A formal notice was filed by the European Commission questioning whether the bill complied with European regulations. However, the MGA has staunchly defended the bill, emphasising that it doesn’t impose a blanket ban on enforcing European judgments against Maltese-licensed gaming companies.
The MGA emphasised that as a Member State, Malta has “consistently maintained the position that its gaming regulatory framework is in line with the principles established by the Court of Justice of the European Union (CJEU)”. Specifically around competition laws and the fundamental freedoms enshrined in the Treaty on the Functioning of the European Union (TFEU).
Consequently, the MGA reiterates that Article 56A of the Gaming Act does not introduce new or separate grounds for refusing the recognition or enforcement of judgments beyond those already set out in Regulation (EU) 1215/2012. Rather, it codifies into law Malta’s long-standing public policy on gaming matters. The MGA will continue to support the Maltese Government in engaging in open and constructive dialogue with the European Commission.
A letter issued by the EC stated that it considers the Maltese legislation as a shield from litigation from other EU states, something the MGA vehemently denies.
An MGA statement defended the bill as the regulatory body underpinned its belief that any unjustified restrictions on the freedom to provide services and the freedom of establishment within the EU internal market run directly counter to the case law of the CJEU.
The MGA concluded its defence by outlining that Article 56A of the Gaming Act “does not introduce new or separate grounds for refusing the recognition or enforcement of judgments beyond those already set out in Regulation (EU) 1215/2012”.
They described it instead as codifying into law Malta’s long-standing public policy on gaming matters.
The bill was brought back into focus in recent times as Maltese courts ruled in two separate cases that Austrian courts do not have the power to dictate whether gaming operators in Malta compensate Austrian players.
This is in spite of courts in Austria both backing the players, with the Austrian framework currently citing any overseas operator as being illegal in the country.
Maltese courts and the two operators emphasised the free market and EU Laws enabling free movements of services, illegitimising the original Austrian decision in the eyes of the Maltese legal system.