MGA License vs. Interstate Treaty on Gambling: The Decisive Difference

The MGA license is recognized throughout the European Union, but it does not replace the German license under the GlüStV 2021. Although the Malta Gaming Authority offers a flexible regulatory framework, the German Interstate Treaty enforces strict technical limits such as connection to OASIS and LUGAS. For players in Germany, this specifically means: Only those who hold a permit from the GGL offer full legal certainty and access to national protection systems.

Legal Status: Does the MGA License Apply in Germany?

The difference between the MGA license and the Interstate Treaty on Gambling is fundamental. A permit from the Malta Gaming Authority is not considered sufficient authorization in Germany. Anyone wishing to operate legally in Germany strictly requires a license under the Interstate Treaty on Gambling 2021, as national regulations take precedence over the European freedom to provide services. Players must know that contracts with providers without a German license are often classified as null and void under civil law.

Why the MGA License Does Not Replace a German Permit

The Malta Gaming Authority (MGA) is an established regulatory authority that issues licenses for the EU internal market. From a German perspective, however, this license is not sufficient to meet the requirements of Section 4 of the GlüStV 2021. The Joint Gambling Authority of the Federal States (GGL) insists on strict requirements. This includes the mandatory connection to the OASIS player ban system and the LUGAS transaction database.

A casino that only holds a Maltese license cannot operate these technical interfaces. It lacks direct integration into the German control mechanisms. This poses a risk to player protection. Although many companies are registered in Malta as well as licensed in Germany, they are subject exclusively to the supervision of the GGL for the German market. The MGA license alone does not protect against regulatory action in Germany. The problem is of a technical nature: the MGA's systems are not connected to the central German database architecture. Real-time queries of gaming limits or player ban status are therefore technically impossible without a separate German license.

Conflict Between EU Freedom to Provide Services and National Law

Operators often refer to the Services Directive and the right to provide services EU-wide. Their argument: a license issued in Malta must also apply in Germany due to mutual recognition. This view ignores the special exemption regulations for gambling in European law.

The Interstate Treaty on Gambling 2021 justifies the state monopoly and the strict licensing requirement with the aim of protecting players and preventing addiction. National courts follow this line and do not automatically recognize foreign licenses in the field of online casino gaming. Those who want to grow quickly often use the MGA. For the German market, however, the complex process of local licensing is indispensable to remain legally secure.

Role of the European Commission and Ongoing Proceedings

The legal situation continues to evolve. The European Commission has initiated infringement proceedings against Malta. The reason is concerns regarding the independence of the Maltese regulation. In the background is the so-called "Bill 55". This law makes it more difficult for Maltese companies to have foreign judgments enforced.

A final clarification could come from the European Court of Justice (ECJ). Its opinions in Case C-683/24 are already available. Until then, the situation remains unclear for players. Although the MGA offers high safety standards and a good reputation, it is not a shield against German law enforcement. Players should be careful with providers without a German license. In the event of a dispute, legal recourse is often blocked in Germany. The EU Commission is also examining whether the German model of restrictive licensing is compatible with internal market law. In the long term, this could lead to adjustments. Currently, the GlüStV 2021 remains the authoritative legal basis for access to the German market.

Regulation in Detail: GGL Requirements vs. MGA Standards

The difference between the MGA license and the Interstate Treaty on Gambling is particularly evident in the technical enforceability of player limits. The Malta Gaming Authority (MGA) relies on provider-internal self-regulation. The German Interstate Treaty on Gambling 2021, on the other hand, forces a central connection to LUGAS and OASIS. These systems guarantee cross-operator bans, which do not technically exist under Maltese law.

LUGAS and OASIS: The Mandatory German Systems

What is the difference between the MGA license and the Interstate Treaty on Gambling regarding player bans? In Germany, the Joint Gambling Authority of the Federal States (GGL) must operate two central databases: LUGAS for real-time limits and OASIS as the player ban registry. Every licensed provider must synchronize its player connections with LUGAS to the second. This enforces the monthly deposit limit of €1,000. In parallel, the system checks the status in the OASIS player ban file before each game start.

The MGA lacks this central infrastructure. Maltese operators do implement their own limits, but these only apply in isolation per casino. A player can have themselves banned at provider A, but continue playing at provider B, since no overarching query takes place. The German player protection concept is based on the assumption that addictive behavior does not stop at domain boundaries. The mandatory coupling of LUGAS and OASIS prevents problematic gaming behavior from being bypassed by switching providers.

