Offshore
betting licences:
Relocating
betting operations to offshore jurisdictions: MALTA
©
2002 Dr
Jean-Philippe Chetcuti. All Rights Reserved.
In 2000, the Maltese government issued
regulations governing the operations of Internet Based Betting Offices.
Under these regulations, the Director of
Public Lotto will grant licences to operate such betting offices to such
persons having "the appropriate business ability to conduct the betting
office successfully." Licences are issued for a minimum period of
five years and may be extended for further periods of five years.
Favourable Tax Regime
The attractiveness of Malta as a venue for
betting operations is also due to the tax-friendly environment in which
they are allowed to operate:
Maltese betting operations are highly
regulated and are carried out through an International Trading Company
(ITC) set up for the purpose. ITCs are subject to the corporate tax
rate of 35%. However, this is effectively reduced to 4.17% as
non-resident shareholders are entitled to a rebate of 30.83% of the tax
paid on distribution of dividends.
Basic requirements
The regulations require a presence in Malta
in the form of a premises from which the betting office's operations are
carried out. Effectively, a call centre is established exclusively
to receive bets together with a processing (back office) operation.
Betting against computer generated games such
as cyber-casinos on the Internet will not be given licences but the
Internet may be used as a communication medium (e-mail) to the call
centre.
The activities of ITCs are limited to those
carried out outside Malta. Thus Maltese residents are prohibited
from placing bets with licensed companies. Bets can only be taken from non
Maltese residents.
Obtaining a Betting Licence
The conditions for licences are relatively stringent, in the interest of
consumers and of the reputation of betting companies. Licensing depends on
a number of factors concerning the personality of executives of the
applicant company, the applicant’s financial position and background, and
the applicant’s abilities and availability of appropriate resources.
Furthermore, applicants will have to draw up an audited control system
with regard to its accounting, administration and electronic technology.
Licensed companies may be inspected at any time to verify whether they
abide with their licence.
An application for a betting licence requires
the following accompanying documentation:
a detailed profile of the promoting
company.
a copy of the last audited accounts of the
promoting company.
a business plan indicating the economic
activity (including job creation) which will be carried out from Malta
a plan of the premises earmarked for
adoption as a call centre.
The operations of licensed companies are
subject to the Laws and regulations of Malta.
Malta - a popular betting destination
The above scenario has resulted in a
considerable number of international betting companies, many based in
Britain, recently setting up offshore operations here, enabling their
clients to bet online through the numerous Internet facilities available
today.
BACK
TO:
©
2002 Dr
Jean-Philippe Chetcuti. All Rights Reserved.
|