How Malta’s Gaming Tax Changes Affect Operators in 2026
Malta’s updated gaming tax and value-added tax framework took effect on October 1, 2026. The reforms introduce separate rates for different gaming categories, combine two existing charges into one structure, and revise how selected gambling services are treated for VAT purposes.
Introduced through Legal Notices 84 and 86 of 2026, the changes follow measures announced in Malta’s 2026 Budget. They are intended to provide licensed operators with a more predictable system while aligning taxation with the type of game and the way it is offered.
Gaming Tax Rates Are Now Based on Four Categories
The revised system applies tax to aggregate gaming revenue generated from qualifying activities offered to players who are present in Malta. The applicable rate depends on the relevant gaming type.
| Gaming category | Activities covered | Tax rate |
|---|---|---|
| Type 1 | Casino-style games and house-banked lotteries using a random generator | 15% |
| Type 2 | Events or competition betting offered at odds determined by the operator | 10% |
| Type 3 | Commission-based products, including player-versus-player poker, bingo and betting exchanges | 10% |
| Type 4 | Controlled skill-based games | 10% |
| Controlled premises and junkets | Gaming conducted in controlled gaming premises, plus junkets and junket events | 5% |
Type 1 services carry the highest rate at 15%. Types 2, 3 and 4 are grouped under a 10% rate, while the existing 5% treatment remains available for gaming in controlled premises and for qualifying junket activities.
A Single Charge Replaces the Former Dual Arrangement
One of the main changes is the consolidation of gaming tax and the gaming device levy. Instead of assessing those charges separately, Malta now uses one gaming tax framework that considers both the game category and its mode of offer.
- Operators no longer calculate a separate gaming device levy alongside gaming tax.
- The relevant game classification determines the applicable percentage.
- The framework applies to qualifying land-based and online activities offered to players in Malta.
- The revised structure is designed to make obligations easier to identify and administer.
This approach gives operators a single reference point when reviewing their tax treatment. It also replaces the previous arrangement in which two related charges could apply to the same operational activity.
VAT Rules Expand the Treatment of Gambling Services
Legal Notice 86 also changes Malta’s VAT treatment of gambling and betting. The revised framework clarifies how certain services, including sports betting and selected casino offerings, are treated for Maltese VAT purposes.
The changes address the place of supply, which determines where a service is considered supplied. They also create a clearer basis for recovering eligible input VAT where the relevant conditions are met.
For many operators, the practical effect is that services previously falling within the gambling exemption may instead become taxable. The revised treatment covers areas such as sports betting, live casino services and certain business-to-business supplies, subject to the applicable rules and guidance.
Important Dates for the First Returns
The transition uses two consecutive reporting regimes rather than moving every filing to the new system at the same time.
- September 2026 returns: These remain governed by the former requirements and must be submitted by October 20, 2026.
- Portal transition: The existing reporting Portal continues to accept September submissions under the rules applicable to that reporting period.
- November 1, 2026: Updated Portal functionality for the new gaming tax and VAT framework is scheduled to become available.
- October 2026 returns: These are the first returns prepared under the revised framework and are due by November 20, 2026.
Operators should therefore avoid applying the new classifications retrospectively to September filings. October activity is the point at which the revised tax rates and reporting requirements begin to apply.
What Licence Holders Should Review Now
The Malta Gaming Authority and the Malta Tax and Customs Administration are expected to continue issuing information during the transition. Operators should monitor that guidance while updating revenue classifications, VAT procedures, internal reporting controls and Portal workflows.
In practical terms, the reforms create a 15% rate for Type 1 gaming, a 10% rate for Types 2 through 4, and a retained 5% rate for controlled premises and qualifying junkets. They also replace the separate gaming tax and device levy model with one consolidated structure, while providing more detailed VAT treatment for gambling-related services.
The immediate deadlines are especially significant: September returns remain due on October 20 under the former rules, the upgraded Portal is expected on November 1, and the first return under the new framework must be filed by November 20.
