Although much of the gambling industry’s attention is focused on UK budget announcement, changes introduced in Malta earlier this week could also have a significant impact on the sector.
Presented on 26 October by Finance Minister Clyde Caruana, the budget includes cuts to benefits available to third-country nationals (TNCs) — foreign nationals residing in Malta who are not citizens of European Union member states.
In particular, the initial fee for applying for a work permit for this category of foreign workers will increase from €600 (approximately $671) to €800 (approximately $894).
In addition, TNCs will be required to pay an annual infrastructure contribution of €400 (approximately $447). Drivers using category B or B1 driving licences issued outside the EU will also face a monthly fee of €83 (approximately $93).
Further restrictions will affect those who have lived in Malta for less than five years. They will no longer be entitled to free public transport or childcare services. As a result, the financial burden on foreign workers and their families will increase.
The government expects the measures to boost public revenue and reduce the country’s reliance on foreign labour. However, business associations and trade unions have warned of potential negative consequences, including higher recruitment costs for employers and reduced disposable income for workers.
The changes could have a particularly significant impact on the gambling industry, as Malta is one of Europe’s leading iGaming hubs. The island is home to offices of major international companies, including Betsson, Flutter and Entain.
The new legislative provisions could create additional barriers to employing foreign specialists and increase companies’ staffing costs. This could affect a sector that generates €1.4bn (approximately $1.56bn) in gross value added for the Maltese economy each year, accounting for 6.3% of the country’s total economic output.
According to the MGA’s 2025 annual report, 15,039 people are employed across 302 companies licensed by the regulator in Malta’s gambling sector.
Malta’s Bill 55 Faces Legal Uncertainty
Alongside the budgetary reforms, Maltese gambling operators also risk losing some of the legal protections established under Article 56A of the Maltese Gaming Act, commonly known as Bill 55.
The provision is designed to protect operators by allowing Maltese courts to refuse recognition and enforcement of foreign court rulings. In particular, it applies to situations in which companies offer gambling services in other EU countries without obtaining a local licence.
The application of Bill 55 has repeatedly drawn criticism from industry stakeholders. One of the most controversial issues concerns claims for refunds of losses by players who used the services of Malta-licensed operators in markets such as Germany before national regulations were introduced.
The Court of Justice of the European Union (CJEU) is scheduled to deliver its judgment on the legality of Bill 55 on 19 November. Available indications suggest that the ruling could go against the Maltese legislation.
In several cases involving the application of Article 56A by Maltese courts, the CJEU has already indicated that the legislation of the country where players were residing at the time they placed their bets takes precedence over Maltese law.
If the CJEU confirms that Bill 55 cannot override the national legislation of other countries, this could undermine the legal protections currently available to licensees of the Malta Gaming Authority (MGA).
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