The number of licensed e-gaming companies in Malta could mushroom this year as applications from overseas pour in at a rate of one a week.
If the controversial UK Gambling Bill fails to appease the disgruntled operators, Malta could be set for an influx of British online betting companies, according to Malta Lotteries and Gaming Authority chief executive officer Mario Galea.
Fifty-one foreign online betting operators are licensed in Malta, up from a mere 12 since the publication of the gambling legal notice last April. No fewer than 20 companies have registered their operations in Malta over the last two months.
"The interest in Malta is phenomenal and if we strike a deal with some of the companies that we're currently negotiating with then this industry is really going to thrive," Mr Galea said.
The main interest is coming from British operators who are concerned at the tax rates for online gaming and the lack of clarity in the much-disputed clause 35 being deliberated in the UK Gambling Bill.
Clause 35 defines an e-gaming operator as requiring a UK licence if "at least one piece of remote gambling equipment used in the provision of the facilities is situated in the UK".
Malta is the only other licensed EU gaming domicile with clearly set regulations and its gaming structures are considered to be ideal.
The British authorities are trying to hammer out a deal with the six largest e-gaming operators but three have already approached the Maltese lottery authority, Mr Galea said.
Though he stopped short of giving details about the companies considering a move, Mr Galea said one was an online casino, the other a betting exchange, and the third a sports betting service.
"One of the companies interested in setting up shop in Malta has a £1.7 billion turnover. We have requests from online poker sites that are bigger than William Hill and Ladbroke's... and that's saying something."
Interwetten, the fifth largest sports betting company, with a turnover of about £131 million, recently linked up with Maltanet, Maltacom's internet service provider.
In a billion-dollar industry, any shift of e-gaming to Malta would mean big revenue and the creation of jobs. Malta has a favourable tax regime with a rate of 0.5 per cent on bookmaking while the UK charges 2.5 per cent.
Direct revenue from tax for the existing licensees, excluding corporate tax, is expected to shoot up to Lm1.6 million this year.
Mr Galea said internet service providers generated money by selling bandwidth, co-location space and hardware. A total of 170 people are currently employed in the business.
The only sticking point that could hamper the arrival of new companies is the bandwidth allocation, though the operators are doing their utmost to put the necessary systems in place.
Maltanet's chief executive officer Keith Fearne said that Malta was fast earning a name as a serious remote gaming jurisdiction and the timing was right as the popularity of e-gaming explodes.
"E-gaming will keep growing and will continue generating money. The marketing drives we're doing overseas are certainly paying off," Mr Fearne said.