Mixed signals for Malta’s gaming sector: A pillar of growth facing perceptions of risk

Despite continuing to anchor Malta’s economic growth, the gaming sector is increasingly being perceived as one of the industries most at risk of decline, according to the EY Malta Attractiveness Survey 2025.

The survey, conducted between May and July 2025, collected responses from 120 existing FDI company investors in Malta, forming the basis for the insights highlighted below

The report highlights a complex picture: 58 per cent of investors think that gaming contributes to Malta’s long-term growth, up from 48 per cent in 2024. Yet one in five investors view it as the sector most at risk. This contrast underscores both the centrality of gaming to Malta’s economy and the shifting sentiment about its long-term resilience.

A core engine of growth

The survey positions gaming alongside tourism, payments, FinTech and AI as the four pillars contributing to Malta’s long-term economic performance. Together, they are helping sustain investor confidence in an increasingly unpredictable global environment.

“In a world where many countries are navigating inflation, political instability and fractured supply chains, Malta offers relative predictability, continuity and clarity. Investors are responding to that,” the report notes.

“But this isn’t a return to the past. It’s recalibration.”

Gaming’s role in that recalibration is clear. In 2024, the industry generated €1.39 billion in Gross Value Added (GVA), around 6.7 per cent of Malta’s total economy, and employed approximately 18,000 people, representing 6.2 per cent of the workforce.

The Malta Gaming Authority (MGA) continues to oversee the sector, ensuring regulatory compliance and supporting a framework that has positioned Malta as a global leader since it became the first EU member state to regulate remote gaming in 2004.

Global growth, local challenges

While Malta remains a major hub, the future growth outlook for gaming is increasingly international.

New opportunities are emerging in the US, Latin America, and parts of Asia, prompting strategic questions for investors: should new headcount and operational capacity remain concentrated in Malta, or expand closer to emerging markets?

For now, Malta’s regulatory ecosystem, infrastructure and multilingual talent base remain major attractions. Yet sustaining that pull will depend on whether the country can maintain competitiveness as companies scale globally.

Perceptions of risk

The mixed perception of the gaming sector, as both a driver of growth and a potential risk area, reflects a broader conversation about Malta’s economic model.

While foreign direct investment (FDI) continues to fuel growth, the EY survey points to a growing need for local champions within key sectors, including gaming, to ensure long-term resilience and innovation.

Other sectors identified as facing decline risks include manufacturing and special purpose machinery, but none are viewed as being under as much pressure as gaming.

A sector in transition

Despite a modest reduction in the number of licensed operators, with 315 companies and 323 active licenses by the end of 2024, the underlying fundamentals remain strong.

The MGA also continues to receive a steady stream of new applications: 28 for gaming licenses and 54 for recognition notices last year, reflecting ongoing interest from international operators.

The sector’s contribution extends beyond direct economic output. It supports a wide ecosystem of IT, legal, financial, and compliance services, providing diversified employment opportunities and reinforcing Malta’s position as a hub for digital innovation.

Outlook: Confidence amid change

As Malta looks ahead, the gaming sector’s growth potential remains solid at seven per cent, with investors expecting the island’s established clusters – tourism, aviation, gaming, and maritime – to continue driving prosperity, alongside emerging technologies such as AI and FinTech.

The message from the EY survey is clear: Malta’s gaming industry is both a cornerstone and a crossroads. It remains a defining strength of the economy, but its future will hinge on adaptability, innovation and continued investment in talent and infrastructure.