Malta’s iGaming Report: Betsson, Evolution, Kindred & LeoVegas in a Legal Crisis

Malta’s iGaming Industry: A Report on Key Companies, Industry Influence, and Strategic Success in a Shifting Regulatory Landscape

Malta has successfully established itself as a preeminent global hub for the iGaming industry, a position secured by a potent combination of early regulatory innovation, a business-friendly environment, and a specialized corporate ecosystem.

This report provides a detailed analysis of the island’s most influential iGaming companies, exploring the strategic pillars that have driven their success. However, it also highlights the profound legal and regulatory challenges that are poised to test the industry’s stability.

The industry’s influence on the Maltese economy is immense, contributing a significant portion of the nation’s Gross Domestic Product (GDP).

This report profiles four of the most significant companies operating from Malta: Betsson Group, Evolution Gaming, Kindred Group (now FDJ United), and LeoVegas (a subsidiary of MGM Resorts). These corporate profiles reveal that success is not accidental but is built on distinct strategic foundations, including aggressive mergers and acquisitions, a relentless focus on technological innovation, and a commitment to fostering a strong corporate culture to attract top talent.

The central finding of this report is that Malta’s success is currently balanced on a knife’s edge. The government’s introduction of a controversial law, known as “Bill 55,” designed to protect its licensed operators from foreign lawsuits, has triggered a formal infringement procedure by the European Commission.

The outcome of this legal clash, which hinges on a critical case before the European Court of Justice (CJEU), could expose operators to vast financial liabilities and potentially erode Malta’s reputation as a stable jurisdiction. This report concludes that while the foundational pillars of the industry remain strong, future success will be defined by the ability of both operators and the Maltese authorities to navigate a complex and evolving legal environment with proactive, rather than reactive, strategies.

Malta’s Role in the Global iGaming Ecosystem: A Strategic Overview

The Genesis of a Gaming Hub: A First-Mover Advantage

Malta’s journey to becoming a global iGaming hub began with a pivotal strategic decision that provided it with a crucial first-mover advantage. In 2004, the island nation became the first EU member state to establish a comprehensive framework for regulating the remote gaming industry.

This pioneering move proved to be a powerful magnet, attracting a significant influx of investors and operators, particularly from nations like Sweden, Austria, and the UK, which were seeking a stable, forward-thinking regulatory home for their burgeoning digital businesses. This regulatory foresight has since served as a key pillar of Malta’s long-term dominance in the sector.

At the heart of this success is the Malta Gaming Authority (MGA), which has evolved into a flagship regulatory body. Its licensing system and regulatory framework have not only provided a credible operating environment for companies but have also become a common point of reference for other jurisdictions seeking to develop their own gaming laws. The MGA’s emphasis on player protection and stringent anti-money laundering (AML) protocols has been instrumental in building a reputation for credibility and integrity within a heavily scrutinized global industry.

The Economic Engine of the Maltese Economy

The iGaming industry is not merely a sector of the Maltese economy; it is a fundamental pillar. Financial data underscores its systemic importance, with the industry contributing a staggering 12% to 13.6% of Malta’s Gross Domestic Product (GDP), a figure that has been reported for both 2019 and 2023. This impressive contribution highlights the industry’s role as a major economic engine for the island nation.

The industry’s influence extends far beyond its direct revenue. It has generated a powerful multiplier effect, fostering a robust and specialized ecosystem of ancillary service providers. These include legal firms, financial service providers, IT companies, and recruitment agencies, all of which cater specifically to the iGaming sector. This concentration of expertise is highlighted by firms like CSB Group, which specialize in assisting gaming companies with everything from licensing and tax advisory to company incorporation. Furthermore, Malta has become a nexus for major industry events and conferences, such as SiGMA. These gatherings attract thousands of delegates from around the world, stimulating local tourism and the events sector and further embedding the industry within the broader national economy.

