Betting Company Registration: Choosing a Jurisdiction and Legal Aspects

The gambling industry, particularly betting, is one of the most dynamic and profitable sectors worldwide. However, to operate successfully in this space, a company must be registered in a jurisdiction that permits gambling activities and must obtain the appropriate license. The choice of jurisdiction directly impacts the company’s tax obligations, financial reporting requirements, access to payment systems, and ability to operate internationally without restrictions.

Each country has its own regulatory framework for gambling. Some, like the United Kingdom and the United States, impose strict regulations. Others, such as Costa Rica, Cyprus, Bulgaria, and Malta, offer more flexible conditions for betting operators. Nonetheless, the key factors in selecting a jurisdiction remain the stability of its legal system, registration costs, minimum share capital requirements, and the cost of obtaining a license.

For many years, we’ve been helping clients turn ambitious ideas into legitimate gambling businesses in Ukraine and abroad. In this article, we’ll share our expertise, explore some of the most popular jurisdiction options, and walk through the company registration process using Malta as an example.

You might also like: How to Register a Company in Malta

Choosing the Optimal Jurisdiction: Popular Destinations for Registering a Betting Company

Selecting the right jurisdiction is one of the most important decisions when establishing a betting company. As mentioned earlier, it directly affects the level of taxation, legal obligations, access to banking services, and the ability to work with international payment systems.

What should you consider when choosing a country to register a betting company? The following key criteria are worth paying attention to:

• Legality of gambling activities: whether online betting and gaming are legally permitted in the jurisdiction.
• Minimum share capital requirements: the amount of funds the company must have in its account to begin operations.
• Licensing procedure: whether the licensing process is lengthy or complex.
• Tax conditions: corporate tax rates and any available tax incentives or benefits.
• Jurisdiction’s reputation: how reliable and trustworthy the country is perceived to be by financial institutions.

Each of these factors plays a vital role in shaping your company’s overall strategy. Making an informed decision when choosing a jurisdiction can significantly impact your ability to adapt to changing market conditions, mitigate risks, and enhance your competitiveness. Therefore, if you’re planning to enter the betting industry, it’s essential to thoroughly examine all relevant aspects and consult with experts in the field.

Key Requirements for Registering a Betting Company in Malta

Let’s take a closer look at one of the most popular jurisdictions for registering betting companies—Malta, known for its favorable tax regime and stable financial system. The process of setting up a company here involves several key steps.

1. Choosing the Company Type

In Malta, several types of legal entities can be registered, but the most suitable structure for a betting business is a private limited liability company (Ltd). This is the most flexible option and limits shareholders’ liability to the amount of their capital contributions.

2. Registering the Company with the Business Registry

The registration process begins with verifying and reserving a unique company name through the Malta Business Registry (MBR). The company name must end with the word “Limited” or the abbreviation “Ltd”.

Next, you shall prepare and submit the incorporation documents, including:

• Memorandum and Articles of Association
• Details of shareholders and directors (passport copies and proof of residential address)
• Registered office address (must be located in Malta)

If any of the shareholders is a legal entity, a BO1 form must also be submitted.

The minimum share capital for a private limited company (Ltd) in Malta is €1,165, of which 20% must be paid before registration. For public limited companies (Plc), the requirement is significantly higher and stands at €46,588, with 25% of the amount required to be paid upon registration.

A company must have at least:

• One director (can be an individual or a legal entity; there are no residency requirements)
• One shareholder
• A company secretary (mandatory for private companies)

The registration process typically takes about one week from the time all documents are submitted.

3. Obtaining a Tax Identification Number

Once the company is registered, it must be entered into the tax system and obtain a Tax Identification Number (TIN). If the company intends to engage in activities subject to VAT, it must also register as a VAT payer. VAT registration is mandatory if the annual turnover exceeds €35,000.

4. Opening a Corporate Bank Account

The next step is opening a corporate bank account with a Maltese bank for the betting company. This can be a challenging process due to strict compliance requirements. To open the account, the following documents are required:

• Certificate of incorporation
• Company’s constitutional documents (Memorandum, Articles of Association)
• Details of shareholders and directors

To successfully register a company in Malta, it is also essential to take into account licensing requirements, which enable operators to work in international markets. We will explore this topic in more detail in the following section.

You might also like: Website Requirements for Online Casinos in Ukraine

Gambling License: Licensing the Betting Business in Malta

Malta is one of the most sought-after jurisdictions for obtaining a gambling license due to its strong reputation, stable legal framework, and membership in the European Union. The licensing process is overseen by the Malta Gaming Authority (MGA), which enforces clear standards and requirements for operators in the gambling industry.

The MGA issues B2C (Business-to-Consumer) licenses, which allow companies to offer gaming services directly to consumers. For betting companies, the Class 2 license is the relevant type, designed specifically for sports betting operators. This license applies to businesses offering online sports betting, including both fixed-odds and spread betting.

General Licensing Requirements:

• Minimum share capital: €100,000
• License fee: €5,000 (one-time payment)
• In Malta, it is required to pay an annual license fee and a compliance fee, which can range from €25,000 to €600,000.

The licensing process can take anywhere from 4–5 months to up to 12 months. The completeness and accuracy of the submitted documentation can significantly affect the processing time.

To successfully obtain a betting license, it is crucial to collaborate with local professionals. This includes tasks such as auditing financial statements and ensuring the software is compliant with regulatory standards.

Legal and Technical Requirements:

• Submission of a complete set of documents proving the company’s financial stability.
• Compliance of software and technical infrastructure with MGA requirements.
• Commitment to transparency and adherence to jurisdictional standards.
• Annual license renewal and fee payment.
• Adherence to all MGA regulations, including regular audits and inspections.

These requirements are mandatory for obtaining a license and operating successfully in the betting industry in Malta.

You might also like: Requirements for Hotel Premises for Casinos or Slot Machines

Legal Assistance in Establishing a Betting Business

When starting a betting business, it is crucial to not only choose the right jurisdiction but also to have an experienced team to guide you through every step of the process. Our law firm offers comprehensive support, allowing you to focus on expanding your business internationally rather than handling legal and administrative matters. We assist with company formation, licensing, and ensuring compliance with local regulations, so you can operate seamlessly in the global market.

How We Assist:

1.  Consultation and Jurisdiction Selection: We assess your business objectives, target market, and financial capacity to select the most suitable jurisdiction for licensing. We compare key jurisdictions based on capital requirements, fees, and tax rates, helping you structure your company and minimize tax burdens.

2.  Betting Company Registration: We manage the entire company registration process in your chosen jurisdiction. We prepare and submit all required documents, assist with opening a corporate bank account, and draft the company’s constitutional documents in line with local regulations.

3.  Obtaining a Gambling License: We ensure the preparation of all necessary documentation for obtaining a betting license. We guide you through regulatory inspections, coordinate audits and software compliance checks, and handle all administrative procedures.

By choosing Pravovs Dopomoga Law Firm, you gain more than just legal support. You get a partner who understands the specifics of your business and will help you navigate every step smoothly.

Contact us today to learn more about licensing opportunities and how we can assist in registering your company abroad!