Dec 26 / 2013
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Jurisdiction Issues for iGaming Business: the Malta Case

Malta became a safe house for many iGaming companies which seek shelter from hostile jurisdiction and regulations throughout EU countries. Why is that? There are many answers to this question. Maltese law provides first system that fully regulates the perplexities concerning land based and online iGaming companies. The main focus is to safeguard business of gaming operators and gamers which in other countries find themselves under unstable conditions to thrive. Thanks to Remote Gaming Regulations which establishes necessary legal requirements for companies to freely perform their services and operate without constraints.

LGA offers advantageous and inexpensive taxation system which includes low fees at the process of application. Moreover, the Maltese law system may support companies with refundable tax credit opportunities offering taxation relief. The four taxation classes offer a range of available options for different types of operators. These include: online gaming license (class 1), online betting license (class 2), license to promote gaming from Malta (class 3), to host and manage online gaming operators (class 4).

The regulations emphasize the importance of physical location of assets of applicant company on Maltese grounds, at least, it is required to have them co-located on the territories. It involves servers and system control. However, the other assets constituting company like customer support may be located outside boundaries of Malta. To establish the components on Malta, LGA certification and audits need to be conducted accordingly to ‘Code of Practice for Information Security’ and parts that impact the financial transactions and the operative system of gaming.

Maltese is a member of MONEYVAL (the comittee of money anti-laundering experts) and is in favour of EU directives which prevent money laundering and funding of terrorism. Thanks to that Malta is not evident to other european countries as a ‘blacklist’ country. Malta legislated two statutory acts: the Prevention of Money Laundering Act 1994 and the Prevention of Money Laundering and Funding of Terrorism Regulations 2008.

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