Malta may be one of the smallest countries in Europe, however, this hasn’t diminished its ambitions to become an economic powerhouse. Currently, Malta is in the top 30 richest countries in the world, with the GDP per capita ranking 23rd, as per Global Finance Magazine. But if you’re wondering what the key sectors are propelling our economy, make sure to keep reading.
The rise of igaming
Even a couple of decades ago, we couldn’t have imagined how our humble archipelago would turn into an iGaming haven. This didn’t happen due to a sudden stroke of luck, instead, it was thanks to strategic foresight with the early adoption of clear legislation back in 2001, the lotteries and other games act. This was the same year when the Malta Gaming Authority (MGA) was set up.
Another important factor to consider is that Malta has two official languages, Maltese and English. This marks it as one of the top English-speaking countries in the whole of Europe, making it an attractive option for expats.
Moreover, as per Maltese law, online casino operators get to pay lower taxes compared to other nations, ensuring that these companies keep more of their profits. Along with this, the government has added additional incentives for these businesses, such as reduced license fees.
As per the latest available data, iGaming contributes approximately 12% to the country’s GDP. In addition, it has employed around 12,400 individuals, which is close to 5% of Malta’s workforce.
If you’re not familiar with the industry in question, it encompasses any form of online gambling. For instance, playing online poker for real money would fall under the aforementioned umbrella term. This would encompass any variant, including live games of poker, where players get to enjoy a session with a live human dealer, as well as the classic Omaha and Texas Hold’em. This genre is quite popular in the iGaming sector as a whole, as it lures players in with generous welcome bonuses, amounting to up to $1,500 as a first-time promotion, distributed between poker and other casino games.
The online poker sector has been rapidly growing in the past two decades due to its advantages. For starters, the convenience and accessibility have made it an exceptional alternative to brick-and-mortar establishments. Online casino platforms are typically available on multiple devices, plus they operate 24/7, allowing players to enjoy whichever game they want at any hour of the day.
Plus, the payment methods available for poker are very diverse, ranging from traditional to cutting-edge. For instance, options like credit/debit cards hold widespread appeal on casino platforms. And cryptocurrencies are gaining momentum thanks to the added benefits of faster transactions and lower fees, leading to the emergence of crypto poker.
But all of the above would be moot without proper licensing, as it is the stamp of approval from authorities like the MGA that establishes the trustworthiness of an iGaming platform. This is due to the fact that their main duties include safeguarding player rights, quality-checking the games and their providers, and ensuring they remain on top of any regulatory and technological advancements.
The booming tourism sector
There are not many places in the world that warrant the title of hidden gem quite as much as Malta does. Nestled in the middle of the Mediterranean, we can be an underrated vacation spot when compared to some other European countries.
However, this is rapidly changing, as evidenced by the fact that in 2023 a record-breaking number of tourists visited the island. The main demographic visiting Malta is between 25 and 44 years old, making up around 39% of all tourists. This is not surprising, as Malta has been at times touted as the party capital of Europe, attracting younger partygoers mainly from Italy and the UK.
Here, visitors can visit a wide variety of clubs in Paceville, the nightlife heart of Malta. Moreover, the island’s casinos have also been gaining plenty of traction. And there are multiple festivals that hold worldwide acclaim, such as Glitch, SummerDaze, and Isle of MTV.
Boat parties also play a major role in the island’s party scene. Most recently, Party on the Rock Malta managed to host a highly successful sunset boat party with the collaboration of Matt McGuinness, also known by his content creator tag of OutcastMatt.
However, as per the Tourism Minister, Clayton Bartolo, the current plan is to attract high-quality tourists by improving the sector in question. This has led to the institution of the controversial skills cards for restaurants and hotel owners to guarantee they provide better services. This addition would require third-country nationals (TCNs) to undergo a skills pass training and testing to obtain a work permit that grants them the ability to work in this sector on the island.
As it stands, 2024 is steadily set to exceed the record held by 2023, with the first five months of the year experiencing a 24% increase in tourist arrivals. This marks Malta’s tourism growth post-pandemic as one of the highest in the EU.
Conclusion
Our humble rock has quickly turned into a hub for iGaming while managing to drastically improve an already successful tourism sector. While we can expect plenty of challenges along the way, the future of our country is set to be a bright one as long as we keep sustainability in mind.
