It’s hard to be an expert in both business and law, but thanks to Eternity Law International – there is no need to.
ELI team offers a broad set of services for clients, who are willing to open up an online gaming business or to relocate the existing one in Malta. For more than 15 years our specialists helping entrepreneurs to set the legal iGaming operators in this isle republic, and your startup can become the next one!
We are ready to assist you from the earliest preparative stages to the actual submission of an application for a Gaming license to the MGA – the Malta Gaming Authority. With the help of our law experts, the procedure can be passed in the shortest time possible and without any actual efforts on your part.
The standard process of receiving a Malta gaming license requires passing the information about the prospective gambling project of yours for the consideration of the Malta Gaming Authority. There it undergoes an examination for compliance with the Malta law, after which you receive a positive or negative decision of the review. The detailed description of each stage lies further.
To provide the MGA with all the required information, you have to fill in the application for the gaming license correctly. At this stage, the assistance of the professionals is highly recommended: according to the Eternity Law International experience, the mistakes in the application are the most time-consuming part of the license receipt.
If you appreciate your time, money & efforts and want to speed up the review process, you should compose the perfect application from the first try. This way you won’t lose precious weeks for the reapplication and its subsequent longstanding check.
Of course, ELI specialists would be happy to give you a hand – our priority is to minimize the client’s participation by shifting his responsibilities off to our workers. With us, both the drafting and the submission of the application will pass by without encumbrances.
The responsible authority in Malta has to check all the information provided in your application. Your business plan, the resources you possess and the level of your preparedness are analyzed thoroughly, while such aspects are brought into light:
The final decision on your business will be positive if the committee will see the potential in your idea. If you’re not sure in your own negotiating skills and are afraid of rejection, consider using the specialist’s assistance.
You may expect that everything related to legal bodies and private individuals, who are associated with the project, will be interrogated. The list includes personal data of the shareholders and ultimate beneficial owners (UBOs), as well as the applicant himself. In addition to that, experts from the Malta Gaming Authority will test your business strategy on viability.
The agency cooperates with the foreign regulatory & police authorities and uses their private databases in order to conduct the most in-depth research.
Every business idea has to start from the detailed step-by-step plan, which includes the awaited expenses and income for at least a one-year term from the start of the project. The MGA will additionally examine the financial side of it.
You have to approach this part dutifully not only to receive the “green light” from Malta government, but also to have an understanding of the businesses’ future, the steps you’ll have to go through, and the general goal you’re heading towards.
To successfully receive the license, the project of yours must possess the instruments, through which the work of the company will be managed. They include the inner documents of the business (statut), its working policies, the games, and their technical execution, the gaming systems.
As soon as the main aspect of your activity is aligned with gaming, the MGA will pay extra attention to the gaming system details – software’s architecture, terms and conditions, gambling rules and other related documentation.
In order to obtain the license, you should also pay in the “cash pile,” which will represent the guarantee for your future clients/investors. Depending on the size of your business, share capital can be divided into four categories:
Being a company, which fulfills the requirements of more than a single business type, you might be asked to pay at least €240,000 for the share capital.
All the listed parts of the review come together in a complex audit of the submitted license request. Your application may be deflected on the earliest stage of it if the document would contain mistakes or would be unrealistic, rootless integrally.
When all the stages of the preliminary online gaming business analysis were completed, the MGA gives the licensee permission to implement his business model into reality. He will get only 2 months to prove the responsible authority that the idea is worth the posterior development.
If the MGA doesn’t see the satisfactory results within those 60 days, the online gambling application will receive the “frozen,” suspended status. To avoid that verdict you’ll need to assure the agency that your business can exist not only on paper.
As a controlling measure, during the 2-months term, your startup will be subject to an external third-party System Review. The Malta Gaming Authority will hire an independent contractor on a market basis, who will pay you a visit in a most unexpected time.
The reviewer will check whether the structure of the company you’re building corresponds to the one you’ve described in the license application. It is recommended to strictly adhere to the “paper” project and avoid any mismatches.
This fact again emphasizes the importance of the well-composed business plan. All the possible issues of it will come to the top in a live environment, and, at the same time, major changes in the company’s growth will make a company owner to re-apply for the license.
For this reason, it is better to start with a well-thought detailed plan initially, rather than loose around 4 months of your time only to face the need to pass the process again from zero. The outcome of the devoted labor is, however, worth all trying – you receive an official 5-year online gaming license with a freedom to guide your business in any direction.
Receiving the 5-year license doesn’t acquit the licensee from the obligatory reviews, conducted by the third-party agencies at the behest of the MGA. They will be performed according to this scheme:
The punishment for non-compliant business operation is the license suspension, or even its complete termination prior to the due date.
The Malta Gaming Authority will still monitor an applicant, who accurately passed all the conducted reviews – yet, less intently. He will receive a ten-year online gaming license and from that will be called a Licensee.
The Licensee is reported directly to the responsible authority. All the changes in the workflow of the company will have to be coordinated with the MGA in the first instance. The company will still be obliged to undergo such checkouts as:
The checkout requires an annual report, prepared according to the IFRS (International Financial Reporting Standards), as well as the SEO personal report about the activity of the company. The documents should be passed to the authorities within 6 months after the end of the financial year of the organization.
Official documentation, drawn up according to the same principles as an annual report, has to be sent to the MGA not later than on the 8th month of the company’s financial year.
The monthly control will require such documents from your company as a Gaming Tax and Player Funds reports, based on the actual statistics and real numbers.
The listed checkouts can be replenished with the particular positions at the discretion of the Malta Gaming Authority.
Please contact our specialist to get a consultation.