Malta has been made the subject of infringement proceedings initiated by the European Commission (EC) amid an alleged breach of EU regulation.
The case, of which Malta was formally notified of by the EC today, 18 June, stems from an amendment made two years ago to Article 56A of the Malta Gaming Act, known as Bill 55.
The amendment effectively offers a form of legal immunity for gaming companies licensed in Malta by the Malta Gaming Authority, protecting them from other legal action taken by the courts in other EU members.
In recent years, claims from Germany and Austria from customers looking to recoup historical losses have made headlines, with attempts to be awarded compensation for the fact MGA-licensed firms were operating in those markets prior to local regulation.
The EC’s formal notice of its action relates to the “Bad Application of Regulation (EU) No 1215/2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters”.
An update from the EC read: “The commission found that Malta failed to comply with the regulation by imposing on its courts an obligation to systematically refuse, on grounds of national public policy, the recognition and enforcement of judgments issued by courts of other EU member states against Maltese-licensed gaming companies.”
The commission added that by shielding its operators from cross-border legislation, Malta “undermines the principle of mutual trust in the administration of justice within the union”.
Malta’s government has confirmed it is aware of the action being taken by the EC, though it has reaffirmed its stance on the topic, noting that the act “does not establish new or separate grounds for refusing recognition or enforcement of judgments”.
Instead, the Maltese government added, it codifies the nation’s public policy on online gambling matters into law.
Malta’s government said: “Malta remains fully committed to maintaining a constructive dialogue with the European Commission.
“The government will provide a formal response to the letter of formal notice within the stipulated two-month timeframe.”
Should that reply not be deemed adequate by the EC, the case could be pushed towards the European Court of Justice.
The Malta Gaming Authority (MGA) has echoed a similar sentiment, defending the law and arguing it does adhere to the EU’s regulations.
The regulator stated: “As a member state operating within the framework of EU law, Malta has consistently maintained the position that its gaming regulatory framework is in line with the principles established by the Court of Justice of the European Union and the fundamental freedoms enshrined in the Treaty on the Functioning of the European Union (TFEU), specifically the freedom to provide services and the freedom of establishment.
“Malta’s public policy in the gaming sector is shaped by, and grounded in, these same principles.”
This is not the first time Bill 55 has been regarded as incompatible with EU regulations.
In 2023, Germany’s gambling regulator, the GGL, questioned whether the terms of the bill could co-exist within the EU’s framework. At the time, the MGA hit back at the suggestion from its German counterpart.
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Gaming hub’s legal framework that shields MGA-licensed operators from any legal action initiated by other EU members comes under scrutiny yet again
The post European Commission opens infringement proceedings against Malta over Bill 55 first appeared on EGR Intel.