How Malta’s Gaming Tax Changes Will Affect iGaming Companies

The reform is based on Legal Notice 84 of 2026, which amends the Gaming Tax Regulations, and Legal Notice 86 of 2026, which amends the Fifth Schedule to Malta’s VAT Act. Both were published in the Government Gazette sur 1 April 2026.

Le Malta Gaming Authority and the Malta Tax and Customs Administration have described the reform as an update to Malta’s VAT and gaming tax frameworks for the gaming sector. Their stated aim is to improve clarity, competitiveness and regulatory certainty, while giving operators time to prepare before the rules take effect.

Pour iGaming companies, the main issue is not simply “more tax”. The more important change is that Malta is narrowing the VAT exemption for gambling services. This may affect VAT treatment, input VAT recovery, pricing, systems, reporting and how certain services are classified.

What is changing from 1 October 2026?

Until now, Malta’s VAT exemption for gambling has been relatively broad. Legal Notice 86 of 2026 narrows that exemption.

From 1 October 2026, the VAT exemption without credit is expected to apply only to a limited set of activities. Deloitte, KPMG and PwC all report that the remaining exempt categories are expected to include low-risk games, approved occasional junket events and in-venue betting at sports events.

This means that many gambling and betting services that were previously treated as exempté may become taxable where the supply is deemed to take place in Malta. This is why the reform matters. If an operator makes taxable supplies, it may also have a better right to recover input VAT on related costs. The MGA and MTCA specifically refer to a “natural right of recovery of eligible input VAT costs” as one of the intended effects of the reform.

Key changes

Why this matters for operators

For some iGaming companies, the reform will increase compliance obligations. For others, it could improve cost recovery and reduce operational inefficiencies linked to exempt treatment.

The key issue is how gambling services are classified for tax purposes. Under the previous framework, many operators supplying exempt services could not fully recover tax incurred on business expenses. In practice, this often turned part of their operational spending into a hidden cost. The new rules may change that position for certain businesses.

Where gaming activities become taxable in Malta, operators may gain broader recovery rights on eligible expenses connected to their operations. This can be particularly relevant for companies with significant spending on:

The commercial effect will differ from one operator to another. Much will depend on the business model, player location, contractual structure and the mix of local and international activities. For some companies, the reform may improve efficiency and reduce unrecoverable costs. For others, it may create additional reporting obligations, pricing pressure and system upgrades. This is why many operators are already reviewing their structures well ahead of the October 2026 implementation date.

The gaming tax framework is also being simplified

Legal Notice 84 of 2026 deals with the gaming tax side of the reform. The MGA and MTCA state that Malta is consolidating the existing gaming tax and gaming device levy into a single gaming tax structure, classified by game type and mode of offer.

The authorities also state that the revised gaming tax framework will apply exclusively to gaming services provided within Malta. This is important because Malta-based operators serving international markets should not assume that every activity is affected in the same way. The location of the player, the type of service and the place-of-supply rules will matter.

What companies should review now

Operators should not wait until late 2026. The Malta Gaming Authority (MGA) et MTCA held an information session in April 2026 specifically to explain the legislative changes, clarify practical application and help stakeholders prepare before the rules enter into force.

The most sensible review areas are VAT classification, input VAT recovery, player location logic, invoicing flows, ERP and reporting systems, supplier contracts, group recharges and partial exemption calculations. For larger operators, this should not be treated as a simple accounting update. It may affect commercial pricing, financial forecasts and tax governance.

Dernières réflexions

Malta’s 2026 gaming tax reform is a technical change with commercial consequences. The reform narrows the VAT exemption for gambling and reshapes the gaming tax framework. It may create additional compliance work, but it may also improve VAT recovery for operators whose supplies become taxable.

The safest approach for iGaming companies is to model the impact early. The same reform may be positive for one operator and costly for another, depending on the business model and the VAT position. For Malta, the policy direction is clear: more defined rules, less ambiguity and a framework that better reflects how modern gaming businesses operate.

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Clause de non-responsabilité

This article is for general informational purposes only and does not constitute legal, tax, VAT or regulatory advice. The application of the new rules will depend on each company’s specific facts, structure and operations. Further official guidance may also be issued before the rules come into force.

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