A legal opinion by the European Court of Justice’s top lawyer could spell the end for Malta’s controversial online gambling laws.
Benjamin Fox
Malta is on collision course for another legal dispute with the European Commission over its online gambling industry, after the European Court of Justice’s top advisor said that its law which forbids Maltese courts from recognising rulings from other member states breaks EU law.
In a legal opinion published on Thursday (23 April), the court’s advocate general Nicholas Emiliou said that a controversial legal change introduced by Maltese lawmakers in 2023 was “manifestly incompatible” with EU law.
He added that “judgments delivered by the courts of the member states upholding players’ claims for restitution against Maltese online gaming operators are, as a matter of principle, to be recognised and enforced in all other member states, including Malta.”
In June 2023, Malta introduced a new provision into the Maltese Gaming Act through an amendment referred to as Bill 55.
Under Bill 55, Maltese courts can “refuse recognition and, or enforcement” of any foreign judgment involving companies registered on the island, including Maltese-licenced gaming operators.
Along with financial services, the internet gaming sector has boomed in Malta and accounts for about 12 percent of its economy thanks, in large part, to generously low corporate tax rates.
But Bill 55 effectively provides protection for gambling outfits such as Pokerstars, Betsson and Unibet, who are among more than 320 gambling companies who have licences in Malta, from potentially having to pay out millions in legal claims.
The law, which was rushed through parliament with cross-party support in three weeks, was described by the Maltese government as part of a longstanding policy of “encouraging the establishment of gaming operators”.
Ministers in Valletta argue that their gambling laws are based on the EU single market’s principle of freedom to provide services.
