Malta Gaming Authority (MGA) License: Premium iGaming Licensing Explained

The Malta Gaming Authority (MGA) license is widely considered the gold standard in iGaming licensing. For operators targeting European markets and seeking premium positioning, an MGA license is often essential.

Why Malta is the iGaming Capital

Regulatory Excellence

Malta was the first EU member state to regulate online gaming (2004) and has developed the most comprehensive regulatory framework in the industry.

EU Passporting

An MGA license provides access to the entire European Union single market, allowing operators to offer services across member states.

Industry Ecosystem

Malta hosts:

• 300+ gaming companies
• Major gaming conferences (SiGMA)
• Specialized legal and financial services
• Trained iGaming workforce

MGA License Types

The MGA issues different license types:

B2C Licenses

• Type 1: Casino games (slots, table games)
• Type 2: Sports betting
• Type 3: Poker and peer-to-peer games

B2B Licenses

• Type 4: Software and platform providers

Requirements for MGA Licensing

Capital Requirements

• Minimum €100,000 share capital
• Player fund protection (bank guarantee or insurance)
• Ongoing solvency requirements

Corporate Structure

• Malta-registered company required
• At least one director resident in Malta/EU
• Qualified Key Officials (Compliance, MLRO, etc.)

Technical Standards

• Certified Random Number Generator
• Secure player data handling
• Responsible gambling tools
• Complete audit trail

Cost Breakdown

Initial Costs

• Application fee: €5,000
• License fee: €25,000 (first year)
• Compliance audit: €15,000 - €30,000
• Legal setup: €20,000 - €50,000
• Technical certification: €10,000 - €25,000

Ongoing Costs

• Annual license fee: €25,000
• Gaming tax: 5% of gross gaming revenue
• Compliance costs: €100,000+ annually
• Local operations: Variable

Total first-year investment: €200,000 - €500,000+

Acquiring an Existing MGA License

Given the complexity and cost of obtaining a new MGA license, acquiring an existing licensed entity can be attractive:

Advantages

1. Immediate market access - Skip 6-12 month application process
2. Proven compliance - Established regulatory relationship
3. Existing infrastructure - Technical and operational setup
4. Banking relationships - Pre-approved payment processing

What to Look For

• Clean compliance history
• No pending investigations
• Transferable contracts (software, payments)
• Qualified staff willing to stay

Typical Valuations

MGA-licensed companies typically sell for:

• Shell company (license only): €300,000 - €600,000
• Operational casino: €1M - €10M+
• Established brand with players: €5M - €50M+

Due Diligence for MGA Acquisitions

Critical areas to investigate:

1. Regulatory standing - Request MGA confirmation letter
2. Financial audits - Review past 3 years
3. Player liabilities - Understand outstanding balances
4. Tax compliance - Verify all obligations met
5. IP ownership - Confirm software and brand rights
6. Employment contracts - Key person dependencies

myreadymade.com MGA Opportunities

We periodically list MGA-licensed companies for sale. Current opportunities include:

• Licensed shell companies
• Operational online casinos
• Sports betting platforms
• B2B software providers

All listings undergo our verification process to ensure legitimacy and regulatory compliance.

Conclusion

An MGA license represents a significant investment but provides unmatched credibility and market access in the European iGaming sector. Whether applying new or acquiring existing, the MGA route positions operators for long-term success.

Contact our M&A team to explore available MGA-licensed opportunities.