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 reforms were enacted through Legal Notices 84 and 86 of 2026 after consultation with industry stakeholders and commitments made in Malta’s 2026 Budget.
The changes apply to qualifying gaming activities offered to players located in Malta. They are intended to make the tax treatment of different products more predictable while aligning gaming taxation with the way each service is delivered.
Rates Now Depend on the Gaming Category
The revised system applies gaming tax to aggregate gaming revenue. Activities are divided into four categories, with the rate determined by the nature of the product.
- Type 1: casino-style games and house-banked lotteries using a random generator are taxed at 15%.
- Type 2: bets placed against the house on events or competitions at odds set by the operator attract a 10% rate.
- Type 3: commission-based products, including player-versus-player poker, bingo and betting exchanges, are subject to 10%.
- Type 4: controlled skill games are also taxed at 10%.
Gaming conducted in controlled premises remains subject to the existing 5% rate. The same rate continues to apply to junkets and junket events.
As a result, Type 1 products occupy the highest band, while Types 2, 3 and 4 share a lower rate. Operators must therefore ensure that their revenue calculations and product classifications reflect the correct category.
A Single Gaming Tax Replaces the Previous Two-Part Approach
One of the central changes is the removal of the separate treatment previously applied to gaming tax and the gaming device levy. These charges are now incorporated into one streamlined gaming tax framework.
The consolidated approach considers both the game type and the method used to offer it. This gives operators one classification framework instead of requiring them to manage two parallel charges for the same gaming activity.
The Malta Gaming Authority has described the reform as part of a broader effort to create a clearer and more efficient system for both land-based and online operators. The regulator has also said the framework is intended to support Malta’s position as a stable and competitive international gaming jurisdiction.
VAT Treatment Becomes More Defined
Legal Notice 86 of 2026 also changes how gambling and betting supplies are treated for VAT purposes. The updated rules narrow the scope of the previous gambling exemption, meaning that more gaming-related services may now fall within Malta’s VAT system.
The revised framework addresses the treatment of services such as sports betting and certain casino offerings. It also clarifies where a supply is considered to take place and whether eligible input VAT may be recovered.
Under the accompanying guidance, the exemption without credit is limited to specific activities, including low-risk games, occasional approved junket events and in-venue betting at sports events. Many other services, including sports betting, live casino products and certain business-to-business supplies, may instead be treated as taxable for Maltese VAT purposes.
This adjustment can affect how operators calculate VAT, document transactions and assess the recovery of costs connected with their gaming operations.
Reporting Deadlines Are Split Between the Old and New Regimes
The transition does not move every filing to the new framework at the same time. Operators must apply the rules associated with the reporting period covered by each return.
- September 2026 returns: These remain governed by the former requirements and are due by October 20, 2026.
- September submissions: The existing regulatory Portal continues to accept these filings under the previous regime.
- Updated Portal: Functionality for the revised gaming tax and VAT reporting rules is expected to be available by November 1, 2026.
- October 2026 returns: These are the first submissions subject to the new framework and must be filed by November 20, 2026.
Licensees should therefore complete their September reporting using the former rules, then prepare October calculations and supporting information for submission through the updated Portal.
Operational Priorities for Malta Licensees
The reforms require more than a change to the headline tax rate. Operators should review their game catalogues, revenue classifications, VAT treatment and reporting procedures before the first new-regime filing is submitted.
The most immediate dates are the October 20 deadline for September returns, the planned November 1 Portal update and the November 20 deadline for October returns. The Malta Tax and Customs Administration and the Malta Gaming Authority are expected to continue publishing guidance as businesses adapt to the revised requirements.
Overall, Malta’s 2026 package links gaming tax more directly to product type, merges the former gaming tax and device levy structure, and provides a more detailed VAT framework for gambling services. For operators, accurate classification and careful management of the two-stage reporting transition will be essential.