Accounting for gaming companies can initially appear complex due to the industry’s unique operational and regulatory requirements. Unlike traditional businesses, gaming operators must navigate specialised accounting treatments, multiple transaction flows, and industry-specific reconciliations that require a tailored approach.
However, when the process is structured into clearly defined stages and supported by robust procedures, the accounting workflow becomes far more manageable, transparent, and efficient.
The first step is to identify the nature of the gaming activity and the type of licence held — specifically whether the business operates on a B2B or B2C model, as each carries distinct accounting implications.
B2B gaming operations are generally more straightforward and, in many respects, resemble the accounting processes followed by non-gaming businesses. Revenue streams, supplier relationships, and transaction flows are typically easier to track and reconcile.
B2C gaming operations, on the other hand, involve a significantly more specialised accounting framework. These businesses process high volumes of player transactions and are required to perform a number of industry-specific reconciliations and controls. These may include, among others:
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reconciliation of revenue against PSPs (Payment Service Providers);
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reconciliation of player balances and wallets;
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tracking of bonus liabilities and promotional costs;
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segregation and monitoring of player funds; and
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verification of gaming platform reports against financial records.
Given the regulatory environment in which gaming operators function, maintaining accurate and timely reconciliations is essential not only for financial reporting purposes, but also for compliance, audit readiness, and operational transparency.
Another key consideration is the VAT treatment of the gaming activities undertaken. Depending on the nature of the services provided and whether the activities qualify as exempt or taxable for VAT purposes, the accounting treatment may differ substantially. This can affect revenue recognition, recoverability of input VAT, cross-border reporting obligations, and the overall tax efficiency of the business structure.
For this reason, gaming companies benefit greatly from accounting processes that are specifically designed around the operational realities of the industry, ensuring both compliance and meaningful financial insight.
Reporting Requirements
All gaming companies registered in Malta are subject to the regulation and supervision of the Malta Gaming Authority (MGA). Depending on whether the gambling company is in possession of a Maltese gaming licence, foreign gaming licence, or both, different requirements apply. As a general rule, a company licenced by the MGA must submit the following half-yearly and yearly reporting to the MGA:
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Industry Performance Returns
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Interim Financial Reports
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Annual Financial Reports
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Audited Financial Statements
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Auditor Player Funds & Gaming Revenue Declarations
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Auditor’s Management Letter
BDO accounting team can specifically assist and ensure the timely submission of the following:
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Interim financial reports, these cover the first six (6) months of a licensee’s financial year and include the provision of select key financial figures extracted from its financial statements. These reports shall be populated via the Licensee Portal within two (2) months from the end of the first six (6) months of a licensee’s financial year.
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Annual financial reports, these cover the entire twelve (12) months of a licensee’s financial year and require the provision of select key financial figures extracted from its financial statements. These reports shall be populated via the Licensee Portal within two (2) months from the end of the licensee’s financial year.
Audited financial statements, prepared in accordance with International Financial Reporting Standards and audited in accordance with International Standards on Auditing. The respective audited financial statements shall include the following:
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Audit Report signed by the auditor;
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Directors’ Report signed by the directors
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Statement of Financial Position signed by the directors
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Statement of Comprehensive Income;
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Cash Flow Statement;
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Statement of Changes in Equity;
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Notes to the Accounts.
Furthermore, for B2C licensees providing gaming services by remote means, the audited financial statements shall illustrate the Player Funds Account Balance separately under the Cash and Cash Equivalents Note to the audited financial statements, as well as illustrate player funds separately under the Trade and Other Payables Note.
Audited Financial Statements need to be submitted within six months from the end of the financial year. This can be done via the Licensee Portal through the Company timeline, by using the application “Annual Audited Financial Statements”.