In June 2023, Malta passed Law No.55, which allows online gambling companies with an MGA license to accept players from EU countries without needing a local permit. This has sparked some fiery protests from EU regulators, who say that this move encourages illegal gambling.
Under the new Bill 55, Maltese courts can now reject notions and enforcements of foreign regulators for MGA-licensed operators.
Thanks to the new provisions, all actions initiated by foreign gambling regulators don’t have the force of law in Malta’s jurisdictions. Online casinos with an MGA license now have another layer of protection, knowing that no action can be brought against them when the activity is covered under their license.
Bill 55 was introduced in response to big-money legal challenges faced by MGA-licensed gambling companies from Austrian and German authorities. These companies were accused of providing services unlawfully to citizens in the respective states and were ordered to pay big compensation fines.
As a result, Malta passed this law and tries to uphold it by referring to the principle of free movement of goods and services within the EU.
European governments and regulators quickly voiced their concerns about the new amendments to the Maltese Gaming Act.
They point to the EC’s 2017 decision to close infringement procedures and complaints in its online gambling sector. With this decision, the Court of Justice of the EU fully allowed Member States to restrict gambling services to protect the public’s interest, fight gambling addiction, and combat fraud.
As such, given the EC’s 2017 decision on infringement procedures and complaints, experts quickly noted that navigating through the diverse gambling regulations across EU Member States will be a significant obstacle for the new Bill 55.
Moreover, leading European regulators argue that a bill like this can create a legal loophole and enable unlicensed operators to offer online gambling services in complete violation of national laws.
The European Commission was quick to act, saying that it would examine the Bill’s compatibility with EU laws and asking for more information from Malta’s authorities.
Once the Commission decides on the Bill, it can be appealed to the European Court of Justice. Throughout its existence, the court has decided various disputes between European and domestic legislation.
This legislation proves some critics’ points that although Malta has seen great economic benefits from its gambling laws, the island has sold its soul to the online gambling sector.
SOURCES:
- https://ec.europa.eu/commission/presscorner/detail/en/IP_17_5109
- https://www.vice.com/en/article/z3nmx3/how-malta-became-a-global-online-gaming-giant