The significant reliance of the Maltese economy on the iGaming sector creates a complex dynamic. This economic dependency is the primary reason the government has taken aggressive legal steps, such as the introduction of Bill 55, to defend the industry. This is not simply a legal debate but a high-stakes political and economic maneuver to safeguard a core national asset. The depth of this reliance means that the government’s actions, while intended to protect the industry, also put it at odds with the broader EU legal framework, thereby potentially jeopardizing the very industry it seeks to protect. This tension between national economic self-preservation and EU legal principles is a defining characteristic of Malta’s current position.

Strategic Pull Factors for Corporate Relocation

Several strategic advantages have made Malta an ideal location for iGaming companies. One of the most significant is the island’s business-friendly fiscal environment. The effective corporate tax rate for foreign companies, including iGaming businesses, can be as low as 5%, which is a powerful financial incentive and a substantial competitive advantage compared to other jurisdictions with far higher tax burdens. This low taxation, combined with a robust technological infrastructure that includes high-quality telecommunications and secure data centers, ensures that business operations are both financially viable and technologically sound.

Beyond fiscal and technical infrastructure, Malta’s strength lies in its human capital. The country benefits from a growing pool of local and international talent specializing in iGaming, a resource that can be more limited in other countries. The presence of numerous iGaming companies has created a vibrant, self-sustaining community, providing extensive networking and partnership opportunities that are less prevalent in jurisdictions with smaller iGaming sectors.

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Corporate Profiles of Malta’s Most Influential iGaming Companies

Betsson Group: The Multi-Brand Powerhouse

As a global powerhouse listed on Nasdaq Stockholm, Betsson Group has its operational headquarters in Ta’ Xbiex, Malta, a clear testament to the island’s central role in its global operations. With a rich history spanning over 60 years, the company has grown into a multi-national entity employing approximately 2,700 people from over 70 nationalities across 21 countries. Notably, roughly half of its total workforce is based in Malta, underscoring the island’s operational importance. The company’s influence is extended through a portfolio of more than 20 brands, including the globally recognized Betsson, Betsafe, and NordicBet.

Betsson’s success is underpinned by a strategic focus on its proprietary technology platform, which serves as the core of its business model. This in-house developed platform provides the flexibility to support an extensive portfolio of over 6,000 games and a robust sportsbook. The company’s strategy is to leverage this platform to combine a global brand presence with local market adaptations, allowing it to satisfy consumer demand in diverse international markets. This approach has earned Betsson widespread industry recognition, including “Casino Operator of the Year” and “Sports Betting Operator of the Year” awards at the SBC Awards. A further demonstration of its commitment to quality and security is its ISO27001:2022 certification, which reinforces its reputation as a trusted and responsible operator.

Evolution Gaming: The Live Casino and Content King

Evolution is a premier B2B provider of online casino content and a dominant force in the iGaming ecosystem, with a significant operational presence in Malta. The company operates on a massive scale, employing over 22,000 people globally across its various studios in Europe and the Americas. Evolution’s strategic model is a masterclass in industry consolidation through strategic mergers and acquisitions. Its growth has been fueled by a series of key acquisitions, including Ezugi in 2018, followed by NetEnt and Red Tiger in 2020, and Big Time Gaming in 2021. This has allowed Evolution to create an unparalleled portfolio of B2B content, securing its dominance in the live casino market while also expanding into high-performing RNG slots.

The company’s influence is profound, as its brands provide a diverse range of gaming solutions to leading online casinos worldwide. Its flagship brand, Evolution, is synonymous with innovation and quality in the live casino vertical, offering a constant stream of new, interactive game shows and titles. Its portfolio includes market-defining games like Lightning Roulette, Crazy Time, and MONOPOLY Live, which are broadcast live 24/7 from its state-of-the-art studios. Evolution’s technological leadership has been consistently recognized, earning it the “Live Casino Supplier of the Year” award for an unbroken streak of 11 years as of the 2020 award date. The company’s ability to consistently innovate and expand its product offering through a synergistic M&A strategy has cemented its status as a “powerhouse” in the iGaming industry.

