The European Commission is closely scrutinizing a contentious gambling package just enacted by Malta MPs. Bill 55 intends to shield operators licensed by the Malta Gaming Authority (MGA) from responsibility stemming from their gaming activities. However, doubts have been raised about its conformity with EU legislation, forcing the Commission to request additional information from Maltese authorities.
Sabine Verheyen, a member of the Christian Democratic Union and the European People’s Party in the European Parliament, asked the European Commission three questions about Malta’s draft gaming bill. She sought clarification on its legality under European law and questioned about possible sanctions if Malta was found to be in violation of EU regulations.
On behalf of the Commission, European Commissioner for Justice Didier Reynders stated that they would review the legislation’s compliance with EU law. He also indicated that the Commission has no knowledge of any links between specific Maltese government members and the island’s gambling business.
As established in Article 258 of the Treaty on the Functioning of the European Union, the European Commission may take formal action against Member States suspected of breaking EU law. However, Reynders did not address the possibility of punishment in this situation.
The bill, which was passed by Maltese parliament in June, must be approved by the European Commission before it can become law. It amends Malta’s gambling rules, with the primary goal of giving legal protection to MGA-licensed operators.
One of the most important features of the proposed bill is a provision that prohibits courts from awarding plaintiffs damages if the basis for the litigation is related to activities permitted under the operator’s MGA license. This policy is intended to protect licensed operators from potential legal consequences.
Furthermore, the measure seeks to protect operators operating in the European grey market who have been sued as a result of their gaming activities. Courts in several jurisdictions, like as Germany and Austria, have compelled operators to reimburse players for their losses. However, operators have frequently invoked European freedom of services and questioned the compliance of local licensing systems with European legislation, resulting in payment refusals.
As the European Commission continues to investigate Malta’s gaming law, its conclusion will have far-reaching consequences for operators and the EU gaming industry as a whole. The decision will establish whether the proposed legislation is consistent with European law or if additional changes are required to strike a balance between operator protection and legal compliance.
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