The Maltese government has announced new budget measures that will increase the cost of employing non-European Union workers, a move expected to have significant implications for the country's large iGaming sector. The changes, revealed by Finance Minister Clyde Caruana on 26 October, introduce higher fees and new charges for third-country nationals (TNCs) working in Malta.
New Fees and Restrictions for Non-EU Workers
Under the new budget, the initial permit application fee for TNCs will rise from €600 to €800. Additionally, TNCs will now be required to pay a €400 annual infrastructure contribution. Those driving in Malta with a non-EU category B or B1 driving licence will face an €83 monthly fee. Further, individuals who have lived in Malta for less than five years will lose access to free public transport and childcare, increasing their cost of living.
Impact on Malta’s iGaming Industry
Malta is a major hub for the iGaming industry, hosting multinational operators such as Betsson, Flutter, and Entain. The sector provides significant economic value, accounting for a notable portion of Malta’s GDP. Industry groups and trade unions have expressed concern that the increased costs will drive up recruitment expenses for businesses and reduce disposable income for workers, potentially making Malta a less attractive destination for skilled foreign talent.
Regulatory Uncertainty: Bill 55 Under Review
In addition to the budget changes, operators face uncertainty regarding Article 56A of the Maltese Gaming Act (Bill 55), which currently limits the enforcement of foreign legal rulings against Malta-licensed operators. The Court of Justice of the European Union (CJEU) is set to rule on the legality of Bill 55 on 19 November. If the CJEU finds that national laws take precedence over Maltese protections, this could weaken the legal safeguards for Malta-based licensees operating in other EU markets.
Why This Matters for Industry Stakeholders
For operators, affiliates, and suppliers in Malta, the increased employment costs may affect hiring strategies and operational budgets. The potential loss of legal protections under Bill 55 could also expose Malta-licensed companies to greater legal risks in other EU jurisdictions. These developments may prompt businesses to reassess their presence and future investments in Malta.
Key takeaways
- Malta’s budget raises permit and living costs for non-EU workers.
- iGaming companies may face higher recruitment and operational expenses.
- Legal protections for Malta licensees could be reduced if Bill 55 is overturned.
- Industry stakeholders may need to adjust strategies in response to regulatory and financial changes.