Case study: How CloudKleyer helped a gambling company to deploy infrastructure in Malta in 3 weeks and saved its budget

Gambling companies operating in Europe face strict licensing requirements. In 2024, one of our clients, a large gaming firm that CloudKleyer has been working with for almost 9 years, found itself in a difficult situation. The IT infrastructure located in Frankfurt was no longer compliant with the new regulatory requirements. There was an urgent need to obtain a local license to operate in Malta.

The client turned to us for a solution. And we successfully implemented the project, providing a turnkey Maltese license, including legal support and local infrastructure deployment in compliance with local regulatory requirements.

Before going into the details of the case, let’s focus on important licensing aspects that can have a significant impact on the success of gambling companies in today’s market.

Licensing in the gambling industry: what you need to know

Gambling licensing is a complex process that requires careful compliance with legal requirements and regulatory standards. In the European Union there is no single law regulating gambling: each country sets its own rules. And these rules change frequently, which creates additional obstacles for market participants.

Legislative changes have a significant impact on the complexity and duration of the process of obtaining a license. In this context, Malta stands out as one of the most attractive jurisdictions to obtain a gambling license. Strict regulations and transparent legislation provide a high level of trust and legitimacy for online casino operators and gambling companies. In addition, the Maltese license provides access to a large European and international market, making it particularly advantageous for companies looking to expand their business in the gambling industry.

Why Malta

Malta is a key player in the gambling industry due to its favorable taxation and internationally recognized MGA (Malta Gaming Authority) license. Here are the main reasons why companies seek to locate their infrastructure here:

1. Flexible regulation. The MGA license covers many countries, including the European Union and Canada. In addition, MGA is whitelisted by UKGC – UK Gambling Commission, so Maltese license holders have the opportunity to promote their business in the UK market.
2. Low taxes. Corporate tax on profits is 35%, but it is actually reduced to 5% if the conditions of the refundable mechanism are met.
3. Minimal bureaucratic barriers. Quick processing and support from government agencies.
4. Business protection. Malta actively protects the rights of licensed companies, providing a sound legal framework.

The MGA offers licenses for both B2C and B2B sectors, making the country attractive to gambling operators from all over the world.

Table 1. Types of gambling licenses in Malta and what opportunities they offer

Licensing includes strict checks on the financial information and technical infrastructure of companies, protecting players and creating conditions to prevent money laundering. License fees start from €5,000, depending on the type of company’s activity – allowing market players to choose the best option that suits their business models and strategic goals.

Investment attractiveness: game-changing legislative changes

In recent years, Malta, like many other EU countries, has revised its legislation on gambling. However, unlike, for example, Germany, Italy or France, the Maltese government is more focused on increasing investment attractiveness, so it is trying to create a simpler and more effective licensing system. So, in 2018, a new gambling law was adopted, which combined various regulations and simplified the process of obtaining licenses for all forms of gambling, including online casinos and lotteries. The license period was also extended from 5 to 10 years. Thus, operators will be able to plan their activities for a longer period of time without the need for frequent license updates.

In 2025, Malta is also expected to see several key changes in gambling legislation regarding regulation and licensing.

Malta is one step ahead: what can change in 2025

1. Accessibility. Getting a license will become easier and cheaper. The process of simplifying the licensing system, which was started earlier, will continue. It is planned to combine different types of licenses and reduce the requirements for operators, which will speed up the procedure and make it less expensive.
2. Tax changes. There will be new benefits. The 5% tax rate for licensed operators has remained attractive for several years. However, there is information about possible changes in the tax rules, which will aim to attract even more investment in the gambling sector. Perhaps the government will provide additional tax incentives for new operators or certain types of games, as well as change the structure of tax rates for various types of licenses.
3. B2B licensing update. The algorithm for obtaining licenses for B2B companies is expected to become less complicated. This may reduce barriers for service and technology providers in the gaming industry.
4. Timeline. There may be a simplification of the application process, allowing applications to be processed faster and reducing administrative costs for newcomers to the industry.

Most of the innovations are aimed at attracting new operators and supporting existing ones. This underlines Malta’s desire to maintain its status as one of the leading centers for online gambling in Europe, while ensuring high standards of regulation and protection of players’ interests.

Basic requirements for obtaining a license in Malta

At the moment, to obtain a gambling license in Malta, operators must meet the following conditions:

• Registration of the company in the jurisdiction of the island.
• Submission of an application to the MGA with all key business data.
• Submission of a detailed business plan and financial statements.
• Compliance with data security and player protection standards.
• Availability of share capital between €40,000 (for type 3 and 4 license) and €100,000 (type 1 and 2). The maximum amount of share capital is €240,000.
• Implementation of KYC (Know Your Customer) and responsible gaming policies.

