The European Commission has declared its intent to closely examine Bill 55 of Malta, a contentious piece of legislation designed to safeguard Malta-based iGaming firms from litigation in other European Union (EU) Member States.
European Commission Demands Compliance with EU Legislation
Didier Reynders, European Commissioner for Justice, affirmed the Commission’s current process of evaluating the preliminary bill to determine its alignment with EU laws, as The Shift News disclosed. Replying to German MEP Sabine Verheyen’s written query, Reynders underscored the necessity for added details from Maltese authorities prior to making any decisions on subsequent steps.
Several questions were raised by the MEP to the Commission, among which the bill’s accordance with European legislation and the commission’s potential actions should it find any breach. Reynders made it clear that currently, the commission has no data on potential connections between individual members of Maltese authorities and the local gaming industry.
Also referred to as The Gaming Amendment Act, Bill 55 achieved the green signal from the Maltese Parliament in June. It intends to inscribe into law the nation’s longstanding policy of supporting gaming operators within its jurisdiction.
The modifications have a limited scope and don’t preclude any lawful assertions against licensees. Nevertheless, they apply in situations when an action, initiated by an operator or player, threatens the legality of the Maltese structure and relates to legal activities as defined in the Gaming Act and other regulatory tools applicable to the Malta Gaming Authority’s licensees. Judgments from abroad that meet these criteria will be neither recognised nor executed in Malta, as they are deemed in opposition to the nation’s public policy.
Bill 55 Triggers Legal Proliferation for Licensed Gaming Firms in Malta
However, this bill has roused considerable debate, particularly among Austrian and German legal practitioners representing clients entangled in legal squabbles with Malta-licensed digital gaming firms. These lawyers allege that the legislation erodes the European rule of law by violating the fundamental rights of EU citizens and inhabitants.
The matter of offshore online casinos operating in territories where they lack valid licensing has been a longstanding grey area within the online gaming sector. By potentially providing immunity to operators in the European grey market from legal actions arising from their gaming conduct, the implementation of Bill 55 may further obscure the already controversial issue of Eurozone’s freedom of services.
Malta, a significant nexus for iGaming businesses, has noticed a reduction in new gaming license issuances in recent times. This downturn has been previously linked to Malta’s 2021 greylisting by the Financial Action Task Force (FATF). Nonetheless, much of the reduction in license issuance beyond 2018 can be primarily attributed to Malta’s transition from the former multi-license framework to the current two-license system. It should also be noted that Malta has since been removed from the FATF grey list.
