Why Are Most Online Casinos Located On The Island of Malta?

Why Are Most Online Casinos Located On The Island of Malta?

If you have ever played at an online casino you may wonder. Why are most online casinos located on the island of Malta? There are a number of simple reasons for this. An important reason is the clear legislation in the field of (online) games of chance. The island has been very progressive in the field of online casino legislation since the late 1990s. This is one of the reasons why many online casinos have made the step to locate overzees to the island of Malta. In addition, Malta also offers many advantages when it comes to doing business with other similar companies. After all, you are all located on a small island with an area of only 246 km2 (95 sq mi), there are plenty of networking opportunities. In addition, the English language is a second mother tongue for the inhabitants. Until 1964, Malta was still a British colony. The island has the ambitious goal of becoming a major financial center of Europe. In addition to the favorable Mediterranean climate, there is also a favorable tax climate to attract entrepreneurs and foreign businesses.

Online casino legislation on the island of Malta

Since the emergence of online casinos around 20 years ago, Malta has had clear regulations for both online and brick-and-mortar casinos. When other countries in Europe, such as the Netherlands, were still using outdated legislation, the government of Malta was already modernizing the legislation on games of chance. So you can actually see the island of Malta as a forerunner in Europe in the field of online gambling regulation. The government is strongly specialized in this, with an important role for the Malta Gaming Authority. This regulatory body was established in 2001 to supervise various forms of (online) games of chance.


As the island of Malta started setting clear legislation so early, it has attracted many important international companies like a magnet. These companies specialize in offering games of chance such as online casinos. Clear legislation in this area was not yet in place in most countries in Europe.

After a number of companies made step to go overzees, many others followed. The knowledge and experience that the island of Malta has gained in these 20 years, makes this island the specialist in online gambling in Europe. Because there are so many companies located with the same core task. This also makes it a convenient place to network and find experienced staff. Most online casinos not only have a branch on the island of Malta, there are often several branches all over the world, each with a specific task. The headquarters of these companies are often located in Malta.

Good regulation

In the last 20 years, the island of Malta has built up a good reputation. Not only as an island with a pleasant living environment, but also with a good business climate. The Malta Gaming Authority is a regulatory body comparable to the Netherlands Gaming Authority. The core task of this body is to enforce the Games of Chance Act and to supervise the licensees.

It it cannot be taken for granted that an online casino can receive a license from the Malta Gaming Authority. Companies must meet strict requirements to be eligible. The company is completely screened, such as the people behind the company, the cash flows and the financial state of the company are reviewed. Of course, companies must also do enough to check for age. It is also important that action is taken in case of a possible gambling addiction.

In addition, a licensee must also pay a small percentage of gambling tax on the turnover.

When an online casino is licensed by the Malta Gaming Authority, at least you know that you are dealing with a reliable company that has been well researched. In case of an online casino that targets players in the Netherlands, also called a Dutch online casino. The company must also have a license from the Dutch Gaming Authority.

Network capabilities

For online casinos, Malta is not only a good choice when it comes to clear gambling legislation. Because so many different online casinos are located on this island, it also becomes an ideal place for networking. Malta is also sometimes referred to as the Silicon Valley in the field of online gambling. It is the place where the largest companies in this sector are located. For this reason, it is therefore easier to enter into a partnership with a new software developer or game developer.

In addition, the island also offers many more possibilities to find suitable personnel. There are specialized recruitment agencies that bring together supply and demand in the online casino industry.

Tax benefits

The island of Malta would like to become an important financial center of Europe. To achieve this goal, a number of advantages are offered for foreign company forms. For example, income tax is set at 15% for worldwide income. In addition, there are no municipal or local taxes. If you want more information about the tax climate in Malta, check out the English-language website of the Maltese government.

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