Gibraltar Gaming License vs Malta: Brexit Winner or EU Champion?

Gibraltar Gaming License vs Malta Gaming Authority: The Ultimate Comparison After Brexit

Brexit reshuffled the cards in the European gaming market. Gibraltar is fighting to maintain its position as a gaming hub. Malta is consolidating its role as the EU’s gaming center.

But what does that really mean for you?

The Basics: Gibraltar Licensing Authority vs Malta Gaming Authority

Gibraltar has regulated gaming since 2005. The Gibraltar Licensing Authority (GLA) is considered one of the world’s first modern gaming regulators. That means: extensive experience and established processes.

Malta came later but quickly caught up. The Malta Gaming Authority (MGA) was founded in 2001 and consolidated various predecessor bodies. Plus: Malta remains part of the EU.

Market Presence and Reputation Compared

This is where it gets interesting. Gibraltar hosts over 30 major gaming companies—including big names like bet365, 888Holdings, and William Hill. These companies have made Gibraltar synonymous with reputable online gaming.

Malta counters with more than 300 licensed gaming businesses—from startups to industry giants such as Betsson and LeoVegas. In short: Malta has volume, Gibraltar has prestige.

Regulatory Philosophy: Pragmatism vs Compliance

Gibraltar takes a pragmatic approach. The regulators know the industry from the inside. That means decisions are made quickly with less red tape.

Malta focuses on strict EU compliance. Every decision must be airtight. That means longer timelines but you get EU-level legal certainty.

Which approach suits you best? That depends on your risk appetite.

Gibraltar Gaming License: What Has Changed After Brexit

Brexit was a shock for Gibraltar. Overnight, companies licensed in Gibraltar lost automatic EU market access. Many wondered: Is Gibraltar still relevant?

The answer may surprise you.

Gibraltar Gaming License After Brexit: New Realities

Gibraltar had to get creative. The result: one of the most flexible gaming regulations in the world. The Gibraltar Licensing Authority introduced new license types and drastically shortened approval processes.

But here’s the catch:

EU market access now only works through detours. Gibraltar-licensed companies need additional licenses for EU markets. That means: higher costs, more complex structures.

The New Gibraltar Gaming License Categories

Gibraltar responded with innovation. Since 2021, there are four main license types:

• B2C License: For direct customer contact (£2,000–£85,000 annually)
• B2B License: For software providers and platforms (£2,000–£25,000 annually)
• Subsidiary License: For subsidiaries (£100–£2,000 annually)
• Ancillary License: For ancillary services (£100–£1,000 annually)

This structure is brilliant—it allows tailor-made solutions for each business area.

Gibraltar’s New Strengths: Compliance and Innovation

Brexit forced Gibraltar to modernize. The result is impressive. The Gibraltar Financial Services Commission (GFSC) digitized all processes. Applications are now fully online.

Gibraltar also introduced risk-based regulation. This means: less bureaucracy for established companies and more focus on real risks.

The practical result? You can get a Gibraltar gaming license faster today than before Brexit.

Challenges: EU Market Access and Banking

Let’s be honest: not everything is perfect. The missing EU passport makes business tougher. Many Gibraltar companies had to establish EU subsidiaries.

Banking became more complicated. European banks hesitate with Gibraltar businesses. That means: you need specialist banking partners.

Still, there are solutions. Innovative payment service providers fill the gaps.

Malta Gaming Authority: EU Advantages and Regulatory Stability

Malta came out ahead after Brexit. Suddenly, it was the only major gaming hub in the EU. The Malta Gaming Authority seized this opportunity skillfully.

But be careful:

Greater importance also brought greater responsibility. Malta had to prove it met EU standards.

Malta Gaming Authority: EU Compliance at the Core

Getting a Malta gaming license means instant EU market access. That’s the single biggest advantage. With an MGA license you can operate in all EU countries—in theory.

In practice it’s more complicated. Many EU countries have introduced their own licensing requirements. Germany, the Netherlands, France—they all want their own licenses.

Still, the EU passport opens doors—especially in unregulated markets.

The Four Malta Gaming License Classes in Detail

Malta structures licenses by activity. The system is complex but logical:

1. Class 1 License: For games with pre-determined outcomes (lotto, bingo)
2. Class 2 License: For games of chance (slots, roulette)
3. Class 3 License: For games of skill (poker, fantasy sports)
4. Class 4 License: For betting on uncertain events (sports betting)

Many companies need multiple licenses. It gets expensive, but you have complete coverage.

