Online casinos with a license from Malta
Online casinos that are licensed in Malta are known for their high security standards and are extremely popular for this reason. In this article, we will discuss everything you need to know about the Malta Gaming Authority (MGA) license, including its advantages and disadvantages. Additionally, we will introduce you to some of the best online casinos in Malta.
Casinos with Malta License (MGA)
The Malta License
The casino license of Malta has not only permanently transformed online gambling in the USA, but it has also had a significant impact on the economy of the small Mediterranean island. Currently, the revenues generated by this industry account for up to 10% of Malta’s gross domestic product.
The Malta license has gained a reputable status among both casino operators and players. The legislation for obtaining licenses was established in 2004, and it quickly attracted numerous providers from the UK and offshore countries. In addition to the strong Malta license, the appeal of the online casino providers is also driven by the low tax obligations imposed.
What licenses are there in Malta
In addition to the casino license, there are also licenses for sports betting and poker in Malta, and we will examine the various types available at the casinos. The main license is the classic B2C license, which directly regulates the relationship between the provider and the end customer.
However, with the modernization of the industry, this license has become quite rare, as white labels are becoming more popular and even big casinos are assembling their licenses more and more. How? With the help of B2B licenses! A software manufacturer like NetEnt or Microgaming never acquire B2C licenses, but only supplier licenses, i.e. B2B licenses. However, a casino can then use these licenses to obtain an overall license more easily. This is exactly the reason why you see such constellations in the licenses:
Here’s the explanation for what you see in the screenshot: the B2C license is the general license that the casino acquires and that regulates trading with the end customer. However, the casino gets this much easier because they can use all B2B licenses of the listed software providers that you see under Type 1. The Type 2 B2B license is then nothing more than the B2B license for sports betting, as you are also buying a solution here.
The list of domains below shows what we mean by “white label”. All these casinos have completely the same composition and therefore run under the same company and therefore ONE license.
Advantages
- ✅ Very reliable EU license
- ✅ MGA has a high reputation
- ✅ Player funds must be kept separate
- ✅ Arbitration by the MGA authority
- ✅ High requirement for cyber security
Disadvantages
- 🛑 Long response times for the player
- 🛑 No cryptocurrencies
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The gambling authority MGA
The gambling authority MGA has always prioritized seriousness. It issues secure licenses to reputable operators and exercises strict control over them. At the same time, explicit care is taken to prevent the use of mafia money for opening casinos and betting providers. Although Malta has had issues with corruption in the past, the MGA is widely recognized as one of the most successful authorities in combating illegal money flows.
The authority has the following main objectives:
- Setting clear requirements for license issuance
- Implementation of training courses for license holders
- Measures against money laundering
- Measures against fraud attempts
Here I want to show you how the process of obtaining a license looks like for granting authority. What is checked, what is important, and what can cause a license to fail?
Obtaining a license from the MGA – requirements
Examination of individuals
This is the first step of the entire examination process. The directors or partners of the company are thoroughly examined. In addition to self-disclosure, inquiries are also made to international gambling and police authorities.
It is crucial to ensure that individuals with a criminal record or previous issues with other licenses are not granted a license.
Key Business Plan
This may sound a bit strange, but the business plan is an absolutely vital part of the authority’s review. You want to ensure that businesses are as sustainable as possible and do not have to file for bankruptcy from one day to the next.
Only a healthy company will also not be tempted to go after customers’ money. This type of audit takes place in exactly the same way even in Las Vegas.
Compliance issues
You have probably heard the word a lot, even in connection with banks or executive suites. In this case, it means: An examination of planned internal processes in daily business or in case of problems. What is the technically planned architecture of the casino software? Can it ensure that all legal requirements are met?
Evaluation of all planned casino games that are used. Meanwhile, also all specifications and processes for data protection.
System audit
This is the part that seems crazy to outsiders. If the applicant has successfully completed the first three points, then he has exactly 60 days to put everything into practice, i.e. to actually build the platform as previously submitted. It is also possible to have the audit done again by external third parties.
If a candidate exceeds the specified 60 days, the process starts again. Deadline extensions are not normally provided for. Any very large change to the platform requires a new process. If everything is correct, the company receives a license for five years.
As already mentioned, the MGA is considered to be a very modern and efficient authority, so it is not surprising that the licensing process is subject to mechanisms that should ensure sustained seriousness. For example, third party audits take place after one year, after the third year and shortly before the five years expire.
