The EU courts have been asked to step up their scrutiny of the impact of Bill 55 and its protection of Maltese companies.
The main criticism of the bill is that it is opaque and out of line with the EU framework and legislation. One of the most vocal critics has been the German regulator GGL, which has submitted its position to the European Commission in an attempt to force it to review the law and its effectiveness in line with the domestic and European framework.
“We are of the view that this law should not be in line with the European requirements for the recognition of decisions (Regulation (EC) 1215/2002).
However, it is not the responsibility of GGL to make a final assessment of this matter. We have informed the federal states of our assessment and are otherwise in contact with the relevant authorities,” GGL said.
The law has once again come under scrutiny as Maltese courts have ruled in two separate cases that Austrian courts do not have the power to dictate whether gaming operators in Malta must compensate Austrian players. Both courts in Austria had previously sided with the players, with the Austrian system referring to any foreign operator as illegal in the country.
The Maltese courts and the two operators have stressed the free market and EU laws that ensure the free movement of services, making the original Austrian decision illegal in the eyes of the Maltese legal system.
The cases involving Law 55 centre around two players who both lost significant amounts to the Maltese operator. Between 2017 and 2019, Gerhard Posch lost €40,500 at TSG Interactive Gaming Europe, which he later tried to get back when he sought a requisition order against the company, leading to a legal battle between him and the operator. Philippe Wahl also tried to get a case brought against European Lotto and Betting after he lost €38,000 in 11 days.
The MGA has consistently defended the idea that the bill is designed to protect Maltese operators from “unfounded legal claims”.
The Maltese regulator has previously stressed its intentions to ensure that “its licensees are permitted to operate where they have a valid legal basis to do so, and always in compliance with the requirements”.
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