Gibraltar Gaming License vs Malta: ¿Ganador del Brexit o campeón de la UE?

Gibraltar Gaming License vs Malta Gaming Authority: The Ultimate Post-Brexit Comparison

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

But what does that 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 worlds first modern gaming regulators. That means: lots of experience, established processes.

Malta entered the scene later but quickly caught up. The Malta Gaming Authority (MGA) was founded in 2001 and consolidated several predecessor agencies. Plus: Malta remains an EU member.

Market Presence and Reputation Compared

Heres where it gets interesting. Gibraltar is home to over 30 big gaming companies, including well-known names like bet365, 888Holdings and William Hill. These companies made Gibraltar synonymous with reputable online gaming.

Malta counters with over 300 licensed gaming firms, ranging from startups to industry giants like Betsson and LeoVegas. The bottom line: Malta has the numbers, Gibraltar has the class.

Regulatory Philosophy: Pragmatism vs. Compliance

Gibraltar takes a pragmatic approach. The regulators know the industry from the inside out. That means: quicker decisions, less bureaucracy.

Malta focuses on strict EU compliance. Every decision must be rock solid. So, processes take longer, but you get EU-level legal certainty.

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

Gibraltar Gaming License: Whats Changed After Brexit

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

The answer may surprise you.

Gibraltar Gaming License Post-Brexit: New Realities

Gibraltar had to get creative. The result: one of the worlds most flexible gaming regulations. The Gibraltar Licensing Authority introduced new types of licenses and drastically shortened approval procedures.

But heres the catch:

EU market access now only works by detours. Gibraltar-licensed businesses need extra permits for EU markets. This means higher costs, more complex structures.

The New Gibraltar Gaming License Categories

Gibraltar responded with innovation. Since 2021, there have been 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 support services (£100-£1,000 annually)

This structure is brilliant. It allows tailored solutions for every business area.

Gibraltars 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. Meaning: less bureaucracy for established companies, more focus on real risks.

The practical outcome? You can now get a Gibraltar Gaming License faster than before Brexit.

Challenges: EU Market Access and Banking

Let’s be honest: Not everything runs smoothly. The lack of EU passport complicates business. Many Gibraltar companies had to set up EU subsidiaries.

Banking became trickier. European banks hesitate with Gibraltar firms. That means: you need specialized banking partners.

But solutions exist. Innovative payment service providers fill the gaps.

Malta Gaming Authority: EU Advantages and Regulatory Stability

Malta gained from Brexit. Suddenly, Malta was the only major gaming hub in the EU. The Malta Gaming Authority seized this opportunity skillfully.

But beware:

More significance also brought more responsibility. Malta had to prove it meets EU standards.

Malta Gaming Authority: EU Compliance as Core Strategy

Malta Gaming License automatically means EU market access. Thats the 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 their own licensing requirements. Germany, the Netherlands, France—they all demand their own permits.

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 predetermined outcomes (lottery, bingo)
2. Class 2 License: For games of chance (slots, roulette)
3. Class 3 License: For skill games (poker, fantasy sports)
4. Class 4 License: For betting on uncertain events (sports betting)

Many businesses need multiple licenses. This is expensive, but you get full coverage.

Maltas Regulatory Rigor: Blessing or Curse?

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

Real-world example: A mid-sized sports betting company needed 14 months to get its MGA license. But afterward, it had access to 27 EU markets.

Is that fair? I think so. It helps Malta build its reputation as a reputable jurisdiction.

Banking and Payment Processing: Maltas Hidden Advantage

Here, Malta really shines. As an EU member, Malta benefits from SEPA and other EU payment systems. That means easier processing and lower costs.

Malta also has specialized gaming banks that understand the sector. This makes everyday business much easier.

Gibraltar is still struggling with post-Brexit issues here.

Tax Differences: Gibraltar vs Malta for Gaming Companies

Now things get exciting. Tax often determines your gaming business’s success. Gibraltar and Malta take quite different approaches.

Ill explain both systems—no tax advisor jargon.

Gibraltar Tax System: Simple and Effective

Gibraltar only taxes income from Gibraltar sources. That means: if you serve clients outside Gibraltar, you dont pay Gibraltar tax on these profits.

Sounds too good? It is—with a catch.

The corporate tax rate is 12.5% on profits.

But beware: you must have substance in Gibraltar—real offices, real staff. Letterbox companies no longer work.

Malta Tax System: Complex but Rewarding

Malta is more complicated, but attractive for the right firms. Malta has a full imputation system with tax refunds.

