Malta has managed to retain its attractiveness as an iGaming jurisdiction despite growing competition and regulatory challenges. What’s behind its continuing success?

Malta capitalised on its first-mover advantage. By 2004 it was the first jurisdiction to properly regulate online gambling. In these last 20 years it kept building on this advantage, reaching a critical mass of talent and companies. It is the gaming hub in Europe. There is no doubt about it. There are other hubs in other localities and countries in Europe, but they are smaller hubs. Malta stands out due to its critical mass of competencies, companies and staff concentrated on the island.

Many European markets are now requiring their own national licences, resulting in the fragmentation of the B2C offering. Do you see the Maltese industry moving towards a concentration on B2B activity, or does B2C still have a place in Malta?

The continued decline in the number of territories that companies holding an MGA B2C licence can operate in is affecting its value, with the licence likely to eventually become ineffective and surplus to requirement. That is not to say that B2C operators will leave Malta. They will likely take on B2B licences and operate in other territories with the respective domestic licence from Malta.

“Malta is the gaming hub in Europe. There is no doubt about it.”

What other benefits should an iGaming investor looking at establishing a base in Malta be aware of?

Malta’s corporate tax regime is highly favourable for companies with foreign shareholders. This structure has been instrumental in driving the growth of the gaming as well as other industries like the financial sector. However, international tax agreements will raise the current effective tax rate of 5 per cent to a minimum 15 per cent – a significant difference. Malta has secured an extension until 2029, meaning corporate taxation remains a key advantage in the interim.

Another positive is that entrepreneurs and investors looking at creating new and innovative products and experiences will find Malta to be a place where you can leverage the competencies and staff that are already on the island. The opening up of the US market represents one of the biggest opportunities for the iGaming sector over the coming years.

Are Maltese companies ready to capitalise on this opportunity?

Yes. The US today is already the largest regulated market in the world, having surpassed all other countries. However, every state is regulating the industry independently, so there is no such thing as a US licence. Companies need to develop the technology in order to meet the licensing requirements of the various regulators, establishing different tech stacks for each state. Despite these challenges, the US is a huge opportunity and several companies based in Malta have a foot in various US states, so much so that some companies are also being acquired by US firms.