Legal Notice 409 of 2017, the “Gaming Licence Fees Regulations”, has amended the Remote Gaming Regulations (S.L. 438.04). The Regulations bring into force as from 1st January 2018, a reduction of fees for Type 1 games, along with a 1-year exemption on compliance contributions for start-ups, amongst other changes. Fees due by Type 2, Type 3 and Type 4 licensees remain unaffected.
Type 1 licence holders refers to: Games of chance played against the house, the outcome of which is determined by a random generator, and includes casino type games, including roulette, blackjack, baccarat, poker played against the house, lotteries, secondary lotteries and virtual sports games.
Following these amendments, the fees (Compliance Contributions) for Type 1 licensees are set out as follows:
|For every euro of the first €3,000,000||1.25%|
|For every euro of the next €4,500,000||1%|
|For every euro of the next €5,000,000||0.85%|
|For every euro of the next €7,500,000||0.7%|
|For every euro of the next €10,000,000||0.55%|
|For every euro of the remainder||0.4%|
The minimum Compliance Contribution payable in any one period shall be €15,000, while the maximum shall be €375,000.
The fixed licence fee for Type 1, Type 2 and Type 3 licensees has been fixed at €25,000, while that for operators providing solely Type 4 gaming services, the licence fee has been fixed at €10,000.
A transitory period is envisioned for current licensees to continue paying in accordance with the current regulations up until 30th June 2018 making the new licence fees effective as of 1st July 2018. New licensees will be subject to the requirements of the New Regulations and new set of Compliance Contributions, even during the said transitory period.
For current licensees, a reconciliation will be carried out to calculate the difference between the fees paid under the old regulations for the first six months of 2018 and the fees to be paid for the remaining six months under the new regime.
Any excess provisional payments made by licensees will be carried forward and available for set-off through a tax credits equivalent. Licensees that would have paid less than the amounts due are then required to pay the difference by 20th October 2018.
Ultimately, the new gaming license fees regulations will be fully applicable as of 1st January 2019.
Disclaimer: This article is not intended to impart advice and readers are asked to seek verification of statements made before acting on them.