What Malta’s 2026 Gaming Tax Shift Means for Licensees

Malta’s updated gaming tax and value-added tax framework took effect on October 1, 2026, introducing a revised rate structure and new compliance expectations for licensed operators. The changes follow measures announced in the country’s 2026 Budget and enacted through Legal Notices 84 and 86 of 2026.

The reforms were developed following consultation with representatives from the gaming sector. Their stated purpose is to make the tax treatment of different gaming services more transparent while creating a single framework for charges that were previously handled separately.

How the New Rates Are Assigned

The revised system calculates gaming tax on aggregate gaming revenue and places each activity into one of four categories. The applicable percentage depends on the product offered and the way customers participate.

Type 1 covers casino-style games and lotteries played against the house where outcomes are determined by a random generator. These activities now attract the highest rate, at 15%.

Type 2 applies to bets placed against the house on events or competitions using odds set by the operator. This category is subject to a 10% rate.

Type 3 includes commission-based services such as player-versus-player poker, bingo and betting exchanges. These products are also taxed at 10%. Controlled skill games fall under Type 4 and carry the same rate.

Gaming conducted at controlled premises remains subject to the existing 5% rate. The same percentage continues to apply to junkets and junket events, meaning these activities have not moved into the new 10% or 15% bands.

A Single Charge Replaces the Previous Parallel System

One of the central changes is the consolidation of the gaming tax and gaming device levy. Rather than managing two separate charges for a qualifying activity, operators can now determine the applicable liability through the relevant game type and delivery model.

The new structure applies to qualifying gaming services supplied to players in Malta. This classification-based approach is intended to reduce duplication and provide a clearer basis for calculating the amount due.

For operators, the practical task is to review how each product is classified, confirm the revenue included in the calculation and ensure that internal accounting systems reflect the new categories. Products that appear similar commercially may still require separate treatment if their mechanics or customer arrangements differ.

VAT Changes Add Detail to Gaming Compliance

The tax reforms took effect alongside amendments to Malta’s VAT framework. The revised rules clarify how selected gaming services should be treated for VAT purposes, including sports betting and certain casino products.

They also address the place of supply, which determines where a service is regarded as being supplied for VAT purposes. In addition, the framework explains when eligible input VAT costs may be recovered.

These provisions operate alongside the gaming tax rules rather than replacing them. Operators must therefore assess both regimes when reviewing their products, customer locations, invoicing arrangements and recoverable business costs.

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

Transition Dates Create Two Consecutive Reporting Regimes

The implementation schedule does not move every filing immediately onto the new framework. Returns covering September 2026 must still be prepared under the former rules and submitted by October 20.

The regulatory reporting Portal will continue accepting those September submissions according to the requirements that applied during that month. Operators should not apply the October changes retroactively to the September return.

Updated Portal functionality for the amended gaming tax and VAT requirements is expected to be available by November 1. The first return prepared under the new system will cover October 2026 and will be due on November 20.

This means licensees need to manage a short handover period carefully. September reporting remains connected to the previous regime, while October activity must be assessed under the revised rates, consolidated charge structure and updated VAT treatment.

Operational Priorities for Licensed Businesses

The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue issuing guidance during the transition. Their updates will be particularly relevant while the revised Portal tools are being introduced and operators are adapting their reporting procedures.

Businesses should review their game inventories, map each offering to the correct category and test the revenue calculations used for the October return. They should also verify how controlled premises, junkets, betting products, casino services and commission-based games are recorded in their systems.

In practical terms, the reform establishes a top rate of 15% for Type 1 activities, a 10% rate for Types 2, 3 and 4, and a continuing 5% rate for controlled premises and junket-related activity. The key dates are October 20 for the September return, November 1 for the planned Portal update and November 20 for the first filing under the new rules.