Malta Gaming Authority vs. Gibraltar Gambling Commission: Post-Brexit licence strategies for online casinos

If youre considering running an online casino, youre facing a pivotal crossroads.

Malta or Gibraltar?

This question has been on the minds of every serious gaming industry entrepreneur since Brexit. And I understand the uncertainty.

It used to be straightforward: Gibraltar was the tax haven for online gambling. Malta? A friendly neighbor with solid regulation.

But times have changed.

As someone who advises international companies on tax optimization, I witness the uncertainty every day. Entrepreneurs ask me, Richard, where should I get my gaming license?

The answer is no longer as simple as it once was. Brexit has shuffled the deck. But thats what makes things interesting.

In this article, I’ll show you which license strategy really makes sense for your online casino—with concrete numbers, current facts, and my honest assessment.

No theoretical debates. Just what you need to make your decision.

Yours, RMS

What Has Changed for Online Casino Licenses After Brexit

January 31, 2020 was a turning point for the gaming industry. Not just symbolically, but in real terms.

Suddenly, online casino operators faced a new reality. But what exactly changed?

Gibraltar Gambling Commission: The New Reality After Leaving the EU

For a long time, Gibraltar was the gold standard for gaming licenses. The combination of low taxes, pragmatic regulation, and access to the EU market made the British Overseas Territory irresistible.

Then Brexit happened.

Today, Gibraltar-licensed casinos must apply for separate approvals for each EU market. That means:

• Additional license fees in every EU country
• More complex compliance structures
• Higher operational costs
• Longer time-to-market for new markets

A real-world example: A Gibraltar-licensed casino wanting to operate in Germany needs an additional German license. Cost: At least €300,000 in security deposits, plus ongoing fees.

This was different before 2020. Back then, the Gibraltar license covered the entire EU area.

Malta Gaming Authority: Strengthened Position as an EU Member

No gaming hub profited from Brexit quite like Malta. Why?

Simple: Malta stayed in the EU.

For you as an online casino operator, this means:

• EU-wide passport for your gaming license
• No need for additional authorizations in EU countries
• Simplified compliance structures
• Direct access to 450 million EU citizens

But beware: Malta isn’t automatically the better choice for everyone. It depends on your specific situation.

Malta Gaming Authority (MGA): Advantages and Challenges for Your Online Casino

In recent years, Malta has gone from being an insider tip in gaming to the European market leader. But what does that actually mean for your business?

Lets be honest: Not everything that glitters is gold.

MGA License Costs and Fee Structure in Detail

The MGA license comes with clear cost structures. Here are the current numbers for 2025:

*GGR = Gross Gaming Revenue

Additionally, you should expect:

• Bank guarantee: €100,000
• Legal fees: €15,000–25,000
• Consultancy costs: €10,000–20,000

In other words: Plan for a minimum total of €150,000 in your first year for a Class 1 license.

Tax Advantages of the Malta Gaming Authority

This is where things get interesting for you as an internationally minded entrepreneur.

Malta offers one of the most attractive tax structures for gaming companies in Europe:

• Corporate tax: 35% (but with a refund system)
• Effective tax rate: 5% after refund
• No withholding tax on dividends to EU shareholders
• EU double taxation agreements: Over 70 countries

This is how Malta’s refund system works: You pay 35% corporate tax up front. When profits are distributed as dividends, 30% is refunded.

Practical example: Your gaming company earns €1 million in profit.

1. Corporate tax: €350,000
2. Remaining profit: €650,000
3. Dividend distribution: €300,000 refund
4. Effective tax burden: €50,000 (5%)

There’s also Malta’s Gaming Tax System: Instead of the standard corporate tax, gaming businesses can choose to pay a gaming tax of 0.8% on GGR. This is often cheaper for highly profitable companies.

MGA Compliance Requirements

Malta takes compliance very seriously.

Here’s what you need to know:

• Key Personnel: At least two people with gaming experience required
• Fit & Proper Tests: Comprehensive background checks on all executives
• System Audits: Regular technical inspections by accredited labs
• AML/CFT: Strict anti-money laundering regulations
• Player Protection: Extensive player safety measures

The MGA doesn’t just check at the time of licensing—regular audits and unannounced inspections are the norm.

My advice: Budget at least €50,000 annually for compliance. It’ll be cheaper if you set up professionally from day one.

Gibraltar Gambling Commission (GGC): What Remains After Brexit?

Gibraltar isnt dead. But it’s definitely not what it used to be.

Let me be honest: For most new online casino projects, Gibraltar makes little sense today. But there are exceptions.

Gibraltar Gaming License: New Restrictions and Opportunities

The Gibraltar Gambling Commission was long considered Europe’s most pragmatic regulator. And it still maintains this reputation.

But the framework has changed:

• No more EU passport: Separate licenses required for every EU market
• Great Britain as the main market: Direct access limited to the UK market
• Flexible regulation: Less strict than Malta
• Faster approval: 3–4 months vs. 6–9 months in Malta

Current license fees in Gibraltar:

Additionally: A bank guarantee of £250,000 is required.

Tax Structure in Gibraltar for Online Casinos

Gibraltar has always been tax-attractive. That remains the case post-Brexit.

The basics:

• Corporate tax: 12.5% on profits from Gibraltar sources
• No capital gains tax
• No inheritance or gift tax
• Attractive HNWI program for entrepreneurs

But beware: The new Economic Substance law requires gaming companies to have genuine economic substance in Gibraltar.