MGA Player Protection Directive in Comparison

How does player protection under the MGA differ from the GGL? The MGA requires its licensees to have a robust player protection concept. This includes tools such as reality checks and individual deposit limits. Casinos must provide links to support organizations and establish procedures for detecting signs of addiction. From a compliance perspective, these measures are serious, but they remain reactive and bound to the respective provider.

A critical point is child protection in gambling. German providers must verify age through strict identity checks before real money play is possible. The MGA often accepts digital, less invasive methods here. This increases the risk of minors gaining access. Addiction prevention under the GlüStV goes further. It combines technical hard limits (such as the €1 stake limit per spin) with central ban implementation. Under the MGA, the responsibility lies more with the user. They must set their own limits without an external authority like the GGL monitoring them in real time. German providers are obliged to refer to neutral advisory services such as the Federal Centre for Health Education (BzgA) or the portal Check-dein-Spiel.de. Maltese providers do offer help links, but these are not integrated into a national, state-coordinated network.

Advertising Restrictions and Compliance Obligations

What advertising bans apply under the GlüStV compared to Malta? This is where the jurisdictions diverge the most. The German Interstate Treaty bans gambling advertising between 6:00 AM and 9:00 PM. Also prohibited is any appeal targeting minors or downplaying gambling addiction. The GGL strictly monitors this advertising ban for gambling. Violations lead to heavy fines or license revocation.

Malta tends to follow EU standards, which generally allow advertising as long as it is transparent. Within the EU, MGA-licensed casinos can thus advertise freely. This leads to an extensive range of offers reaching German players, even though it is legally in a gray area. The MGA's compliance requirements focus heavily on anti-money laundering (FIAU guidelines) and fair gaming algorithms, rather than marketing-side restrictions. For operators, this means: anyone wishing to operate legally in Germany cannot simply copy Maltese marketing strategies. The separation between permitted EU advertising and prohibited German market access requires complex geo-blocking and content strategies to avoid sanctions.

Economic Factors: Taxes, Bill 55, and Provider Strategy

The difference between the MGA license and the Interstate Treaty on Gambling is primarily reflected in the economic burden and legal enforceability. German providers bear a high gambling tax as well as strict compliance costs. MGA-licensed casinos benefit from lower taxes, but see themselves protected from enforceable judgments by the controversial "Bill 55". This asymmetry explains why many payment service providers and operators remain in other EU countries despite regulatory risks, instead of choosing the complex path via the GGL.

Tax Burden: 5% Gambling Tax vs. Maltese Model

What financial advantages does the MGA license have over the German license? The answer lies in the structure of the tax burden. In Germany, licensed operators must pay a gambling tax of 5% on the game stake. Depending on the federal state and type of game, further burdens such as VAT on gambling may apply. In contrast, the Maltese system is designed for profit maximization. Although the nominal corporate tax in Malta is 35%, a complex refund system often reduces the effective tax burden for gambling companies to just 5% of profits.

This discrepancy makes Malta's corporate tax a decisive location factor. For operators, this means a significantly higher cash flow compared to the German model. There, margins are squeezed by high taxes and the effort required to connect to systems like LUGAS. Many providers use this tax efficiency to fund more competitive bonus offers, even if it means they de facto have to bypass the German market. The higher tax burden in Germany also leads to payout ratios (RTP) at German providers often being lower than those of international competitors in order to compensate for the tax burden.

Bill 55: Protection of Maltese Providers Against Foreign Judgments

What does Bill 55 mean for German players who want to sue? The so-called "Bill 55" is a statutory amendment in Malta. It prohibits Maltese courts from recognizing or enforcing foreign judgments if they are directed against the Maltese gambling regulator. This directly affects the Brussels I Recast Regulation, which is actually supposed to guarantee the mutual recognition of civil judgments in the EU. The European Commission has already initiated infringement proceedings, as this clause undermines the internal market.

For the German player, this has serious consequences. Even if a German court rules in favor of a player and orders an MGA provider to pay out, this judgment often remains ineffective in Malta. The difference between the MGA license and the Interstate Treaty on Gambling becomes apparent here in practical law enforcement. While German providers are subject to the GGL's strict catalog of fines and can be held liable for violations, MGA casinos evade this direct execution. Players face the problem that their claims are legally justified but factually unenforceable. This legal imbalance leads to many players having to give up their money in disputes with MGA providers. A lawsuit in Malta is expensive and uncertain.

Payment Processing and Risk of Fines

Why do many online casinos have an MGA license instead of a German license? Alongside taxes, operational flexibility plays a role. German licensees must adhere strictly to the catalog of fines. Violations of the deposit or stake limit (€1,000 or €1 respectively) carry the threat of sensitive sanctions. In addition, integration into the OASIS player ban system is technically complex and expensive.

