The contribution of the remote gaming industry to the Maltese economy increased by 12 per cent last year, a study revealed.
While remote gaming operators contributed directly through €22 million in gaming taxes and €6m in value added tax, the 4,500 industry employees paid €45m in taxes and national insurance contributions.
The Deloitte study was commissioned by the Malta Remote Gaming Council to gauge the impact of this thriving industry on the economy.
“The results show that without the remote gaming industry Malta would not have shaken off the effects of the global recession, would not be in the eurozone and would not have the strong economy it has today,” council general secretary Alan Alden told a breakfast meeting on the subject yesterday.
Without the remote gaming industry Malta would not have the strong economy it has today
Deloitte partner Raphael Aloisio said the 11.8 per cent growth registered by the industry last year over 2011 proved the strength of the sector in Malta.
While the number of licences increased minimally to 410 from 401 the previous year, gaming industry operators expanded their expenditure by €58m, or 11 per cent, and employees injected an estimated €100m into the economy.
The actual expenditure doubled since 2008, increasing to €227m from €112m that year.
The study showed that there was a 26 per cent rise in employment since 2011, totalling almost 4,500.
Although operators’ wage costs grew to €145m from €124m the previous year, the average wage received by remote gaming employees dropped by 7.5 per cent last year. Wages decreased from €31,000 to €28,400.
Other increased expenditure was attributed to telecommunications, IT, auditing, accounting and legal expenses, travel, entertainment and utilities.
The amount spent on rent made a significant contribution to the economy, Mr Aloisio said, with many estate agents saying that the gaming industry was responsible for 50 per cent of the rental market.
About €7m was spent on rent last year, with the largest segment renting properties in Sliema, Gżira, Ta’ Xbiex, Mosta and Naxxar areas.
The rent price tags for office premises shot up last year, mainly because of increased demand, with premises in the Sliema area being rented out for €200 per square metre.
The survey also showed that 65 per cent of operators felt that the level of service they were receiving from local banks was poor.
The Parliamentary Secretary for Economic Growth, Edward Zammit Lewis, said that the Government was committed to continue strengthening the Maltese gaming industry and the regulatory framework that protected it and its players.
The Government was working on new rules to regulate casinos on cruise liners and a study on social casino games was being carried out. He said that, if found to be feasible, the Government would regulate this niche market to attract more gaming companies.