Malta puts forward amendments to the Gaming Tax Regulations and VAT Act

New tax structure begins in October

Malta outlined the changes through Legal Notices 84 and 86 of 2026. These notices appeared in the Government Gazette on 1 April.

The updates combine the gaming tax and device levy into one system — a move that may simplify compliance. At the same time, authorities introduced a new studio broadcasting levy.

Operators using studios to film or stream games must pay €3,000 yearly — charged in advance. The fee applies to each licensed studio used for gaming services.

VAT exemption rules become clearer

A key part of the reform focuses on VAT treatment for gambling services. Authorities plan to clarify which services qualify for exemption — and which may now face tax.

The updated wording covers betting, lotteries, and approved gambling activities. It appears designed to reduce confusion around sports betting and certain casino offers.

Officials stressed the importance of the “place of consumption” rule — where tax applies where users are based. This approach could affect how online services are taxed.

What may change for operators

The new framework may shift how some services are classified under VAT rules. Some offerings could move from exempt status to taxable — depending on interpretation.

According to officials, exempt services include lower-risk games and approved events. This also covers facilities linked to real-life sporting events.

For example, services offered at a venue during a live event may qualify. These include bookmakers and similar betting services tied to that location.

Gaming tax rates adjusted by activity type

The new system sets different tax rates based on gaming activity types. This marks a shift from the current flat five percent structure.

• Type 1 gaming services: 15% tax rate

• Types 2, 3, and 4: 10% tax rate

• Land-based or junket activity: 5% tax rate

The rules apply to players physically in Malta — or those residing there for online play. This distinction may affect how operators track user location and activity.

Authorities aim for stability and growth

The Malta Gaming Authority and Malta Tax and Customs Administration said the reforms support long-term sector growth. They believe the changes will offer clearer rules and more predictable outcomes.

Nevertheless, some uncertainty remains — especially around VAT classification and enforcement. Further guidance is expected before the October rollout.

Beyond tax changes, the reform signals Malta’s intent to stay competitive. The country remains a major hub for online casinos and gaming firms. Hence, these updates may shape how companies plan their operations in the coming years.