Malta Wants to Reduce Payout Ratio

In the meantime, online gambling has been regulated and found to be legal in almost all European countries. As pleasing as this is for both players and providers, legalization brings with it many problems. One of the planned changes is that the Maltese gambling authority wants to reduce the payout ratio.

Legalization Leads to High Costs

The legalization of online gambling entails huge costs.

Many regulators set a fee to cover the cost of licensing. Furthermore, gambling operators must pay for the license: in Greece, for example, two million euros are incurred for casino games and three million euros for a gambling license.

Apart from this, the gambling providers must make technical changes to comply with the regulations of the respective legislation.

In some countries, the process is similar to Ireland and existing gambling providers also must make changes to their software.

This is also associated with considerable costs.

Furthermore, a relatively high gambling tax is incurred in each country.

Newly licensed providers in Greece must pay 35 percent tax.

In Ireland, the tax has been set at 5.3 percent.

However, the problem here is that the tax is calculated on the stakes.

All these costs are supposed to be partially offset by adjusting the payout ratio downwards.

Difference Between On-Site Casinos and Online Casinos is Too High

The Malta Gaming Authority has mentioned another reason why the payout ratio should be reduced: The difference between the payout ratios set by on-site casinos and the payout ratio of online casinos.

Apparently, the reason for the high popularity of online casinos is their high payout ratio.

To achieve justice here and make the competition fairer, the quota should be lowered.

Currently, there is usually a payout ratio of 92 percent.

This is to be lowered to 85 percent.

For the players, this means a substantially smaller profit. The hope lies with the Maltese Gambling Authority's comment that online casinos are allowed to be relatively flexible.

It was suggested that the casinos can adjust the quota to the competition.

Again, this would contribute to fairness if all online gambling operators offer the same odds.

If this were not the case, everyone would naturally reach for the casinos that offer the highest odds.

All other providers would lose out in this case.

MGA Reaps Opposition and Encouragement

It will hardly surprise anyone that opposition can be heard from many sides.

Many rightly fear that players will migrate to illegal providers.

These do not have to comply with the new and lower payout ratio.

As a rule, they do not pay any tax and basically generate a higher profit.

Thus, the unlicensed providers can afford to offer a higher quota.

At this possible consequence, the Maltese regulatory authority reaps some criticism.

Likewise, many players are already not enthusiastic.

Even more surprising is the fact that nevertheless some players, industry experts, and companies agree with the lowering of the payout ratio.

The companies are the only ones to benefit from a lower quota, as they partially offset the high additional costs, as envisaged by the MGA.

However, why players also agree to this is beyond anyone's comprehension.

Fortunately, it is so that the payout ratio is not changed from now on.

It may still take a few weeks or even months before the new quota becomes valid.

Casinoble Author Roman Vogdt

Roman Vogdt

Roman is of the head authors at Casinoble. Roman Vogdt is an experienced iGaming expert, having worked closely with the best gambling sites over the years, before settling down to become part of Casinoble. Thanks to his interest in technology, gaming, and sports, he's always one step ahead. Be it mobile experiences, the best and latest games, everything involving sports betting, or other iGaming features, Roman loves sharing his thoughts and knowledge to make the online community more exciting.

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