Malta’s gaming sector entered a new tax and VAT phase on October 1, 2026. The reforms introduce different rates for distinct gaming activities, remove the separate gaming device levy, and create new reporting requirements for licensed operators.
The changes were introduced through Legal Notices 84 and 86 of 2026, following measures announced in Malta’s 2026 Budget. Their stated purpose is to provide a more predictable framework for gaming businesses while aligning tax treatment with the type of service provided.
How the New Gaming Tax Bands Work
Gaming tax is now generally calculated on aggregate gaming revenue. The applicable percentage depends on the relevant activity classification and the setting in which the service is offered.
| Gaming category | Typical activities | Tax rate |
|---|---|---|
| Type 1 | House-banked casino games and lotteries using a random generator | 15% |
| Type 2 | Operator-priced betting on events or competitions | 10% |
| Type 3 | Player-versus-player poker, bingo, betting exchanges and other commission-based products | 10% |
| Type 4 | Approved skill-based games subject to control requirements | 10% |
| Controlled premises and qualifying junkets | Gaming conducted in controlled locations, plus junkets and junket events | 5% |
Type 1 products carry the highest rate at 15%. Types 2, 3 and 4 are grouped at 10%, while qualifying activity in controlled gaming premises and qualifying junket activity continues to benefit from the 5% rate.
A Single Charge Replaces the Previous Parallel Model
Before the reform, operators had to consider both gaming tax and a separate levy connected with gaming devices. The updated framework removes that split and places qualifying activity within one consolidated gaming tax structure.
This means the relevant game category and delivery model now determine the charge. Operators can therefore assess the applicable liability through one classification system rather than managing two separate charges for the same gaming operation.
- Review every product against the revised Type 1 to Type 4 definitions.
- Separate activity conducted through controlled premises from other qualifying revenue.
- Check whether any junket or junket event qualifies for the retained 5% treatment.
- Update accounting systems so revenue is reported under the correct category.
VAT Treatment Becomes Narrower and More Specific
Legal Notice 86 also changes Malta’s VAT treatment of gambling and betting services. The revised exemption is narrower than the previous wording, meaning that more services may fall within the scope of Maltese VAT from October 1, 2026.
The framework is especially relevant to sports betting, live casino, certain casino-related services and business-to-business providers. It also addresses where a service is considered supplied and whether eligible input VAT may be recovered.
The updated rules do not treat every gambling service identically. The applicable result depends on the nature of the supply, the customer relationship and the specific activity involved, so operators should assess each service line rather than apply one blanket conclusion.
Reporting Dates Create a Two-Stage Transition
The first returns after the reform will not all follow the same requirements. September activity remains subject to the former regime, while October activity is the first period reported under the revised framework.
- September 2026 returns: These must be filed under the previous rules by October 20, 2026.
- Portal arrangements: The existing regulatory Portal continues to support September submissions under the requirements applicable to that month.
- Updated Portal: Functionality for the revised VAT and gaming tax reporting process is expected to be available by November 1, 2026.
- October 2026 returns: These are due by November 20, 2026 and represent the first filings under the new regime.
Operators should keep the September and October reporting processes separate. Applying the new classifications too early could produce an incorrect September return, while carrying the old process into October could create errors under the revised framework.
What Operators Should Prioritize Now
The Malta Gaming Authority has described the coordinated measures as part of an effort to establish a balanced, clear and competitive framework for the sector. The Malta Tax and Customs Administration and the MGA are expected to continue issuing guidance as licensees adapt.
For operators, the immediate priorities are product classification, VAT analysis, revenue mapping and Portal readiness. Particular attention should be paid to whether sports betting, casino services and B2B supplies remain exempt or become taxable, as the answer may affect both invoicing and input VAT recovery.
In practical terms, the reform replaces the previous gaming tax and device levy approach with rates of 15%, 10% or 5%, depending on the activity and setting. The September deadline remains October 20, the revised Portal is scheduled for November 1, and the first new-regime return is due November 20, 2026.
Arjun Patel is an Indian-American writer specializing in digital payments, cryptocurrency technology, and online gaming platforms. He focuses on making complex topics clear and accessible, covering areas such as crypto deposits and withdrawals, casino games, bonus terms, platform security, and responsible gaming. His work prioritizes accuracy, transparency, and practical guidance to help readers make more informed decisions online.