In addition, separate conditions exist for IT infrastructure:

• gaming company’s servers must be physically located in Malta and maintained by a Maltese firm;
• hardware should be allocated in a certified data center in compliance with all security norms and licensing requirements.

In this case, it is necessary to place the resources in the local data center before submitting the documents for the license.

The whole process of obtaining the license takes about 6-8 months.

Unique aspects of licensing in Malta

By obtaining a Maltese license, companies face not only advantages, but also certain features that should be taken into account.

• Strict data center requirements. The data center where a gambling company deploys its IT infrastructure is required to have appropriate certifications, such as ISO 27001 (information security management), PCI DSS and other standards, to prove their ability to protect customer data. In addition, the data center must ensure a high level of service availability (e.g., 99.9% SLA) and have redundant systems in place for uninterrupted operations.
• Limited number of data centers. There are only three full-fledged certified providers on the island. Given the licensing standards, it can be difficult to choose a reliable partner to host servers.
• Excessively high cost of Internet channels compared to other countries. Compared to other countries, Internet tariffs in Malta can be as high as €50 per 1 Mbps, which significantly increases operating costs.
• High transportation costs for server hardware. Logistics and shipping hardware to the island can be expensive, which should also be considered when planning your budget.

These aspects underscore the importance of careful planning and preparation for companies seeking to obtain an MGA license and successfully operate in the gaming industry.

How much does an annual license cost in 2025.

The cost of a gambling license in Malta varies depending on the type of license, specifics, profitability of the business and other factors.

Table 2. License fee

Fees for B2C licenses vary in a wider range due to the variety of game types and directly depend on the operator’s income. Whereas operators with B2B licenses pay a fixed fee, which is also calculated based on income, but according to specific thresholds:

• income up to €5 million – the rate is €25,000;
• from €5 million to €10 million – €30,000;
• More than €10 million – €35,000.

A non-refundable application fee of €5,000 is also required to obtain a license. The annual fixed license renewal fee is €25,000 (B2B, B2C type 3, 4) and €10,000 (B2C type 1, 2).

Table 3. Estimated costs associated with obtaining and renewing an MGA license for B2C and B2B operators

Note: the amounts shown are indicative and may vary depending on the specific circumstances and requirements of the MGA. For up-to-date information and calculation of costs associated with licensing, it is recommended to consult our experts.

Prepare to get your license in just a month – submit your application right now!

From Frankfurt to Malta: our path to licensing

Our client: a leader in the world of gambling

The client in this project was a major gaming company with points of presence around the world. CloudKleyer acts as a service provider in Germany and has been cooperating with the company since 2016. Within the framework of this cooperation, various projects were implemented, including hosting and IT infrastructure management.

Client’s problem

The client’s IT infrastructure is physically located in Frankfurt, including those resources used for operations in Malta. However, with changes in legislation, there was an urgent need to move some of the infrastructure to the jurisdiction of Malta in order to obtain a gaming license.

Goals:

• obtain a license allowing to operate on the European and international markets;
• reduce the tax burden to 5% on profits and dividends;
• expand the business by entering new locations.

CloudKleyer’s task

Our task was to prepare a “springboard” for obtaining a license by creating a new IT infrastructure in Malta as soon as possible with minimal costs and risks for the client.

Our solution

To ensure compliance with licensing requirements in Malta, we have offered a comprehensive solution that includes legal, logistical and technical support at all stages of obtaining a license. Our team developed a plan that included:

● establishment of legal entity in Malta;
● transportation of hardware from Frankfurt and installation in a certified Maltese data center;
● deployment and testing of infrastructure first in Germany and then in Malta, to minimize risks.

It was necessary to carry out the implementation in a short time: no more than one month from the start of work to the completion of the project.

How did the idea to license in Malta came about

The idea of relocating the infrastructure to Malta emerged during the SiGMA World Europe 2024 exhibition in Lisbon. It was there that our project manager met with representatives of the gambling company.

After receiving information about changes in legislation from January 1, 2025, the client decided to urgently prepare for the registration of a license. The main tasks that were set for us:

• opening of a Maltese company (for settlements and interaction within the jurisdiction of Malta);
• mandatory physical presence in a data center that has the appropriate certification.

Cloudkleyer, for its part, held an on-site meeting with the client’s representative in Holland, where the timing and details of the project were agreed upon.

The work began immediately after returning to Germany. Our team analyzed in detail the technical and legal aspects of the project. A detailed plan with deadlines for each step was developed and sent to the client.

