What Malta’s Gaming Tax Reset Means for Operators

Malta’s updated gaming tax and value-added tax framework took effect on October 1, 2026. The changes introduce a revised rate structure for different gaming products, combine two previous charges, and establish clearer reporting expectations for licensed operators.

The measures were introduced through Legal Notices 84 and 86 of 2026, following commitments made in Malta’s 2026 Budget. The framework was developed after consultation with industry participants and is intended to create more predictable tax treatment across the gaming sector.

How the New Rates Are Applied

The updated system classifies gaming activity according to the nature of the product and the way it is made available to players in Malta. The applicable percentage is calculated on aggregate gaming revenue, with four principal categories now in use.

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

This arrangement places Type 1 games at the highest level. The other three categories share the lower 10% rate, creating a clearer distinction between casino-style products and other forms of gaming.

A separate 5% rate continues to apply to gaming conducted in controlled premises, as well as to junkets and junket events. Those activities therefore remain outside the main three-tier outcome created by the new classifications.

Gaming Tax and Device Levy Now Follow One Framework

One of the central changes is the move away from treating gaming tax and the gaming device levy as separate charges. For qualifying activity supplied to players in Malta, the two elements are now incorporated into a consolidated structure.

Under the revised approach, the result depends on two factors: the classification of the game and the method through which the operator offers it. This means operators can assess one framework rather than managing parallel calculations for the same gaming activity.

The consolidation is intended to reduce uncertainty when operators review their tax positions. It also gives the game category a more direct role in determining the amount payable.

Revised VAT Treatment Covers Key Gaming Services

The tax changes were introduced alongside amendments to Malta’s VAT rules. The updated VAT framework provides additional direction for selected gaming services, including sports betting and certain casino products.

It also addresses how operators should determine the location of a supply and whether related VAT costs may be recovered. The main areas covered include:

• Place-of-supply rules: These provisions help establish where a gaming service is treated as supplied for VAT purposes.
• Eligible input VAT recovery: Where the relevant conditions are met, operators may be able to reclaim qualifying input VAT costs.

Gaming tax and VAT remain distinct obligations, but the two sets of rules now provide a more coordinated picture of how selected services should be treated. Operators will need to review both regimes when assessing product classification, customer location and recoverable costs.

Reporting Deadlines Will Shift in Two Stages

The effective date of the legislation does not mean that every return immediately moves to the new system. Malta has established a transition schedule that separates September reporting from the first return covering activity under the revised framework.

1. September 2026 returns must continue to follow the previous rules and are due by October 20.
2. The regulatory reporting Portal will continue accepting September submissions under the requirements that applied during that month.
3. New Portal functionality for the updated VAT and gaming tax requirements is expected to be available by November 1.
4. October 2026 returns will be the first submissions prepared under the new rules and must be filed by November 20.

In practical terms, licensees should not apply the new treatment retrospectively to September activity. The October return is the point at which the revised classifications, rates and reporting requirements first become relevant.

Regulatory Guidance Will Support the Changeover

The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue publishing guidance during the transition. This support will be particularly useful while operators adjust internal systems and wait for the updated Portal functions to become available.

The Malta Gaming Authority has described the coordinated measures as an effort to establish a “balanced overall framework for the sector”. The regulator has also linked the reforms to Malta’s goal of remaining a stable, competitive and internationally recognized gaming jurisdiction.

Key Compliance Priorities for Licensees

Malta’s October reforms materially change the way licensed gaming businesses assess their obligations. The highest standard rate is now 15% for Type 1 activity, while Types 2, 3 and 4 are taxed at 10%. Controlled premises, junkets and junket events retain their 5% treatment.

Operators should also account for the combined gaming tax and device levy structure, reassess VAT treatment for relevant products, and update reporting procedures before the first new-regime filing. The immediate calendar points are the October 20 deadline for September returns, the planned November 1 Portal update and the November 20 deadline for October returns.