Contentious Amendments to The Gaming Law Approved in Maltа
Author:
Muhammad Gregory
The passage of Bill 55, which is also known as the Gaming Amendment Bill, has officially been approved by the Parliament of Malta. The President of Malta, George Vella, granted the approval for particular amendments that legal experts from other regulated jurisdictions in Europe have questioned. The primary aim of Bill 55 is to safeguard gambling operators that hold a Maltese gambling license that has been issued to them by the Malta Gambling Authority (MGA) against foreign liability. Since the move has been acknowledged and approved by the Maltese Parliament, its provisions have been jotted down into the Gambling Act of the nation.
The passage of Bill 55, which is also known as the Gaming Amendment Bill, has officially been approved by the Parliament of Malta.
?Nick Fewings/Unsplash
Malta was one of the first countries in the world to start regulating iGaming in 2004 after instating a reliable regulatory and supervisory framework. The Maltese gambling market is one of the most active and renowned markets in the gambling world, and the MGA strictly monitors it. The online gambling segment is vital for the nation as it makes a significant contribution to the state. Every year, the iGaming sector makes its mark by making up 12 percent of Malta’s GDP. However, despite its prominence, the gambling markets are monitored strictly, and there are several directives in place to maintain player safety standards of the highest order and keep illicit activities like money laundering, match-fixing, tax evasion, and more at bay. The MGA is solely responsible for the implementation of these laws and measures. The online and land-based gambling segments are both regulated by the MGA and no other entity. This also includes the responsibility of approving operators’ applications for the jurisdiction’s official gambling permit.
The government was quick to realize the potential of increased tax revenue from the gambling sector, which is why an elaborate and efficient framework was laid down to support the activity. Apart from amusement and casino games, Maltese gamblers also have access to tombola and commercial communication games. The betting and lottery segments are also big contributors to the gambling sector. The regulation of lotteries was the first move towards a monitored market, and that happened way back in 1921. An extensive and rich history in online and land-based gambling has turned Malta into one of the leading hubs for all kinds of gambling activities, especially iGaming. There are more than 300 established gambling operators who have started in Malta, and in addition, there are some renowned names like Betsson, Evolution Gaming, Kindred, LeoVegas, and more already active in the competitive market. After focusing on player safety and keeping those standards high, Malta is now creating a shield for Maltese gambling license holders in other European jurisdictions.
In recent developments, Malta has confirmed the passage of Bill 55, which comprises amendments that protect gambling operators that hold a Maltese license from foreign liability. This Gaming Amendment Bill will halt Maltese courts from granting damages to plaintiffs who opt for legal proceedings against MGA-licensed gambling operators for offering their services in other regulated jurisdictions. Cross-border iGaming operations are prohibited in almost all regulated jurisdictions of Europe. If a legitimate Maltese operator intends to offer its services in any other regulated jurisdiction, it must apply for a gambling permit in that particular jurisdiction in order to become a legal operator there. The MGA specified that the scope of the amendments is restricted. The changes will only come into play when a player initiates legal procedures against an operator or vice-versa whilst undermining the legality of the robust gambling framework of Malta. While the provisions are already being written down, legal experts from other European jurisdictions claim that these amendments are quite controversial.
Criticism from other European countries
The frequency of Maltese iGaming operators appearing in gambling news for all the wrong reasons has increased significantly. Almost every other week, an online gambling operator from Malta is caught offering iGaming services in a jurisdiction in which it is not licensed to operate. Most recently, Austria and Germany initiated legal proceedings against such illegal operators after they were detected. In Austria, the subsidiary of Casinos Austria – win2day – is the only legitimate iGaming provider in the country. Despite that, there have been multiple instances where the domains of Maltese iGaming operators have been accessible to Austrian gamblers. The Ministry of Finance in the country is responsible for the supervision of licensed companies and also combats illegal entities.
There have been thousands of legal proceedings against Maltese operators in Austria. According to reports and past studies, over the last 30 years, about 3,500 cases have been registered in the nation. After the closure of these cases, the sum of over €350 million has been awarded as winnings to plaintiffs. Meanwhile, illegal operators have made over €900 million from Austrian players. Germany has also faced a similar situation, with the country’s first central gambling authority, Gemeinsame Glücksspielbeh?rde der L?nder (GGL), tirelessly fighting against illegal and illicit activities that are threatening its strictly regulated gambling market. The lawyers and other legal experts from Austria and Germany feel that the passage of Bill 55 has been approved primarily because of the legal actions that were initiated in the two countries.
While commenting on the amendments, lawyers from both jurisdictions stated that the new bill blatantly undermines the European Rule of Law by blocking the fundamental rights of European citizens and residents. It will be interesting to see how Bill 55 affects the Maltese and European gambling situation regarding illegal iGaming operators. It is safe to assume that the passage of this bill will not be the last controversial move related to this subject.
MGA cancels the B2C license of MKC Limited
With the passage of Bill 55, Malta has clarified that no operator or player will be subject to pay damages after legal proceedings if the framework and the Gambling Law of Malta are undermined. Despite the increased protection, the supervisory activity of the MGA remains strict. Following the same laws, the regulator has the authority to revoke the gambling permits of operators who fail to comply with the country’s Gambling Laws.
Maltese operator MKC Limited became the latest operator to have its license revoked by the MGA after multiple breaches in the law. The entity was offering online sports betting and casino games via Betworld247 under a B2C license. The Maltese operator was responsible for five violations. All breaches were related to financial commitments that the operator failed to comply with under sections of regulations 9 and 10, because of which its license was cancelled.
