Malta’s President, George Vella, has officially signed Bill 55 into law, which allows Maltese courts to refuse the recognition and implementation of foreign judgements relating to online gaming in Malta. The ‘Gaming Amendment Bill,’ as it is known, has been included into the country’s existing Gambling Act, regulating and supervising the business.
The newly approved regulation aims to protect licensed Malta Gambling Authority (MGA) operators against international enforcement actions in certain circumstances. The requirements will only apply if an action contradicts or undermines the legitimacy of Malta’s gaming framework and is related to an activity permitted under the Gaming Act and other regulatory instruments relevant to MGA licensees.
As a result, Maltese courts now have the right to refuse recognition and enforcement of proceedings demanded within the country by foreign betting and gaming regulators. This solution protects a wide range of B2B and B2C iGaming enterprises operating in Malta by ensuring that their licenses remain secure even if they commit regulatory violations in other markets.
While the measure boosts Malta’s position as an iGaming center, it has generated concerns about the bill’s possible influence on the broader European gaming sector. Some are concerned that the legislation may hamper international collaboration and efforts to fight global issues such as money laundering, fraud, and problem gambling. Due to legal constraints, collaboration and information sharing among countries may become increasingly difficult.
The passage of Bill 55 is considered as a direct response to legal actions taken by Austrian and German authorities against Maltese-licensed online gambling enterprises. These companies were accused of illegally providing online gambling services to nationals of various nations. The decision is intended to protect Malta-licensed businesses from external regulatory measures and punishments imposed by other nations’ betting and gaming regulators.
Malta’s bill has piqued the interest of gambling stakeholders, who are concerned about potential barriers to international cooperation. Some are concerned that the legislation could jeopardize the EU’s Brussels I Recast Regulation and the core values of European Rule of Law. European regulators have conveyed their concerns to the EU Commission, noting the complexity caused by disparities in EU member states’ rules.
In defense of its licensed operators, Malta claims that under the concept of free movement of goods and services, enterprises operating inside its jurisdiction can freely offer services throughout the EU. The country claims that this principle extends to the cross-border provision of betting and gaming items, which is hindered by differing rules across EU member states.
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