Changes in Gaming Tax applicable from October 2026

The Gaming Tax (Amendment) Regulations, 2026, (the “Regulations”) issued in terms of article 12 of the Gaming Act, serve to amend the current Gaming Tax Regulations (the “Principal Regulations”) and are to come into force as from 1 October 2026.  

Their core scope is to restructure Malta’s gaming tax framework by primarily:  

1. Redefining the concept of a “qualifying activity” in terms of the Principal Regulations.  
2. Replacing the single 5% tax rate with differentiated rates by service type.  
3. Abolishing the device-based levy. 
4. Introducing a higher fixed studio broadcasting levy. 
5. Adjusting the payment and setoff rules. 
6. Revising the Malta Gaming Authority’s power to grant reliefs. 
7. Updating appeal finality.  
8. Removing transitional provisions as necessary. 

Among the primary amendments introduced is the revision of the definition of a “qualifying activity” found in the Principal Regulations to align expressly with licensing requirements under the Gaming Authorisations Regulations (“GAR”).  The new definition also sets out the inclusions and exclusions for such licensing requirements for persons by reference to specified provisions of the GAR and the Gaming Act. This refines the scope of a qualifying activity while maintaining the basic structure of the prior definition. 

The Regulations represent a fundamental change from the prior framework, which imposed a flat 5% gaming tax (in addition to any device levy) across all qualifying activities.  

The single 5% tax on gaming revenue is to be replaced by differentiated rates as follows: 

• 15% of aggregate gaming revenue for Type 1 gaming services. 
• 10% of aggregate gaming revenue for Type 2, Type 3, and Type 4 gaming services.  

Further special rates shall apply to specified environments and events: 

• 5% where the qualifying activity is generated within controlled gaming premises. 
• 5% where lawfully classified as a junket and/or junket event.   

For distance (remote) gaming, taxability is clarified to turn on whether the player is established, has a permanent address, and/or usually resides in Malta, rather than physical presence, thereby maintaining and reinforcing the residence based test for remote offers.  

The Regulations also confirms that, where a corporate group holds a licence under regulation 10(3) of the Gaming Authorisations Regulations, the entire group is treated as the “person” for gaming tax purposes, preserving group level assessment aligned with the former provision.  

A newly introduced regulation imposes a fixed €3,000 studio broadcasting levy, payable in advance for the following 12 months (and annually thereafter), by any person authorised to provide a critical gaming supply who uses premises as a studio to film and/or broadcast such a gaming service.  

By contrast, the Principal Regulations provided for a detailed levy on gaming devices and only a modest fixed €500 studio levy where applicable—notably, the former €500 levy was not due where the person was already paying the device levy under the Principal Regulations. These features are now displaced by the new structure, under which the €3,000 studio broadcasting levy applies irrespective of any other amounts payable  

A newly introduced regulation imposes a fixed €3,000 studio broadcasting levy, payable in advance for the following 12 months (and annually thereafter), by any person authorised to provide a critical gaming supply who uses premises as a studio to film and/or broadcast such a gaming service.  

By contrast, the Principal Regulations provided for a detailed levy on gaming devices and only a modest fixed €500 studio levy where applicable—notably, the former €500 levy was not due where the person was already paying the device levy under the Principal Regulations. These features are now displaced by the new structure, under which the €3,000 studio broadcasting levy applies irrespective of any other amounts payable  

The Regulations introduce a recalibration of the computation and payment mechanics by re-casting the tax base. Gaming tax is now expressly computed monthly at the close of each reference month with all residual references to the repealed device levy removed. 

Furthermore, any excess payments made will continue to be neither refundable nor interest-bearing, however their utilisation has now been narrowed whereby such amounts may now be set-off against gaming tax liabilities arising in subsequent tax periods, replacing the broader set-off previously available. 

In parallel, the Malta Gaming Authority’s discretion to grant reductions, credits, set-offs or other forms of relief has been re-framed, empowering the Authority—by means of a binding instrument—to regulate the availability of such reliefs, whether granted unilaterally or pursuant to international or inter-authority arrangements, thereby removing the prior requirement for Ministerial approval contained in the Principal Regulations.

In terms of the newly introduced Regulations once appeal routes are exhausted or time-barred, an assessment becomes final and conclusive as regards the amount, reflecting the repeal of the device levy and its exclusion from finality language. 

Other appeals mechanics remain as per the Principal Regulations (objection timelines, Tribunal appeal on form and timing, burden of proof, and enforcement once final), save for this targeted alignment to the new charging rule. 

• The regime moves from a single 5% tax + device levy to a streamlined revenue-based tax by service type (15%/10%), with a reduced 5% rate preserved only for controlled premises and lawful junket/junket events. This centralises the fiscal burden and dispenses with device linked computations. 
• The studio levy is increased to €3,000 annually and applies to persons authorised to provide a critical gaming supply who use studio premises to film and/or broadcast gaming services, replacing the former €500 amount and decoupling it from the device-levy architecture. 
• The residence-based test for remote gaming taxability is maintained and emphasised in the substituted regulation, providing continuity for distance communication services. 
• Group-level assessment is expressly carried forward, ensuring that licensed corporate groups remain a single “person” for tax purposes. 
• Relief powers are modernised, allowing the Authority (through its Board) to implement reductions/set-offs/credits by binding instrument, including under international arrangements, without the previous ministerial consent qualifier. 
• Transitional scaffolding tied to the old device-levy model is removed, simplifying the framework from the effective date of 1 October 2026.