On 2 July 2025, the Malta Gaming Authority (MGA) issued its Capital Requirements Policy, outlining financial obligations for licensees and applicants. The policy forms part of the MGA's commitment to ensuring financial resilience and regulatory integrity within the gaming sector.
Salient features include:
Minimum Share Capital Requirements
Ranging from €40,000 for B2B licensees to €100,000 for B2C Type 1 & 2, with cumulative capping at €240,000 for multi-type operations. These figures remain unchanged.
Mandatory Positive Equity Position
Licensees must maintain positive equity, with capital restoration required within 6 months from financial year-end if a net liability (negative equity) is reported.
Forms of Permissible Capital
Restoration may include share capital, share premium, reserves, or the conversion of shareholder loans into equity.
Special Provisions for B2B Licensees
Negative equity may be tolerated up to €3 million with the MGA retaining discretion to mandate earlier intervention if needed.
Derogations & Group-Level Assessment
In specific circumstances, derogation from restoration requirements may be granted—particularly where a licensee is part of a financially stable group or where safeguards like pledges or guarantees are in place.
Transitory Period & Recapitalisation Plans
Licensees with negative equity at the end of 2024 benefit from a grace period (not exceeding five years) and must submit detailed recapitalisation plans by 30 November 2025 if negative equity exceeds €1 million.
This policy underscores the MGA's continued focus on regulatory diligence and the long-term financial sustainability of Malta's gaming ecosystem.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