Many operators therefore rely on the white-label model under the MGA license to get to market faster. They cooperate with international payment service providers that are less restrictive than those approved for the German market. Although the MGA also maintains a strict catalog of fines and can revoke licenses, the barrier to market entry is lower. However, the space for such gray areas is shrinking. The EU Commission is increasing pressure, and reputable payment service providers are increasingly auditing compliance to avoid reputational risks. The payment methods differ significantly. Due to strict regulations, German providers can often only rely on direct debit or certain e-wallets, while credit cards are often blocked.

Practical Check: Safety and Choice for German Players

The difference between the MGA license and the Interstate Treaty on Gambling is crucial for German users. A Maltese permit does not offer legal certainty domestically. Only inclusion in the whitelist of the Joint Gambling Authority of the Federal States (GGL) guarantees legal access. Without this German license, ISP bans and the civil nullity of contracts are a threat, as the MGA license does not substitute for the GlüStV 2021.

The GGL Whitelist as the Only Legal Way

The whitelist is the central register for all online casino providers permitted in Germany. It is maintained by the GGL, based in Halle (Saale), and ensures that only licensed companies operate in the market. For players, this means: if a casino is not on this list, it is legally an illegal provider, even if a valid MGA license is held. The German license is therefore not an optional add-on, but a mandatory requirement for operation. Many large brands use a Maltese corporate structure but run their German business strictly via the separate GGL permit to remain compliant. Anyone who plays outside this whitelist waives the legal protection of the GlüStV 2021.

Risks with Providers Without a German Permit

Is a casino with an MGA license legal in Germany? From the perspective of German jurisprudence, no. Contracts with providers that do not hold a German license are frequently treated as null and void in accordance with Section 134 of the German Civil Code (BGB). This has serious consequences. In the event of a dispute, players are often unable to enforce their claims. Although the Malta Gaming Authority is regarded as a reputable supervisory authority with high security standards, its enforcement power ends at the German border. The lack of connection to the German LUGAS system also means that gaming limits do not automatically apply across platforms. This regulatory vacuum means that payout disputes present a high financial risk for German users. Maltese judgments are difficult to enforce in this country.

Technical Enforcement: LIMAS and ISP Blocking

How is the Interstate Treaty on Gambling technically enforced? This is where the LIMAS (list of unauthorized gambling offered on the internet) procedure comes into play. The GGL in Halle (Saale) identifies illegal offers and transmits them to internet service providers. The latter then implement ISP blocks that block access to the corresponding domains. This technical tool effectively protects the whitelist from unfair competition by unlicensed MGA license providers. While the Maltese authority relies on its own compliance checks, it lacks a direct interface to LIMAS. Therefore, the German license is not just a bureaucratic label, but the key to technical accessibility and legal protection in the German market.

About This Article - Editorial & Responsibility

Author: Sarah Weber - Casino Tester & Bonus Analyst

Fact-checked by: Dr. Markus Hoffmann - Senior iGaming Compliance Analyst

Last Updated: 2026-08-17.

This article on "difference between MGA license and Interstate Treaty on Gambling" was written by Sarah Weber and fact-checked by Dr. Markus Hoffmann. Both regularly update the content regarding regulatory changes, license availability, and bonus terms. All statements regarding licenses, authorities, and legal frameworks refer to publicly accessible sources (GGL (Joint Gambling Authority of the Federal States), Interstate Treaty on Gambling 2021 (GlüStV 2021)).

About the Author

8+ years of casino reviews, 200+ personally tested platforms in the EU and internationally. Former member of the eCOGRA Player Advocacy Program (2018-2022). Specialization: wagering requirements, payout workflows, customer support assessment.

About the Reviewer

12+ years in the iGaming industry, including 5 years as a compliance consultant for licensed operators under the Interstate Treaty on Gambling 2021. PhD in Business Mathematics. Main research areas: bonus mathematics, wager analysis, player protection systems (OASIS).

Responsible Gambling

Gambling can be addictive. If you feel you are losing control of your gaming behavior, please contact BzgA gambling addiction help, Check-dein-Spiel.de, or use the central ban system (OASIS (central player ban system)). Set personal deposit and loss limits before playing with real money. Pauses and cooldown functions from providers are not a sign of weakness - they are a tool for sustainable enjoyment of the game.

Legal Disclaimer

The information in this article is for editorial and comparison purposes only. It does not constitute legal advice. The legal evaluation of online gambling without a German license is a gray area and is subject to ongoing adjustments by the GGL (Joint Gambling Authority of the Federal States). Players themselves are responsible for compliance with local regulations.