Malta’s updated gaming tax and VAT framework took effect on October 1, 2026. The changes introduce different tax rates for four gaming categories, remove the separate gaming device levy and narrow the scope of certain VAT exemptions.
The reforms were enacted through Legal Notices 84 and 86 of 2026, following measures announced in Malta’s 2026 Budget. Their stated purpose is to create a clearer and more predictable framework for licensed gaming businesses.
How the New Gaming Tax Categories Work
The revised system calculates tax on aggregate gaming revenue from qualifying activities offered to players who are present in Malta. The applicable rate depends on both the type of game and how the activity is provided.
- Type 1: Casino-style games and house-banked lotteries using a random generator are taxed at 15%.
- Type 2: House-banked betting on events or competitions at odds set by the operator attracts a 10% rate.
- Type 3: Commission-based products, including peer-to-peer poker, bingo and betting exchanges, are subject to 10%.
- Type 4: Controlled skill games are also taxed at 10%.
Activities carried out in controlled gaming premises retain a 5% rate. The same rate applies to qualifying junkets and junket events.
A Single Charge Replaces the Former Dual System
Before the reform, operators had to consider both gaming tax and a separate gaming device levy. The new framework combines those charges into one gaming tax structure, eliminating the device levy as a separate obligation.
This approach links the tax result to the relevant gaming category and the manner in which the product reaches the player. Operators can therefore assess one consolidated charge instead of managing two parallel levies for the same activity.
VAT Treatment Becomes More Limited and Specific
Legal Notice 86 also changes how gambling and betting services are treated for Maltese VAT purposes. The previous, broader exemption has been replaced with wording that applies to betting, lotteries and other gambling activities approved by the minister.
As a result, more services may fall within the scope of Maltese VAT. The updated guidance addresses issues such as:
- The place where a gaming service is considered supplied.
- The treatment of sports betting and selected casino services.
- Whether eligible input VAT may be recovered.
- The reduced circumstances in which gambling services qualify for an exemption without credit.
Most online gambling and betting supplies, including sports betting and live casino services, may therefore require closer VAT analysis. B2B providers should also review their arrangements and recovery position under the revised rules.
Reporting Deadlines Are Split Between Two Regimes
The transition does not move every filing immediately to the new framework. September and October returns follow different requirements, so operators must align each submission with the period it covers.
- September 2026 returns: These remain subject to the previous rules and are due by October 20, 2026.
- September submissions through the Portal: The system continues to accept these returns under the requirements that applied during September.
- Portal update: New functionality for the revised gaming tax and VAT requirements is scheduled to be available by November 1, 2026.
- October 2026 returns: These are the first filings under the new framework and must be submitted by November 20, 2026.
Operators should avoid applying the new rates to September activity or using the former methodology for October activity. Internal tax calculations, reporting controls and supporting records should be updated before the first new-regime filing.
What Licensees Should Review Now
The Malta Gaming Authority has described the coordinated measures as part of a balanced framework intended to support a stable and competitive gaming sector. For licensees, the practical effect is a direct connection between product classification, tax rate and VAT treatment.
The key points are straightforward: Type 1 services carry the highest rate at 15%; Types 2, 3 and 4 generally attract 10%; controlled premises and qualifying junkets remain at 5%; and the gaming device levy has been absorbed into the consolidated structure.
The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue issuing transition guidance. Until the updated Portal is fully available, operators should monitor official instructions carefully and prepare for the November 20 deadline governing the first return under the revised framework.
