A New Fiscal Era for Malta’s Gaming Sector: Lower Tax Burden, Greater Clarity
A New Chapter for Malta’s Gaming Framework
On the 1st of April 2026, Malta published two landmark regulations reshaping its gaming tax and VAT landscape:
(i) The Gaming Tax (Amendment) Regulations 2026 (L.N.84.2026)
(ii) The Value Added Tax Act (Amendment of Fifth Schedule) (Amendment No. 2) Regulations 2026 (L.N.86.2026).
Both regimes are set to come into force as from the 1st of October 2026.
These updates were accompanied by the Malta Gaming Authority’s publication “Enhancements to Malta’s VAT and Gaming Tax Frameworks for the Gaming Sector”, signalling a coordinated effort to modernize and streamline the fiscal framework governing gaming activities on the island.
Overview of Key Changes
The Gaming Tax (Amendment) Regulations consolidate Malta’s dual gaming tax and gaming device levy regimes into a single, less complex and less intensive tax structure.
Meanwhile, the VAT (Amendment of Fifth Schedule) Regulations refine the scope of VAT exemptions for gambling-related supplies.
The Gaming Tax (Amendment) Regulations 2026
What are the Gaming Tax Regulations?
The Gaming Tax
Malta’s Gaming Tax Regulations (S.L.583.10) were first introduced in 2018, imposing a 5% tax on gaming revenue generated from gaming services delivered to players physically present in Malta.
Where services are provided solely by means of distance communications (remotely), the gaming tax applies when the player is established, has his permanent address and/or usually resides in Malta (irrespective of whether the player is physically present in Malta or not).
The Levy on Gaming Devices
The Gaming Tax Regulations also impose a levy on gaming devices deployed in gaming premises for the provision or conduct of any qualifying activity (being any activity which consists of providing/carrying out a gaming service from Malta or to any person in Malta).
The regulations set out a computational method to determine the levy payable, summarised as follows:
- Thirty per cent (30%) of the gaming revenue from Type 1 and Type 2 gaming services;
- Twelve point five per cent (12.5%) of the gaming revenue from Type 3 and Type 4 gaming services.
Gaming devices deployed within controlled gaming premises benefit from a standardised levy set at a rate of fifteen per cent (15%) of the gaming revenue.
Gaming services lawfully classified as junkets benefit from an even further reduced levy of just two point five per cent (2.5%). The same applies to Type 3 gaming services when defined as ‘junket events’.
Studio Broadcasting Levy
The Gaming Tax Regulations also impose a fixed levy of five hundred euro (€500) on any authorised person using a premises as a studio to film and/or broadcast a gaming service or critical gaming supply.
However, persons paying the levy on gaming devices are exempt from this levy.
The Updated Regime: Effective 1st October 2026
Broader Definition of ‘Qualifying Activity’
The current definition of qualifying activity expressly includes persons operating:
(i) controlled skilled games; and/or
(ii) under a recognition notice, recognising an authorisation issued by another Member State deemed to have equivalent safeguards by the Malta Gaming Authority.
The current definition also expressly excludes those persons operating:
(i) exempt games;
(ii) skill games;
(iii) low risk games;
(iv) cruise casinos; and
(v) amusement machines.
The new regime will likewise expressly include persons operating controlled skilled games and/or under a recognition licence, but will extend coverage to expressly include persons granted a concession by the Minister to operate a casino or the National Lottery games under Article 11(3) of the Gaming Act.
Consolidated Tax and Levy Regime
As from the 1st of October 2026, the separate and distinct fixed (5%) gaming tax regime and tiered levy (12.5-30%) system will merge into a single unified regime, payable as follows:
- Fifteen percent (15%) of gaming revenue from Type 1 gaming services;
- Ten per cent (10%) of gaming revenue from Type 2, Type 3 and Type 4 gaming services.
Furthermore, where the gaming revenue is generated within a controlled gaming premises or lawfully classified as a junket (or junket event), the new consolidated gaming tax shall be of just five percent (5%).
This reform significantly simplifies compliance while rebalancing the effective tax burden across gaming activities.
Summary of Current Regime vs New Regime
| TYPE 1 GAMING SERVICES | Current Regime | New Regime |
| Gaming Tax | 5% | 15% |
| Levy on Gaming Devices | 30% | N/A |
| Total | 35% | 15% |
| TYPE 2 GAMING SERVICES | Current Regime | New Regime |
| Gaming Tax | 5% | 10% |
| Levy on Gaming Devices | 30% | N/A |
| Total | 35% | 10% |
| TYPE 3 GAMING SERVICES | Current Regime | New Regime |
| Gaming Tax | 5% | 10% |
| Levy on Gaming Devices | 12.5% | N/A |
| Total | 17.5% | 10% |
| TYPE 4 GAMING SERVICES | Current Regime | New Regime |
| Gaming Tax | 5% | 10% |
| Levy on Gaming Devices | 12.5% | N/A |
| Total | 17.5% | 10% |
| CONTROLLED GAMING PREMISES SERVICES | Current Regime | New Regime |
| Gaming Tax | 5% | 5% |
| Levy on Gaming Devices | 15% | N/A |
| Total | 20% | 5% |
| JUNKET/JUNKET EVENT | Current Regime | New Regime |
| Gaming Tax | 5% | 5% |
| Levy on Gaming Devices | 2.5% | N/A |
| Total | 7.5% | 5% |
The Updated Studio Broadcasting Levy
The Studio Broadcasting Levy will rise from five hundred euro (€500) to three thousand euro (€3,000).
The Value Added Tax (Amendment of Fifth Schedule) (Amendment No. 2) Regulations 2026
Overview
Article 9 of the Value Added Tax (VAT) Act provides that any supplies to which Part One or Part Two of the Fifth Schedule to the VAT Act applies. The new regulations, effective 1st of October 2026, updated Item 9 of the Fifth Schedule.
The Updated Regime
Currently, Item 9 to the Fifth Schedule exempts government lotto and lotteries, the supply of agency services related thereto, and other such supplies related to gambling as may be approved by the Minister from Value Added Tax.
The Regulations will update Item 9 to exempt “betting, lotteries and other forms of gambling, as may be approved by the Minister”.
Awaiting Further Guidance
Following the amendments, the Malta Gaming Authority confirmed that the Malta Tax and Customs Administration (MTCA) will issue detailed supporting guidelines. These will establish a consistent VAT treatment across the gaming sector.
As the new exemption regime comes into effect, industry stakeholders are eagerly awaiting the MTCA’s guidance, which will be crucial for ensuring legal certainty and clarity regarding the scope and application of VAT exemptions under the updated framework.
Talk to Our Team
At Zeta, we help gaming operators thrive in Malta’s evolving regulatory landscape. As a Corporate Service Provider (CSP) offering comprehensive tax and VAT advisory and compliance services, we assist clients with gaming licence applications, regulatory structuring, and fiscal optimisation under Malta’s new gaming tax regime.
Our team combines technical expertise with practical insight to ensure your business remains compliant, efficient, and ready to capture new opportunities.
Get in touch today to discuss how the 2026 reforms may impact your operations and how we can support your transition.
Written by Matthew Muscat
This article is intended for general information purposes only and does not constitute tax, legal or other professional advice. It provides a high-level summary of the information and reflects our interpretation of the information as at the date of publication.
The application and impact of the information may vary depending on individual circumstances, and the information is subject to change and to interpretation by the relevant authorities. Accordingly, this article should not be relied upon as a substitute for specific professional advice.
Readers are encouraged to seek tailored advice before taking any action based on the information contained herein.