Kindred Group (FDJ United): Navigating a New Corporate Era

Kindred Group, with operational offices in Ta’ Xbiex and St Julian’s, has long been a leading independent online gaming operator with a portfolio of well-known brands such as Unibet and 32Red. The company entered a new corporate era in late 2024 when it was acquired by the French gaming and lottery giant FDJ (Française des Jeux) in a significant €2.5 billion deal. Following the acquisition, Kindred now operates as part of the new FDJ United group, with its former CEO, Nils Andén, taking on the dual role of Kindred’s CEO and Chief Online Betting and Gaming Officer for the parent company.

Kindred’s competitive advantage was historically rooted in its internally developed proprietary sportsbook platform (KSP). While it has been an influential and respected operator, noted for its commitment to social responsibility as recognized by the “Social Responsibility of the Year Award” at the Global Gaming Awards London 2023 , the post-acquisition period has not been without its challenges. According to FDJ United’s H1 2025 financial reports, Kindred’s revenue experienced an 11.5% year-on-year dip, a downturn attributed to difficult comparisons with a record-setting 2024 and ongoing regulatory headwinds in key European markets such as the UK and the Netherlands. This situation demonstrates that even for major players, the path of corporate consolidation is fraught with complexity, and success requires more than just a change in ownership.

LeoVegas (MGM Resorts): The Mobile-First Innovator

Founded in 2011 by Gustaf Hagman and Robin Ramm-Ericson, LeoVegas carved out its niche by pioneering a “mobile-first” strategy at a time when most competitors were still focused on desktop platforms. This strategic foresight positioned the company at the forefront of the smartphone revolution, earning it numerous accolades, including “Online Casino of the Year” and “Mobile Operator of the Year” awards. The company’s main operational offices are located in Sliema, Malta.

In 2022, LeoVegas was acquired by US casino giant MGM Resorts International for approximately $607 million, becoming a wholly-owned subsidiary. This acquisition was a clear indicator of the company’s value and influence, as it now serves as a central component of MGM’s aggressive digital expansion strategy. Under its new ownership, the focus remains on leveraging its mobile expertise to facilitate MGM’s entry into regulated digital markets, including the launch of the BetMGM brand in the UK. The recent step-down of founder Gustaf Hagman after 14 years at the helm and his succession by Mattias Wedar marks a complete transition from its entrepreneurial roots to a corporate-led strategy aligned with its parent company’s global ambitions.

Pillars of Success: A Deep Dive into Strategic Drivers

The Business of Growth: M&A and Strategic Consolidation

The iGaming industry in Malta is characterized by a high degree of strategic consolidation, with mergers and acquisitions (M&A) acting as a primary driver of growth. The acquisitions of Kindred by FDJ and LeoVegas by MGM are not isolated events but are representative of a larger trend where leading companies are expanding their global footprint by absorbing other successful operators.

Evolution Gaming’s business model is a textbook case of a highly effective, synergistic M&A strategy. By systematically acquiring and integrating leading brands like NetEnt, Red Tiger, and Big Time Gaming, Evolution has not only expanded its market share but has also diversified its product portfolio, gained valuable intellectual property, and created a comprehensive, “best-in-class” content offering that serves as a significant competitive moat.

However, the path of corporate consolidation is not without its challenges. The H1 2025 financial reports for FDJ United revealed an 11.5% year-on-year dip in Kindred’s revenue, despite the parent company’s overall growth. The reported downturn, attributed to regulatory pressures and tough comparables, highlights the inherent complexities of integrating a large operator. It demonstrates that M&A, while a powerful strategy for growth, is also a high-risk, high-reward endeavor that requires careful navigation of post-merger challenges to realize its full potential.

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Innovation and Product Specialization

A critical factor distinguishing top iGaming companies is their commitment to technological innovation and product specialization. Companies like Betsson and ComeOn Group have invested heavily in developing their own “full-stack proprietary platforms”. This strategic choice gives them complete control over the user experience, enabling rapid deployment of new features and seamless adaptation to evolving regulatory requirements, which serves as a key differentiator from competitors that rely on third-party platforms.

LeoVegas’s rise to prominence serves as a case study in market disruption through strategic foresight. By focusing on a “mobile-first” approach, it anticipated the burgeoning smartphone market and captured a significant user base, redefining the user experience for on-the-go gaming. This singular focus earned it a reputation as an industry innovator.

