How Malta’s 2026 Gaming Tax Overhaul Affects Operators

Malta’s updated gaming tax and value-added tax framework took effect on October 1, 2026, introducing a revised approach to taxing licensed gaming businesses and clarifying the VAT treatment of several gambling services. The changes were enacted through Legal Notices 84 and 86 of 2026 following measures announced in Malta’s 2026 Budget and consultation with industry participants.

The reforms affect both online and land-based operators whose qualifying gaming activities are offered to players present in Malta. They also replace the former separation between gaming tax and the gaming device levy with one classification-based structure.

Four Gaming Categories Now Determine the Tax Rate

The new regime calculates tax on aggregate gaming revenue. The applicable percentage depends on the type of service provided, rather than applying one broad rate to every gaming activity.

• Type 1: Casino-style games and lotteries played against the house with a random number generator are subject to a 15% rate.
• Type 2: Bets placed against the house on events or competitions at odds set by the operator are taxed at 10%.
• Type 3: Commission-based services, including player-versus-player poker, bingo and betting exchanges, carry a 10% rate.
• Type 4: Controlled skill games are also taxed at 10%.

Activities carried out in controlled gaming premises remain subject to the established 5% rate. The same rate applies to lawfully classified junkets and junket events.

As a result, Type 1 services occupy the highest band, while Types 2, 3 and 4 share a lower rate. Operators must therefore review how each product is classified before calculating the amount payable.

A Single Gaming Tax Structure Replaces Parallel Charges

One of the central changes is the consolidation of the former gaming tax and gaming device levy. Instead of managing two separate charges connected with the same activity, qualifying operators now apply a single gaming tax framework.

The consolidated model considers both the game category and the manner in which the service is made available. This approach is intended to make the tax outcome more predictable, although businesses may need to update internal product inventories, accounting rules and revenue calculations.

The revised tax rules specifically concern qualifying gaming activities offered to players located in Malta. Operators with multiple products or distribution channels should confirm that their classifications are applied consistently across their reporting systems.

VAT Treatment Becomes Narrower and More Specific

Legal Notice 86 of 2026 also changes the VAT framework for gambling services. The revised rules clarify how VAT applies to selected activities, including sports betting and certain casino offerings, while setting out how the relevant place-of-supply rules should operate.

The updated framework narrows the gambling exemption without credit. The exemption continues to cover limited categories, including low-risk games and occasional approved junket events. Certain betting facilities that can be accessed only at the physical venue of a real-life event may also fall within the specified treatment.

Many other services, including significant areas of sports betting and live casino activity, may instead become taxable for Maltese VAT purposes. The revised approach can also affect the recovery of eligible input VAT costs where the relevant conditions are met.

Operators Face a Staged Reporting Transition

The effective date of the new framework does not mean that every return is immediately prepared under the revised requirements. Malta has established a transition schedule so that September filings continue under the previous regime.

• September 2026 returns: These remain subject to the former rules and must be submitted by October 20, 2026.
• Existing Portal process: The regulatory reporting Portal continues accepting September submissions according to the requirements that applied during that month.
• Portal upgrade: Functionality supporting the revised gaming tax and VAT framework is scheduled to be available by November 1, 2026.
• October 2026 returns: These are the first filings prepared under the new framework and are due by November 20, 2026.

This creates two consecutive reporting periods governed by different rules. Licensees should keep their September records aligned with the old requirements while preparing October data using the new classifications and calculations.

What Malta Licensees Should Review Before Filing

The Malta Gaming Authority and the Malta Tax and Customs Administration are expected to continue issuing guidance during the implementation period. That guidance will be particularly relevant while the upgraded Portal is being introduced and operators adapt their reporting processes.

In practical terms, businesses should examine their game catalogues, determine which products fall into Types 1 through 4, and identify activities that retain the 5% treatment. They should also review customer location controls, VAT coding, place-of-supply analysis and the treatment of recoverable input VAT.

The October reforms represent a substantial redesign of Malta’s gaming tax landscape. The highest rate is now 15% for Type 1 services, while Types 2, 3 and 4 are taxed at 10%. Controlled premises and qualifying junkets remain at 5%, and the former device levy has been absorbed into the consolidated system.

For immediate compliance planning, the key dates are October 20 for September returns under the former rules, November 1 for the expected Portal update and November 20 for the first return filed under the revised framework.