What Malta’s Gaming Tax Reset Means for Licensees

Malta’s updated gaming tax and VAT regime took effect on October 1, 2026, introducing game-specific tax rates and revised treatment for several gambling services. The measures also replace the former split between gaming tax and the gaming device levy with a single framework for qualifying activity offered to players in Malta.

A Four-Tier Tax Structure for Gaming Revenue

The new system calculates tax on aggregate gaming revenue and assigns each activity to one of four categories. Type 1 covers casino-style games, lotteries and other house-banked products using random number generation. These activities attract the highest rate, at 15%.

Type 2 includes fixed-odds betting against the operator on events or competitions. Type 3 covers commission-driven products such as player-versus-player poker, bingo and betting exchanges. Type 4 applies to regulated games of skill. Types 2, 3 and 4 are each subject to a 10% rate.

Some activities remain subject to the lower 5% rate. This applies to qualifying gaming conducted in controlled gaming premises, as well as lawfully classified junkets and junket events.

One Charge Replaces the Former Device Levy System

Before the reform, operators had to account for gaming tax alongside a separate levy on gaming devices. Legal Notice 84 of 2026 removes that parallel levy and establishes one consolidated gaming tax structure.

The applicable amount now depends on both the game category and the manner in which the service is provided. This gives operators a single classification framework instead of two overlapping charges for the same qualifying activity.

VAT Treatment Becomes Narrower but More Defined

Legal Notice 86 of 2026 also changes the VAT treatment of gambling and betting services. The previous exemption was narrowed, meaning that many services—including sports betting and live casino offerings—may fall within the Maltese VAT system from October 1.

The revised approach also clarifies place-of-supply questions and can improve the ability of eligible businesses to recover input VAT. Operators and business-to-business suppliers should therefore reassess their VAT positions rather than assuming that previous exemptions continue unchanged.

Reporting Moves to a New Timetable

The transition does not require every filing to be resubmitted immediately. Operators should follow this sequence:

1. File September 2026 returns under the former rules. Those submissions remain due on October 20, 2026, and the existing Portal requirements continue to apply.
2. Prepare for the reporting-system update. The functionality needed for the revised VAT and gaming tax framework is scheduled to become available by November 1, 2026.
3. Submit October 2026 returns under the new regime. These will be the first returns governed by the revised classifications and rates, with a deadline of November 20, 2026.

This means September activity belongs to the previous reporting cycle, while October activity marks the operational start of the new regime for filing purposes.

What Operators Should Review Now

Licensees should map each product to the correct gaming category, confirm the treatment of activity involving players located in Malta, and update revenue calculations to reflect the applicable rate. Particular attention is warranted for Type 1 products, which now carry the 15% rate, and for any activity previously affected by the device levy.

VAT teams should separately examine whether sports betting, casino products and related supplies remain exempt, taxable or eligible for input-tax recovery under the revised rules. Internal reporting processes, accounting records and Portal access should also be tested before the first new-regime return is due.

The Malta Gaming Authority and the Malta Tax and Customs Administration are expected to continue issuing transition guidance. Together, the reforms create a more differentiated tax model, narrower gambling exemptions and a phased reporting change intended to provide operators with a clearer path to compliance.