Malta's gaming sector pivots to B2B as licences fall and economic contribution rises

The Malta Gaming Authority's 2025 annual report describes an industry in transition. The headline figure is not the number of licences, but where the growth is coming from.

Of the 38 new gaming applications received during the year, 24 were for B2B authorisations. Twelve of the 19 new licences issued were B2B. Renewal activity followed the same pattern: four of ten renewal applications and four of eight licences renewed were in the B2B space.

The MGA was clear about what this means. "It is within this evolving context that Malta's role is undergoing a process of strategic repositioning," the authority stated. "There is clear momentum toward business-to-business (B2B) services, which now account for a growing share of regulatory activity and demonstrate strong resilience in a fragmented environment."

The total number of B2B licences has climbed from 68 in 2018 to 171 by the end of 2025. That growth contrasts with the broader licence count. The MGA ended 2025 with 302 licensed companies holding 311 gaming licences, down from 315 companies and 323 licences a year earlier.

"The gradual reduction in the number of entities and licences is consistent with an industry that is transitioning towards a more mature phase and that is undergoing strategic consolidation," the MGA explained. It pointed to a more demanding global regulatory backdrop pushing operators toward sustainable business models and multi-jurisdictional licensing strategies.

Despite fewer licence holders, the sector's economic weight increased. Gaming generated an estimated €1.42 billion in Gross Value Added in 2025, roughly 6.3 per cent of Malta's economic output. That is up from €1.37 billion in 2024. When wider spillover effects are factored in, the MGA estimates the total impact at 8.2 per cent.

The authority collected €82.4 million in compliance contributions, licence fees, levies, and consumption tax.

Employment tied to the sector also grew. The MGA estimates 15,039 individuals worked in Malta with MGA-licensed operators as of December 2025, a 4.8 per cent increase in full-time equivalent employees year on year. Total employment directly or indirectly linked to gaming reached an estimated 19,150, representing roughly 6.5 per cent of the workforce.

That workforce is increasingly concentrated in B2B activities spanning platforms, infrastructure, and compliance services. The MGA described these as offering "a stable foundation for continued economic contribution."

The shift is not happening in isolation. The MGA noted that the European regulatory environment is undergoing structural transformation, with more jurisdictions adopting point-of-consumption models that require local licences. Operators are adapting with multi-jurisdictional strategies.

"For Malta, this represents an opportunity to anticipate and respond to a more complex regulatory landscape by refining its value proposition and aligning its framework with emerging international practices," the authority said.

Operators' expectations for 2025 and 2026 point to a stable but cautiously expanding sector, with revenue growth largely in the up-to-ten-per-cent range. Employment prospects remain positive, but the MGA flagged rising operational costs in technology, compliance, marketing, and odds and risk compiling services.

The MGA acknowledged that evolving cost structures, labour market conditions, and quality-of-life considerations require continued policy attention. It positioned Malta's reputation for regulatory credibility, its mature ecosystem of specialised services, and access to skilled multilingual talent as competitive advantages.

The transition from a licence-driven model to an ecosystem and service-driven model, backed by proactive regulatory evolution, is the trajectory the MGA sees as underpinning continued growth. The data from 2025 suggests that trajectory is already underway.