How Malta’s New Gaming Tax Model Changes Operator Compliance

Malta’s updated gaming tax and VAT framework took effect on October 1, 2026. The reforms introduce different tax rates for specific gaming categories, combine two previous charges into one system, and alter how licensed operators report qualifying activity involving players in Malta.

The changes arise from Legal Notices 84 and 86 of 2026, which were published as part of the measures announced in Malta’s 2026 Budget. Their stated purpose is to make the treatment of gaming revenue more consistent and easier to determine.

Revenue Classification Now Determines the Gaming Tax

The revised approach applies rates to aggregate gaming revenue generated from qualifying activity offered to players located in Malta. Instead of relying on a single broad treatment, operators must identify the category that best matches each product.

Type 1 covers casino-style games, lotteries and other house-banked games using a random number generator. This category carries the highest rate at 15%.

Type 2 applies to bets placed against the house on events or competitions where the operator sets the odds. Type 3 includes commission-based offerings such as player-versus-player poker, bingo and betting exchanges. Type 4 covers controlled skill games. Types 2, 3 and 4 are each subject to a 10% rate.

Activity conducted in controlled premises, together with junkets and junket events, remains subject to the existing 5% rate.

Gaming Tax and Device Levy Are Now Consolidated

A central change is the removal of the separate treatment previously applied to gaming tax and the gaming device levy. The two charges have been brought together in a streamlined gaming tax structure.

Under the new model, the applicable result depends on both the type of game and the manner in which it is provided. This gives operators one classification framework instead of two parallel charges for the same qualifying activity.

The rates apply to relevant gaming revenue connected with players in Malta rather than automatically applying to an operator’s entire worldwide revenue. Licensed businesses should therefore assess their reporting data according to player location as well as product type.

VAT Treatment Expands for Several Gaming Services

Legal Notice 86 also changes the VAT treatment of gambling and betting services. The revised rules clarify the place of supply and narrow the circumstances in which certain gaming services can remain exempt without credit.

Sports betting, live casino services and other commonly supplied gaming products may fall within the taxable VAT framework under the revised approach. In return, operators may have a stronger basis for recovering eligible input VAT, subject to the ordinary rules and any applicable attribution requirements.

The framework also addresses selected casino products, low-risk games, approved junket events and betting facilities available at the venue of a real-life sporting event. Operators should review each supply separately rather than assuming that all gaming services receive identical VAT treatment.

Reporting Changes Arrive in Two Stages

The transition does not require every return to be filed under the new system immediately. Operators must follow the reporting period that applies to each submission.

1. File September 2026 returns under the former rules. These returns remain due by October 20, 2026, and the Portal continues to accept them according to the requirements in force during September.
2. Prepare for the Portal update. Functionality supporting the revised VAT and gaming tax reporting requirements is scheduled to become available by November 1, 2026.
3. Submit the October 2026 return under the new framework. This is the first reporting period covered by the revised rules, and the return is due by November 20, 2026.

This timetable means that September and October returns will be prepared under different regimes in consecutive months. Businesses should keep the underlying calculations and supporting records clearly separated.

Practical Priorities for Licensed Businesses

The Malta Gaming Authority and the Malta Tax and Customs Administration are expected to continue issuing guidance as operators adjust their systems. Official instructions will be particularly relevant while the updated Portal is being introduced and the new VAT treatment is being applied in practice.

Operators should first map each product to the correct gaming tax type, then identify revenue connected with players in Malta. They should also review VAT registration, invoicing, place-of-supply analysis and input VAT recovery before preparing the first October return.

Overall, the reforms create a category-based tax structure led by the 15% Type 1 rate, with a 10% rate for Types 2, 3 and 4 and a retained 5% rate for controlled premises and qualifying junket activity. The consolidated charge, revised VAT treatment and staged filing schedule make the key deadlines of October 20, November 1 and November 20 especially important for compliance teams.