Malta’s Regulatory Rigor: Blessing or Curse?

Malta takes compliance very seriously. The MGA scrutinizes everything: business model, finances, management, IT systems. It takes time—but it builds trust.

Example: A mid-sized sports betting operator took 14 months to get its MGA license. But afterwards, it had access to 27 EU markets.

Is that fair? I think so. Malta is cementing its reputation as a reputable jurisdiction.

Banking and Payments: Malta’s Hidden Advantage

This is where Malta truly shines. As an EU member, Malta benefits from SEPA and other European payment systems. That means easier transactions and lower costs.

Malta also has specialized gaming banks—banks that understand the industry. This makes daily business much easier.

Gibraltar is still dealing with the after-effects of Brexit here.

Tax Differences: Gibraltar vs Malta for Gaming Companies

This is where things get interesting. Taxes often determine the success of your gaming business. Gibraltar and Malta offer completely different approaches.

I’ll explain both systems—no tax jargon.

Gibraltar Tax System: Simple and Effective

Gibraltar only taxes income generated from Gibraltar sources. That means: if you serve customers outside Gibraltar, you don’t pay Gibraltar tax on those profits.

Sounds too good? It is—with limitations.

The tax rate is 12.5% on corporate profits.

But beware: you must have real presence in Gibraltar. Genuine offices, real staff. Shell companies no longer work.

Malta Tax System: Complex but Rewarding

Malta is more complicated. But for the right companies, very attractive. Malta has a full imputation system with tax refunds.

Here’s how it works:

• Nominal tax rate: 35% on corporate profits
• Tax refund: 6/7ths of tax paid (equals an effective 5% rate)
• Condition: profits must be distributed to shareholders

The result: 5% effective tax. But only with optimal structuring.

Tax Comparison in Practice: Numbers That Matter

Let’s take a practical example. A gaming company makes €1 million profit per year:

Malta wins—but only for larger profits. For smaller businesses, the complexity eats up the tax saving.

Double Tax Treaties: Where Malta Has the Edge

Malta has more than 70 double taxation agreements; Gibraltar has far fewer. That means with a Malta structure you’ll often pay less withholding tax in other countries.

Especially relevant for dividend distributions to holding companies.

Substance Requirements: Take Both Seriously

Whether Gibraltar or Malta—both require real substance. That means:

• Local offices (not just mailboxes)
• Qualified staff onsite
• Regular board meetings
• Local decision making

Don’t underestimate this. The days of “nominee structures” are over.

Operational Aspects: Compliance, Banking, and Market Presence

Taxes are only part of the story. Day-to-day operations determine your long-term success. Here’s where the real differences between Gibraltar and Malta emerge.

Compliance Requirements: Malta vs Gibraltar in Detail

Malta is particular—very particular. The MGA requires detailed quarterly reports, annual compliance audits, and regular system updates. That costs time and money.

Gibraltar is more pragmatic. The GLA focuses on risk indicators. If your business runs smoothly, Gibraltar won’t interfere.

Practical example: in Malta, you need a dedicated compliance officer from day one. In Gibraltar, an external consultant will often suffice.

Banking for Gaming Companies: The Decisive Factor

Banking can make or break your gaming business. Here, Malta is clearly out in front.

Malta offers:

• Specialized gaming banks (PRVCY Bank, Loyal Bank)
• EU-compliant payment processing
• SEPA access for lower costs
• Established crypto service providers

Gibraltar struggles. Brexit complicated banking. Many European banks avoid Gibraltar entities. You need alternatives:

• Specialized EMI providers (Electronic Money Institutions)
• Crypto-friendly payment service providers
• UK-based business banking

Market Presence and Player Protection

Both jurisdictions take player protection seriously, but in different ways:

Malta requires comprehensive player protection systems—deposit limits, self-exclusion, reality checks—all mandatory. This protects players but increases costs.

Gibraltar adopts a risk-based approach. You must prove your system works, but implementation is more flexible.

IT Infrastructure and Hosting Requirements

Here, the differences are subtle but important:

Malta Requirements:

• Gaming systems must be hosted in the EU or MGA-approved countries
• Comprehensive system documentation required
• Regular security audits mandated

Gibraltar Requirements:

• More flexible hosting options
• Focus on outcomes rather than process
• Pragmatic security standards

For tech-driven companies, Gibraltar is often easier. Malta offers more legal certainty.

