Remote gaming in Malta : an evaluation of the tax implications involved

Abstract

The Remote Gaming Regulations 2004 (L.N. 176 of 2004) define 'remote gaming' as any form of gaming by means of distance communications. This dissertation analyses the current tax framework in Malta applicable to remote gaming operators. Initially, a background review of the subject is carried out, followed by an analysis of the various fiscal and related parafiscal charges, namely income tax, VAT, gaming taxes and license fees. A comparative study is then carried out, focusing on the leading remote gaming jurisdictions currently being used by remote gaming operators. The dissertation proceeds to formulate recommendations to ensure Malta remains at the forefront of this ever growing and mobile industry, with a view to preserving the significant positive impact it has on the local economy. Several operators were contacted with the assistance of the MRGC, and a number of them were interviewed to discover what the general attitude towards Malta is in relation to taxation, and to ascertain any tax-related concerns such operators may have. It would appear that overall operators are generally satisfied with the Maltese tax regime, although there are outstanding concerns relating to the applicable VAT arrangements. This dissertation is limited to developments arising until the 1st of April 2009, and the information is correct as of this date.