Malta’s Revised Gaming Tax and VAT Rules Now in Force for Licensed Operators

Malta’s overhauled gaming tax and VAT frameworks became effective on October 1, 2026. They bring new tax rates for each category of gaming and changed reporting obligations for licensed operators.

The measures were enacted through Legal Notices 84 and 86 of 2026 and stem from announcements in Malta’s 2026 Budget. According to the source details, the rules were shaped after consultation with the gaming industry and are meant to give gaming activities clearer tax treatment.

New Gaming Tax Rates by Game Type

The reformed structure sorts gaming services into four types, each with its own rate applied to aggregate gaming revenue:

• Type 1: casino-style games and lotteries played against the house with a random generator, taxed at 15%
• Type 2: betting against the house on events or competitions at operator-set odds, taxed at 10%
• Type 3: commission-based products such as player-versus-player poker, bingo and betting exchanges, taxed at 10%
• Type 4: controlled skill games, taxed at 10%

Gaming in controlled premises, along with junkets and junket events, keeps its existing 5% rate.

Type 1 activities now sit at the top of the scale. Types 2, 3 and 4 share the lower 10% rate.

One Consolidated Structure Replaces Two Charges

The revised system applies simplified gaming tax rates to qualifying gaming activities offered to players located in Malta. It also ends the separate handling of the gaming tax and the gaming device levy. Both are folded into one structure that depends on the type of game and the way it is offered to the player.

Operators therefore no longer deal with two parallel charges for the same activity. A single classification decides what applies.

VAT Framework Clarifies How Gaming Services Are Treated

Alongside the tax overhaul, Malta has put revised VAT rules in place. The updated framework clarifies the treatment of certain gaming services, including sports betting and some casino products.

The VAT changes also cover:

• Place-of-supply rules, which determine where a gaming service is considered supplied
• Recovery of eligible input VAT costs, where applicable

The VAT framework works in tandem with the gaming tax changes. It spells out how selected gaming services are handled and when eligible input VAT can be reclaimed.

Regulator Describes the Aim of the Reforms

The Malta Gaming Authority (MGA) said, as reported by European Gaming News, that the coordinated reforms are designed to deliver a “balanced overall framework for the sector”. The regulator added that they should preserve Malta’s standing as a stable, competitive and internationally recognised gaming jurisdiction.

Reporting Timeline: What Operators Need to Know

The switch to the new rules does not apply to every return at once. The schedule is staggered:

• September 2026 returns will still be filed under the previous regime and remain due by October 20.
• The regulatory reporting Portal will keep accepting those submissions on the basis of the requirements that applied during September.
• Updated Portal functionality for the revised VAT and gaming tax frameworks is scheduled to be available by November 1.
• October 2026 returns will be the first filed under the new rules, with a due date of November 20.

Licensees filing for September should therefore stay on the old requirements, while October’s return is the first one that follows the new framework.

Guidance During the Transition

The Malta Tax and Customs Administration and the Malta Gaming Authority will keep issuing guidance to support licensees through the transition. With the Portal update still pending and two reporting regimes running back to back, official guidance will be a key reference point for operators adjusting their processes.

What Changes for Malta-Licensed Operators

Taken together, the October 1 changes amount to a significant revision of how Malta taxes gaming. Rates are now tied directly to the category of game, the highest being 15% for Type 1 activities and 10% for Types 2, 3 and 4, with the 5% rate retained for controlled premises and junkets. A merged gaming tax and device levy structure, clearer VAT treatment for sports betting and certain casino products, and a phased reporting timetable round out the package.

For operators, the near-term practical points are the October 20 deadline for September returns under the old rules, the November 1 target for the updated Portal, and the November 20 deadline for the first return under the new framework.