Malta’s gaming industry, renowned for its pioneering role in business-to-consumer (B2C) operations, is also establishing itself as a global hub for business-to-business (B2B) activities. This shift reflects the nation’s adaptability to market dynamics and its vision for long-term growth. 

“The success story for this industry in Malta started when a limited regulatory regime was introduced. It then grew, became more sophisticated, and evolved into what we see today,” Olga Finkel, Co-Founder and Partner at WH Partners said during a panel discussion at SiGMA Europe. The panel discussion focused on how Malta has evolved into a leading B2B hub for the gaming industry. While early dominance in B2C activities propelled Malta’s gaming ecosystem, the rise of country-specific licences has necessitated a strategic pivot. 

“It seems there has been a shift in focus toward developing Malta as a B2B hub,” Finkel added, describing this transformation as a response to global trends. 

Gaming sector’s economic impact 

The Maltese gaming industry continues to serve as a key driver of the nation’s economy, with data from the Malta Gaming Authority (MGA) revealing its significant contribution. According to MGA’s 2023 annual citing the National Statistics Office, the gaming industry accounted for 7 percent of Malta’s Gross Value Added (GVA) in 2023. This contribution remained steady over the past two years, following a surge during the COVID-19 pandemic when the sector helped counterbalance losses in tourism and retail. 

Between 2019 and 2023, the industry’s GVA rose by 25 percent, reaching nearly €1.34 billion. MGA noted that this growth underscores the sector’s resilience and its role in supporting ancillary industries such as information technology, real estate, and administrative services. 

Regulatory foundations supporting B2B growth 

Malta recognised the potential of B2B regulation as early as 2004, laying the groundwork for a diversified gaming ecosystem. This foresight has helped the nation attract a growing number of B2B operators, positioning itself as an innovation hub. 

“Initially, Malta was the go-to jurisdiction for B2C offerings, but as the industry evolved with the introduction of country-specific licences, Malta had to adapt,” Corinne Valletta, General Counsel at Betsson noted. She described this transition as a “natural progression,” complementing the nation’s established reputation. 

Carl Brincat, Director at LeoVegas, echoed these sentiments, stating, “Innovation is now happening among B2Bs. Malta has attracted more of these entities by evolving alongside the industry.” 

Collaboration and legislative flexibility 

Malta’s robust regulatory framework has been instrumental in facilitating this transformation. Yanica Sant, Group Legal Director at Evoke plc, emphasised the importance of regulatory expertise, saying, “Malta gets it. B2B regulation is now in its second wave of legislation here, making it easier for businesses to communicate with regulators.” 

Sant called for greater international cooperation, noting, “It would be interesting to see more regulators working together on B2B regulation. There are fewer differentiating factors in B2B than in B2C, so collaboration could streamline processes globally.” 

According to the MGA, the country has implemented a sectoral development strategy to balance the gaming industry’s risk profile. This includes promoting B2B activities through specific licensing regimes. These initiatives have not only expanded the sector’s direct economic contributions but also stimulated broader economic benefits through multiplier effects. 

As of the end of 2023, the MGA had licensed 316 companies operating online and land-based gaming businesses. These entities collectively held 326 gaming licences and 300 approvals under B2C licences, alongside 210 B2B approvals. The diverse nature of gaming activities under these licences reflects the industry’s innovation and adaptability. 

The MGA collected €80.6 million in compliance contributions, licence fees, levies, and consumption taxes in 2023, highlighting the sector’s fiscal significance.   

Employment in the gaming sector 

The gaming industry also plays a vital role in employment, with 16,428 full-time equivalent (FTE) positions associated with the sector by the end of 2023. This figure represents 5.2 percent of Malta’s total workforce. Of these, 10,519 FTEs were employed directly by MGA-licensed companies, with 91 percent of these roles in the online gaming sector. 

Indirect employment linked to gaming activities has also surged. This includes professionals working in legal, consultancy, IT, real estate, and other supporting industries. The expansion of outsourced services and a redefined sample of service providers have further boosted these numbers, underlining the industry’s ripple effects across Malta’s economy. 

Opportunities and challenges ahead 

While Malta’s B2B evolution strengthens its position as a global hub, challenges remain. Finkel emphasised the need for regulatory harmonisation, stating, “As more countries introduce B2B requirements, it’s crucial to focus on harmonising regulatory goals step by step to make life easier for everyone.” 

Despite these hurdles, Malta’s legislative flexibility continues to support innovation. “Even if a business has a new, unconventional idea, Malta’s regulators are open to discussions, ensuring innovation aligns with legal objectives,” Brincat highlighted. 

Outlook for Malta’s gaming industry 

Experts agree that Malta’s infrastructure, regulatory foresight, and adaptability will sustain its leadership in the gaming industry. “Malta’s infrastructure and regulatory flexibility ensure it remains a critical player in this space,” Valletta affirmed. 

Finkel concluded with cautious optimism: “While global harmonisation of regulations may be a distant goal, focusing on achievable milestones will help Malta and the industry continue to thrive.” 

As the nation evolves from a B2C pioneer to a B2B powerhouse, its gaming industry stands as a testament to Malta’s resilience and innovation. With forward-looking policies and a thriving ecosystem, Malta is well-positioned to lead the next wave of iGaming growth and innovation. 

Subscribe  to SiGMA’s Top 10 News countdown and SiGMA’s Weekly Newsletter to stay up to date with all the latest iGaming News, and benefit from Subscriber-Only Offers.