A new licensing jurisdiction, Malta, has opened its door to Internet betting sites.
In February, the Maltese government passed an amendment to the Public Lotto Ordinance allowing the formation of Internet betting companies within their borders. Under the new regulations, any betting company that establishes a call center to receive bets (including through use of the Internet) must be licensed and be formed under an International Trading Company.
Additionally, betting companies must pay a license fee equal to 0.5 percent of turnover. While ITCs are taxed 35 percent of chargeable income, there is a distribution of dividends for non-resident shareholders amounting to 30.38 percent of total tax paid. As a result, only 4.17 percent taxation ends up being effective.
The government is planning to initially issue only ten licenses. U.K. casino operator Stanley Leisure has already announced that it has received one of the ten license. At least two additional British firms are considering locating in Malta as well. Plus, the Malta Business Weekly reports that at least one offshore bookmaker licensed outside of the U.K. will head for the Mediterranean island as well.
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