The Parliament of Malta has given its approval to Bill 55, a significant legislative measure that grants Maltese courts the power to reject the recognition and enforcement of foreign judgments pertaining to the online gambling industry.

Gaming Amendment Bill

Introduced on April 24, 2023, Bill 55, also known as the Gaming Amendment Bill has been championed by Hon Silvio Schembri MP, the Minister for the Economy and European Funds.

Following its approval by the Maltese President Dr George Vella, the provisions of the bill have been incorporated into the country’s existing Gambling Act, which governs and regulates the gambling market in the jurisdiction.

The legislation specifically bars enforcement actions against operators licensed by the Malta Gambling Authority (MGA) under two circumstances. Firstly, if an action conflicts with or undermines the provision of gaming services in Malta, it cannot be pursued. Secondly, enforcement measures cannot be taken if the operator’s conduct relates to an authorized activity that is lawful under the Gambling Act.

Consequently, Maltese courts will now decline to recognize and enforce actions initiated by foreign betting and gaming regulators within Malta.

Malta is global gaming hub

The significance of this development lies in the fact that Malta is a prominent hub for numerous B2C and B2B operators in various European betting and gaming markets, as well as in other jurisdictions across the globe.

Bill 55 has sparked controversy among legal experts, with many perceiving it as a direct response to legal actions taken by authorities in Austria and Germany against online gaming companies licensed in Malta. These companies have faced allegations of unlawfully providing online gambling services.

Despite criticism, Malta asserts that its MGA licence permits businesses based in the country to offer services throughout the European Union, invoking the principle of free movement of goods and services, regardless of specific gambling laws in individual EU member states.

Cross border gaming products

Previously, Austrian courts had issued liability orders to Maltese courts concerning penalties imposed on 888 Holdings for infringing on the monopoly rights of Casinos Austria.

The MGA states that the freedom encompasses the cross-border provision of betting and gaming products. However, the diverse regulatory landscape across different EU member states complicates matters. European regulators have expressed their concerns to the EU Commission, arguing that Bill 55 undermines the European Rule of Law. The Commission has intervened as the approval of this bill could create a legal loophole, allowing unlicensed operators to continue offering services in contravention of national laws.  

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