Even more important is the fact that the authority can order a new audit at any time, during which everything is checked again. This happens mainly when there is a suspicion that discrepancies or fraud are to be expected.
The cost of an MGA gambling license is estimated at around 30,000$ per year and the entire process usually takes around 15 weeks. This applies to a truly owned gambling license, not simply a white label casino.
Why is an MGA casino better than a US casino?
A very logical question you are asking yourself here as a reader. Why should you play at an MGA gambling provider when there are now US licenses available? I have summarized for you all the points that show the advantages:
OASIS blocking file not available: yes, I am a big fan of secure player protection. The problem with the OASIS database is the absolute control it gives the state. There is extreme surveillance going on here, which we think is wrong.
No 5 seconds rule: We all play because we want some action. However, the US authorities spoil this fun because spins are only allowed to happen every 5 seconds. So a lot of the fun is lost.
Higher limits
Deposit and wagering limits: US authorities limit betting to 1$ per round and deposits to 1000$ per month. This is a paternalistic policy that many players do not want to accept.
Larger game offer
The game offer: With the US regulation, jackpots, live casino games, and all table games have been eliminated. This significantly diminishes the gaming experience. The slot selection is still available with a gambling license issued by the MGA.
What to do in case of a problem with an MGA casino?
Players can check all the details about a casino with the MGA at any time. What license is available, what problems there have already been and much more. More importantly, players can also file an official complaint with the MGA authority.
This is also taken absolutely seriously in Malta; however, they remain true to the approach that the best way is still the direct way, via the provider. They want to promote the idea that casino providers really solve existing problems with the customer.
If this does not work, then the MGA takes on the case and you have to submit all the documents and evidence for the case so that the authority can follow up. However, anyone who tries to cheat here will also be prosecuted as a player.
How does the MGA ensure player safety?
I have already touched on this topic. The Maltese MGA authority wants to ensure that the casinos in Malta are not only safe, but also that they are kept free from negative influences from the beginning.
⚔️ Fight against money laundering ⚔️
One of the most important tasks is to implement the EU requirements to combat money laundering. This doesn’t always have to do with classic mafia money. It is crucial for the authorities to understand how an applicant acquired their wealth. Was it obtained illegally? Has it been properly taxed? Can the origin of the earnings be traced?
Increasingly, the same requirements also apply to a regular real estate purchase, so this should be examined more closely.
🚫 No tolerance for the mafia 🚫.
Why this is a separate issue is also due to geography and, of course, gambling itself. Gambling has a long history, in which criminals, in particular, have had a hand in it, and on top of that, Sicily is really on Malta’s doorstep.
The authority has failed to issue licenses on several occasions and even revoked them retrospectively when it became clear that the mafia was using straw men to get into the online casino business.
💰 Protection of player funds 💰
Player funds are protected in the first instance because the Malta authority looks closely at who gets a casino license in the first place. However, it is equally important that player funds are always kept separate from the company’s normal funds. This way, even in the event of bankruptcy, these are still to be saved so that all players can receive their money.
In addition, there are also clear guidelines on how exactly the identity of the players is to be checked, so that in the end no one can commit credit card fraud and Co. without being discovered.
Are Malta casinos legal in the USA?
This is not a question that can be answered precisely. Basically, the Maltese license is an EU license and the freedom of services should apply. Nevertheless, US authorities and courts increasingly try to consider only the US license as the valid one. To this day, not all courts evaluate this in the same way.
Can players recover lost funds?
Yes, in some cases there are courts that allow restitution of lost funds to casino players. I believe this approach is highly questionable, as if you win, you would want to keep your money too, and everyone plays voluntarily.
Recently, the internet has been flooded with advertisements from scammers promising to recover lost money in exchange for a percentage fee.
However, the fact that in some cases a SCHUFA entry follows is often concealed. It is often argued that this is for player protection.
However, the fact is that the Maltese gambling license is much more mature than the US gambling license, and this also applies to the gambling authority’s handling of issues such as player protection.
Conclusion about the Malta MGA Casinos
The Malta MGA casinos are considered to be a highly reputable alternative to US licensed casinos because they provide the security and regulation of a top European authority, without the many restrictions imposed by US licenses.
One disadvantage, in my opinion, is that these casinos do not allow the use of cryptocurrencies. However, aside from this, they are highly recommended.
- How can I identify MGA casinos?
- Casinos with a Malta license always display the MGA authority logo at the bottom of their website and provide a link to their license, which contains detailed information about it. If a casino claims to be licensed in Malta but does not provide this link, caution should be exercised.
