Online casino suing is over, Malta is turning off the tap!
Malta confirms: Claims for damages from abroad will no longer be accepted! In recent months, the flood of lawsuits from Germany and Austria has been widely reported. Discussions began as early as May 2023 that the Maltese government was considering introducing a law to protect domestic gambling operators. But how did this wave of lawsuits come about in the first place?
Until June 30, 2021 Gambling in Germany banned except in Schleswig-Holstein. Therefore, many providers looked for alternatives and found them on the Maltese island that offered online gaming license. As a result, gambling also spread in Germany, and the providers generated considerable income. With the introduction of the State Treaty on Gambling in Germany, the situation in the iGaming industry changed.
From then on, the providers required an official license from the Joint Gaming Authority of the States (GGL) in order to be able to offer real money games.
This circumstance led to numerous lawyers filing suits against the providers licensed in Malta before the civil courts. Their reasoning was that the offers were illegal in Germany before the State Treaty on Gambling and therefore the gaming contracts between the players and the companies are void. The gambling providers would have violated the law, which means that the losses from this period are recoverable.
Malta Stop the madness from abroad!
The government in Malta has now taken measures to protect domestic gambling providers from further lawsuits from abroad. A corresponding draft law has been passed and various media are reporting on the current situation. According to the reports, the Maltese court will no longer enforce judgments from abroad as long as the companies concerned hold a Maltese gaming license and comply with local regulations.
The new law that has come into force stipulates that courts in Malta should no longer enforce court judgments from abroad, provided the companies concerned hold a Maltese gaming license and comply with local regulations.
The decision is based on the previous spate of lawsuits from abroad, which regularly saw companies on the island reimburse players for the losses they suffered. Now Malta ends this wave of lawsuits with the indicated law. However, the GGL is skeptical about this and is examining the compatibility with European law. However, the small island state is not impressed by this and stands behind the companies in their country.
The EU Commission is currently examining a complaint from lawyers who accuse Malta of violating European law. If this breach is confirmed, an infringement procedure could follow. The lawyers warn that other countries could introduce similar laws to protect their industries. This would have far-reaching effects on the European legal community.
It remains to be seen how gambling companies, against which lawsuits are being filed in Germany, will use the Maltese protective shield. Many of these companies also hold a German gaming license and are subject to supervision by the Federal States’ Joint Gaming Authority. The authority is closely monitoring the situation and will examine whether the use of the Maltese protective shield will affect the reliability of the providers and whether adjustments to the permits are necessary.
