narrowing the exemption also creates a right to recover eligible input VAT costs, which could offset part of the effect for operators.
The changes were announced in April through Legal Notices 84 and 86 of 2026. MGA and MTCA said the reforms followed industry consultation and form part of Malta plans for a more predictable gaming tax system.
Another change raises the annual studio broadcasting levy to €3,000 for qualifying gaming supply licence holders that use premises to film or broadcast gaming services. The previous levy stood at €500.
FAQ
When do the new Malta gambling tax rates start?
The revised gaming tax and VAT rules take effect on October 1, 2026.
What is the new Malta online casino tax rate?
Type 1 gaming services, which include many casino games, will face a 15% tax on aggregate gaming revenue.
What tax will Malta apply to sports betting?
Type 2 betting services will face a 10% gaming tax on aggregate gaming revenue.
Does the new tax apply to all revenue earned by Malta licensed operators?
No. The revised gaming tax framework applies specifically to qualifying gaming services supplied within Malta.
Is gambling still exempt from VAT in Malta?
Only certain approved gambling activities will retain the exemption from October 1. The MTCA guidelines identify low risk games, qualifying junkets and certain on site sports betting facilities.
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