## Malta’s Good Bet

_IMF Blog, May 7, 2018_

## Source details

**Canonical URL:** [Malta’s Good Bet](https://www.imf.org/en/blogs/articles/2018/05/07/maltas-good-bet)

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## Bibliographic details
- Authors: The Editors
- Published: May 7, 2018

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### Overview
- Malta has become a hub for gambling and betting companies, with the sector accounting for a larger part of the economy than in any other EU member state.
- The gambling and betting boom has contributed to the country’s trade balance and job creation, while exposing a skills shortage and infrastructure gaps.

### Economic performance
- Malta experienced nearly 6.5 percent of average GDP growth between 2013 and 2016.
- The economy has reoriented toward the services sector as it expanded.

### Size and growth of the gaming sector
- Gaming industry accounted for almost 12 percent of Malta’s total gross value added in 2016.
- The share of gaming in Malta’s gross value added grew by 9 percentage points between 2004 and 2014.
- By 2016, gaming firms and related businesses provided around 4.4 percent of Malta’s full-time equivalent jobs, with healthy increases in wages.
- The services trade surplus surged to 30 percent of GDP from about 12 percent of GDP in 2004, largely owing to strong gaming exports.

### Competitive advantages and origins of the sector
- Malta pioneered regulation of the online gaming industry among EU member states in 2004, attracting firms from countries such as Sweden and Austria.
- Licensing policy favored multiple private enterprises rather than state-owned gaming monopolies.
- Additional advantages cited: English-speaking population, business-friendly tax regimes, and political stability.

### Money laundering and regulatory response
- Malta has recently adopted new rules to make online gambling and betting firms fully subject to EU anti-money laundering requirements.
- New measures include transparency in the ownership of companies and cooperation among national financial intelligence units.

### Challenges and policy responses
- Digital skills shortage: about 67 percent of employees in online gambling and betting firms are foreigners.
- Consequences of rapid expansion:
  - Newly arrived software developers, specialized lawyers, and senior managers face rising housing rents.
  - Companies have trouble finding modern office space.
  - Transport congestion has worsened.
- Policy measures Malta is pursuing to sustain growth prospects:
  - Improving education and training for its workforce.
  - Revamping infrastructure.
  - Strengthening innovation on the island.

*Source: The Editors, May 7, 2018 — Malta’s Good Bet (IMF blog).*

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## References

- [https://www.imf.org/wp-content/uploads/2018/05/BLOG-1024x600-CoTW-Malta-boats-at-dock-Andrey-Danilovich-gettyimages-iStock-629355456.jpg](https://www.imf.org/wp-content/uploads/2018/05/BLOG-1024x600-CoTW-Malta-boats-at-dock-Andrey-Danilovich-gettyimages-iStock-629355456.jpg)
- [IMF paper](http://www.imf.org/en/Publications/CR/Issues/2018/01/29/Malta-Selected-Issues-45591)
- [https://www.imf.org/wp-content/uploads/2018/05/eng-march-7-cow-malta-gaming.jpg](https://www.imf.org/wp-content/uploads/2018/05/eng-march-7-cow-malta-gaming.jpg)

_Source: https://www.imf.org/en/blogs/articles/2018/05/07/maltas-good-bet_