Personnel Requirements: Finding Local Expertise

Both jurisdictions require local key staff—but the markets differ:

Malta has a large gaming talent pool. Over 9,000 people work in the industry. That makes recruitment easier—but also more expensive.

Gibraltar is smaller—about 3,000 gaming professionals. But everyone knows everyone. Networking is more personal.

Salary comparison for Senior Compliance Managers:

• Malta: €65,000–€85,000 per year
• Gibraltar: £55,000–£75,000 per year

Gaming License Cost Comparison: Gibraltar vs Malta 2025

Let’s get down to business. What does a gaming license really cost? I’ll break down the numbers for you—with no hidden expenses left unmentioned.

Gibraltar Gaming License Costs: Transparent and Predictable

Gibraltar loves simplicity. The cost structure is transparent:

Initial license costs:

• Application fee: £3,000 (non-refundable)
• B2C License: £2,000–£85,000 (depending on revenue)
• B2B License: £2,000–£25,000 (depending on revenue)
• Legal due diligence: £5,000–£15,000

Annual renewal costs:

• Base license fee: £2,000
• Revenue-based fee: 1% of gross gaming revenue (max. £425,000)
• Compliance costs: £10,000–£20,000

The best part: no unpleasant surprises—Gibraltar discloses all fees upfront.

Malta Gaming License Costs: Complex but Calculable

Malta is more complicated. Different license classes, different costs:

Additionally:

• Legal and advisory: €40,000–€80,000
• Compliance setup: €20,000–€40,000
• Annual audit costs: €15,000–€25,000

Hidden Costs: What You Really Need to Budget For

The license fees are just the beginning. The real costs are in the rollout:

Gibraltar – Hidden Costs:

• Brexit banking solutions: €2,000–€5,000 per month
• Specialized payment service providers: 2–4% transaction fee
• UK market license (often needed): £330,000+ annually
• EU market licenses: €50,000–€200,000 per country

Malta – Hidden Costs:

• Tax consultancy for refund system: €30,000–€50,000 per year
• Local directors/nominees: €15,000–€25,000 per year
• Malta office rent: €500–€1,500 per sqm per year
• Local staff: €45,000–€65,000 per FTE

ROI Analysis: When Does Which License Pay Off?

Let’s run a realistic scenario:

Small gaming operator (€2M annual turnover):

For smaller companies, Gibraltar is the clear winner.

Large gaming operator (€20M annual turnover):

For larger firms, the picture reverses. Malta becomes more attractive.

Future Outlook: Which Jurisdiction Will Take the Lead?

Let’s look into the crystal ball. Where will Gibraltar be in five years? Can Malta hold onto its lead? I’ll share my views—based on current trends.

Gibraltar 2025-2030: The Comeback Kid?

Gibraltar isn’t giving up. The strategy is clear: innovation and speed. Gibraltar is betting on new technologies and flexible regulation.

Recent developments are in Gibraltar’s favor:

• DLT framework: Gibraltar became the blockchain hub. Many crypto companies are relocating.
• Fast license approvals: 3–6 months vs 6–12 months in Malta
• UK proximity: Brexit or not, the UK market remains huge
• Cost advantages: Especially for small and mid-sized businesses

But Gibraltar also faces risks:

• Political uncertainty due to Brexit aftershocks
• Limited banking options
• Smaller talent pool

Malta 2025-2030: The Established Champion Under Pressure

Malta is the market leader. But success can breed complacency. Malta is facing new challenges:

Malta’s strengths remain:

• EU membership and market access
• Established infrastructure
• Large talent pool
• Strong banking relationships

New challenges for Malta:

• EU regulation is tightening (MiCA, AMLD)
• Political pressure following corruption scandals
• Rising costs and salaries
• Market saturation

New Challengers: Who’s Shaking Up the Market?

Gibraltar and Malta are getting fresh competition. Other jurisdictions sense opportunity:

Estonia is gaining traction. EU member, digital-first, low cost. Already over 50 licensed gaming companies.

Curacao is modernizing its gaming regulation. New license structure from 2025. Could be interesting for LatAm markets.

Portugal is overhauling its gaming laws. EU member with access to Brazilian markets.

