Malta Eyes Indirect Gaming Tax as Part of 2026 Budget

Malta’s government has opened the door to an indirect tax on the gaming sector. In presenting the 2026 Budget, the Maltese authorities announced they will explore introducing a consumption-type tax on gaming and other value-adding industries—alongside the existing 5 % direct gaming tax. From my perspective as an iGaming regulation expert, this move signals that even Malta’s long-favourable gaming regime may face new tax dynamics—operators and investors must pay attention. Read on for a detailed breakdown of the budget items, the potential impact on gaming firms and what to watch moving forward. Key Points

• Malta currently applies a 5% direct Gaming Tax on revenue from Malta-based players.
• The 2026 Budget mentions “indirect tax measures for the gaming sector,” suggesting VAT or excise taxes may be extended.
• Gaming tax revenue for 2026 is projected around €67 million, up from an estimate of €65 million this year.
• Total Maltese tax revenue for 2026 is forecast at around €7.8 billion, with key sources such as income tax (€3.5bn), social security (€1.84bn) and VAT (€1.69bn).
• Government emphasises investing in innovation, esports and gaming-industry support, including €400,000 for a Malta iGaming Incubator, and €4 million for esports projects.
• The indirect tax initiative forms part of efforts to build a more reliable “indirect tax framework” for value-adding industries such as gaming.

Malta Floats New Indirect Gaming Tax After 2026 Budget – What Operators Must Know

In the world of regulated iGaming, Malta has historically stood out as a business-friendly jurisdiction: strong regulatory framework, access to EU markets, established infrastructure and a direct gaming tax of just 5% for revenue derived from Malta-based players. But the 2026 Maltese Budget signals the start of change.

What the Budget Says

According to KPMG’s commentary on Malta’s 2026 Budget, the government intends to “develop measures to contribute to a reliable indirect tax framework for industries such as gaming.”  The official Budget summary indicates “Indirect tax measures for the gaming sector” among key highlights. At the same time, the projected gaming tax revenue is modest—€67 million in 2026—yet Malta clearly wants to diversify tax income streams and reinforce the business model of value-adding sectors.

Why It Matters for the iGaming Sector

From my analytical lens, three strategic points emerge:

1. Tax Strategy is evolve­ing – The shift from solely direct gaming tax to potential indirect taxes (VAT, consumption duties) signals Malta is repositioning its iGaming tax model. For operators, this means new cost-vectors and regulatory scrutiny.
2. Volume and innovation‐based growth emphasized – While the tax rate remains low, the government emphasises investment in gaming-tech incubators and esports. This suggests Malta wants gaming not just for tax revenue but for broader digital-economy growth.
3. Regulatory brand remains strong – Even as tax measures may broaden, Malta emphasises skills, innovation, digitalisation and stable GDP growth (~4% projected) which remains above the EU average.

What Operators Should Watch

For companies operating or considering Malta licence routes, here are pragmatic considerations:

• Monitor indirect tax developments: If Malta introduces VAT-type duties or excise, cost models change.
• Compliance readiness: The tax base may broaden to address value-added services (platforms, software, esports) beyond traditional player wagers.
• Watch investment incentives: With incentives for innovation (e.g., R&D deductions, digitalisation programmes) the tax environment remains favourable—but balance remains key.
• Pay attention to licence terms: As tax strategy evolves, gaming regulator requirements or licence fees may also shift.
• Consider market strategy: Malta’s emphasis on value-adding firms suggests operators anchored in tech, esports or digital transformation might benefit most.

My Professional Take

In my view, the Malta 2026 Budget marks a subtle but meaningful pivot for the island’s iGaming ecosystem. Malta is alert to the risks of relying solely on direct gaming tax revenue and wants to upgrade its economic model around digital-economy growth. The reference to indirect tax framework development is not an imminent threat to operators—but it is a signal. For established operators, there’s no immediate tax shock. Yet the signals are clear: tax transparency, broader value capture and a focus on innovation now matter even more. For new entrants, Malta continues being attractive—but tax due diligence must incorporate potential indirect tax evolution, not just existing 5% direct gaming tax. The government of Malta has floated the prospect of a new indirect tax on gaming in its 2026 Budget. While the direct gaming tax remains 5%, the broader tax framework appears to be evolving. From my vantage as a regulation expert, this development underscores that Malta’s iGaming environment is entering a new phase—where low tax is part of the story, but innovation, value-add and regulatory strength define the future. Operators should stay close to Malta’s policy trajectory, because in the competitive iGaming zone, tax strategy matters as much as licence conditions. Tags: MaltaGamingTax, 2026BudgetMalta, iGamingMalta, GamingIndirectTax, MaltaRegulation

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