On 2 July 2025, the Malta Gaming Authority (the “MGA”) published its long-awaited Capital Requirements Policy (the “Policy”), a regulatory initiative aimed at enhancing the financial robustness and long-term viability of operators licensed under the Gaming Authorisations Regulations (S.L. 583.05 – the “Regulations”). The Policy introduced minimum capital thresholds, ongoing equity maintenance obligations, and a supervisory framework for addressing financial distress.

The following serves as a quick reference fact sheet of the current position.

Step 1: Identify Your Licence Type

Which type of licence do you hold or intend to apply for?

If you operate multiple licence types:

• The total capital required is capped at €240,000. This ensures proportionality and avoids excessive capitalisation for multi-service operators.

Step 2: Group Structure Considerations – Are you part of a corporate group?

• The MGA may permit the required capital to be held at group level, provided you can demonstrate that financial resources are available to support all relevant licensees within the group.
• This flexibility is subject to MGA approval and is designed to avoid duplicative capital requirements across group entities.

Step 3: Application and Ongoing Compliance

• These thresholds apply to new licence applications and to existing licensees seeking to add new licence types.
• Capital must be fully paid up at the licensing stage—not just subscribed.

Quick Reference Table

Beyond the initial capitalisation, all licensees must maintain a positive equity position throughout the duration of their licence.

Restoration must be substantive and reflected in the licensee’s financial position and licensees should document and evidence the qualifying measures taken to restore equity.

Licensees whose audited financial statements show a negative equity position as at 31 December 2024 benefit from transitional arrangements, including the possibility of an extended restoration period of no longer than five years. These arrangements apply only to existing licensees as at the Policy’s date of adoption and are subject to MGA approval.

Where the negative equity exceeds €1 million (or €3 million in the case of B2B operators), a Recapitalisation Plan must be submitted by 30 November 2025. The Recapitalisation Plan shall be subject to the MGA’s approval “must outline how and when the equity will be restored and shall be accompanied with the latest financial statements as well as the forecasted financial statements elucidating such recapitalisation”.

The MGA retains the discretion to grant derogations from certain requirements, particularly in the context of licensees forming part of corporate groups. To obtain relief, the licensee must demonstrate:

• Group-wide financial stability and consolidated performance
• Existence of formal legal instruments such as parent guarantees, asset pledges in favour of the MGA, provision of bank guarantees or insurance coverage
• Consolidated financial statements of the Corporate Group Licence show a positive equity position

Such flexibility seeks to avoid duplicative capital requirements across group entities, while ensuring that the individual licensee remains financially supported.

The MGA is empowered to impose corrective measures and sanctions under the Gaming Compliance and Enforcement Regulations (S.L. 583.06) in cases of persistent or unjustified non-compliance. This may include:

• Imposition of conditions on the licence
• Suspension or cancellation of the licence
• Refusal to approve further licence amendments or authorisations