On November 8, we met with the client for final approval, agreed on the key points, and the project started. Soon the IT infrastructure was deployed in Malta and everything was ready for the second stage of licensing (more details about the stages and duration of the licensing procedure you can find below). In fact, the project timeline amounted to a month, and the technical part took less than three weeks.

Stages of the Malta Project implementation

The first stage: preparation

The preparatory stage began on November 20th and was the most time-consuming. There were many technical and organizational issues to be resolved.

The legal part

CloudKleyer Malta Ltd was incorporated as a subsidiary of CloudKleyer Frankfurt GmbH.

Administrative part

Choosing the right data center was an important task. We compared different options based on criteria such as SLA, reliability, certifications, terms of service and pricing. There are only three major providers on the island that meet the licensing conditions, and the most suitable one was CSL Data Centre Services, which offered optimal conditions.

CSL Data Centre Services

It is one of the leading providers of cloud and physical solutions in Malta. It is located in the city of Birkirkara. The provider has three Tier 3 compliant data centers that operate independently of telecom operators. The total area of the data centers is f 2,000 m2. They are connected to the main Internet providers via four submarine cables.

Client data security is a priority for CSL: the data centers are protected against DDoS attacks and offer information security solutions. The company offers a wide range of services, including IT infrastructure design and customization, cloud solutions (XaaS) with high performance, 24/7 support with guaranteed hardware recovery time of up to 2 hours, as well as remote system management and backup services.

CSL also holds certifications such as:

ISO 27001 certificate confirming compliance with international information security management standards;

• ISO 9001, which guarantees high quality processes,
• PCI DSS, which ensures data protection during payment processing.
• The nearest plans include obtaining SOC certification.

These certifications highlight CSL’s commitment to quality, safety, and reliability, making it a reliable business partner.

ISOIEC 270012022

CSL AOC-2024 3.2.1_v.1_signed

Technical part

On November 25, infrastructure preparation started: assembling and testing of hardware in Frankfurt. CloudKleyer specialists rebuilt the part of resources allocated for migration to Malta and tested in accordance with the client’s requirements. On December 2, the hardware was packed and ready for shipment.

The second stage: transportation

The hardware packed in pallets was shipped to Malta on December 3 using express delivery. The weight of the cargo was about 250 kg (two pallets).

Transportation to the airport had to be carried out by a special machine with a lift for loading equipment. Unfortunately, we are faced with a problem here, which we will discuss below.

The flight took 7 days and cost €5,000, including insurance. On December 10, the data center announced that the hardware had arrived at the site.

The third stage: connecting and launching the infrastructure

Vladimir Marchenko, IT Director, who arrived in Malta, carried out the entire range of works on the deployment and launch of the IT infrastructure.

• Hardware installation in the data center started on December 12.
• The next day the hardware was fully installed and connected.
• On December 14, the project was completed and the infrastructure was handed over to the client.

Vladimir installed and connected all servers and switches. Two power feeders were used to provide redundancy, and all necessary networks and channels were configured. After the final tests and settings, the IT infrastructure was ready for operation.

Technical specialists of the data center were involved in the works, among other things to assess the level and quality of technical support.

The Malta Project lasted from November 25 to December 14 and was completed in less than 3 weeks.

Project participants

From CloudKleyer’s side the following people participated in the project implementation:

• Nikolaos Konstantinou, Business Development Director (strategic planning, market analysis, negotiations);
• Vladimir Marchenko, IT Director (technical issues);
• Jan Weller, Managing Director (legal part, negotiations);
• Olga Boujanova, Project Manager (communication, coordination, negotiations);
• Two engineers in Frankfurt (technical implementation).

In Frankfurt, two technical engineers carried out the preparatory work and prepared the hardware for transportation. In Malta, the head of the IT department was responsible for connecting and configuring the servers.

On the gaming company side, a whole team was also involved, including:

• IT Director;
• Network Engineer;
• Hardware Engineer;
• Supply Chain Manager.

Legal and financial issues were handled by the legal department and the accounting department respectively.

Results

• Infrastructure. The local Tier III data center deployed a full rack of 42 units, including servers, switches, firewalls, and monitoring system. Two units were left free for future expansion, and dual power supply from the data center provides redundancy for reliability.
• Licensing. We prepared all documents required on our part to apply for a license, including data center certificates and a contract with a Maltese company.
• Timeline. The project was completed 2 days ahead of schedule: the infrastructure was handed over to the client on December 14.

