The Malta Gaming Authority (MGA) has stated that Bill No. 55 does not shield Maltese operators from legal action in EU member states, amid an escalating dispute with the European Union.

The European Commission issued a formal notice questioning whether the bill complies with EU-wide regulations. However, the MGA defended the bill, emphasizing that it does not impose a blanket ban on the enforcement of EU court rulings against companies licensed in Malta.

The regulator noted that, as an EU member state, Malta maintains that its legal framework for gambling is consistent with principles established by the Court of Justice of the European Union (CJEU), particularly regarding antitrust laws and the fundamental freedoms enshrined in the Treaty on the Functioning of the European Union (TFEU).

Specifically, the MGA emphasized that Article 56A of the Gaming Act does not introduce any new or special grounds for refusing to recognize or enforce judicial decisions beyond those already outlined in Regulation (EU) No. 1215/2012. In essence, the article merely codifies Malta’s longstanding public policy on gambling regulation.

The MGA confirmed it will continue supporting the Maltese government in maintaining open and constructive dialogue with the European Commission.

A previous letter from the European Commission claimed that Maltese legislation serves as a shield against lawsuits from other EU countries – an assertion the MGA categorically denies. In its statement, the MGA stressed that it considers any unjustified restrictions on the freedom to provide services or conduct business within the EU’s internal market to be contrary to the case law of the CJEU.

The regulator reiterated that Article 56A of the Gaming Act does not create new grounds for denying the recognition of foreign judgments, but rather enshrines Malta’s established approach to gaming policy into law.

Interest in the bill has intensified recently after Maltese courts ruled in two separate cases that Austrian courts lack the authority to compel Maltese gaming operators to pay compensation to Austrian players. This comes despite Austrian courts having ruled in favor of the players, with Austria’s legal framework currently deeming all foreign gaming operators illegal.

The Maltese courts and the two operators involved argued that EU laws on the free movement of services take precedence, making the Austrian court decisions invalid in the eyes of Maltese law.

Source