Malta iGaming Regulation Impact
Gambling, a ubiquitous pastime worldwide, has drawn governments’ attention due to its lucrative nature. The regulation of this industry not only ensures public safety but also generates substantial tax revenue.
However, the advent of online gambling posed a significant challenge for countries. The digital realm allowed money to flow across borders, raising concerns about capital flight. Consequently, many nations have been reluctant to endorse foreign online casinos, and casino operators have faced legal consequences.
In contrast, the Maltese government has taken a different stance, passing a contentious law to safeguard operators licensed in Malta. On June 16, 2023, President George Vella of Malta signed Act No. XXI of 2023, known as the Gaming (Amendment) Act, into law.
Legal safeguard for Maltese operators
This legislation empowers courts to reject foreign judgments against Malta-licensed operators engaged in the European market, providing a legal shield for these businesses.
Introduced on April 24, the law aims to shield Maltese operators from legal actions related to gaming services within the scope of their existing licenses.
Malta-based companies in European markets
Under this new law, Maltese-based companies operating in European markets, including industry giants, are granted protection. They argue that their services fall under the Treaty of the Functioning of the European Union, guaranteeing the free flow of services within Europe.
Also Read: iGaming Ecosystem: Collaborations and Partnerships Driving African Industry Growth.
European Union legal framework
However, European governments and regulatory bodies cite a 2017 European Commission decision as the basis for blocking Maltese-based businesses from accepting bets within their jurisdictions.
Ongoing legal cases in Germany and Austria further exacerbate this complex legal situation. In Austria, the Supreme Court upheld a decision against PokerStars, owned by Flutter, leading to nullifying gambling contracts and reimbursement claims. In Germany, a court ordered an unnamed online casino to reimburse players’ losses, setting a legal precedent.
Opening the door for legal claims
These precedents have led to numerous claims against operators involved in these markets. AdvoFin alone claims to have recovered €40 million in player losses on behalf of 1,500 plaintiffs.
888’s position and EU law
Responses to these legal decisions vary. While some operators have honoured payments for losses, others, including 888-owned entities like Mr Green, William Hill, and Flutter-owned PokerStars, have resisted making payments.
Consequently, many legal professionals have initiated proceedings in Malta, where numerous businesses are headquartered. 888 argues that its license issued by Malta allows it to serve consumers in Europe and appeals to the EU principle of freedom to offer services.
Final words
The impact of this law on the global gambling landscape remains uncertain, as does the reaction of other nations. Malta’s iGaming law represents a unique approach in a rapidly evolving industry, with its consequences yet to unfold fully. Explore more on Malta iGaming regulation impact from above article.