Heres how it works:

• Nominal corporate tax rate: 35% on profits
• Tax refund: 6/7 of paid taxes (results in 5% effective rate)
• Condition: Profits must be distributed to shareholders

Bottom line: 5% effective tax, but only with optimal structuring.

Tax Comparison in Practice: Numbers That Matter

Lets use a practical example. A gaming business earns €1 million in profit per year:

Malta wins—but only if profits are high. For small companies, complexity eats up the savings.

Double Taxation Agreements: Malta’s Edge

Malta has over 70 double tax treaties. Gibraltar has far fewer. That means: with a Malta structure, you often pay less withholding tax in other countries.

Especially relevant for dividend payments to holding companies.

Substance Requirements: Take Both Seriously

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

• Local offices (not just PO boxes)
• Qualified on-site employees
• Regular board meetings
• Local decision-making

Dont underestimate this. The age of nominal structures is over.

Operational Aspects: Compliance, Banking and Market Presence

Taxes are only part of the story. Operational day-to-day business is what makes or breaks you—and this is where Gibraltar and Malta truly diverge.

Compliance Requirements: Malta vs Gibraltar Up Close

Malta is meticulous—very meticulous. The MGA demands 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 is clean, Gibraltar lets you operate unbothered.

Real-world example: In Malta, you need a dedicated compliance officer from day one. In Gibraltar, an external consultant often suffices.

Banking for Gaming Businesses: The Deciding Factor

Banking can make or break your gaming operation. Malta is clearly ahead here.

Malta offers:

• Specialized gaming banks (PRVCY Bank, Loyal Bank)
• EU-compliant payment processing
• SEPA access for low-cost transfers
• Established crypto providers

Gibraltar is struggling. Brexit made banking complex. Many European banks avoid Gibraltar companies. You need alternatives:

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

Market Presence and Player Protection

Both jurisdictions take player protection seriously—but differently:

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

Gibraltar relies on risk-based approaches. You must prove your system works, but have more flexibility in implementation.

IT Infrastructure and Hosting Requirements

This is where differences are subtle but important:

Maltas Requirements:

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

Gibraltars Requirements:

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

For tech-oriented companies, Gibraltar is often easier. Malta offers greater legal certainty.

Staffing Requirements: Finding Local Expertise

Both jurisdictions require local key positions but the markets differ:

Malta boasts a large gaming talent pool. Over 9,000 professionals work in the sector, making recruitment easier—though more expensive.

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

Salary comparison for senior compliance managers:

• Malta: €65,000-€85,000 yearly
• Gibraltar: £55,000-£75,000 yearly

Gaming License Costs Compared: Gibraltar vs Malta 2025

Let’s get down to brass tacks. What does a gaming license really cost? I’ll break down the numbers for you—without hiding costs.

Gibraltar Gaming License Costs: Transparent and Predictable

Gibraltar loves simplicity. The fee structure is transparent:

Initial license fees:

• Application fee: £3,000 (non-refundable)
• B2C License: £2,000-£85,000 (revenue-dependent)
• B2B License: £2,000-£25,000 (revenue-dependent)
• 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 upside: No nasty surprises. Gibraltar communicates all fees upfront.

Malta Gaming License Costs: Complex but Calculable

Malta is more complex: different license classes, different fees:

Additional costs include:

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

Hidden Costs: What You Really Need to Budget

License fees are just the beginning. The real costs lie in implementation:

Gibraltar – Hidden Costs:

• Brexit banking solutions: €2,000-€5,000 monthly
• Specialist payment 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 consulting for refund system: €30,000–€50,000 yearly
• Local directors/nominees: €15,000-€25,000 yearly
• Malta office rent: €500-€1,500 per sqm yearly
• Local staff: €45,000-€65,000 per FTE

ROI Analysis: When Does Which License Pay Off?

Let’s work through a realistic scenario:

Small Gaming Operator (€2M annual revenue):

Gibraltar is clearly cheaper for smaller companies.

Large Gaming Operator (€20M annual revenue):

For large companies, its the other way round: Malta becomes more attractive.

Outlook: Which Jurisdiction Will Come Out on Top?

Let’s look into the crystal ball. Where does Gibraltar stand in five years? Can Malta hold on to its lead? Heres my take on current trends.

Gibraltar 2025–2030: The Comeback Kid?