5 main benefits of the Malta Project for a gambling company

One of the key benefits for the client was a significant saving of time and resources. Let’s look at this aspect in more detail.

1. Responsiveness and flexibility

We fully took care of the administrative and legal aspects: from registering the legal entity to collecting documents for licensing. The client could concentrate on his core business without being distracted by organizational issues.

The task was implemented on a turnkey basis and in record time:

• technical part, together with transportation and connection of hardware, took less than 3 weeks;
• preparation and establishing of the legal entity took us just a week.

Thanks to careful planning, clear coordination and professionalism of the CloudKleyer team, all stages were completed without delays. This allowed the client to start using the new infrastructure in a month after the project was agreed upon. This, in turn, provided the opportunity to submit documents for licensing.

In this case, the existing infrastructure at our data center in Frankfurt was used. If the project had been implemented from scratch, it would have taken about 14 additional days to deliver the new hardware.

2. Logistics optimization

The transportation of the hardware was organized as efficiently as possible.

• Express delivery: the hardware was delivered to Malta in 7 days, despite the logistical challenges (more on this below).
• Risk minimization: all stages of transportation were insured, which ensured the safety of expensive hardware.

3. Financial benefits

• Infrastructure migration. The client saved on the purchase of new hardware as we organized the migration of the existing infrastructure from Frankfurt.
• Optimization of the Internet costs. Despite the high cost of the Internet in Malta, we were able to optimize costs by configuring the infrastructure so that all data flows through a 100 megabit channel. This allowed us to minimize the Internet costs despite the monopoly of Internet providers on the island.
• Tax refunds. Malta offers favorable tax conditions for companies engaged in gaming activities. The client can take advantage of tax incentives that provide for a refund of part of the taxes paid. This allows reducing the tax burden and increasing profits.

4. Legal and organizational benefits

After establishing a legal entity in Malta and allocating the hardware in a Maltese data center, the gambling company became compliant with the new requirements for licensing.

License provides the following:

• will ensure that you can continue to operate without the risk of breaking the law and fined;
• also covers other countries, which expands gambling opportunities.

5. Reliable IT infrastructure

Infrastructure support and management by CloudKleyer provide a full range of infrastructure management and support services in Malta. This includes monitoring of hardware, ensuring security and solving all technical issues, including replacement of disks and other hardware components that fail. Clients can be assured of the reliability and security of their infrastructure without having to spend resources on setting up their own support team.

As part of our services, we are engaged in infrastructure management, which implies full access to monitoring the state of all servers and allows us to proactively respond to any changes in the state of the infrastructure. Engineers use special VPN access, which allows managing modern servers, such as IO and IBM, as well as running a console to access internal systems.

Monitoring is done via SNMP protocol, which allows you to monitor the status of all ports and devices, as well as assess the physical condition of the hardware. This is an important part of the service that CloudKleyer provides to the client.

Engineers also paid attention to the quality of cooling by installing coolers in the upper and middle part of the server room. All management slots are connected to separate switches, where the blue wires are responsible for our management and the orange wires are responsible for the client’s internal management. Each server is connected with two ten-gigabit cables for redundancy, ensuring a reliable connection.

The data center also has its own monitoring system, and we are promptly notified of scheduled maintenance and other important events via email and ticketing system.

In addition to data center monitoring, we use LibreNMS software, which gives the necessary flexibility and visibility, allows us to monitor switches, see port loads, channel loads, hardware issues, RAID controller issues, disk errors, memory errors, etc. The monitoring system is installed on top servers to avoid data loss in case of connection interruption. The possibility of switching to paid certified solutions in the future, such as Observium Professional or Zabbix, is also being considered.

As a result of our work, the client has a reliable, fault-tolerant IT infrastructure with 24/7 monitoring and support. Thanks to CloudKleyer’s professional approach, a gambling company can focus on business development without worrying about technical aspects.

The photos show how the infrastructure is organized: the upper servers are responsible for monitoring and management, and the lower servers are the client’s hardware. Optical cables, neat wiring and professional installation clearly demonstrate the quality of the work done.

Challenges of the Malta Project

The transportation experience: how to avoid logistical mistakes

Despite careful preparation and use of turnkey infrastructure, there were certain difficulties related to the transportation of hardware during the implementation of the project in Malta. The main problem was poor quality of delivery service.

Once again, we would like to point out that the cost of transportation was around €5,000 (including cargo insurance), as we aimed to deliver in a maximum of 7 days and ordered express delivery, counting on the reliability of logistics and the compliance of the vehicles with our requirements. However, the logistics partner let us down: the vehicle that came to pick up the equipment did not match the request. Instead of the required van with a lift designed for heavy loads, a small van with a low load capacity arrived on site. This created a risk of damage to the hardware, which weighed around 250 kg in total.

