iGaming & banking: Malta-based payments company pulls out of HSBC Malta bid
The banking landscape in Malta continues to pose challenges for iGaming companies. Today’s announcement of the withdrawal of German fintech firm RS2 from the negotiations to acquire HSBC Malta has dashed hopes for improved banking access for the sector – a missed opportunity that leaves an already struggling industry facing even greater uncertainty.
According to the , RS2, a global player in the digital payments sector, had tabled a joint offer (with an unnamed bank) exceeding €204 million to acquire the 70% stake held by HSBC Continental Europe in the Maltese bank. The plan also included relaunching the historic Mid-Med Bank brand, which had sparked cautious optimism among iGaming operators. However, a rise in the asking price from HSBC and increasingly complex negotiations led RS2 to pull out of the deal.
iGaming: economic powerhouse, shunned by banks
The online gambling industry has long been one of Malta’s key economic pillars. reveals that the gaming industry generated €1,386 million (GVA) and employs more than 14,000 FTEs. Yet, paradoxically, gaming companies continue to struggle with a reluctance from the local banking sector to welcome them as clients.
As early as 2019, de-risking policies promoted by the European Central Bank led institutions, such as Bank of Valletta, to close the accounts of numerous iGaming operators, making access to essential banking services even more difficult. Industry experts estimate that currently, only two Maltese banks possess the infrastructure and capacity to support the operational needs of major iGaming groups properly.
A global phenomenon – but Malta pays the highest price
The banking sector’s risk aversion towards iGaming companies is not unique to Malta, but the issue is particularly pronounced on the island. A 2021 academic study published in the highlighted that most local banks have gradually reduced or entirely discontinued services to gaming companies, with only a few select institutions offering limited, highly selective services.
Adding to the complexity are the stringent regulatory requirements regarding anti-money laundering, the need for sophisticated financial structures to ensure player fund segregation, and the management of cross-border payments. These fundamental necessities demand a solid, cooperative banking system – something that remains largely absent or inadequate in Malta.
HSBC sale in limbo: few bidders, many doubts
With RS2 now out of the picture, the sale of HSBC Malta remains uncertain. A handful of bidders remain in the race, each facing their own unique challenges. A consortium of local businesses submitted an offer reportedly well below €200 million, raising concerns over their true financial and technological capabilities to execute such a complex transaction successfully. According to the , two Eastern European banks have also submitted bids, but sources familiar with the matter have flagged reputational issues that could cast doubt on the credibility of these potential buyers.
Meanwhile, the sale process, initially expected to close by late spring, remains in limbo. Malta’s Finance Minister Clyde Caruana, speaking at a press conference in April after Maltese APS Bank withdrew from the bidding process, warned that the process “cannot drag on indefinitely”, while the European Central Bank has also voiced frustration over the prolonged negotiations.
iGaming companies caught between frustration and forced alternatives
In response to this ongoing uncertainty, many Malta-based iGaming companies are intensifying their efforts to secure banking services outside the island. While this provides short-term operational relief, it simultaneously undermines Malta’s appeal as a leading international hub for online gaming.
The paradox is striking, as the gaming industry continues to generate jobs and wealth for Malta, while local banks remain hesitant to support the sector, thus missing a key opportunity to diversify and strengthen the country’s financial system. In a context where Malta is still working to repair its global reputation following the FATF greylisting and the Satabank scandal, this restrictive banking approach risks further damaging the island’s credibility and competitiveness.
A future that remains out of reach
The HSBC affair perfectly encapsulates the fragility and contradictions that define the current relationship between iGaming and the Maltese banking sector. RS2’s withdrawal is not merely a failed business deal – it symbolises a missed opportunity for gaming companies, local banks, and Malta as a whole. Unless a more constructive, mature dialogue is established between financial institutions and the gaming industry, the island risks losing not only valuable investment but also its hard-earned position as a global leader in the digital gambling economy.
This article was originally written in Italian on 25 June 2025.
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