Evolution Gaming’s dominance is the result of extreme specialization. By creating and relentlessly innovating within the “Live Casino” vertical, it has established itself as the unquestioned market leader. The company’s ability to consistently produce and stream a constant stream of new, interactive games has made it an indispensable B2B partner for hundreds of operators globally, reinforcing its position at the forefront of the industry.

Corporate Culture and Talent Strategy

In a highly competitive talent market, the most successful iGaming companies have recognized the importance of corporate culture as a strategic asset. Attracting and retaining top talent is a constant challenge, and companies have invested in robust employee-centric strategies to address this.

Companies like ComeOn Group and Betsson have earned prestigious accolades such as “Great Place to Work” and “Employer of the Year” awards, showcasing their commitment to creating a positive and inclusive workplace. Their strategies include providing a good work-life balance through hybrid work models and fostering professional development through internal promotion programs. This focus on culture and employee well-being is not just a soft benefit; it reinforces a company’s brand reputation with players, partners, and regulators, which is a critical intangible asset in a heavily scrutinized industry.

Company Name	Parent Company	Operational Base	Key Brands	Primary Business Model	Core Products/Verticals	Key Acquisitions
Betsson Group	Betsson AB	Ta’ Xbiex, Malta	Betsson, Betsafe, NordicBet	B2C	Online Casino, Sports Betting, Proprietary Platform	TonyBet Group
Evolution Gaming	Evolution AB	Malta	Evolution, Red Tiger, NetEnt, Ezugi, Big Time Gaming	B2B	Live Casino, Live Game Shows, Slots, RNG Games	NetEnt, Red Tiger, Ezugi, Big Time Gaming
Kindred Group	FDJ United	Ta’ Xbiex, St Julian’s, Malta	Unibet, 32Red, Maria Casino	B2C	Online Casino, Poker, Bingo, Sports Betting, Proprietary Sportsbook	N/A
LeoVegas	MGM Resorts Int’l	Sliema, Malta	LeoVegas, BetMGM, Royal Panda, Pink Casino	B2C	Online Casino, Sports Betting, Mobile-First Platform	Royal Panda, Push Gaming, Rocket X, World of Sportsbetting

Company Name	Parent Company	H1 2025 Revenue	H1 2024 Revenue	YoY Change
Kindred Group	FDJ United	N/A (Declined 11.5%)	N/A	-11.5%
FDJ United (Group)	FDJ	€1.87bn	€1.43bn	+30.7%
LeoVegas (Digital arm)	MGM Resorts Int’l	$164m (Q2)	$144m (Q2)	+14%
MGM Resorts (Group)	MGM	$4.4bn (Q2)	$4.31bn (Q2)	+2%

The Regulatory Landscape: Challenges and Future Risks

The Bill 55 Controversy: An Existential Threat?

Malta’s position as an iGaming hub is facing an unprecedented legal challenge. In June 2023, the Maltese government enacted Article 56A, colloquially known as “Bill 55,” a law designed to shield its licensed operators from legal claims and lawsuits filed by players in other EU jurisdictions. This law permits Maltese courts to refuse the recognition and enforcement of foreign judgments that conflict with the legality of services provided under an MGA license.

This protective measure has been met with fierce opposition, particularly from countries like Germany and Austria, where players have initiated thousands of lawsuits claiming that operators lacked local licenses. On June 17, 2025, the European Commission officially launched formal infringement proceedings against Malta, alleging that Bill 55 violates EU law concerning the mutual recognition of civil and commercial judgments.

The fate of Bill 55 is tied to the outcome of a critical case before the European Court of Justice (CJEU), designated as C-440/23, which was referred by a Maltese court. This case seeks to clarify the compatibility of national gambling monopolies with the EU’s principle of the freedom to provide services. An Advocate General’s non-binding opinion, which often signals the court’s direction, was originally expected in July but is now scheduled for release on September 4, 2025. This opinion is being watched closely, as it could set a powerful legal precedent. Legal experts have predicted a “grim outcome” for Malta should the CJEU rule against the law, as it could expose operators to an estimated 50,000 lawsuits in Germany and Austria alone, potentially forcing them to refund hundreds of millions of euros in player losses.

