How Much Does an MGA Licence Cost & What is the Process? BGaming Investigates!

BGaming breaks down MGA licence process and answers how much does an MGA licence cost for application & yearly fees?  (Image from Courtesy of BGaming)

The exciting BGaming casino game developer, which holds licenses across multiple jurisdictions, has broken the procedures operators, casino game providers, and sportsbooks need to take in order to obtain a prestigious Malta Gambling Authority (MGA) licence.

Online casinos and software providers using the MGA licensing are considered some of the most trustworthy in the iGaming sphere amongst players. The authority regularly dishes out fines to operators for not toeing the line under the rules of its framework, which has been designed to protect players, prevent money laundering, and ensure online casinos promote responsible gambling.

Casino players also feel safe playing at MGA licenced casinos because there is a ‘play complaints’ service offered by the licensing authority. Players can formerly lodge casino disputes and MGA complaints specialists will handle the complaint. In some cases, free mediation services are offered to players to help when a dispute becomes a matter of law.

Our main audience here at Casino Plus Bonus are English-speaking players from Canada, the Republic of Ireland, India, South Africa, and New Zealand. Players from these countries are all protected under the MGA licence. On top of this, companies operating under the MGA licence must also follow Anti Money

Laundering laws and EU consumer rights laws. The latter extends to non-EU citizens under EU government law in order to attract customers from outside of the EU juristic.

As a result of this licensing authority’s player-focused framework, many of our online casino reviews found here are popular. Players that are not looking to play using cryptocurrency (because the MGA does not cover cryptos) and do have the option of choosing an online casino covered under a licensing framework overseen by their domestic government will choose casinos with a Malta Gaming Authority licence.

BGaming’s Breakdown of the MGA Licensing Application Process

To begin with, operators need to have an office in Malta and register a company with the Malta Business Registry. This rule does not apply to game developers providing the casinos with video slots, virtual tables, live games and other casino game titles. Once the office is open and business registered, an operator can now apply for a licence.

The MGA will carry out due diligence on individuals listed as key members of the company and the company’s financials. On top of this, the operator needs to provide a business plan which includes financial forecasts as well as how the company will recruit employees. Furthermore, the operator’s business must show complete transparency, or the application will be denied.

Minimum Shares Required in Maltese Business

• Type 1 and 2 Licence Applicants must have €100,000 in shares
• Type 3 and 4 Licence Applicants must have €40,000 in shares

When the Malta business registration is complete, the MGA will check who the shareholders are. We cover some of this information in our online casino reviews ‘Company Information’ area next to the FAQs. These companies or persons that are shareholders of the Maltese operation are usually overseas entities.

Licensing Types & Costs Fully Explained (Application Costs + Yearly Costs)

As for the costs of the licence, this depends on the type applied for. The MGA offers 4 types of licenses which are fairly straightforward. Some operators will need to apply for multiple licenses such as those that will offer an online casino and an online sportsbook.

• Type 1: Online casinos using RNGs & software providers like BGaming. Video slot, virtual table games, and live casino developers fall under this licence type.
• Type 2: For companies that will offer a sportsbook.
• Type 3: Operators that will offer prize pools or commission-based betting services.
• Type 4: This licence is required for fantasy sports.

Once an MGA licence has been approved, it is valid for 10 years. However, there will be regular financial checks as operators must submit yearly financial records. Also, responsible gambling checks. As for RNG compliance, the software providers like BGaming, will submit algorithm certificates to confirm RNGs and software are random, safe, and secure. See the full report at BGaming news here.