In the past, we have already had an unpleasant case when inappropriate transportation led to the breakdown of expensive servers. So this time we were especially careful. Fortunately, the engineers were quick to spot the problem, and thanks to the negative experience, serious consequences were avoided.

In Malta, we encountered unexpected difficulties related to Internet connection. First of all, with the price of Internet, which on the island is simply off the charts – up to €50 per megabit! For comparison, in Germany such prices seem to be something out of the realm of fantasy. This made us think seriously about how to optimize the network settings in order to minimize costs and stay within budget.

Issues with the Internet connection: high prices and limited infrastructure in Malta

The infrastructure on the island leaves much to be desired. With only three major data centers and only four undersea cables linking the island to the global network, which leads to monopolization of Internet services and limits the choice of providers.
And low bandwidth creates issues with data transfer.

CloudKleyer engineers had to work with a fairly narrow Internet channel of 100Mbit, which added to the challenges. They had to show all their skills to optimize the settings and effectively use the available bandwidth in conditions of limited Internet channel. In the end, they managed to establish a stable connection.

The process of obtaining an MGA license: terms and stages

Our team made every effort to ensure that the client was fully prepared for licensing. We promptly set up the company in Malta and organized the relocation of the infrastructure to the Maltese data center, completing all tasks within the established deadlines. However, it is important to understand that the licensing process includes not only these activities, but also a number of other important procedures that are beyond our control.

In order to successfully obtain a gaming license in Malta, the client also needs to meet the requirements related to the internal aspects of the company’s operations. In particular:

• to verify and, if necessary, modify the software to comply with the MGA’s security and data protection rules, which are strictly regulated by Maltese law;
• to prepare and submit the necessary documentation to the public authority.

For our part in this project, we provided all the necessary conditions for its launch. However, further steps, such as putting the infrastructure into operation, adapting products to the regulator’s requirements and preparing documentation, already depend on the client.

So, we strive to convey that setting up a company and relocating the infrastructure is just the first step, followed by important work to prepare for licensing. We value our clients’ trust and will support them every step of the way.

To give you a clear understanding of the process, we have prepared a summary table with information on the key stages of licensing in Malta.

Table. Stages and terms of obtaining an MGA gaming license

The timeline for obtaining an MGA license can vary depending on a variety of factors, including:

• completeness and accuracy of the application;
• quality of the documents prepared;
• speed of the applicant’s response to the regulator’s requests;
• complexity of the technical infrastructure;
• type of the applicant’s activity.

We recommend starting the preparation process in advance and carefully working through each stage to minimize possible delays. Our team is ready to provide professional support at all stages of licensing to make the process as smooth and predictable as possible.

Strengthening partnerships and prospects for CloudKleyer

Our company successfully coped with the set tasks, demonstrating a high level of professionalism and the ability to work under tight deadlines and requirements. Together with the client, we went all the way to obtain a license: from setting up a Maltese firm to launching the infrastructure and preparing a package of documents for submission to the MGA.

Opening a branch office in Malta was an important step in the development of CloudKleyer. The successful implementation of the project has further strengthened the partnership with the gambling company, as well as created a basis for further development.

Malta Branch Office

Now we have the opportunity to provide comprehensive services to companies whose activities require obtaining a gambling license.

The Turnkey Licensing package will include:

• provision of services from a company located in the island’s jurisdiction (we can set up a separate company for the client upon request);
• transportation of equipment;
• deployment of the IT infrastructure in the data center (connection and testing);
• assistance in document collection and licensing;
• monitoring and management of servers;

Our office in Malta will also assist clients in establishing businesses, providing legal, accounting and technical support.

New markets

CloudKleyer management is considering opening branches in Kazakhstan, Canada and Brazil. We are expanding our geographic presence and will soon be able to offer our services to new clients in these regions.

Contact us to find out what solutions we are offering for your project!

In order to give you a clear understanding of the process, we have prepared a summary table with information on the key stages of licensing in Malta.

Table. Stages and terms of obtaining a gambling license MGA

The timeline for obtaining an MGA license can vary depending on a variety of factors, including:

• completeness and accuracy of the application;
• quality of prepared documents;
• speed of applicant’s response to the regulator’s requests;
• complexity of the technical infrastructure;
• type of the applicant’s activity.

We recommend you to start the preparation process early and carefully work through each stage to minimize possible delays. Our team is ready to provide professional support at all stages of licensing to make the process as smooth and predictable as possible.