There is a big rumble between Malta and the European Commission. The row revolves around a new Maltese gambling law, Article 56A, added in 2023.
This law is supposed to protect Maltese-licensed gambling operators from lawsuits from other European countries.
According to Malta, this law is fully in line with European rules. But the European Commission thinks otherwise.
In June, Malta received an official warning. The European Commission requires Malta to comply with EU law.
But lawyers in Malta are not impressed. They think Brussels is interfering in matters it has no control over.
One local lawyer even says it is more of a philosophical battle than a legal issue. He thinks the EU is interfering too much in things outside its original remit, such as gambling.
Malta continues to refuse to recognise foreign rulings
The row revolves around how Malta views European rules. Malta believes companies should be allowed to offer their services freely in the EU, including online gambling.
The European Commission thinks Malta should recognise foreign rulings against gambling companies. But Malta refuses to do so.
An example is a case with Austria. There, the court ruled that players had to get money back from a Malta-licensed gambling site. Malta refused to implement that ruling.
The Maltese court decided that such a foreign ruling does not fit with Maltese policy. According to Malta, such rulings go against their own laws.
Malta says it is not against strict regulations. But the country does believe that other countries should not be allowed to impose their laws on Maltese gambling companies just like that.
Lawyers believe Malta is strong in this legal battle
Local gambling lawyers say Malta has a strong case. They believe Article 56A falls neatly within EU rules.
One lawyer explains that European rules actually allow foreign rulings to be rejected if they clash with their own policies.
He says Article 56A does exactly that: it protects Malta from rulings that do not fit with their own laws.
Malta relies on its own rules and thinks their gambling law is robust enough to stand up in Europe.
A lawyer says: “The EU wants to interfere in something beyond their control. Malta trusts its own laws completely and sees no reason to put foreign laws above their own rules.”
How will this conflict between Malta and Europe end next?
If Malta does not listen to the European Commission’s warning, the case could go to the European Court of Justice.
That could mean the case drags on for years. But a case is already pending before that court over similar disputes in Germany and Austria.
The outcome of that case could have hefty consequences for Malta.
If the court sides with the European Commission, Malta’s law will immediately come under pressure.A lawyer expects it to take at least two to three years for final clarity. Still, he says the ruling in that other case could quickly impact Malta’s position.