From October 1st, Legal Notices 84 and 86 of 2026 reshape both the VAT treatment and the GGR tax structure simultaneously. On the VAT side, the exemption that most online operators have relied on since 2018 is being dramatically narrowed. Online casino, live casino, sports betting, and poker all move from exempt to taxable. Only three categories remain exempt: low-risk games, occasional approved junket events, and in-venue betting at live sporting events.
The GGR tax rates are changing as well. Online casino moves to 15%, sportsbooks to 10%, up from the previous flat 5%. These apply to supplies consumed in Malta specifically.
The interesting side of this is the VAT recovery angle. When a supply moves from exempt to taxable status, operators can reclaim VAT on their costs — software licences, marketing spend, infrastructure, B2B services. For operators with significant B2B supply chains, this recovery can partially or in some cases fully offset the new tax exposure.
The place of supply shift is probably the most structurally significant change. Online sports betting is now reclassified as an electronically supplied service, meaning VAT follows where the player is located rather than where the operator is registered. The model where a Malta-registered operator applies Malta's rules to players across Europe is effectively ending.
Whether this makes Malta meaningfully less competitive depends on what you were previously paying and what your player geography looks like. Operators serving primarily non-Maltese players will see the biggest structural impact. Those with Maltese player bases face a cleaner but more expensive framework.
Malta's been the default MGA address for a generation of operators. If the tax calculus shifts enough, where does the industry actually move next, Gibraltar, Isle of Man?
The GGR tax rates are changing as well. Online casino moves to 15%, sportsbooks to 10%, up from the previous flat 5%. These apply to supplies consumed in Malta specifically.
The interesting side of this is the VAT recovery angle. When a supply moves from exempt to taxable status, operators can reclaim VAT on their costs — software licences, marketing spend, infrastructure, B2B services. For operators with significant B2B supply chains, this recovery can partially or in some cases fully offset the new tax exposure.
The place of supply shift is probably the most structurally significant change. Online sports betting is now reclassified as an electronically supplied service, meaning VAT follows where the player is located rather than where the operator is registered. The model where a Malta-registered operator applies Malta's rules to players across Europe is effectively ending.
Whether this makes Malta meaningfully less competitive depends on what you were previously paying and what your player geography looks like. Operators serving primarily non-Maltese players will see the biggest structural impact. Those with Maltese player bases face a cleaner but more expensive framework.
Malta's been the default MGA address for a generation of operators. If the tax calculus shifts enough, where does the industry actually move next, Gibraltar, Isle of Man?
