Malta’s gaming industry has consistently been identified as an integral part of the island’s economy. In a recent interview with SiGMA World, Keith Borg, Director of Economic Statistics at the National Statistics Office (NSO), discussed the gaming industry’s status, gross domestic product (GDP) contribution to Malta, employment perspective, and investment prospects for the future.
Impact of the gaming industry on Malta's economy
Borg insists that the gaming sector’s contribution to Malta’s economy is significant. He cites the close connections between the gaming industry, formally referred to as NACE 92, and the programming/software industry sector, technically known as NACE 62. Combined, the two industries contribute to more than 15% of Malta’s gross value added (GVA) and are an essential indicator of the Maltese economy.
“It is worth noting that the two industries similarly continued to grow steadily at rates averaging between 16% to 17% annually since 1995,” Borg states. He sees such a trend as “an indication of an industry with a strong ecosystem,” therefore underscoring the sector’s robustness and ongoing growth over nearly three decades.
“It is worth noting that the two industries similarly continued to grow steadily at rates averaging between 16% to 17% annually since 1995.”
Continued growth is reflective of Malta’s status as a top gaming hub in Europe, founded upon a sturdy and coherent industry infrastructure that continuously emerges and accommodates trends in the industry.
Malta’s competitive edge in the European gaming industry
Although several European jurisdictions have strengthened their gaming industries, Borg points out that Malta stands apart for one key reason — its significant contribution to the national economy. “Malta has the distinct advantage of the gross value added since it’s still noticeably performing well in our economy,” he explained.
Borg notes that from about 2022, the industry has undergone a fundamental shift to NACE 62, which changed the focus on service development rather than being entirely focused on the production of finished products. The change is indicative of an industry that is becoming increasingly innovation-oriented, focused on support services and technology development, rather than game production.
He also reflects on a pivotal moment in 2021, when Malta’s gaming sector was challenged by stricter licensing rules in Germany — requiring operators to hold both a German and a Maltese licence. “That affected the local market,” Borg notes, underscoring how regulatory changes in key jurisdictions can shape Malta’s industry trends.
While growth in the mainstream gaming sector has levelled off, Borg remains optimistic.
“We anticipate it growing even larger in the coming years,”
Industry productivity and employment
Recent reports by Malta’s Gaming Authority (MGA) disclose that the gaming industry employs between 14,000 and 15,000 full-time workers. While that is a substantial workforce, Borg points out that the industry’s workforce is small given its high productivity. “It is worth noting that the industry is of high productivity,” he says. While it works with comparatively fewer employees for its contribution to GVA, the industry’s efficacy and tech-savviness are shown through its ability to yield large economic output from its relatively sparse workforce.
Trends and developments in Malta’s gaming industry
Borg points to the growing significance of NACE 62 activities that are supporting the gaming industry. “Despite it not being the National Statistics Office‘s jurisdiction to give industry forecasts, I can say that this will definitely leave a mark on the industry trends,” he adds, citing the intensified support services, technology support, and innovation-oriented activities that are transforming the industry.
Additionally, one of Borg’s notable takeaways is industry adaptability. “The industry has demonstrated that it can easily integrate and adapt to emerging technologies,” he says. That versatility sets Malta up as a technological innovator in the gaming industry. He sees that versatility leads to higher profitability especially backed with the potential of artificial intelligence (AI). “With the addition of AI today, the potential is limitless,” Borg says.
Investment and growth potential
As the industry develops towards more service-based activities and embraces emerging technologies, Malta’s reputation is likely to be even more fortified.
Borg emphasises that the gaming sector remains a cornerstone of Malta’s economy. “It is not possible to quantify what the gaming industry will look like in five years, but it will most definitely gain momentum when it comes to the adoption of newer technologies.” With its mature ecosystem, adaptive strategies, and innovation-driven outlook, the industry is well positioned to continue driving growth in GDP, employment, and capital flows in the years ahead.
