Since the 1990s, online casinos have become commonplace on the internet, offering people a way to relax and enjoy the fun of the casino without leaving the home. These early sites were very different to what players have access today, as improvements to technology and regulations have made casino gaming more fun than ever. The online casino industry, often known simply as iGaming, has grown massively as a result.

One of the most interesting aspects of the iGaming industry is how Malta has become one of the biggest influences on it. Despite only having a population of just over half a million, a significant percentage of the world’s iGaming operators are based on this small island in the Mediterranean. In this article, you’ll learn why Malta has become a major player in this industry and the effect this has had on the country.

Malta as an iGaming Hub

In 2004, Malta became one of the first countries in the world to legalise online gambling, with online casinos in Malta quickly taking off. Until that point, casino sites had been largely unregulated. Although iGaming had been around for a few years, many people were unwilling to play online due to security risks and doubts over legitimate casino games. Scams still exist in the iGaming world, though you can find out how to avoid them with scams.info.

The Malta Gaming Authority Licence

The government of Malta recognised the potential of the online gambling market, and set up the Malta Gaming Authority (MGA) in 2001. The MGA began studying the online gambling market and helping the government to draw up fair and sensible regulations which would help make iGaming safer.

Operators which hold an MGA license must pass strict tests from independent agencies to prove that games are fair. These tests help prove to players that games are random and that operators cannot influence the results, ensuring a higher level of trust. In addition, the MGA ensures that players receive the correct payouts when they win.

Thanks to the MGA licence, iGaming operators now have more trust from players, and this has been a big factor in the growth of the industry. Players can trust that the games they play will be safe, and that strict laws on data protection and security are also followed. The license is a mark of trust, and something that players check for before they join a new Malta online casino.

Malta iGaming Operators

The Maltese Government didn’t just legalise online gambling, it also drew up tax laws which would incentivise iGaming companies to establish themselves on the island. It wasn’t long before major operators began to move to Malta, with Betsson setting their headquarters here in 2004.

Under Maltese laws, iGaming operators must be a five per cent tax on their gaming revenue to the state. The relatively low taxes, as well as the fact that Malta is in the EU, have helped to make this small nation into an attractive destination for online casino Malta operators all over the world.

How iGaming has Helped Malta Grow

There’s little doubt that the regulatory framework established by Malta has helped the iGaming industry grow, especially in Europe. Players now have more faith that the site’s they use are fair, and this has meant more people than ever have signed up. In addition to this, iGaming has also been a huge boost to the economy of Malta.

Employment

Attracting casino and betting operators to the island has helped create lots of new jobs. With over 300 iGaming companies based on the island, this is responsible for a lot of employment and substantial economic growth. Thousands of people in Malta work in the industry and it’s responsible for more than $1 billion (€926 million) in revenue each year. The unemployment rate is below three per cent, which is significantly lower than many other countries across Europe.

Tax Revenue

Of course, the growing success of iGaming operators has also meant greater tax revenues for the island. Malta may impose lower tax rates on casinos compared to other countries in the EU, but it still adds up quickly when there are so many of them based on the island. These extra taxes have been invested into the country’s infrastructure and improving other important areas such as healthcare and education.

Adapting to New Technologies and Challenges

The iGaming industry has been a net positive for Malta, but the country has had to adapt to many new challenges, as well as attempt to predict the development and application of new technologies. As the industry changes, regulations must change too, ensuring that players are always put first.

How New Technology Affects Regulations

Digital technology is the core of the iGaming industry, and new technology has helped increase demand and create new opportunities. Whether it’s mobile apps that allow players to enjoy their favourite games from anywhere or live casino studios that offer full immersion in the game, technology also needs to be regulated properly.

While technology can make online casino gaming more exciting, it can also be open to unfair practices. It’s important that regulation always keeps up with these changes, or else fairness and safety could get left behind. This means assessing the risks and impacts of each new technological innovation, and working out how to write realistic regulations to control them.

Challenges the Malta iGaming Industry Faces

One of the main challenges that the Maltese iGaming industry faces is competition from other jurisdictions. The Malta Gaming Authority license may have become one of the most popular, but it’s not the only license that online casinos Malta can hold. Other regulatory bodies such as the Curacao Gaming Control Board could challenge Malta’s status as the top iGaming regulator.

Aside from that, the regulations need to stay on top of changes in consumer preferences. Over time, how players like to spend their time online can change, with new games or behaviour trends affecting how iGaming operators work. These are all issues that Malta regulators need to be aware of

Final Thoughts

Despite being such a tiny country, Malta has had an undeniably strong impact on a global industry worth billions of dollars. Without the Regulatory framework established by Malta, the iGaming industry as we know it wouldn’t exist today. These regulations have also helped Malta develop economically, with online gaming revenue accounting for around 12 per cent of its total GDP. As the future landscape of online gambling changes, the Malta Gaming Authority will also need to adapt.