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Prospects for Maltese Online Gambling

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Online gambling is one of the fastest growing sectors of the modern economy but in Malta, it is breaking all records at a pace unprecedented even against a generally favorable background. It is no exaggeration to say that Malta is almost the only country where gambling accounts for such a significant part of GDP (at the beginning of 2022 the share was about 10%). And this is not the limit: new Maltese online casinos open almost every day. So, what awaits this industry in the future, and what are the prospects for further development?

We can say with certainty that the path will not be easy – the competition is intensifying, the market of South-East Asia and Latin America is breathing down its neck. The global gambling market turnover is approaching $300 billion, and the Maltese segment, despite its power, is hardly noticeable against the general background. The development of new technologies, in particular, virtual and augmented reality, will also play a significant role. The future of Maltese gambling companies largely depends on whether they can catch the trends in time.

Why Malta Has Become the World Capital of Online Gambling

Although the population of this tiny country is just over a million people, it is here that a tenth of the companies producing gambling software and operators of online casinos are based. These companies play a significant role in the Maltese economy. Licenses issued by Maltese operators are considered to be reputable and authoritative in the gambling world.

The Malta Gambling Control Commission issues four types of licenses:

Type of licenseWhat activities can be organized
1Gambling games, the results of which are based on a random number generator, such as slots, online roulette, keno, bingo
2Bookmaking. It legalizes betting on the outcome of sporting and other events
3Gambling for money with charging fees on bets and prizes – poker rooms
4Fantasy sports is a type of virtual sport where teams or players have prototypes in the real world. The outcome depends on the statistical data of the prototypes

It should be noted that it is not that easy to obtain such a prestigious and renowned license in the gaming world. This is in spite of the fact that the procedure was significantly simplified in 2018. More information about the Maltese licensing laws can be explored at https://www.csbgroup.com/igaming-services-malta/online-gaming-licence-application/.

Another reason for Malta’s high standing in the world of gambling is the excellence of local legislation on gambling in general and online in particular. This began in 2004 when Prime Minister Lawrence Gonzi initiated a roadmap for the development and adoption of relevant laws.

As a result, Malta became the first state to put in place a legal framework for online gambling. This move coincided with the bursting development of the Internet and (consequently) online gambling, which has become a true electronic Klondike for the island nation and serves as a safe haven for a multitude of gambling companies. This is where the annual professional forum iGaming Next takes place.

Due to the development of technology and the availability of the Internet, online gambling has turned from a niche (and even, in some ways, marginal) activity into a popular and quite respectable option of pastime. This is facilitated, in no small way, by the strictest licensing rules applicable to online casinos Malta, and betting shops. First of all, the Maltese legislation set industry standards. Even establishments with activities that are regulated by licensing documents obtained outside Malta are subject to such standards.

Prospects for Online Gambling Malta

For now, Malta’s position in the world of gambling is beyond the competition but in the near future, the situation may change dramatically. In recent years, land-based and online gambling activities have been legalized in many Eastern European and Western countries. Moreover, there is every reason to believe that Latin America has deliberately set a course to displace Malta as the acknowledged capital of gambling. Of course, it’s a bit early to claim the title of world capital for Latin America but there is every chance to lead the gambling league of developing countries.

Now gambling is more attractive than ever before an object for investment, and not all cash flows are directed to Malta. Many investors have bet on the main competitor – the Western countries and Latin America.

It is a huge and fast-growing market with more than half a billion people. And if you add to this the traditional loyalty and commitment of Latin Americans to gambling in all its appearances, you can understand how serious the competition will be. The main obstacle so far is the legal restrictions in force in the region – in most countries gambling is under a partial ban. However, it should be borne in mind that these obstacles are crumbling one by one, literally before our eyes. The liberalization of gambling legislation opens the way for global businesses wishing to invest in gambling in Latin America, which poses a direct and immediate threat to Malta as the global leader in the industry.

The competitiveness of Malta as a global center of online gambling depends on whether the companies based on the expanse of the island are able to integrate into the world of modern technology, including

  • cryptocurrencies – they help make payments truly anonymous;
  • Live dealer games – you can play with dealers from the best casinos;
  • gambling on handheld gadgets – gameplay is available anywhere and anytime;
  • electronic payments – transactions are faster than ever;
  • artificial intelligence – it provides personalization of the offered range of games, bonuses and offers;
  • augmented and virtual reality – the atmosphere of a real casino without leaving home.

Everyone knows: the one who owns the technology, owns the world, and the world of gambling is no exception. Time will show whether Malta will manage to retain its status or give up the position.

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