In a previous article, we explored how Malta’s forward-thinking approach to blockchain technology earned it the title of “Blockchain Island.” Now, we shift our focus to the iGaming industry, another key driver of Malta’s modern economic evolution. Through this series, we’re uncovering how Malta reinvented itself by using bold strategies to transition from a small Mediterranean island to a key player in global technology and economic innovation.
Malta has emerged as a leading destination for iGaming companies, combining favourable policies, a well-regarded regulatory framework, and a supportive business environment. The island nation’s strategic initiatives and business-friendly ecosystem have attracted top players in the industry, cementing Malta’s status as a global hub for iGaming.
This article explores the key factors behind Malta’s success, the contributions of foreign companies, the economic impact, and the challenges faced by the sector.
Favourable Policies and Regulatory Framework
The Malta Gaming Authority (MGA), established in 2001, is the foundation of Malta’s gaming industry. Its regulatory framework ensures fair operations and protects vulnerable individuals. The 2018 Gaming Act further streamlined regulations, strengthening Malta’s appeal.
By contrast, other European regulators emerged later, including the UK Gambling Commission (2007), Denmark’s Spillemyndigheden (2012), and the Netherlands’ Kansspelautoriteit (2021). Malta’s early regulatory foresight has given it a competitive advantage in attracting iGaming operators.
Foreign iGaming Companies Thriving in Malta
Sweden’s Betsson Group and Kindred Group, the UK’s Betfair, France’s Betclic, and Norway’s Gaming Innovation Group (GiG) have all established a strong presence in Malta. They benefit from the island’s strategic location, favourable tax policies, and an English-speaking workforce.
Employment in the iGaming Sector
The iGaming industry is a vital part of Malta’s economy, accounting for 5.5% of the total workforce in 2022, with 15,774 individuals employed directly or indirectly. Roles span various areas, from software development to consultancy services. Approximately 69% of the workforce in the sector consists of foreign workers, highlighting Malta’s reliance on international talent.
However, the industry faces a skills gap. As of late 2023, technology-related positions accounted for 16.8% of vacancies. While 75.8% of respondents in a 2024 MGA survey rated Malta’s labour market positively, there is undeniably a growing need for specialised training and workforce development.
Addressing the Skills Gap
To tackle this issue, the Maltese government and stakeholders have introduced targeted initiatives, including:
- Partnerships with educational institutions to create gaming and technology programmes.
- Scholarships and industry certifications are provided by the MGA.
- Incentives for companies to invest in employee training.
These measures aim to nurture local talent, reducing reliance on foreign workers while strengthening Malta’s reputation as an iGaming hub.
Challenges in Regulatory Adherence
Despite its successes, Malta’s iGaming sector faces challenges in maintaining compliance with regulations. In the first half of 2023, the MGA conducted 14 compliance audits and 85 desktop reviews, taking action against non-compliant operators. Additionally, collaboration with the Financial Intelligence Analysis Unit (FIAU) ensures adherence to Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations. In 2023, administrative fines totalling €994,000 were imposed on seven licensees.
Economic Contributions of the iGaming Industry
Beyond employment, the iGaming sector significantly bolsters Malta’s economy. In 2022, it contributed €1,495 million in Gross Value Added (GVA), representing 9.6% of the nation’s total GVA and growing 5.8% compared to 2021. Including indirect effects, this contribution exceeds 12.4%, underscoring the sector’s critical economic role (as reported in the MGA Annual Report).
Conclusion
Malta’s proactive policies, robust regulatory framework, and strategic initiatives have established it as a premier destination for iGaming companies. The industry has not only created jobs but has also generated significant tax revenue and attracted foreign investment, further enriching the nation’s economy.
While challenges such as skills shortages and regulatory compliance persist, ongoing efforts by the MGA and other stakeholders ensure that Malta remains a global leader in iGaming. The continued influx of international talent and capital underscores the country’s pivotal role in shaping the future of the gaming industry, securing economic benefits that extend well beyond the sector itself.
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