Heightened MGA Oversight and Enforcement

In parallel with the government’s legal battles, the MGA is proactively adapting its regulatory framework in response to growing European scrutiny. The authority has introduced a series of significant changes for 2025, shifting toward a “proactive and data-driven regulatory environment” with a greater focus on risk-based resource allocation and enhanced collaboration with operators.

The MGA’s updated “Supervisory Toolkit” reflects this new rigor. It now includes full-scope inspections, regular supervisory meetings, and “mystery shopping techniques” to assess real-world compliance. Operators are also facing more stringent financial reporting requirements, with new deadlines for both Annual Financial Reports (AFR) and Interim Financial Reports (IFR). This new approach is not merely a formality. Recent enforcement actions have demonstrated the MGA’s willingness to use its power, including the cancellation of licenses for companies like Goldwin Ltd and Oddsfly Limited in late 2024 and 2025 for reasons such as failure to pay compliance fees and other regulatory breaches.

The dynamic at play reveals a complex contradiction. The Maltese government is aggressively defending a law (Bill 55) to protect its iGaming industry, while its own regulatory body, the MGA, is simultaneously implementing stricter rules that aim to prevent the very legal vulnerabilities that Bill 55 was created to shield companies from. This creates a situation where the government is fighting to preserve a law that the MGA’s new rules are arguably making redundant. The outcome of the CJEU case will ultimately determine which of these two divergent strategies—protectionism or proactive reform—will define Malta’s future.

Company Name	MGA Licence Number	Date of Action	Reason for Action	Type of Licence
Oddsfly Limited	C 57484	14/07/2025 (Cancellation)	Administrative Breaches	N/A
Dimsacon Limited	C 92886	21/05/2025 (Revocation)	Failure to remit fees	B2C
Goldwin Ltd	C-79820	13/03/2025 (Cancellation)	Administrative Breaches	B2C
GameSoft Limited	C-65855	20/11/2024 (Cancellation)	N/A	B2B
BTM Entertainment Group Limited	C-73982	22/03/2024 (Cancellation)	Failure to settle outstanding fees	B2C

Conclusion and Strategic Outlook

The Maltese iGaming industry stands at a critical juncture. Its decades-long success, built on a pioneering regulatory framework and a robust ecosystem, has made it a global leader. However, the legal dispute with the European Commission over Bill 55 represents a profound and potentially existential risk. The outcome of the C-440/23 case will be the defining moment, determining whether Malta can successfully defend its unique regulatory model or if it will be forced to realign with a more harmonized European framework, exposing its operators to significant financial liability.

The path forward for operators in Malta is clear. A wait-and-see approach is no longer viable; proactive adaptation is the only path to long-term success. This requires a three-pronged strategy:

1. Legal Resilience: Companies must proactively prepare for a potential post-Bill 55 landscape by strengthening their compliance efforts across all jurisdictions in which they operate. This involves ensuring that their operations can withstand legal scrutiny from foreign courts, thereby reducing their dependency on Malta’s protective legislation.
2. Technological Leadership: Maintaining a competitive edge requires continuous investment in proprietary platforms and emerging technologies. The success of Betsson, Evolution, and ComeOn Group demonstrates that in-house innovation and specialized content are powerful strategic moats that distinguish market leaders.
3. Reputational Management: In an increasingly scrutinized industry, trust is a critical asset. Companies must leverage a strong corporate culture, a transparent approach to responsible gambling, and a commitment to player protection to build brand trust with consumers, partners, and regulators.

In conclusion, the Maltese iGaming industry remains a powerhouse, but its future hinges on its ability to navigate a complex and evolving landscape. The outcome of the CJEU case will be the final word on whether Malta’s strategic use of its sovereignty will be upheld or if the principles of EU legal harmony will prevail. For stakeholders, the time for proactive adaptation is now.