Specifically, that means:

1. At least 2 full-time on-site employees
2. Appropriate office space
3. The board meets regularly in Gibraltar
4. Major business decisions are made locally

You cant fulfill these requirements with a mailbox. Plan on at least €200,000 in annual operating costs.

Market Access and Operational Challenges

This is Gibraltar’s biggest issue today.

Before Brexit: One license, 28 EU markets.

After Brexit: One license, mainly the UK market.

For EU markets, you now need:

• Germany: German license (€300,000 security)
• Spain: Spanish license (€3 million security)
• Italy: Italian license (€2.5 million security)
• France: Virtual monopoly for state operators

That makes Gibraltar unattractive for EU-focused strategies.

However: If your key market is the UK or you focus on non-regulated markets, Gibraltar can still make sense.

Malta vs. Gibraltar: A Direct Comparison for Online Casino Operators

Now lets get to the point you’ve been waiting for.

Which jurisdiction really makes sense for your online casino?

The answer depends on your goals. Let me show you the key decision criteria.

License Fees and Ongoing Costs Compared

Here are the numbers for a typical B2C online casino:

The difference is significant. Malta is much cheaper for the initial investment.

But thats only half the story. Ongoing costs decide long-term profitability.

Sample calculation for €10 million GGR per year:

• Malta: €35,000 + €80,000 (0.8%) = €115,000 per year
• Gibraltar: €97,000 + €100,000 (1%) = €197,000 per year

Over 5 years, that’s a €410,000 difference—in Malta’s favor.

Tax Optimization: Which Jurisdiction Fits You?

This is where things get interesting for strategic thinkers.

With the refund system, Malta’s effective corporate tax rate is 5%. Gibraltar is at 12.5%.

But there’s one key difference:

Malta (for €2 million profit):

• Corporate tax: €700,000 (35%)
• Refund when paid as dividends: €600,000
• Effective tax: €100,000 (5%)

Gibraltar (for €2 million profit):

• Corporate tax: €250,000 (12.5%)
• No refund
• Effective tax: €250,000 (12.5%)

Malta is more tax-efficient—but only if you pay out profits as dividends.

If you want to retain profits in the business, Gibraltar can be more advantageous.

Market Access and Regulatory Recognition

This is the critical difference in 2025.

Malta Gaming Authority:

• EU-wide passport
• Direct access to 27 EU markets
• Recognition in most international markets
• Growing reputation as Gold Standard

Gibraltar Gambling Commission:

• Direct access only to the UK market
• Separate licenses needed for EU markets
• Strong reputation with payment providers
• Still recognized in non-regulated markets

If your strategy focuses on EU markets, Malta is the easy choice.

However: Gibraltar has an edge with payment providers. Many international payment service providers accept Gibraltar licenses more readily than MGA licenses.

This can be crucial if you want to integrate innovative payment solutions or cryptocurrencies.

My Recommendation: Which License Strategy Makes Sense for 2025?

After more than 15 years in international tax consulting and dozens of gaming clients, I can give you a clear assessment.

But as always: The best strategy depends on your individual situation.

Who Malta Is the Better Choice For

You should choose Malta if you:

• Focus on EU markets: Germany, Spain, Italy, the Netherlands
• Think long-term: Stable regulation and EU membership
• Want to optimize costs: Lower setup and ongoing costs
• Distribute dividends: To take advantage of the 5% tax system
• Take compliance seriously: Malta will require you to have clean structures

Typical profile: You’re planning a modern online casino focused on regulated EU markets. Setup budget: €200,000–300,000. Goal: Sustainable, compliance-driven business.

Concrete numbers from my experience: A client started with an MGA license in 2023. After 18 months:

• Active in 12 EU markets
• €25 million GGR
• Effective tax: 7% (including local gaming taxes)
• Compliance costs: €180,000 per year

The result: Profitable and legally secure.

When Gibraltar Still Makes Sense

Gibraltar is still worthwhile if you:

• Focus on the UK market: United Kingdom as your main target
• Non-regulated markets: Latin America, Asia, Africa
• B2B business: Software or payment services
• Payment innovation: Crypto or new payment methods
• Need a fast launch: 3–4 months vs. 6–9 in Malta

Example from real life: A software provider chose Gibraltar in 2024 for its B2B gaming business. Why?

• Main customers in the UK and outside the EU
• Innovative payment integration
• Needed quick market entry
• Lower compliance requirements for B2B

Result: Successful launch in 4 months, strong growth in target markets.

Hybrid Strategies and Backup Options

Heres my pragmatic side: Why not both?

Successful gaming companies think in terms of backup scenarios. My recommendation for ambitious projects:

Dual-license strategy:

1. Start with Malta: EU market access and tax benefits
2. Gibraltar as backup: For non-EU markets and payment innovation
3. Operational separation: Different brands for different markets

Does it cost more? Yes, upfront it does.

But it gives you:

• Maximum market coverage
• Regulatory flexibility
• Protection against political change
• Optimum payment options

One example: A client started this strategy in 2022.

Setup cost: €600,000 (for both licenses)

Ongoing costs: €400,000 per year

Result after 2 years: €80 million GGR, active in 15 countries

The higher costs paid off after 14 months.

My Conclusion:

For most new online casino projects, Malta is the better choice in 2025. EU integration, lower costs, and tax advantages tip the scales.

Gibraltar remains relevant for specialist use-cases: UK-focused businesses, B2B services, or innovative payment strategies.

Regardless of your choice of jurisdiction: Invest in professional compliance from the start. The days of easy-going regulation are over.

Have questions about your specific situation? Let’s talk. In the end, the details will determine your success.

Yours, RMS

Frequently Asked Questions (FAQ)