Bill No.55 Malta's gambling law divides the EU
In June 2023, the Maltese government passed a controversial law called Gambling Law Bill No.55, which is causing a stir both in Malta and across the European Union. This law has caused great uncertainty in the gambling industry as Malta now represents the sole legal authority for gambling operators licensed by the Malta Gaming Authority (MGA).
The background to this development is the numerous lawsuits filed by German players against Maltese companies demanding damages. This forced Malta to take measures to protect its own companies. The new gambling law on the island also affects German players and has highlighted the controversies across the EU.
Bill 55 aims to protect gambling operators from legal consequences due to their gray market activities, provided they are licensed by the MGA. This law requires courts not to recognize or enforce foreign judgments against these gambling companies if the activities fall under their license.
Dispute over the law: EU-wide disagreement and legal concerns
Germany's gambling regulator, the Joint Gambling Authority of the States (GGL), has raised concerns about the legality of Malta's controversial Bill 55. She believes that this is not in line with European law. The GGL has expressed its concerns as there are increasing numbers of successful ones Lawsuits against Maltese gambling companies where players claimed illegal losses due to non-legal gambling in their home country. This phenomenon was particularly observed in Germany and Austria.
The law prevents the enforcement of measures against MGA-licensed operators in two cases: if the measure affects the gambling service in Malta or if the measure constitutes an authorized activity that is legal under the Gambling Act. This means that Maltese courts could potentially refuse to recognize and enforce measures in Malta by foreign gambling regulators. Despite this declaration and communication with the German federal states, the final decision lies outside the jurisdiction of the GGL.
