Malta’s updated gaming tax and VAT framework took effect on October 1, 2026, introducing revised rates, a consolidated tax structure and new compliance requirements for licensed operators. The measures were enacted through Legal Notices 84 and 86 of 2026 after industry consultation and commitments outlined in Malta’s 2026 Budget.
How the New Gaming Tax Rates Work
The revised system classifies qualifying gaming activities according to the type of game and how it is offered to players located in Malta. The applicable tax is calculated on aggregate gaming revenue.
- Type 1 gaming: Casino-style games and lotteries played against the house using a random number generator are taxed at 15%.
- Type 2 gaming: Bets placed against the house on events or competitions at odds set by the operator are subject to a 10% rate.
- Type 3 gaming: Commission-based activities, including player-versus-player poker, bingo and betting exchanges, are taxed at 10%.
- Type 4 gaming: Controlled skill games also carry a 10% rate.
Gaming conducted at controlled premises, as well as junkets and junket events, continues to be taxed at 5%. This leaves Type 1 activities at the highest rate, while Types 2, 3 and 4 share the lower standard rate.
Gaming Tax and Device Levy Are Now Combined
The former arrangement treated gaming tax and the gaming device levy as separate charges. The amended framework replaces that approach with one streamlined gaming tax structure based on the relevant game category and its mode of offer.
For operators, the practical effect is a single classification process rather than two parallel charges relating to the same gaming activity. Businesses must therefore ensure that their revenue systems identify the correct type before calculating their liability.
VAT Treatment Becomes More Defined
Legal Notice 86 narrows the gambling exemption under Malta’s VAT legislation. As a result, many services that were previously treated as exempt may now fall within the VAT system, including most sports betting, live casino services and certain business-to-business supplies.
The revised rules also clarify the relevant place-of-supply provisions, which determine where a gaming service is considered supplied. Operators may also obtain a stronger basis for recovering eligible input VAT, subject to the applicable requirements.
Sports betting and selected casino offerings are therefore subject to a more clearly defined VAT treatment alongside the new gaming tax rules. Operators should review both customer-location data and transaction classifications when updating their compliance procedures.
Reporting Changes Arrive in Stages
The transition does not require every filing to be prepared under the new framework immediately. Operators must follow this sequence:
- September 2026 returns: These remain subject to the previous rules and must be filed by October 20, 2026.
- Existing Portal submissions: September filings continue to use the requirements applicable during that reporting period.
- Updated Portal: The reporting functionality supporting the revised tax and VAT framework is scheduled to be available by November 1, 2026.
- October 2026 returns: These are the first submissions prepared under the new framework and are due by November 20, 2026.
This creates two consecutive reporting periods governed by different requirements. Licensees should keep their September records aligned with the former regime while preparing October data for the updated Portal.
What Operators Should Review Now
The Malta Gaming Authority has described the coordinated changes as an effort to provide a more balanced, predictable and efficient framework while protecting Malta’s position as a competitive international gaming jurisdiction.
In practical terms, operators should reassess game classification, revenue calculations, VAT treatment, input-tax recovery and internal reporting controls. The most immediate dates are October 20 for September returns, November 1 for the updated Portal and November 20 for the first filing under the revised rules.
The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue issuing guidance during the transition. That guidance will be particularly relevant for operators managing the change from separate gaming charges to the consolidated structure and adapting to the narrower VAT exemption.