Malta’s updated gaming tax and value-added tax framework took effect on October 1, 2026. The changes establish revised rates for different gaming formats, combine two existing charges and introduce new reporting requirements for licensed operators.

The measures were introduced through Legal Notices 84 and 86 of 2026, following commitments included in Malta’s 2026 Budget. Their design followed consultation with the gaming industry and aims to make the tax treatment of gaming activities easier to determine.

How the New Rates Are Applied

The revised system assesses qualifying activity according to aggregate gaming revenue. The applicable rate depends on the type of game and how the operator provides it to the player.

1. Type 1 covers casino-style games and lotteries played against the house using a random number generator. These activities are subject to a 15% rate.
2. Type 2 includes betting against the house on events or competitions where the operator sets the odds. The rate is 10%.
3. Type 3 applies to commission-based services, including player-versus-player poker, bingo and betting exchanges. These products are also taxed at 10%.
4. Type 4 covers controlled skill games and carries a 10% rate.

Gaming conducted in controlled premises remains taxed at 5%. The same rate continues to apply to junkets and junket events.

As a result, Type 1 represents the highest rate in the revised scale, while Types 2, 3 and 4 are grouped under the lower 10% category.

A Single Approach Replaces Separate Charges

For eligible gaming services supplied to players in Malta, the new framework brings the gaming tax and gaming device levy into one consolidated structure. Operators no longer need to manage these as separate charges for the same activity.

Classification now provides the starting point for determining the liability. Both the game category and the method used to offer the service influence the treatment, creating a more unified process for affected licensees.

VAT Rules Add Detail for Gaming Services

Malta’s VAT amendments came into force alongside the gaming tax reforms. They provide additional direction for services such as sports betting and selected casino products.

The updated framework also addresses where a gaming service is considered supplied through its place-of-supply rules. In circumstances where the requirements are met, it also explains how operators may recover eligible input VAT costs.

These provisions operate alongside the new gaming tax structure rather than replacing it. Operators must therefore consider both the gaming classification and the relevant VAT treatment when reviewing their compliance processes.

Reporting Deadlines Will Change in Stages

The reporting transition is staggered, so the first return after the effective date will not necessarily use the new rules. Operators should follow this sequence:

1. September 2026 returns remain subject to the former framework and must be submitted by October 20.
2. The regulatory reporting Portal will continue accepting those September filings under the requirements that applied during that month.
3. Revised Portal functionality for the new VAT and gaming tax provisions is expected to be available by November 1.
4. October 2026 returns will be the first submissions prepared under the revised framework, with a deadline of November 20.

This means September reporting and October reporting must be handled under two different sets of requirements. Licensees should keep their earlier processes in place for the September return and prepare their October data using the new classifications and rates.

Regulatory Purpose and Practical Priorities

The Malta Gaming Authority, as reported by European Gaming News, said the coordinated measures are intended to create a “balanced overall framework for the sector”. The regulator also linked the reforms to Malta’s position as a stable, competitive and internationally recognized gaming jurisdiction.

The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue publishing guidance during the transition. That guidance will be particularly relevant while the updated Portal tools are being introduced and operators move from the previous regime to the new one.

For Malta-licensed operators, the immediate priorities are clear: submit September returns by October 20 under the former rules, monitor the Portal update expected on November 1 and prepare the first revised return for submission by November 20. The broader result is a classification-based tax model, a consolidated charge structure and more defined VAT treatment for selected gaming services.