The Malta Gaming Authority (MGA) has begun to “pivot towards smarter AI-led regulation of gambling licences (B2C and B2B)”, reflecting the current and future developments shaping one of Malta’s most important industries and its workforce.

The message leads the 2025 Annual Report of the MGA and its directive to “lean on smarter regulation” to create a better, safer and more sustainable regulatory environment for existing and future licence holders operating from Malta.

The 2025 accounts underline the economic importance of the sector, with Malta’s gaming industry generating €1.42bn in Gross Value Added (GVA), up 3.5% on 2024 and accounting for 6.3% of Malta’s GDP. Including wider multiplier effects, gaming contributes an estimated 8.2% to the Maltese economy.

Employment across the sector has continued to grow, with the MGA estimating that gaming now supports approximately 19,150 jobs, while companies holding MGA licences directly employ more than 15,000 people in Malta.

These positive fundamentals have been maintained despite a reduction in active licences from 326 in 2023 to 311 in 2025, which the Authority attributes to greater market consolidation and higher regulatory expectations placed on licensees.

B2B at Play

Though B2C licence numbers have gradually declined to 131, the report points to a markedly different trend in the B2B segment, where Malta is increasingly establishing itself as Europe’s leading regulatory jurisdiction for gaming technology and critical supply businesses.

The number of B2B Critical Supply Licences has risen from 68 in 2018 to 171 in 2025, meaning B2B businesses now account for more than half of all online gaming licences issued by the Authority. The MGA states that the growth reflects the success of the comprehensive licensing reforms introduced in 2018, which were specifically designed to facilitate international B2B businesses.

The momentum also continued throughout 2025. Of the 38 new gaming licence applications received by the MGA, 24 related to B2B authorisations, while 12 of the 19 licences issued during the year were also B2B operators. Renewal activity followed a similar pattern, demonstrating continued investment by technology suppliers, platform providers and infrastructure companies in Malta’s regulatory framework.

Rather than pursuing licence volume, the Authority emphasises the quality of businesses entering the jurisdiction. It notes that Malta continues to attract established operators with strong financial fundamentals and specialised expertise, while placing increasing emphasis on financial resilience, governance and long-term sustainability.

The report highlights that regulatory oversight has become increasingly evidence-led, supported by enhanced due diligence, strengthened AML and counter-terrorist financing supervision, improved risk assessments and the introduction of a new Capital Requirements Policy requiring operators to maintain positive equity positions. Collectively, these measures are designed to ensure that only financially resilient and well-governed businesses continue operating under the Maltese licence.

MGA Chairman Ryan Pace said Malta’s position was evolving to new dynamics – “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 added that efforts to streamline licensing, improve administrative efficiency and maintain alignment with recognised international standards were helping create “a more efficient and accessible environment for legitimate operators.”

Prediction Markets on the wish list

The Chairman also acknowledged that innovation would continue to challenge regulators, highlighting prediction markets as an area receiving increasing international attention.

“Prediction markets have recently attracted increased attention across several jurisdictions,” he wrote, noting that while they are not new, their growing visibility demonstrates the need for regulators to remain aware of products that increasingly sit alongside traditional gambling markets.

Throughout the report, the Authority frameds 2025 as the beginning of a broader strategy centred on “Smarter Regulation”. Rather than increasing regulatory burden, the MGA intends to become more agile through greater use of artificial intelligence, enhanced data analytics and risk-based supervision, allowing regulatory resources to be focused where they deliver the greatest impact.

Chief Executive Charles Mizzi said the Authority had already begun deploying AI tools to improve regulatory analysis, workflows and decision-making while ensuring the technologies are used responsibly and under appropriate governance.

Looking ahead, Mizzi said Malta would continue investing in its people, technology and regulatory capabilities to reinforce its position as a jurisdiction of establishment for international gaming businesses.

“Smarter regulation is not simply about responding to change; it is about anticipating it, applying sound judgement, and ensuring that regulation continues to create confidence for everyone it serves.