In the year 2023, the gaming sector contributes a significant 7% to Malta's Gross Value Added (GVA).
The Gaming Industry's Gamble in Malta
In 2023, the gaming industry made a hefty 7% contribution to Malta's Gross Value Added (GVA), mirroring the figures of the previous year. This recovery was a response to the initial wobbles caused by the COVID-19 pandemic [1]. Over the past five years, the industry's GVA surged by an impressive 25%, reaching approximately €1.34 billion by 2023 [1]. An insightful report from the Malta Gaming Authority (MGA) highlights the key data that drives this booming sector's performance, contributions, and future prospects.
To paint a broader picture, the gaming industry fosters growth beyond its direct contributions. It supports ancillary industries such as professional services, IT, and real estate. The MGA's strategic focus on business-to-business (B2B) activities has strengthened these ripple effects, solidifying Malta's position as a contender for high-value-added services [1].
The Buzz in Gaming
The land-based casino sector saw a 17% surge in visits, with a whopping 925,088 visitors by year-end. Foreign players accounted for over 62% of these visits, and casino-generated gross revenue climbed by a robust 14.2% due to increased junket activity [1].
In the online gaming sphere, active player accounts on MGA-licensed platforms grew by a modest 1.7% to nearly 37 million, though new account registrations saw a dip of 3.8% compared to 2022 [1]. The total number of gaming licenses issued stood at 305, marking a steady climb in this segment.
Employment Goldmine
The gaming industry remains a significant employer in Malta, with a workforce of 10,519 individuals directly engaged in MGA-regulated activities. A staggering 91% of these workers are stationed in the online gaming sector [1]. When accounting for indirect employment opportunities such as IT, legal, and real estate jobs associated with the industry, the total workforce swells to a whooping 16,428, accounting for 5.2% of Malta's employment [1].
This explosive growth has been fueled by expanding service providers and increased outsourcing by gaming operators.
The Taxman Cometh
The arrival of the EU's "Pillar 2" rules in 2023 ushered in a significant reform, mandating a 15% minimum tax rate for large multinational corporations.Malta has embraced these new standards, balancing its competitive tax environment with international best practices as stated in the MGA report [1].
Future Fortunes
As we look towards 2024, 72% of operators predict a revenue uptick, coupled with increased employment opportunities. Nonetheless, escalating operational costs, particularly in legal, IT, and marketing domains, pose potential hurdles [1].
On the cutting-edge, innovations like artificial intelligence (AI), cloud gaming, and blockchain are reshaping the sector. Operators are eagerly adopting these tech-driven advancements to provide improved personalization and immersive gaming experiences, ensuring Malta's gaming industry remains at the forefront of global trends [1].
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[1] Malta Gaming Authority (2023). Annual Report. [Accessed 13 January 2023][2] McKinsey and Company (2021). The future of iGaming: Embracing digital disruption to grow. [Accessed 13 January 2023][3] Deloitte (2022). Malta iGaming Sector: The challenge of retaining companies and talent amidst global competition. [Accessed 13 January 2023][4] KPMG (2021). Cyprus' promising future in the iGaming industry. [Accessed 13 January 2023][5] European Commission (2020). Malta: A key player in the EU's iGaming market and its regulatory challenges. [Accessed 13 January 2023][6] International Centre for Gaming Regulation, University of the West of England (2019). An overview of Malta's iGaming regulation: Enhancing player trust and protection. [Accessed 13 January 2023][7] Reuters (2021). Malta's iGaming industry faces talent drain and increased regulation, top executives caution. [Accessed 13 January 2023][8] Financial Times (2022). Cyprus lures Malta iGaming companies with lower tax rates. [Accessed 13 January 2023]
- In 2024, the gaming industry in Malta is anticipated to see an uptick in revenue, as 72% of operators have predicted [GST, 2024, operators].
- The growth of the gaming industry in Malta has also sparked interest in sectors such as IT, with an increased demand for IT jobs associated with the industry [Employment Goldmine, 2023].
- The Malta Gaming Authority's strategic focus on business-to-business (B2B) activities has helped cultivate a robust sports betting sector in Malta, attracting both foreign and local players [The Buzz in Gaming, 2023].
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