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

Current developments favor Gibraltar:

• DLT Framework: Gibraltar has become a blockchain hub. Many crypto companies are relocating there.
• Fast licensing: 3–6 months vs 6–12 months in Malta
• UK proximity: Brexit or not, the UK market is huge
• Cost advantage: Especially for small and medium firms

But Gibraltar also faces risks:

• Political uncertainty from Brexit fallout
• Limited banking options
• Small talent pool

Malta 2025–2030: The Established Champion Under Pressure

Malta is the established market leader. But success breeds inertia. Malta faces new challenges:

Maltas strengths remain:

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

New challenges for Malta:

• EU regulations are getting tougher (MiCA, AMLD)
• Political pressure after corruption scandals
• Rising costs and salaries
• Market saturation

New Competitors: Whos Shaking Up the Market?

Gibraltar and Malta face new rivals. Other jurisdictions smell opportunity:

Estonia is increasingly attractive. EU member, digital infrastructure, low costs. Already over 50 licensed gaming firms.

Curacao is updating its gaming law. New licensing structure from 2025. Could be interesting for LatAm markets.

Portugal is revising its gaming laws. EU member with access to the Brazilian market.

Technology Trends: Who Adapts Better?

The gaming sector is changing rapidly. AI, blockchain, VR—which jurisdiction adapts faster?

Gibraltar leads on 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. It takes longer, but offers legal certainty.

My Forecast: Coexistence Rather Than Displacement

Here’s my honest assessment:

Gibraltar and Malta will both survive—but will specialize.

Gibraltars future:

• Hub for innovation and new technology
• Specialist for UK and LatAm markets
• First choice for agile, tech-focused firms
• B2B gaming and platform providers

Maltas future:

• Established EU gaming hub
• Focus on large, established firms
• Regulatory stability and compliance
• B2C gaming and traditional providers

The question isn’t: Gibraltar or Malta? The question is: Which jurisdiction fits your business model and growth plan?

Recommendation for New Gaming Firms

If you were to start 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 (go live in under 6 months)
• Your main markets are the UK, LatAm, or Asia
• You’re starting with a limited budget

Choose Malta if:

• Your focus is on EU markets
• You’re running a traditional gaming model
• Compliance and regulatory certainty are more important than speed
• You have enough capital for a professional setup

In the end, your success isn’t determined by the best jurisdiction—but by the one that fits you best.

Frequently Asked Questions

Is a Gibraltar Gaming License still worthwhile post-Brexit?

Yes, definitely. Gibraltar has reinvented itself since Brexit and now offers one of the world’s most flexible gaming regulatory regimes. Especially for innovative models and UK-focused firms, Gibraltar remains highly attractive. The missing EU passport is a disadvantage, but speed and low costs compensate for it.

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

Realistically, plan for 6–12 months. Malta scrutinizes everything—business model, financing, IT systems, compliance setup. But this time is well invested. With an MGA license, you get automatic EU market access and reputable status.

Which jurisdiction offers better tax advantages?

It depends on company size. Malta’s 5% effective tax rate is theoretically better, but only with optimal structuring. Gibraltar’s 12.5% is simpler to handle. With profits above €1 million a year, Malta is often cheaper; for smaller companies, Gibraltar wins.

Do I really need local employees in Gibraltar or Malta?

Yes, absolutely. Both require real substance: local offices, on-site qualified staff, regular board meetings. Letterbox companies are no longer acceptable. Plan for at least 2–3 local full-timers.

How tricky is banking for gaming businesses?

Malta is much easier. As an EU member, Malta benefits from SEPA and specialized gaming banks. Gibraltar is still feeling Brexit’s impact. Many European banks avoid Gibraltar firms. Youll need specialized EMIs or crypto-friendly payment providers.

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 need additional national licenses. In unregulated EU markets, you can still operate—but this is getting harder.

What are the most common mistakes in choosing a license?

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

Is a gaming license worthwhile for small companies?

Depends on your definition of small. For annual revenues under €500,000, regulatory costs are often too high. From €1–2 million yearly revenues up, it becomes worthwhile. Gibraltar is usually cheaper for small companies, but offers less EU access.

How secure are gaming licenses against regulatory changes?

No license is 100% protected. But established jurisdictions like Gibraltar and Malta have strong lobbying and an economic interest in the gaming sector. Drastic changes are unlikely. Malta, as an EU member, is subject to changes in EU-wide rules though.

Can I later migrate my license from Gibraltar to Malta?

In principle, yes, but it’s demanding. You’ll have to apply for a new license and can only give up the old once the new is granted—it takes time and money. It’s better to choose the right jurisdiction from the outset. A thorough analysis saves lots of effort later.