Key Moments:
- Major changes to gaming taxation and VAT exemptions will take effect on 1 October under Legal Notices 84 and 86 of 2026.
- The reform merges the gaming tax and device levy into one tax. It also introduces a studio broadcasting levy and simplifies VAT exemptions.
- New tax rates will apply based on game type and delivery model. Meanwhile, clearer VAT rules will impact sports betting and some casino services.
New Regulatory Framework for Gaming and VAT
Malta has introduced major reforms to the Gaming Tax Regulations and the Value Added Tax (VAT) Act. Notably, the changes focus on VAT exemptions for gambling. The government will implement these updates on 1 October. It published Legal Notices 84 and 86 of 2026 on 1 April.
First, the reform combines the current gaming tax and gaming device levy into a single tax. In addition, it introduces a new studio broadcasting levy. At the same time, it simplifies VAT exemptions across the gaming sector.
The Malta Gaming Authority (MGA) and the Malta Tax and Customs Administration (MTCA) will provide further guidance. They also stressed that the reforms aim to balance the impact on the gaming sector. Importantly, the rules will apply only to services offered within Malta.
Clarification on Gambling VAT Exemption
The MGA and MTCA stated that these amendments support Malta’s long-term strategy. Specifically, they aim to strengthen sustainability, competitiveness, and regulatory certainty. As a result, operators will benefit from a clearer and more predictable tax framework. Moreover, the changes reinforce Malta’s position as a leading gaming jurisdiction.
In particular, the authorities clarified the scope of VAT exemptions for gambling. For example, the rules now better define how exemptions apply to sports betting and certain casino services. In addition, they explain how place-of-supply rules work. Therefore, taxation will better reflect the place of consumption.
Furthermore, the updated framework allows operators to recover eligible input VAT costs. This approach ensures fairness and maintains VAT neutrality across the sector.
Legal Notice 86 also updates the definition of VAT-exempt gambling. It now covers “betting, lotteries, and other forms of gambling” approved by the Minister. Consequently, this change improves consistency across different gambling services.
The Commissioner for Tax and Customs provided further clarification. Specifically, low-risk games qualify for VAT exemption without credit. These include betting, lotteries, and certain gambling activities, as defined under the Gaming Authorisations Regulations. In addition, junket events fall under this category.
Moreover, the rules cover facilities linked to real-life event outcomes. These include bookmakers, betting exchanges, and similar services. However, players must access these facilities at the event location. In this context, an “event” refers to a sporting competition.
Overhaul of Gaming Tax and Introduction of Studio Broadcasting Levy
The MGA is updating the gaming tax structure under the Gaming Act. At the same time, it is aligning the framework with the revised VAT rules.
The new structure includes the following elements:
| Gaming Activity Type | Applicable Tax Rate | Basis for Taxation |
|---|---|---|
| Type 1 | 15% of aggregate gaming revenue | Players located or residing in Malta |
| Type 2, 3, or 4 | 10% of aggregate gaming revenue | Players located or residing in Malta |
| Controlled gaming premises / Junket activity | 5% of aggregate gaming revenue | Activities conducted in Malta |
Under the new rules, operators must pay tax on revenue generated from players in Malta. For online services, the system determines tax liability based on the player’s residence or establishment.
In addition, the new studio broadcasting levy replaces the gaming device levy. Operators who use studios to film or broadcast gaming services must pay a fixed annual fee of €3,000. They must pay this amount in advance and renew it each year.
Looking Ahead
Looking ahead, regulators will issue further guidance to support implementation. Therefore, operators should monitor updates closely. At the same time, stakeholders should review the legal notices to prepare for the October rollout.
- Author
Daniel Williams