Technology Trends: Who’s Adapting Better?

The gaming sector is changing fast: AI, blockchain, VR—which jurisdiction adapts better?

Gibraltar leads in innovation. The DLT framework shows: Gibraltar likes to experiment. New tech gets regulatory clarity quickly.

Malta is more cautious. Every innovation must be EU-compliant. That takes longer but offers more legal certainty.

My Forecast: Coexistence Over Displacement

Here’s my honest assessment:

Gibraltar and Malta will both survive, but they’ll specialize.

Gibraltar’s future:

• Hub for innovation and new technologies
• Specialist for UK and LatAm markets
• First choice for agile, tech-driven businesses
• B2B gaming and platform providers

Malta’s future:

• Established EU gaming hub
• Focused on large, established companies
• Regulatory stability and compliance
• B2C gaming and traditional operators

The question isnt: Gibraltar or Malta? The real question is: Which jurisdiction fits your business model and growth strategy?

Recommendation for New Gaming Companies

If you were setting up a gaming company today, where would I send you?

It depends:

Choose Gibraltar if:

• You have an innovative, tech-driven business model
• You need speed (launch within 6 months)
• Your main markets are UK, LatAm, or Asia
• You’re starting with a limited budget

Choose Malta if:

• Your main targets are EU markets
• You’re pursuing a traditional gaming model
• Compliance and regulatory certainty matter more than speed
• You have enough capital for a professional setup

In the end, it’s not the best jurisdiction that determines your success—but the one that best fits you.

Frequently Asked Questions

Is a Gibraltar Gaming License still sensible after Brexit?

Yes, absolutely. Gibraltar reinvented itself post-Brexit and now offers one of the most flexible gaming regulations worldwide. It remains highly attractive for innovative and UK-focused businesses. The lack of an EU passport is a disadvantage, but Gibraltar makes up for it with speed and low costs.

How long does it really take to get a Malta Gaming License?

Realistically, you should allow 6–12 months. Malta checks everything thoroughly—business model, funding, IT systems, compliance structure. But it’s time well spent. With an MGA license, you get instant EU market access and recognized regulation.

Which jurisdiction offers better tax benefits?

That depends on company size. Malta’s 5% effective corporate tax rate is theoretically better—but only with optimal structuring. Gibraltar’s 12.5% is more straightforward. For annual profits over €1 million, Malta is often cheaper; for smaller firms, Gibraltar prevails.

Do I really need local staff in Gibraltar or Malta?

Yes, absolutely. Both jurisdictions demand real substance: local offices, qualified staff on site, regular board meetings. Mailbox companies are no longer accepted. Plan on at least 2–3 local full-time employees.

How complicated is banking for gaming companies?

Malta is much easier here. As an EU member, Malta benefits from SEPA and has specialist gaming banks. Gibraltar still struggles with the fallout from Brexit. Many European banks avoid Gibraltar companies. You’ll need specialized EMI providers or crypto-friendly payment services.

Can I operate in EU markets with a Gibraltar license?

Only to a limited extent. Gibraltar lost the automatic EU passport after Brexit. For regulated EU markets like Germany, the Netherlands, or France, you’ll need additional local licenses. In unregulated EU markets, you can still operate—for now, but it’s getting harder.

What are the most common mistakes when choosing a license?

The biggest mistake: looking only at tax rates. A low tax rate is useless if the structure doesn’t fit your business model. Many people also underestimate operational costs—banking, compliance, local staff. These can quickly eat up any tax savings.

Is a gaming license worthwhile for smaller companies?

Depends on your definition of small. For annual revenues under €500,000, regulatory costs are often too high. From €1–2 million a year, it becomes interesting. Gibraltar is usually cheaper for smaller businesses than Malta, but offers less EU market access.

How safe are gaming licenses from regulatory changes?

No license is 100% immune from changes. But established jurisdictions like Gibraltar and Malta have strong lobbies and economic ties to the gaming sector. Drastic changes are unlikely. As an EU member, Malta is subject to EU-wide regulatory changes.

Can I later shift my license from Gibraltar to Malta?

In principle yes, but it’s a hassle. You’d have to apply for a new license and can only cancel the old one once the new one is approved. It’s time-consuming and costly. Better to choose the right jurisdiction from the start. Doing your analysis upfront will save you a lot of effort later.