Malta is one of the leading jurisdictions for online gaming world wide with over three hundred licenses issued under Maltese law representing approximately 10% of the global online gaming market, it seems that Malta is offerring what online gaming companies are looking for in a jurisdiction from where to provide their services. Malta provides a well regulated European Union jurisdiction while maintaining operational costs at an acceptable level.

Online gaming is regulated by the Remote Gaming Regulations 2004 issued under the Lotteries and other Games Act 2001. The Act provides for the setting up of the Lotteries and Gaming Authority (LGA) which is the sole regulatory authority responsible for all types of gaming and lotteries in Malta. The LGA strives to ensure that no person promotes or provides lottery or gaming services in or from Malta unless that person passes a fit and proper test ensuring adequate player protection. Furthermore it is the LGA’s responsibility to ensure that licensees comply with their licence conditions to the fullest extent.

The Regulations provide the rules and conditions applicable to all remote gaming operations. Every remote gaming operation must have a licence prior to commencement of operations. Malta's regulatory framework caters for four Classes of licenses with each Class required for a different type of gaming operation and is subject to different rules. The four classes are intended for the following operations:

Class 1: Risk taking on repetitive games generated by random events – this includes casino style games, lotteries and slots

Class 2: Risk taking by creating a market and backing that market – this includes sports betting

Class 3: Promoting and/or abetting games from Malta – this includes P2P, betting exchanges, skins, tournaments and bingo operations

Class 4: Provision of remote gaming systems to other licensees – this includes software vendors who takes commission on wagers

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