The Malta Gaming Authority has released its latest Annual Report, which recaps 2025. Last year, the regulator significantly reduced enforcement activity while doubling down on AI, risk-based supervision, and regulatory quality, marking a strategic shift in how Europe’s largest iGaming licensing jurisdiction oversees the sector.
Administrative fines issued by the regulator fell to €162,520 in 2025, down from €306,250 the previous year. The authority also issued fewer formal warnings, with the total declining from 35 to 22, while licence cancellations dropped sharply from eight to just two.
The MGA argues the latest figures reflect a more targeted supervisory model that prioritises intelligence-led oversight over punitive action. Throughout the year, the regulator expanded its use of data analytics, machine learning and artificial intelligence to identify higher-risk operators and allocate regulatory resources more efficiently.
“Effective regulation is not about doing more; it is about doing what matters, and doing it well,” said Chief Executive Charles Mizzi.
AI Becomes Central to the Regulatory Model
The report marks 2025 as the beginning of what the MGA calls a “Smarter Regulation” strategy, with artificial intelligence becoming a key part of its day-to-day supervisory work.
During the year, the Authority introduced AI-powered tools to analyse Industry Performance Returns, improve criminal probity screening, detect anomalies within regulatory submissions and support internal decision-making. Still, MGA insists AI is intended to improve and not replace human judgement, as all automated findings are still subject to regulatory review.
The regulator also implemented machine learning models to improve compliance monitoring, automated risk indicators across regulatory datasets and expanded its use of data-driven supervision to properly identify emerging risks.
The technological transformation comes as gambling regulators across Europe face increasingly complex international licensing structures, tighter anti-money laundering expectations and rapidly evolving digital products.
Gaming Remains Central to Malta’s Economy
Despite growing regulatory demands, Malta’s gaming sector still expanded its economic contribution last calendar year.
According to the report, the industry generated an estimated €1.42 billion in Gross Value Added, a 3.5% increase from 2024, while accounting for approximately 6.3% of Malta's GDP. It was reported that gaming contributes around 8.2% to the local economy.
Employment also continued to grow, with the MGA estimating the sector now supports around 19,150 jobs across Malta. Companies holding MGA licences directly employ more than 15,000 people, representing a 4.8% increase compared with the previous year.
These gains were achieved despite continued consolidation within the licensing landscape. Active gaming licences declined from 323 in 2024 to 311 in 2025, while the number of licensed companies fell to 302.
The regulator explains the reduction by the tighter regulatory standards, consolidation among operators and increasingly sophisticated international licensing strategies rather than any weakening of Malta’s appeal.
B2B Sector Drives Licensing Growth
One of the report’s strongest pieces is the expansion of the business-to-business gaming sector.
In 2025, MGA got 38 new licence applications, which were up from the 28 a year earlier, and issued 19 new licences. Of those applications, 24 related to B2B businesses, while 12 of the licences ultimately issued were also B2B operators.
Since the MGA reformed its licensing framework in 2018, the number of Critical Supply B2B licences has risen from 68 to 171, meaning technology suppliers, platform providers and infrastructure companies now account for more than half of all online gaming licences issued by the Authority.
MGA Chairperson Ryan Pace said Malta’s position within the global gaming industry is evolving alongside changing business models.
“As the industry continues to evolve, new business models are emerging, and Malta's role as a hub for international B2B gaming businesses continues to strengthen,” Pace said.
Instead of seeking only license volume, the regulator says it’s focused on attracting financially resilient companies capable of meeting higher governance, capital and compliance standards.
Online Casino Revenue Cements Dominance
The report also looks into changing trends within MGA licensed casinos. Casino products still dominate revenues, as they account for 78.9% of total B2C gaming revenue during 2025, up by roughly nine percentage points compared with the previous year.
Sports betting experienced the opposite trend, with its revenue share falling to 14.5% from 25.6% in 2024. The MGA attributed much of the decline to regulatory changes in overseas markets and the continued adoption of point-of-consumption licensing models that increasingly require operators to obtain local licences in regulated jurisdictions.
Meanwhile, pool betting increased its share of revenue from 4.6% to 6.6%, although it remains a comparatively small segment of the market.
Compliance Activity Remains Extensive
Overall, licensed operators submitted 280 suspicious betting reports to the MGA, while the MGA returned 192 integrity alerts to operators after its own investigations into potentially irregular betting activity.
The regulator also completed 15 full-scope compliance audits, processed 3,718 requests for regulatory assistance and investigated 109 websites suspected of falsely claiming affiliation with the MGA or licensed operators. Forty-two of those websites were found to contain fraudulent references.
