MGA publish new fees and taxes ahead of New Gaming Act – Part 2
Part 1 titled MGA publish new fees and taxes ahead of New Gaming Act dealt with the new framework of Compliance Contribution Fees. See http://www.avviza.com/2018/01/malta-publish-new-fees-and-taxes-ahead-of-new-gaming-act/ Part 2, addresses the new license fees and other related fees.
The Legal Notice 409 of 2017 also delineated the new license fees which are applicable from 1st January 2018 for new license applicants, and from 1st July 2018 for existing licensees. The license fees are as follows:
Although the new license fees are higher from the previous license fee of €8,500 per annum, however it should be noted that the new regime provides for a singular B2C license compared to the previous multi-licensing framework. Under the previous regime, if an operator held Class 1 (Casino), Class 2 (Betting) and Class 3 (Peer to Peer) licenses, the annual license fee was of €25,500 per annum (€8,500 x 3 licenses). The same applied if a Casino B2C operator offered for instance games from 4 different B2B platforms, where such an operator would have held 4 Class 1 on 4 licenses amounting to €34,000 per annum (€8,500 x 4). Thus, the new license fee is effectively lower compared to those who held 3 licenses or more.
A point that needs to be highlighted is that B2B (termed as Critical Gaming Supply) platforms’ license fee ranges from €25,000 to €35,000 per annum, depending on the level of revenues earned over a year. However, it should be noted that B2B operators will not be subject to a Compliance Contribution fee. Thus, by way of comparison, an established 2017 B2B licensee, holding one B2B license would have paid €8,500 license fee and €55,920 in gaming taxes (total €64,420). Thus, as from January 2018, a B2B licensee will be paying between €29,420 and €39,420 less in aggregate compared to 2017.
For those B2B ‘Critical Gaming Supply’ Operators which do not supply and manage the control system, where the term ‘management’ means the provision of ongoing active maintenance and support which is indispensable to the provision of the gaming service, then a different licensing structure would apply as follows:
Namely the above license fees would apply for B2B ‘Critical Gaming Supply’ Operators which (a) only supply and manage material elements of a game or (b) supply and manage software, whether as a stand-alone or as part of a system, to generate, capture, control or otherwise process any essential regulatory record.
The Legal Notice 409 of 2017 also lists an array of fees, all of which being one time fees. The most relevant fees are listed hereunder.
- License application fees raised from € 2,330 per license to € 5,000 per license application. However, a B2C license can cover more than one agreement with B2B providers and covers all types.
- Should an additional type be added, a further €1,000 authorisation fee needs to be paid to the MGA
- Key Function Approval (application) €50 per applicant
- Request for approval of major changes in software / infrastructure: €1,000
- Request for the addition of a new domain name: €100 per domain