An iGaming epiphany in Malta

June 14, 2022 World Emerging Markets Industry Updates

When talking about iGaming one has also to talk about Malta and vice versa. Since the early 2000s when the first iGaming company set foot on the island, a flourishing ecosystem for the iGaming industry has emerged in Malta. Globally the iGaming industry is worth more than €250bn. New technology, applications and interfaces have made the customer experience as attractive and accessible as never before covering the broad interests as well as serving niches.

In 2020, the global gambling sector suffered its worst drop in revenue due to the Covid-19 pandemic which caused it to lose almost US$100bn. The global gambling sector began its recovery in 2021 and rose back above US$400bn in 2021 to US$410bn. Digital sales channels have certainly helped the global gambling sector to be resilient, and recover, from the Covid-19 pandemic when venues such as casinos and betting shops were closed for long periods in many jurisdictions. The factor of the convenience of iGaming is not to be neglected as enjoying one’s favourite casino games from the comfort of one’s home, especially during lockdowns and pandemic times, was a big advantage. During that time iGaming logically gained in popularity. Before the pandemic, e-gaming accounted for only 12-13% of global gambling revenues whereas its market share leapt to 19% in 2020 and provisional figures suggest it even surpassed 21% in 2021.

Malta’s iGaming industry has shown remarkable resilience, is buzzing and is only becoming more and more outstanding. Despite the countless setbacks faced by businesses since March 2020 by the Covid-19 pandemic, the iGaming business proved vigilant and has no intention of slowing down. The iGaming industry makes up 11% of Malta’s GDP and with a high demand for workers in security auditing, web hosting, legal work and customer care, creates a trickle-down effect in the labour market.

At this point, it may be wise to recap why Malta is attractive for iGaming companies to set up in the first place. Malta has great infrastructure and plenty of talent; letting the industry gravitate to the island. Low fees and taxes on revenue and low-cost licensing infrastructure make Malta the perfect home and starting point for new companies. The numbers basically speak for themselves since today there are more than 250 iGaming companies registered in Malta.